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10 Is

air cargo dovetailing E-commerce industry?

36 AI

& Robotics: Emergence of the Fourth Industrial Revolution

50 Skill

India: Assessing the potential

Express logistics companies Riding the wave

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contents

Volume X • Issue XI • october 2019

Publisher & Editor-in-Chief Smiti Suri Principal Correspondent Ritika Arora Bhola Special Correspondent / Sub-editor Upamanyu Borah Correspondent Saurabh Sharma

10

18 COVER STORY

SPECIAL FEATURE

Express Logistics companies riding the wave

Is Air Cargo dovetailing E-commerce industry? trending

feature

Reporter Pallavi Jain Director Ajeet Kumar Marketing Manager Rahul Arora Marketing Executive Akash Gupta Rahul Jain Accounts & Administration Lavish Thakur

Skill India: Assessing the potential........50

INTERVIEW

AI & Robotics: Emergence of the Fourth Industrial revolution ..............................36 infrastructure

India needs `19 lakh cr for roads in 5 years.................................................46 spotlight

R Shankar, CEO - India, TVS Supply Chain

Solutions...........................................................52

FRONTLINE ..............................................6 Buzz .......................................................8 NEWS ...............................................58-65 AUTOCONNECT REPORT ....................66-71 EVENTS ............................................72-74 UPCOMING EVENTS ................................76 APPOINTMENTS .....................................77 SHIPPER SPEAKS Prashant Bhatmule, Head-Outsourcing, JK Paper ..................................................................54 Suresh Chugh, GM & Head- Logistics, Raymond Apparel .....................................................56

India’s need for a paradigm shift in exports................................................48

28,658

Designer & Visualiser Ashok Saxena

PEOPLECONNECT niki frank

Chief Executive Officer, DHL Global Forwarding India ..78

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 National committee on trade facilitation – chaired by the Cabinet Secretary – is working to make trade facilitation a reality. As many as 76 specific action points on trade facilitation are being monitored at the highest level.

In the World Bank’s ‘Doing Business’ 2019 report, India secured 77th position. The country has improved its ranking by 53 positions in the last two years and 65 places in four years since 2014. The government will invest a massive `100 lakh crore on developing modern infrastructure that will aid in nearly doubling the size of the Indian economy to USD 5 trillion in the next five years. While the overall warehousing supply (grade A and inferior grade) is expected to be around 60 million sq ft till 2020 end, at least 22 million sq ft of this supply is estimated to be in the grade A category. From now to 2025, there are $ 1.5 trillion worth in value for logistics operators and an additional $2.4 trillion in benefits for companies who embrace the digital transformation of the industry. 6

CargoConnect - october 2019

Piyush Goyal, Commerce and Industry and Railways Minister

We are now in a mood to push industrialisation that in turn will help in better utilisation of port infrastructure. The focus is on optimising cost and time of cargo movement to enhance the competitiveness of Indian industries through port-led industrialisation. Dilip Kumar Gupta, MD, Sagarmala Development Corporate Ltd (SDCL)

The newly-launched first-of-itskind Transshipment Excellence Centre (TEC) facility, will contribute significantly in promoting Bangladesh’s textile and retail industry leveraging to carry and connect voluminous air cargo across the world. Sanjiv Edward, CCO, Delhi International Airport Limited (DIAL)

Warehouse leaders today are turning to technology to address business critical challenges resulting from this global phenomenon, by adopting advanced technology and empowering their workers with a performance edge. Tan Aik Jin, APAC Vertical Solutions Lead, Manufacturing and Transportation & Logistics, Zebra Technologies

The Commerce Ministry’s recently proposed export promotion scheme, supported with a production-based support scheme, coupled with a weaker rupee, is expected to boost ‘Make in India’ and benefit multiple industries. Steve Felder, Managing Director, Maersk South Asia


buzz

45 ACCAI Annual Convention

Sunil Arora

th

CK GOVIL

the form of breathtaking rainforests, mountains and spectacular beaches, fascinating cuisines, amazing accommodation with rejuvenating spas a nd awesome advent ure. ACAAI Convention 2019 thus offers delegates this fabulous opportunity to engage in business and pleasure in the midst of the charming cultural and tourist delights of Phuket. ACAAI will not only offer a platform to exchange knowledge extensively on the subjects pertaining to the Indian air cargo industry but also an opportunity to the stakeholders from all across the globe like IATA accredited air cargo agents, airlines, GSAs, Custodians, etc. to gather at one place and make the most of it.

Anil Vazirani

I

t is definitely an exciting time for the air cargo fraternity as Indian Air Cargo Industry’s biggest event, the much-awaited 45th Air Cargo Agents Association of India (ACAAI) annual convention is all set to kick-off in Thailand from November 21-24, 2019 at the Westin Siray Bay Resort & Spa, Phuket. The theme for the four-day-long convention this year is ‘End-To-End Logistics - The Way Forward.’ This will be the third ACAAI Convention to be held in Thailand, the previous ones being held in Bangkok in 2005 and Chiang Mai in 2006. The beautiful island of Phuket on the Andaman Sea has a lot to offer from alluring natural beauty in

Afzal Marbarwala

goes to Phuket

Gujarat tops logistics performance index for the second time

G

ujarat has once again topped the logistics index chart, an indicator of the efficiency of logistical services necessary for promoting exports in particular and economic growth in general, closely followed by Punjab and Andhra Pradesh The state has been ranked the highest in the second

edition of the Logist ics Ease Across Different States ( LE A D S) i n d e x which is

based on indicators such as infrastructure, services, timelines, traceability, competitiveness, security, operating environment and efficiency of regulation. The index is devel-

8

CargoConnect - october 2019

In the recent developments, Sunil Arora has been appointed as the President of the ACAAI for 2019-2020. Arora, who held the post of Vice-President earlier, takes over from TA Varghese. Afzal Malbarwala who previously served as Secretary General, has now been appointed as the Vice-President of ACAAI. While CK Govil and Anil Vazirani have taken over as Secretary General and Treasurer, respectively.

oped by the commerce and industry ministry along with Deloitte. However, t he LEADS study clearly pointed the areas that the state needs to work upon, such as specific road links that need widening in Gujarat, rail network capacities that require enhancement and issues around security of cargo on specific stretches, power tariffs, toll rates and terminal capacity of Ahmedabad airport. Gujarat has also emerged as the best performer in terms of providing the right ecosystem to start-ups in the firstever ranking exercise of States and Union Territories carried out by the Centre, as was released by the Department of Industrial Policy & Promotion (DIPP).


special feature

Is air cargo dovetailing E-commerce industry?

10 CargoConnect - october 2019


The impact of cross border ecommerce on air freight market has been remarkable. Air cargo industry is likely to rake in moolah in times to come but this should not procreate the sense of complacency in the minds of stakeholders, as the fickle nature of E-commerce and intrepid advancement in technology will always remain the key factors to consider with utmost alacrity. Saurabh Sharma

ir cargo transportation drives economic and social growth by facilitating global trade, with an estimated 35 per cent of value of global trade carried by air, though it accounts for less than one per cent by volume. The role of air cargo is enormous in time-sensitive products such as agri-perishables, horticulture and floriculture, marine products, pharmaceuticals, electronics, fashion garments, etc. More recently, it has been supporting E-commerce with global majors like Amazon and Uber now taking up own air freight operations while initiating plans to use the next-gen Vertical TakeOff and Landing (VTOL) aircraft for their aggregation and door-

to-door distribution operations.

Domestic ground report

Though the potential in the new markets needs to be explored with longterm infrastructure creation in order to sustain cargo growth in the next 10-15 years, the National Air Cargo Policy is going to pave way for the advancement of India in air freight markets. The domestic air freight demand is expected to touch 1.1 million tonne by the fiscal 2025 at a compounded annual growth rate (CAGR) of seven to nine per cent propelled by rapidly growing E-commerce activity, increasing capacity and improving airline connectivity to smaller cities. However, cargo capacity of airlines is expected to grow at a higher CAGR

$4,800,000,000,000 value of global e-commerce forecast for 2021

october 2019 - CargoConnect

11


special feature of 13-15 per cent, given the impending fleet expansions. The estimated ` 600700 crore domest ic dedicated air freighter market stood at 0.8 million in 2019, logging a CAGR of 8 per cent in the last five fiscals, this will further the market towards airlines, says ratings agency Crisil. Shorter lead distances compared with global freighters, lack of significant niche cargo, and cut throat competition from airlines which also carry cargo in aircraft belly are expected to continue restricting growth of domestic dedicated freighters. Noting that the a larger part of the cargo FY 2014- 2019 period was transported in aircraft belly, a 14 per cent CAGR spurt in domestic airline capacity provided adequate room to support its growth, marks the Crisil note.

With increase in the movement of parcels, there will certainly be the requirement of more low cost carriers which can deliver the assignment to destination in most financially viable manner.

Real-time challenges

E-commerce sector in Asia is highly competitive in contrast to that of Europe and United States and consequently the margin are also tight. Therefore retailers and E-commerce companies are inclined to strike the most cost-effective method with air freighters which in turn makes the competition among air freight market even more intense. By 2020, global cross border E-commerce sales are expected to grow on average 25 per cent per year, reaching $900 billion, with Asia Pacific as the dominant market. According to Ingo Zimmer, CEO of

12 CargoConnect - october 2019

Ingo Zimmer

CEO, ATC Aviation Services

Asia is definitely the target for 2019, and we are looking at Japan and Korea, in addition to some other Asian countries. However, due to overcapacity and under-demand, rates are going to drop, especially to China. We will have to scratch a bit of our part of the market share. ATC Aviation Services, “Asia is definitely the target for 2019, and we are looking at Japan and Korea, in addition to some other Asian countries. In India, we are looking for new customers. However, due to over-capacity and under-demand, rates are going to drop, especially to China. We will have to s c ratc h a bit of ou r pa r t of t he market share.” O n t he ot her h a nd, St e phe n Dawkins, Chief Executive Officer, Air Logistics Group (ALG) believes that 2019 will be another challenging but very exciting year for the air cargo industry in Asia. “There are a number of factors on the short/medium-term horizon such as economic tension, trade wars, inflation, the instability of the fuel price, and currency volatility that are quite unpredictable but they will definitely bring opportunities for our industry,” reasons Dawkins. Going forward, the air cargo industry face many challenges like communication, security and tracking capabilities that can be overcome by digitization, however there are certain deterrents which are circumstantial, some of them are enlisted below:  Fuel Costs: The cost of fuel is a major concern for airlines, and increases in fuel prices have a major impact on route profitability.  Security Filings: Security and safety in the air cargo industry refer to both concerns about malicious attacks as well as the challenges inherent in managing hazardous materials.  Trade Inhibitions: According to the February 2018 IATA Cargo Strategy report, trade restrictions

is another major threat to the entire logistics industry, including air shippers.  Over-Capacity: Another major challenge in the air freight industry is over-capacity—planes are not travelling full. Besides, payment collection is a major challenge from the unorganised markets. Cambodia and Myanmar could be considered as very tough markets when it comes to collections. Many cargo sales agents get stuck due to the pressure from airlines to achieve the targets vs working with customers who have a tendency to delay payments.

Equipping air cargo to respond to demands

As the whole world is a marketplace in the age of online businesses, air cargo should be well-positioned to serve their needs and deliver their goods globally with speed, efficiency, and reliability. As markets evolve and customer demands change, airlines must constantly review and update their operations and product offering to ensure that they continue to meet the market needs. One important part of this story is the evolution in business models and market structures observed in the industry, notably the rise of the so-called Low Cost Carrier (LCC) business mode. Air cargo industry continues to facilitate the E-commerce business in so many ways:  Strengthening safety for cargo and air mail: Implementing Mail Safety Guidelines developed by IATA and the Universal Postal Union for airlines and global posts offices to ensure that no dangerous goods and prohibited items


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special feature are accepted in airmail.  Digitalisation: Cargo and mail IT systems mapping the two different systems for mail and cargo to allow visibility through bookings and allocations, planning through volumetric information, tracking through compatible messages.  Stakeholder Engagement: Promoting the use of existing trusted trader programs to recognise and differentiate the E-commerce players who are educated, trained, and compliant in the areas of safety and security.  Custom Clearances: Developing and implementing flexible solutions for pre-departure and pre-arrival risk assessments by customs for cargo and mail to

The optimum utilisation of airport land will prove crucial if there is plenty of land available to an airport and is in the better position to attract fulfilment centers for E-commerce businesses.

14 CargoConnect - october 2019

Jason Tse

Manager, Commercial Leasing– Cargo, Vancouver International Airport

There are a few near term opportunities including the continued growth of E-commerce. In Canada, only about 8 per cent of retail is done via E-commerce. Emerging industries that support the 5G revolution and the progression of IoT technology could be game changers. comply with regulatory requirements.  Sustainability: Developing a certification mechanism or a code of good practice for E-commerce platforms that sell lithium battery products to identify the trained ones complying with agreed sets of standards and safety programs.  Cargo IQ and/ or Cargo Service Quality: Assess the use of industry safety and performance through a system of shipment planning and performance monitoring for air cargo based on common business processes and milestones.

How to bear the ultimatum?

The international express market has already proven its mettle with an impressive growth record. And the

E-commerce disruption of traditional supply chains has been forcing the air cargo sector to respond, and fast. Among the notable names, Atlas Air Worldwide Holdings, which has made inroads into the express market, currently has signed deals with DHL, UPS, F e d E x , C h i n a Po s t a n d o t h e r express firms. The optimum utilisation of airport land will prove crucial if there is plenty of land available to an airport and is in the better position to attract fulfilment centers for E-commerce businesses. Investment in infrastructure to create an integrator hub or secondary airport for air cargo traffic will have the volume for the freighters. Counting on such prospects of capacity expansion, Vancouver International Airport’s (YVR) International terminal will enhance the airport’s position as a world-class connecting hub. “The focus will be on expanding terminal’s ability to help meet the demands of air freighters. The expansion will allow for an additional eight wide body gates, including four bridged gates and four remote stand operation gates. There is a fin-to-fin cargo facility as part of the project,” explains Jason Tse, Manager, Commercial Leasing– Cargo, Vancouver International Airport. “There are a few near term opport u n it ies i ncludi ng t he cont i nued growth of E-commerce. In Canada, only about eight per cent of retail is done via E-commerce. Emerging industries that support the 5G revolution and the progression of IoT technology could be game changers,” says Jason.


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special feature

Looking Forward

Establishment of agreements between national carriers/ freighters and integrators to improve domestic connectivity is also of utmost importance.

It is not news any more that E-commerce is causing a transitional shift in the supply chain market, and air express market is at the very crux of it. As geographic boundaries do not inhibit online retailers, shipping products by air will result in swift deliveries. Therefore, use of air transport in moving goods from one location to another is resulting into increased popularity among end users. With increase in the movement of parcels, there will certainly be the requirement of more low cost carriers which can deliver the assignment to destination in most financially viable manner. In such scenario, air freighters and cargo

Stephen Dawkins

Chief Executive Officer, Air Logistics Group (ALG)

There are a number of factors on the short/medium-term horizon such as economic tension, trade wars, inflation, the instability of the fuel price, and currency volatility that are quite unpredictable but they will definitely bring opportunities for our industry. 16 CargoConnect - october 2019

airports need to buckle up with their infrastructure and security provisions to capitalise on the upcoming opportunities. Talking about India, the Government long conceived the idea of creating shipment hubs at major airports by 2015 will pan out to propel the international air cargo trade further. We can draw inspiration from western air freighters, what Fedex has done in the US by creating a hub and operating under strict timelines for sorting and delivery, especially for domestic cargo and express cargo including mail. One can use international operator for a joint venture. It will be interesting to design a system by which a country’s Department of Posts can be brought in as a partner and new models are created around this function. In this case, last mile and first mile can be handled by Department of Posts. Establishment of agreements between national carriers/ freighters and integrators to improve domestic connectivity is also of utmost importance. In the absence of same, effective utilisation of air space may not be possible as domestic connectivity is one of the major reasons for major air cargo terminals to grow in the world. CC


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cover story

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cover story

Express logistics companies Riding the wave One of the fastest growing segments of the Indian logistics industry– the express industry had witnessed a 15 per cent CAGR growth over the past five years while the logistics industry grew at eight per cent CAGR. Express delivery companies in India which cater to the segment are moving from traditional set ups towards integration of IT and technology and this is helping reduce the costs incurred and meet services demands. Besides, after the introduction of GST, interstate transportation has become more efficient and is boosting time bound delivery services to complement the growth of trade. Upamanyu Borah

october 2019 - CargoConnect

19


cover story

D

rive Insight

Express Industry is a significant contributor to the Indian economy as it facilitates speed of trade and commerce, employment creation and infrastructure development, and to the government in terms of the tax revenues. One of the most important contributions of the express industry is its impact on the competitiveness and growth of the other industries. The Indian express industry is one of the fastest growing express industries globally. It has grown at 15 per cent CAGR over the past five years. The industry is transforming rapidly with the rise of E-commerce, the government’s focus on the manufacturing sector, demand from Micro, Small and Medium Enterprises (MSME), regulatory reforms such as the Goods and Services Tax (GST) and the increasingly strategic significance of logistics for the industry. The development of enablers such as the road and air infrastructure and

India's express industry is expected to grow at a CAGR of 17 per cent for the next five years, increasing its contribution to the international express industry to more than 2.5 per cent by 2022. An independent study led by Deloitte says that the country's express industry will grow at a compounded annual growth rate of 17 per cent to reach `48,000 crore by 2023.

technology is assisting the players to cater to the growing demand. Improving tax policy and infrastructure development has also led to a strong bullish sentiment for investment amongst both domestic and international players. Owing to these factors, the industry is expected to grow at a CAGR of 17 per cent for the next five years, increasing its contribution to the international express industry to more than 2.5 per cent by 2022. An independent study led by Deloitte says that the Indian express industry will grow at a compounded annual growth rate of 17 per cent to reach `48,000 crore by 2023.

Market Forecast Express delivery services are becoming increasingly important for the competitiveness of companies – to maximise the efficiency of their production activities, minimise their inventory costs, and provide a superlative customer experience. Small, medium and micro enterprises are the key users of express. They engage with express players for high quality, rapid delivery services. Express is also vital for companies looking to participate in cross border trade/markets. From a domestic B2B stand point auto-components, textiles, electronics and IT hardware, pharmaceuticals and industrial goods, are the key consumers of express. With increasing focus by the government on Make in India, these industries have started posting healthy growth rates and in turn express industry is witnessing a sharp increase in demand for express services. Banking and financial services and e-retail constitute the balance market of B2C shipments. E-retail has been the major driver of the express industry in the past 5 years. This segment of the market has also brought about an increase in the competitiveness of the industry by bringing an increased focus on expanding reach, technology to reduce the transit time, improve agility and end consumer satisfaction. New business models have evolved involving outsourcing and focus on specific part of the value chain such as first mile, long haul, and last mile.

Drivers for growth of B2B express industry (FY17 - FY22)

20 CargoConnect - october 2019


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cover story The express logistics industry is fast changing with competitors that are hyperactive, while customers are extremely demanding. The industry is growing strongly with higher levels of investment. It is also undergoing continuous change in its security infrastructure and upgrades in automation and technology, factors that are turning to be the most important aspects in differentiating business. Ketan Kulkarni

CMO & Head- Business Development, Blue Dart

Accelerating Growth Sparks The express logistics segment in India has significantly expanded not only in size but also in reach and solutions. From time to time, companies have invested in technology and services to meet the changing consumer dynamics. Accord i ng to Ke t a n Kulkarni, CMO & HeadBusiness Development at Blue Dart, “The express log i st ic s i ndust r y i s fa st changing with competitors that are hyperactive, while customers are extremely demanding. The industry is g row i ng st rong ly w it h higher levels of investment. It is also undergoing continuous change in its secu-

By 2021, India’s emerging and middle-class segments combined, will comprise nearly 900mn people, opening up new opportunities for growth of businesses which in turn would also drive the growth prospects of the express industry in India.

Growth drivers for Indian express industry

22 CargoConnect - october 2019

rity infrastructure and upgrades in automation and technology, factors that are turning to be the most important aspects in differentiating business.” Kulkarni says that Blue Dart’s growth has been consistently higher than other industry players, and that they are committed to improving their dominance through focussed customer acquisition and enhancement of customer loyalty from existing and new customers, while continuing to expand to newer markets to serve their needs. “India has emerged as a huge consumer market and supplier to global markets. The last few years have been of changing business and economic dynamics in the country, which has presented an opportunity for local businesses to grow internationally and for international businesses to enter and expand in the Indian market,” says Rachid Fergati, Managing Director- Indian subcontinent at UPS- the international leading player, also active in India’s express industry. By 2021, Fergati says, India’s emerging and middle-class segments combined will comprise nearly 900mn people, opening up new opportunities for growth of businesses which in turn would also drive the growth prospects of the express industry in India. India’s express industry is moving forward towards experimentation and innovation as well as increased investment in last mile delivery start-ups, observes Sanjeev Saxena, Co-founder of Ecom Express. “There is an increased focus on


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cover story India has emerged as a huge consumer market and supplier to global markets. The last few years have been of changing business and economic dynamics in the country, which has presented an opportunity for local businesses to grow internationally and for international businesses to enter and expand in the Indian market. Rachid Fergati

Managing Director - Indian subcontinent, UPS

speed and reach which has resulted for players to increasingly invest in fulfilment centres and expand their reach. As a result of this fast-changing landscape, the express industry has seen a number of different strategies being adopted,” says Saxena. As the volumes increase with increased utilisation, Saxena says, companies are emphasising on efficiency in the logistics business and optimising operating leverages. Ecom Express has been pursuing automation opportunities and using analytics to identify opportunities in order to optimise and stretch resources in the supply chain. Express delivery segment has been witnessing striking developments, also particularly due to the demands and expectations of customer’s portion of part truck load (PTL) business starting to move towards express segment, informs Visha l Sha h, Di rector, V-Xpress (a division of V-Trans India). Reduced t ra n sit t i me, i nc rea s ed transparency and visibility in movement, better technology and analytics - all these have escalated the overall efficiency in the sector. “V-Xpress is not only keeping pace with the time but making some futuristic attempt in technology developments also along with the basic of investing in infrastructure and human resources,” says Shah. Apart from contributing significant amounts of revenue in taxes and custom duties, the express delivery segment has

Express industry growth is being primarily driven by the growth of cross-border and domestic E-commerce in India, and significant demand from the small and medium B2B segment. This is reflected in the growth of the e-retail industry in India, which is further expected to grow to US$ 1.2 trillion by 2021. E-retailing led to a surge in the demand for well-functioning express delivery services.

24 CargoConnect - october 2019

become a key facilitator of the Indian economy by enabling trade growth in the country, states Uday R Sharma, DirectorSales, Spoton Logistics. “In addition, the segment has provided critical logistics links to its customers by providing time bound shipment services and allowing businesses to maximise efficiency and minimise costs. Today, the sector acts as a gateway which companies and manufacturers are leveraging to gain market advantage and devise innovative solutions to fulfil customer’s needs,” says Sharma.

The impact of E-commerce The demand landscape has witnessed a significant shift since mid-2000s due to the increasing penetration of internet and rise of E-commerce, significantly changing the way communication and business transactions are conducted. The report titled ‘Indian Express Industry-2018: A multi-modal play in building the ecosystem’ forecasts express industry growth being primarily driven by the growth of cross-border and domestic E-commerce in India, and significant demand from the small and medium B2B segment. A fast growing economy and robust demographics provide a positive outlook to the consumer businesses in India. This is reflected in the growth of the e-retail industry in India, which is further expected to grow to US$ 1.2 trillion by 2021. E-retailing led to a surge in the demand for well-functioning express delivery services. New players have stepped in to cater to the demand of volumes by bringing solutions around reach, speed, reliability, agility and customer satisfaction. The traditional players also started setting up separate units to cater to this segment. Having established themselves in the E-commerce express delivery space, some of the companies are foraying into B2B delivery. The express industry continues to witness newer business models based on outsourcing certain parts of value chain to adapt to the evolving needs of the Indian e-retail industry. “The fast paced growth has unlocked many opportunities for the express players by providing newer avenues for value addition. The highly competitive nature of e-retail players has translated to an increased competitiveness in the express delivery landscape with the players adopting innovative models based on technology and collaboration to address the prevalent challenges and opportunities to create differentiated value propositions,” explains Saxena. The segment has been witnessing a rapid scale-up in service orientation and complexity with an ever-increasing emphasis on service levels,


cover story

Growth drivers for e-retail in India

october 2019 - CargoConnect

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cover story India’s express industry is moving forward towards experimentation and innovation as well as increased investment in last mile delivery start-ups. There is an increased focus on speed and reach which has resulted for players to increasingly invest in fulfilment centres and expand their reach. As a result of this fast-changing landscape, the express industry has seen a number of different strategies being adopted. Sanjeev Saxena

Co-founder, Ecom Express

increased penetration in tier II and III cities, surged cash on delivery (COD) services, geographic penetration and supply chain security requirements. “Although the numbers of B2C deliveries are on continuous growth, today, the nature of deliveries has changed,” says Vikash Khatri, Co-founder, Aviral Consulting. In the initial years, there were lesser fulfilment centers, but over the period of time, number of fulfilment centers has increased and are located near to the end customer. This change in E-commerce supply chain model has also fueled growth of B2B express business. The growth in E-commerce is expected to further increase the demand for timely delivery along with a special focus on last mile delivery, strongly feels Anand Sen, VP and Business Head, Temperature Controlled Log ist ic s, Fut u r e Supply Chain. “Ensuring that the delivery commitments are adhered to requires a robust hub and spoke model with high levels of accuracy in terms of shipment tracking. The industry is also moving towards digitisation and international trade, which in turn is pushing the players in the market to adapt new business models with time bound deliveries and returns management being the key differentiators,” says Sen. “With no surprise, large international consumer and E-commerce companies are anchoring their presence in India. As a result, global supply chains are playing a critical role in connecting these products, people and enterprises which involves transformation of the express logistics landscape,” says Fergati. Citing a report

The express industry continues to witness newer business models based on outsourcing certain parts of value chain to adapt to the evolving needs of the Indian e-retail industry. New players have stepped in to cater to the demand of volumes by bringing solutions around reach, speed, reliability, agility and customer satisfaction.

26 CargoConnect - october 2019

from ‘The 2019 UPS Pulse of the Online Shopper’ study, Fergati remarks, consumers in India are most demanding and vocal about service quality expectations from retailers. Therefore, supply chains in general must adapt to a new consumer paradigm, a shift reflected in faster and efficient fulfilment experiences with full-service returns policy. Explaining how the rise in trends like E-commerce, crowdsourcing apps and same-day delivery has upended the last mile delivery segment, Shah informs, “When we analyse the cost break up of logistics in E-commerce, we see that close to 50 per cent is the cost associated with last mile, rightly so as most of the innovation in express delivery has been in this particular segment. Penetration in tier II towns and below has been another plus point for express delivery players as they are able to optimise the expansion investment and use the existing network profitably.” Meanwhile, analysing the challenging business environment, Kulkarni says, heavily funded third-party logistics (3PL) players in the e-tailing logistics space has focussed on expansion and increasing revenue base, but at the same time incurred huge losses because of extremely aggressive pricing. Besides, E-commerce players are continuing to increase the share of their captive arms thus reducing the addressable market further for express players. While the movement of E-commerce shipments is majorly on air, some price sensitive E-commerce companies are opting for ground express with transit time extended for their customers. Dedicated express service providers as well as captive players are focusing on winning non-e-tailing customers as an expansion strategy and to reduce dependency on the e-tailing industry.

E-way Bill: Practical Issues and Possible Solutions While merits include moving away from the requirement state wise compliance to uniform provisions across the country, the complexities associated with E-way bill compliance are multifold. Errors on E-way bill compliance by transporters could be classified as technology-driven errors as well as human errors. Implementation of the E-way bill has brought significant challenges to the logistics industry, especially express logistics service providers such as Ecom Express, who operate on intrastate basis and follow a hub and spoke model for operations agnostic to states. According to Saxena, “The defined validity of E-way bill based on travel distances pose complications in its implementation, given the complexities involved during


HUB

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cover story Express delivery segment has been witnessing striking developments, also particularly due to the demands and expectations of customer’s portion of part truck load (PTL) business starting to move towards express segment. Reduced transit time, increased transparency and visibility in movement, better technology and analytics - all these have escalated the overall efficiency in the sector. Vishal Shah

Director, V-Xpress (a division of V-Trans India)

Not only transportation, the problem of duality of taxes on transactions such as leasing of equipments and goods has also been eliminated post-GST. As a result of the uniformity in tax rates across states, the consolidation of warehouses with a simultaneous elimination of smaller warehouses is encouraged.

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Contribution of GST

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he list of benefits of GST for India’s freight and logistics network is endless. Seamlessness in processes, more competent and efficient cross-state transportation, lesser paperwork and reduction in costs are just a few. The savings on time comes as a bonus benefit of this Bill. Not only transportation, the problem of duality of taxes on transactions such as leasing of equipments and goods has also been eliminated. As a result of the uniformity in tax rates across states, the consolidation of warehouses with a simultaneous elimination of smaller warehouses is encouraged. This would indirectly boost the freight and logistics sector in the long run as the supply chains will be improved. Khatri says that post-GST; express delivery segment has been growing faster than earlier. Despite consolidation of warehouses, the growth in express delivery segment is unaffected. Primary driver of this growth is shift of part load segment from unorganised service provider to more organised express service providers. “It is touted that the logistics sector has been one of the biggest beneficiary of GST. Companies are enjoying the benefits of bulk breaking, and cross docking and cost optimisation due to economies of scale,” says Shah. “Express delivery is all about time-sensitive delivery. Earlier, paying local taxes,

addressing a variety of norms and forms for different states, hampered the delivery process and time taken for cargo to reach the destination. Post-GST there has been lesser check posts and documentation, besides due to high transparency, unauthorised money extraction is getting lesser. Faster movement of vehicles due to these has helped in shortened transit time,” notes Shah. It’s been two years since the rollout of the GST and many companies have witnessed a positive momentum in the logistics sector, asserts Sen. Today, the industry has a much deeper understanding about compliance requirements and how to adhere to them. “However, if one were to weigh the pros and cons, the benefits would outweigh the negatives by far,” feels Sen. Since the commencement of operations, E-com Express as a dedicated logistics player to the E-commerce industry had systematically structured its warehouses and distribution infrastructure which enabled the company to seamlessly align its business to the GST regulations without having to adopt any new approach or tweak any part of its business model to take advantage of the new tax regime. Saxena says, “GST has enabled optimised vehicle routing which has lead to operational improvements. It improved our load landing speed which in turn has enhanced our Turnaround Time (TAT) efficiency.”


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cover story Ensuring that the delivery commitments are adhered to requires a robust hub and spoke model with high levels of accuracy in terms of shipment tracking. The industry is also moving towards digitisation and international trade, which in turn is pushing the players in the market to adapt new business models with time bound deliveries and returns management being the key differentiators. Anand Sen

VP and Business Head, Temperature Controlled Logistics, Future Supply Chain

t ra n sit. Complexit ies around validity of E-waybill linked to hours/days of travel for given distance also pose practical challenges.” “T he E-way bi l l i s flaunted as an essential feature of GST regulation,” says Shah. It has the potential to provide a level playing field to both organised and unorganised logistics companies. With abolishing numerous check posts, 10-15 per cent improvement on transit time and long-haul r o ut e s wa s w it n e s s e d. “However, there are still some parts of t he same which requires government attention, such as expiry of a bill when the goods are in godown and customer did not collect them, return of undelivered goods, interchange of shortage of material, or movement of unclaimed goods, and few other aspects,” notes Shah. Expressing similar senti-

30 CargoConnect - october 2019

New entrants have created benchmarks in express logistics in terms of transit time, visibility, service levels and customer experience. Initiatives driven by startups have given opportunity to established players for improvement. This is a positive sign for the industry.

ments, Kulkarni says, there should be a further modification in the E-way bill generation system. “The onus should shift from the transporter to the shipper as they have complete control on the content of the shipment. This will not only ensure that the right E-way bill is being generated but also impact the transit time positively as time bound delivery is a critical aspect in the express business industry,” feels Kulkarni. The main issues lie in the ambiguity related to generation of the two parts of the bill, points Sharma. “The government is continuously receiving data on how consignors and service providers file the bill and can use data analytics to understand the dynamics and pass directives that will help clear up the confusion,” suggests Sharma. Nonetheless, to a country which is still adapting digitisation and IT networks, errors due to inadequate technological support such as portal downtime, lack of connectivity, inability to access/track/utilise functions of the portal, etc. have been time and again sounded off in various parts of the country, and which Sen from FSC also points out as a critical pain point.

Growth Perspectives Ecom Express has always been focussed to build a scalable business through investment in technology, deploying advanced parcel sorting systems, and strengthening network reliability and infrastructure. Saxena says, “We launched a variety of products and solutions such as E-commerce Delivery, Fulfilment and Digital Services (for eKYC/Cash & Document collection), developed to cater to the requirements of the growing need for logistics and last mile connectivity.”


cover story The express delivery segment has provided critical logistics links to its customers by providing time bound shipment services and allowing businesses to maximise efficiency and minimise costs. Today, the sector acts as a gateway which companies and manufacturers are leveraging to gain market advantage and devise innovative solutions to fulfil customer’s needs. Uday R Sharma

Director- Sales, Spoton Logistics

Saxena believes t hat food and grocery delivery will be the next big thing witnessing huge growth a nd w i l l occ upy major share of e-tail consumer transactions in the times to come. “Ecom Express is continuously investing in its network and infrastructure to drive the growth of online retail industry in the hinterlands of the country’s map. The company currently offers services in 25600+ PIN codes across 2400+ towns and cities with the capability to reach 95 per cent of the households in India. “With this strength, we are preparing the roadmap to enter into the food and grocery delivery in the future,” says Saxena. In the near future, Ecom Express aims for distribution in urban and rural areas through 3000+ delivery centres and over 50,000 delivery staff connecting to 95 per cent of India’s population and 200K+ sellers on a daily basis. By 2020, the company aspires to setup a logistics network spanning the entire length and breadth of the country. The company is also looking at increasing the number of fulfilment centres and warehouses, thus creating a new value addition to its business. V-Express is working aggressively to enhance its E-commerce logistics vertical. The company is looking forward to expand in the sector and explore new business opportunities. “With our wide distribution network of 300+ owned branches, we have managed to reach a decent level. Currently, we are serving the major E-Commerce players like Amazon and Flipkart. Moving forward, we plan to widen our reach to almost every state in the country and also to tier II and below regions,” informs Shah.

In July 2019, UPS announced the most extensive roll-out of new customer services and capabilities in the company’s recent history. The launch of UPS My Choice®, the first-of-its kind solution in the US market for small and mediumsized businesses (SMBs) will mean better accessibility for outbound shipments from India to the US.

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V-Express has taken the aggressive target of more than 30 per cent growth for 2019-20 with increase in the balance of multi-model transportation. In India, UPS has a deep segment focus across automotive, hi-technology, healthcare and aerospace. The global leader is looking forward to continuing to pursue high-quality revenue growth in four strategic pillars: high-growth international markets, B2B and B2C E-commerce, healthcare and life sciences, and small and medium-sized businesses. Fergati says, “Our strategy for expansion and consolidation in India mirrors the requirements of local businesses. We have opened expanded facilities in Hyderabad and Ahmedabad. We have been focussing on locations that allow us to extend the advantages we can provide to local small and medium businesses (SMBs). For example, our Ahmedabad facility allows us to serve cities such as Surat and Vadodara.” In October 2018, UPS announced the consolidation of its operations in India by attaining full ownership in the express services unit. “India is part of UPS’s commitment to invest strategically in high-growth markets and in offering additional services to improve customers’ experience and competitiveness,” expresses Fergati. Spoton is set to leverage the enormous untapped potential India’s domestic air cargo sector offers as the company has recently introduced its new Air Express service, and currently planning to enter the 3PL and Speed Trucking space later this fiscal or early next year. Sharma says, “All the investments Spoton has made in the last year has been chiefly concerned with human resource, expanding infrastructure, enhancing technology and setting up our new Air Express service.” Spoton is on track to become a 1500 cr Company by 2022 and aiming to achieve 30 per cent over last year’s performance. India's largest organised third-party supply chain and logistics service provider, FSC has made in-roads into a number of new industries such as CDIT, auto and further consolidated its base in ATM and Retail. The company’s new service offerings such as Direct Store Delivery and Factory Gate Logistics have helped its customers increase their reach and availability of products on retail shelves. In the words of Sen, “FSC is launching a new product called ‘Express Connect’ to tie up with aggregators who can use our established hub and spoke model of FSC Express to route their shipments. This will increase utilisation of the network and will also benefit the aggregators by scaling up their business.” FSC intends to start Air Express in the near future to increase the range of services being offered and with the inten-


tion of being a one stop shop for the customers’ express logistics needs. In the case of Blue Dart, Kulkarni says, the company will continue to focus on key consumer driven industries such as Banking, Financial Services and Insurance (BFSI), E-commerce, automotive, life sciences & healthcare, consumer durables & electronics, and other leading industry segments. Besides this, the premier express air and integrated transportation and distribution company in South Asia, will strengthen its focus on revenue from emerging markets a nd SMEs a nd growth from indirect channel partners. In 2018, Blue Dart embarked on two key initiatives aimed at bringing long

Logistics & Industrial Parks

FSC's new product ‘Express Connect’ will tie up aggregators allowing them to use the established hub and spoke model of FSC Express to route shipments. This will increase utilisation of the network and also benefit the aggregators by scaling up their business

term benefits to customers- Deliver Any Where Now (DAWN) which has successfully enabled the company to aggressively expand its reach from 6,000 pin codes to over 14,000 pin codes, enabling delivery to most Indian homes. While, Revenue Increase from Small Towns & SMEs (RISE) which support businesses from India to cater a larger market, focus on growth from channel partners and key sectors. As part of the expansion, Blue Dart will continue to make extensive investments in infrastructure, manpower, new-age technology and automation to drive business growth and create value for its customers and stakeholders. Through the year 2018-19, Blue Dart has also added three new state-of-the-art facilities at Chennai, Delhi and Mumbai Airports to further strengthen the Air Express service and build operational efficiency.

Future Forward Cohesion is still lacking and hampering the growth of India’s logistics sector. Smaller, unorganised companies still eat up a large segment of the customer base, setting a lower benchmark for operations while influencing pricing as well. The inefficiency of these players has led to E-commerce players such as Amazon and Flipkart to develop their own cutting-edge logistical fleet, equipped with drones and RFID/sensor-based technologies that optimise the entire process. Such a trend enhances competition for the dedicated logistics players, and


cover story

only those who are able to incorporate digitised processes driven by Artificial Intelligence (AI), analytics and automation will be able to thrive through this onslaught. “The segment is witnessing too much competition. Today, we don’t see much difference between new players and established players in terms of service. New entrants have created benchmarks in express logistics in terms of transit time, visibility, service levels and customer experience. Initiatives driven by startups have given opportunity to established players for improvement. This is a positive sign for the industry,” observes Khatri. UPS has been at t he forefront of introducing cutting edge technology solutions that help achieve various objectives. Ecom Express is exploring numerous solutions; many are already deployed and tested, with the objective of not only reducing the costs of delivery, but also differentiating through quality and reliability of service. Technology adoption by the company in the direction of enhanced digital and innovative capabilities for the last mile delivery of E-commerce fulfilment include data privacy, interactive communication/notification, big-data analytics, route optimisation, performance management of delivery associates and so on. “The adoption of bestin-class technology by Ecom Express has not only resulted in improved efficiency,

Through 2018-19, Blue Dart has added three new state-of-the-art facilities at Chennai, Delhi and Mumbai Airports to further strengthen the Air Express service and build operational efficiency. Going ahead, the company will strengthen its focus on revenue from emerging markets and SMEs and growth from indirect channel partners.

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but also offered opportunities to innovate through value added services. An example of this is a quality check assisted reverse pickup service, which is especially relevant for highvalue products, which are prone to pilferage and misuse by end-consumers,” notes Saxena. Spoton has integrated Piece Level Tracking (PLT) technology into its tech stack to gain greater visibility into consignments. “PLT has greatly reduced our overall error percentage and misrouting. Besides, we are integrating AI and machine learning towards load optimisation. We are also working towards integrating Internet of Things (IoT) to increase security of consignments,” informs Sharma. UPS has been at the forefront of introducing cutting edge technology solutions that help achieve various objectives. In 2018 and 2019, UPS continued to evolve its global network and invest in capabilities to respond to fast changing demand, capturing market opportunities and offering competitiveness to customers. In July this year, UPS announced the most extensive roll-out of new customer services and capabilities in the company’s recent history. The new solutions are designed to capture growth opportunities in strategic markets. “We are very excited about being part of this transformation. Much more exciting is the opportunities that lie ahead for strategic markets such as India. The launch of UPS My Choice®, the first-of-its kind solution in the US market for small and medium-sized businesses (SMBs) will mean better accessibility for outbound shipments from India to the US,” explains Fergati. Currently, UPS is leveraging drone technology for the future of both business and humanitarian purposes. FSC is investing in tech-enabled solutions that integrate customer’s Enterprise Resource Planning (ERP) with the company’s Transport Management System (TMS) to have control over the entire operations such as pickup requests, auto CNs, tracking within customer’s ERP, and app-based pickup, delivery, proof of delivery (POD) and billing. IoT is another key technology that FSC uses for tracking vehicles and shipments to ensure real-time visibility and handle exceptions in terms of route deviations, missing shipments and transit time tracking. V-Express have made extensive forays into some of the latest technologies and are analysing the impact. Shah says,


cover story Although the numbers of B2C deliveries are on continuous growth, today, the nature of deliveries has changed. In the initial years, there were lesser fulfilment centers, but over the period of time, number of fulfilment centers has increased and are located near to the end customer. This change in E-commerce supply chain model has also fueled growth of B2B express business. VikasH Khatri

Co-founder, Aviral Consulting

“We have successfully moved to cloud computing for better technology. Specific to E-commerce express deliveries, we have invested in GPS technology for route optimisation of local deliveries. In addition, we are leveraging the brand value, our vast infrastructure, and the experienced, dedicated and seasoned staff to enhance the companys’s growth.” Blue Dart is consistently and strategically investing in automation and technology as well as customer convenience initiatives, based on customer demand and requirements. Some of the company’s technological innovations include parcel lockers, auto sorters, mobile service centre vehicles, electric vehicles (EVs), control tower, 24X7 customer connect, algorithms for route optimisation, and other mobility solutions. “We have been enabling customer successes and are their preferred provider of choice. We have several firsts in the industry to our credit. Agility has kept us ahead as the innova-

tors and disruptors in the industry. The services extended by the new entrants in the market have long been the leading standards that were part of Blue Dart’s offerings to customers and which are being enjoyed across sectors,” asserts Kulkarni.

Epilogue Logistics will be at the heart of India’s internet growth story. Be it the customer experience or business economics, logistics will have a role to play. It will require deep domain insights and heads down execution to win this market. We’ve already seen multiple entrepreneurs faltering even after raising large sums of capital in the space. But more the challenges, better the opportunity to innovate and disrupt. It is still a large market opportunity up for grabs, but requires relentless focus on execution and long term value creation. CC


feature

Emergence of the fourth industrial revolution In the last few years, the growing deployment of Artificial Intelligence (AI) and robotics in the logistics industry and related sectors has definitely taken the processes and operations to the next level. The increasing usage of analytics and modern technologies in supply chain in the long run will result in spawning an ecosystem where supply chains link themselves with each other enabling seamless flow of information from one end to the other. Air cargo experts feel this is the most exciting time for collaboration between technology and industry professionals to leverage and maximise on each other's strengths. Ritika Arora Bhola

36 CargoConnect - october 2019

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he digital revolution is redefining various aspects of the logistics industry and related sectors, and the Indian logisticians are finding ways to carve out the more lucrative elements of the value chain by exploiting digital technology or new ‘sharing’ business models, and they don’t have asset-heavy balance sheets or cumbersome existing systems weighing them down. Customer expectations are increasing greatly. Both individuals and businesses expect to get goods faster, more flexibly, and – in the case of consumers – at low or no delivery cost. Manufacturing is becoming more and more customised, which is good for customers but hard work for the logistics industry. Add it all up and the sector is under acute and growing pressure to deliver a better service at an ever lower cost.


India is among the top five countries globally, when it comes to the number of AIdriven startups. Numerous factors are likely to play a large role in shaping the AI scene in 2025. Most products will be using AI by 2025 and many AI-first companies will emerge across sectors.

september‑ 2019 - CargoConnect

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feature

AI is increasing efficiencies in the areas of predictive demand and network planning. In the near future, it will be used in a significant way to anticipate events and avoid risks. And one can’t talk about AI without robotics which has already made a world of difference to warehouses by locating, tracking, moving and stacking inventory. Future robotics might even be deployed for last-mile delivery, among other things. Rubal Jain

While newest technologies have not only improved the speed and efficiency of the entire supply chain network but have also cut down cost, deferrals and labour work. The Physical Internet promises great things for the sector, coming along with increased standardisation in logistics and supply chain operations. Finance Minister Nirmala Sitharaman in her maiden budget speech had significantly talked about the government’s plan to invest `100 lakh crore in infrastructure over the next five years which will positively impact the logistics and transportation industry both from a business and connectivity perspective. She stressed on the government’s focus on building a ‘Digital India’ and train people about AI, Internet of Things (IoT) and big data which is transforming the supply chain and logistics industry.

AI & Robotics Transforming Logistics Scenario

As per the Economic Survey 2017-18, the logistics industry in India is expected

AI is another buzzword in the world of logistics which is increasing efficiencies in the areas of predictive demand and network planning.

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Managing Director, Safexpress

to reach $215 billion in 2020, growing at a compou nd a n nual g rowt h rate (CAGR) of 10.5 per cent. Observing the same, Rubal Jain, Managing Director, Safexpress says in a statement, “With a considerable degree of consolidation is in the offing, with larger warehouses, and a more organised setup, fuelled by innovation and digitisation– will help the Indian logistics industry encourage the functional excellence to a large extent, with integration and collaboration. The digital age will be so intertwined with the logistics industry; it will be difficult to separate the two.” According to Jain, “Artificial intelligence (AI) is another buzzword in the world of logistics which is increasing efficiencies in the areas of predictive demand and network planning. In the near future, it will be used in a significant way to anticipate events and avoid risks. And one can’t talk about AI without robotics which has already made a world so different in warehouses, by locating, tracking, moving and stacking inventory. Future robotics might even

be deployed for last-mile delivery, among other things.” Last year, a pilot project in Canberra, Australia, grabbed eyeballs when Google’s parent company, Alphabet, started its Project Wing to deliver coffee by drones. “There’s more to come, I’m sure. All in all, exciting times to be in the logistics industry,” feels Jain. Definitely, Amar More, CEO, Kale Logistics says, AI and Robotics are set to change the entire logistics scenario in India. “Technological advancements have always helped the Indian logistics industry stay competitive in the face of challenges of legacy systems and siloed infrastructure. AI and Robotics are the latest entrants to the fray of technological game changers in the arsenal of the Indian logistics industry. Logistics industry is getting data-driven, and technologies like AI, Blockchain are using data to the full potential to better anticipate events, avoid risks and create solutions,” explains More. Talking about the intervention of AI in the E-commerce industry and warehousing sector, More says, “With Ecommerce growing at a striking rate of more than 50 per cent, this is changing the way the industry is functioning and adopting technology. AI intervention will see a lot scope in last-mile delivery. Warehouses are looking to automate and interconnect the processes within, robotics for packaging and sorting to machine learning for optimal loading of freight containers. Location intelligence, like geo-coding, is used to map and assess active sites that could serve as potential warehouse locations. And in the not-so-distant future, AI and robotics will likely become imperative tools in the supply chain plans of logistics managers in India.”


feature Technological advancements have always helped the Indian logistics industry stay competitive in the face of the challenges of legacy systems and siloed infrastructure. AI and Robotics are the latest entrants to the fray of technological game changers in the arsenal of the Indian logistics industry in recent times. Logistics industry is getting data-driven, and technologies like AI, Blockchain are using data to full potential to better anticipate events, avoid risks and create solutions. Amar More Vivekanand, Country ManagerIndia & APAC, GreyOrange couldn’t agree more. The growth of E-commerce, challenges of new consumption patterns and demand scenario as well as new retail models like omni-channel have impacted logistics in an unprecedented way. According to Vivekanand, “With expectations becoming more rampant over the years, e-commerce businesses have been compelled to upgrade to

Initiatives undertaken by the Indian government in the domain of AI includes AI Task Force constituted by the Ministry of Commerce and Industry. some degree of automation to stay competitive and provide faster turnaround. For instance, in a warehouse, technologies such as AI and robotics and automation are being deployed to handle millions of parcels shipped every day. These technologies offer a clear cost benefit in terms of faster order fulfilment and delivery to consumers, higher accuracy in order consolidation and reducing returns and holding leaner inventory. Besides, with the implementation of GST, players are looking at larger state-of-the-art warehouses, about five to ten times their current facilities. At present, we are in the phase where ‘primitive godowns’ are being turned into smarter warehouses, fulfilment and distribution centers, and where robotics and AI solutions are being deployed to improve throughput and increase efficiency.”

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CEO, Kale Logistics

Saurabh Pathak, Business Head, Cargo Flash InfoTech also feels that AI and robotics are definitely going to change the way logistics is currently handled in India, especially the warehouse handling. “Warehousing, which is one of the most important components of t he log ist ics supply c ha i n, is predominantly labour intensive at the moment primarily due to cost factor. The government of India (GoI) on its part has taken the initiative to have a National strategy for Artificial Intelligence in place, NITI Aayog has recommended investment in centers called CORES for scientific research for AI planning and development,” informs Pathak.

Major AI initiatives undertaken by GoI

In the last few years, the government

of India has taken various initiatives to promote digitisation. Whopping investments have also been made by the government as well as private sectors in this domain. Initiatives undertaken by the Indian government in the domain of Artificial Intelligence includes AI Task Force constituted by the Ministry of Commerce and Industry. Most recently, Finance Minister Nirmala Sitharaman stated in her Budget speech that the government will focus on technologies such as AI, IoT, big data, 3D printing, virtual reality and robotics. “Such initiatives by the government lead the way for industry to follow suit. Private players in various sectors such as logistics, manufacturing and allied industries are harnessing the futuristic technologies such as AI and robotics in


feature

With an aim to recognise AI’s potential to transform economies and the need for India to strategise its approach, GOI’s last few annual budgets have promoted these technologies with nationwide programs for AI. NITI Aayog’s initiatives to boost R&D, high-level taskforce and international centers for transformational AI (ICTAI) are also expediting the logistics industry. Vivekanand

their warehouses and other significant areas of the supply chain,” says More. One such success is the deploying of drones (technically considered as flying robots) in Kale Logistics Solutions’ flagship product GALAXY – Air Cargo Management System. With Physical Internet expected to add $957 billion to India’s GDP by 2035, AI is poised to transform industry sectors by presenting opportunities to complement and supplement human intelligence and enrich the way people live and work. India, being the fastest growing economy with the second largest population in the world, undoubtedly has a significant stake in the AI revolution. According to Vivekanand, “With an aim to recognise AI’s potential to transform economies and the need for India to strategise on its approach, GoI’s last few annual budgets have promoted these technologies with nationwide programs for AI. NITI Aayog’s initiatives to boost R&D, high-level taskforce and International Center for Transformative Artificial Intelligence (ICTAI) are also helping expedite the logistics industry.” Vivekanand says that another initiative, titled ‘AI for All’ by the government is also aimed at effective implementation of AI initiatives to evolve scalable solutions and build a sustainable ecosystem through centers of excellence.

Potential impact of AI and Robotics

Although, at a nascent stage, the potential impact of AI and robotics on the industries and organisations in India is imminent and irrevocable in its latent possibilities. AI possesses the potential to benefit all industries, and most defi-

42 CargoConnect - october 2019

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Country Manager, India & APAC, GreyOrange

nitely the logistics industry, moving from consumers to enterprises to industries in terms of adoption. Slowly but surely, AI is fast finding its way to the core of every future-ready software; and legacy systems will be no exception. More predicts that in the near future AI will substantially transform the endto-end logistics value chain. Utilisng third-generation Port Community Systems (PCS 3.0), ports will enlarge their role by orchestrating physical and information flows inside and outside terminals to enhance the port’s ecosystem and system-wide efficiency. Forward-

and pharmaceuticals, gradually adopting robotics systems to transform their supply chain. While the entry of robotics has been slow in the other industries, over the last few years, their applications have expanded to various verticals such as e-commerce and in new sectors like FMCG and Retail. In the last five years, E-commerce and logistics companies across the globe have seen a massive demand in the lastest technologies, some of them having pioneered adoption of advanced robotics technologies to optimise supply chains to match the dramatic evolution – in

AI possesses the potential to benefit all industries, and most definitely the logistics industry, moving from consumers to enterprises to industries in terms of adoption. looking ports will push toward the next horizon, beyond automation, in the coming era. Every player— be it shippers, terminal operators, trucking companies, railway authorities, shippers, logistics companies, freight forwarders or consignees—will be connected to optimise not just the port itself but also its entire ecosystem. “PCS 3.0 will be powered by AI, with optimisation through advanced analytics, and dynamic scheduling,” says More. The industrial automation market in India is worth $2 billion with verticals such as E-commerce, FMCG, retail

terms of volumes and value. AI is taking an increasingly central role in the logistics industry, especially warehousi ng. Today, robots pro grammed with AI are everywhere, from places like Amazon to small distribution centers. “Increasing technological advancements, rapid penetration of automation in warehouses, the fast-growing ecommerce (a whopping $2.3 trillion market today) and need for enhanced quality and reliability in a warehouse are aiding the growth of AI and robotics,” says Vivekanand. In India too, a larger penetration of AI and


feature

Installation of automated screening, weight and volume scanners and inline automated sorting machines are just the first step in warehouse automation. We foresee smart warehouses of future to use voice and visual wearable aids like smart glasses for operational activities such as assignment of locations based on historical data, product level TAT in the warehouse, shortest route, proximity to exit etc. Saurabh Pathak

robotics in warehouses is being witnessed. The Indian warehouse robotics market is projected to grow at a double digit CAGR till 2024. For instance, the AI powered Butler system by GreyOrange is an example which is helping one of the largest FMCG companies in India for better inventory management. The goods-to-person robotics system is now deployed across the world at massive sites in diverse industries like retail, fashion, 3PL, etc. Butler adapts seamlessly to changing inventory profiles, demand patterns and peaks, which helps the customer with complete visibility of stock in hand, movement and better control of inventory.

As per India’s Economy Survey 2017-18, the Indian logistics market valued at US$160 bn is expected to grow to US$215 bn in the next couple of years. Technological disruption is catalysing change and growth in most industries and the Indian logistics industry too has to buckle up. Emphasising on the impact of AI on the E-commerce sector, Pathak says that the growth of E-commerce in India has had a big impact on the way logistics was conventionally handled in India. Apart from handling huge E-commerce volumes, the logistics companies have stiff competition on service level expectations, which is forcing the private logistics players to switch to robotic enabled warehouses in order to meet client’s expectations and service-level agreements (SLAs). Installation of automated screen-

44 CargoConnect - october 2019

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Business Head, Cargo Flash InfoTech

ing, weight and volume scanners and inline automated sorting machines are just the first step in warehouse automation. “We foresee smart warehouses of future to use voice and visual wearable aids like smart glasses for operational activities such as assignment of locations based on historical data, product level TAT in the warehouse, shortest route, proximity to exit, etc. Despite high initial capex, the AI tools and robotics would help organisations to increase profitability by drastically reducing processing time, cost of operations and on the other hand increase overall efficiency and productivity,” says Pathak.

Suiting to needs

As per India’s Economy Survey 2017-18, the Indian logistics market valued at US$160 bn is expected to grow to US$215 bn in the next couple of years. Technological disruption is catalysing change and growth in most industries and the Indian logistics industry too has to buckle up. More says that futuristic technologies such as AI and robotics have found a way into the warehouses, plans and budgets of LSPs across the country. Robots can now load the trucks or humans with the help of augmented reality glasses for faster picking/loading. The cargo can then announce itself in the truck and the truck identification device can get associated with each of the packages on the truck. Cargo can now be unloaded by robots on the dollies and sent directly to the delivery docks via high-speed scanners. This is just one example of how robotics could dramatically impact logistics operations in the country. AI on the other hand can lead to a multitude of benefits ranging from optimising delivery

routes to reduced costs and maximised speeds, to spurring innovation and enhancing productivity across the entire supply chain. With these objectives in mind, Indian businesses can integrate AI within their supply chain logistics to boost their competitive advantage in this rapidly evolving industry. Addressing the complexities which come as part and parcel with every new development, Vivekanand points out, “As complexities in the supply chain increases, its functions such as inventory management, inventory storage, replenishment, picking and shipping orders become key to ensure that the right products are available in stock and get to the end consumer on time. While traditional methods and operations fail to deliver the requirements for higher speed, accuracy and efficiency, automation becomes the need of the hour, so that they don’t lose out on their loyal consumer base. However, sporadic adoption of robotics in India continues to be a challenge. The industry and government needs to continuously push for newer technologies, with more capital investments and organisational changes.”

Bottom line

Industry experts call India’s logistics industry a sunshine sector and foresee hottest and popular emerging technologies for enhancing real-time business functions and methodologies. With incredible developments happening in all t he sectors, t he g rowt h is bound to happen. Moreover, with the intervention of AI, robotics and automation boosting operations and processes, India is likely to become a key hub for trade and p o t e n t i a l m a r k e t t o i nv e s t f o r foreign players. CC


infrastructure

India needs `19 lakh cr for roads in 5 years

I

t is estimated that the construction of roads in India will require around `19 crore in the next five years and innovative financing mechanisms must be established to address any funding gap, according to a report the consulting firm KPMG. India has the second largest road network in the world and the Ministry of Road a nd Highway Tra n spor tat ion (MoRTH) plans to develop some 60,000 km of roads over the next five years. The MoRTH aims at an average road construction rate of 40 km per day, said the KPMG report, entitled ‘Road and motorway sector: current trends and future road map’. Assuming an average construction cost of approximately INR 30 million rupees per km (including the cost of land acquisition), and taking into account inflation for the cost of road construction in a conservative 3 per cent, the total financing requirement for five years is estimated at approximately `19 lakh crore which equals an average annual fund requirement of approximately `3.8 lakh crore, said the report, published at a IIC event. In affirming the need to explore innovative financing mechanisms to address the financing gap that is being observed in the

october 2019 46 CargoConnect - October

sector, it said that the focus levers that have been identified should be constructed. It said the sources of financing are limited and that the Ministry has to take advantage of internal extra budgetary resources as much as possible with subject to controlling the scope of future liabilities. It added that the probable options for raising capital are bonds, masala bonds and debts from multilateral financial institutions. In addition, the report said policy reforms should continue in the future. Other measures that can be explored are the reduction of the tax on infrastructure bonds and the extension of the tax exemption to infrastructure developers. Some innovative PPP modes similar to least present value of revenue can also be explored, the report said. The reported indicated that publicprivate partnership (PPP is the need of the hour. The report also said that many problems have been affecting the road and highway sector in India, including aspects such as land acquisition. It stressed the need to adopt sustainable transport approaches and said that it can be widely adopted in the future. And that some of the ways to help ensure sustainable development are the adoption of electric vehicles.


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spotlight

India’s need for a paradigm shift in exports

I

ndia’s net export, one of the four key components of the GDP, has been in negative zone for decades, proving a big drag on its growth story. The gap between India’s export and import has been growing bigger and bigger in the past decade. It crossed the $100 billion mark in 2008-09 and has remained above that since, clocking $184 billion in 2018-19. Higher the negative trade balance, higher the current account deficit (CAD) and the drag on foreign exchange reserve. This has been a cause of prolonged anxiety.

Declining growth in export of merchandise and services

After a sudden spurt in 2010-11 and 2011-12, India’s export growth has declined to single digit, both for merchandise and services, in US dollar terms. The share of services in exports has been growing in recent years. From about 32 per cent of the total value of exports a few years ago, it contributed more than 38 per cent in the last two fiscals. Similar is the case when quantum of exports is examined. The RBI’s quantum index number of exports of commodities (base year 1999-2000) shows the growth numbers coming down from 15.2 per cent in 2010-11 to 2.9 per cent in 2017-18 - the year for which data is available.

Global export scenario

When looked from the global perspective, India’s export growth does not look as bad. The global statistics provided by the UNCTAD shows growth in India’s export of merc ha ndise follows a general trend, indicating a close link with global economy. In 2018 (financial year), India’s export growth was 8.8 per cent against the global growth of 9.8 per cent in US dollar terms - changing the position from 2017 when India clocked

48 CargoConnect - october 2019

8.8%

was India's export growth in 2018 against the global growth of 9.8% in US dollar terms changing the position from 2017 when India clocked a 13.3% growth while the global export growth was 10.6%.


spotlight a 13.3 per cent growth while the global export growth was 10.6 per cent. Prof Biswajit Nag of the Indian Institute of Foreign Trade (IIFT) explains that this is so because India’s export is mostly to the developed countries. As the major exporters like China, the US, the EU and Japan are slowing down their export; demands are also slowing down - reflecting a general declining trend. A comparative analysis of growth in export of merchandise for Asian leaders like China and South Korea and new export hubs like Vietnam and Indonesia also show a similar declining trend.

India’s share in global export

India has been struggling to raise its share of global export of merchandise to two per cent, which it last attained in 1948 - when it touched a high of 2.2 per cent in US dollar terms. Its share has remained below two per cent ever since and hovered between 1.5 per cent and

could not achieve the desired level of skilling, leading to export inefficiency.

India’s high-value export sectors showing worrying signs

Engineering goods, gems and jewellery and ready-made garment (RMG) of textiles are three of the top sectors contributing most to India’s export in value and are of great significance because of their labour intensive nature, providing high employment. The RBI’s data presents a disturbing trend. Growth in the export of engineering goods, which constituted 25 per cent of commodity export earnings in 2018-19 in US dollar terms, fell to 6.3 per cent, from 17 per cent in 2017-18. The same for the gems and jewellery and RMG of textiles, which constituted 12 per cent and five per cent of commodity export in 2018-19 (in US dollar terms) respectively, have registered

As for the engineering goods, the Chairman of the CII’s National Committee on EXIM Sanjay Budhia says input costs have gone up in recent years (steel price went up by almost 20% in one year), making it uncompetitive.

The Road ahead

Budhia says the US-China trade war presents a big opportunity for India to boost its exports significantly to the US and elsewhere. He says India’s products have established their quality but are not yet competitive. He says three factors are holding India’s export back. One, high cost of credit to Indian exporters - six to seven per cent interest rate for Indian exporters while it is nil or negligible for Chinese and Vietnams. India provides three to five per cent of interest equalisation for the MSMEs which should be available for all exporters to bring down cost. Two, inputs like steel should be

India has been struggling to raise its share of global export of merchandise to 2%, which it last attained in 1948 - when it touched a high of 2.2% in US dollar terms. Its share has remained below 2% ever since and hovered between 1.5% and 1.7% between 2010 and 2018 (financial year). 1.7 per cent between 2010 and 2018 (financial year). China, whose exports took off in the 1980s, has maintained a healthy lead over India’s with a share of 10.3 per cent to 13.8 per cent in global export of merchandise (in US dollar terms) since 2010. For 2017 and 2018, its share stood at 12.8 per cent. Prof Nag says China’s export surged because it adopted an export-oriented approach, specialising in industries with higher export potential. It tried to benefit from economies of scale and focussed on SEZs and other trade related infrastructures like ports, logistics and single-window clearing system. Equally importantly, China adopted a long term strategy of skilling its labour force which made technology absorption much easier and allowed it to move up in the global value chain, leaving low end products to low wage countries like Vietnam and Indonesia. On the other hand, he says, India

negative growth for the last two fiscals. Prof Nag explains that the gems and jewellery segment has been negatively impacted by the rising value of import content, which has made India’s export uncompetitive. Besides, a global slowdown is impacting consumption of such luxury products. As for the negative growth in RMG of textiles, he points to a number of factors: India’s ecosystem is dependent on import of inputs; its “delivery lead time” is much higher than that of China, reflecting supply chain inefficiency; countries like Vietnam, Bangladesh and Sri Lanka provide cheaper labour with which India can’t compete; world is moving into the blending of fabrics (cotton and synthetic) for which India is not yet ready in technology terms and lack of new capacity additions in India as a result of which most of its products are consumed domestically, leaving little surplus for export.

provided at competitive/export prices that are offered to international buyers by steel mills to all exporters, not just the MSMEs as is being contemplated by the government now. Steel mills get duty drawbacks and incentives reducing international price of steel but without such facility for the domestic consumers, export of engineering goods - which has a huge potential to increase its market share and provide sizeable employment - becomes uncompetitive. Third, electricity duty, taxes and duties on petroleum products etc. are not yet refunded through the GST mechanism for the exporters. The government should offset the cost disadvantage arising out of these duties and levies. Prof Nag adds three more to the wish list: Effective Skilling Programme, promotion of innovation and value chain efficiency for products and process. The ball is now in the government’s court. CC october 2019 - CargoConnect

49


trending hub current challenges by addressing the shortage of master trainers, capacity building, model curriculum, etc. The Government of India set aside US$2.69 billion in 2017-18, 16 per cent more than the allocation of US$2.3 billion during 2016-17 for skill development. This further showcases the resolve to address the current shortage of trained manpower.

Training Achievements

Under Pradhan Mantri Kaushal Vikas Yojana (PMKVY), a total of 1.98 million candidates have been enrolled, out of which 1.79 million have been trained and 1.19 million have been certified till date. Under the Craftsmen Training

O

verall Objective

“To rapidly scale up skill development efforts in India, by creating an end to end, outcome focused implementation framework, which aligns demands of the employers for a well-trained skilled workforce with aspirations of Indian citizens for sustainable livelihoods� - This mission statement of the National Skill Development Mission is now the guiding principle for all skill development initiatives in India. Skill India seeks to provide institutional capacity to train a minimum of 400 million to become skilled workforce by 2022.

Policy Thrust

State Skill Development Missions have been set up with the goal of achieving the overall skill development targets with better focus on state specific requirements and implementation of various central government schemes. The latest amendment to the Apprentice Act 1961 has made it possible to exploit its potential by extending the provisions of the Act to

50 CargoConnect - october 2019

the service industry as well as relaxing the norms for calculating the number of apprentices to be engaged. This has opened up various newer avenues for the apprenticeship programme which were traditionally focused on manufacturing sector. The National Apprentice Promotion Scheme (NAPS) with an allotment of approximately US$2.3 billion and a target of increasing the number of apprentices from 0.23 million to over 5 million by year 2020 is a step in the right direction. This will help industry avail subsidy and thereby streamline labour recruitment and training cost. The Cabinet Committee on Economic Affairs has approved two new World Bank supported schemes with an outlay of approximately US$1 billion - Skills Acquisition and Knowledge Awareness for Livelihood Promotion (SANKALP) and Skill Strengthening for Industrial Value Enhancement (STRIVE). Both these are outcome focused schemes marking a shift from inputs to results in the implementation strategy in vocational education and training. These are also expected to address the

400 mn

Skill India seeks to provide institutional capacity to train skilled workforce by 2022. The Government of India set aside US$2.69 billion in

2017-18, 16 per cent more than the allocation of US$2.3 billion during 2016-17

for skill development. This further showcases the resolve to address the current shortage of trained manpower.


trendinghub Scheme, more than 1 million trainees were skilled during FY 2015-16. India signed Memorandum of Cooperation (MoC) with Japan on the ‘Technical Intern Training Program (TITP)’. TITP is an ambitious programme which envisages to send 0.3 million Indian technical interns to Japan for on-the-job training for a period of three to five years.

Key reforms/plans in place

Ministry of Skill Development and Entrepreneurship (MSDE) launched its flagship scheme Pradhan Mantri Yuva Udyamita Vikas Abhiyan (PMYUVA) Yojana on entrepreneurship education and training in November 2016. With an outlay of approximately US$78 million, it aims to provide entrepreneurship education and training to over 0.7 million

Under Pradhan

Mantri Kaushal Vikas Yojana (PMKVY), a total of 1.98 million candidates have been enrolled, out of

The National Apprentice Promotion Scheme (NAPS) with an allotment of approximately US$2.3 billion and a target of increasing the number of apprentices from 0.23

million to over 5 million by year 2020 is a step in the right direction. This will help industry avail subsidy and thereby streamline labour recruitment and training cost.

Pradhan Mantri Kaushal Kendra (PMKK) scheme has a target to set

up 426 PMKKs across 409 districts. Currently,

which 1.79 million have been trained and 1.19 million have been certified till date.

students in five years (2016-17 to 2020-21) through 3,050 institutes. There are plans to open three new Regional Vocational Training Institutes (RVTIs) for women in FY17 in order to increase the female workforce participation ratio (WPR). Correcting the current female WPR can reportedly increase India’s GDP by 60 per cent. Pradhan Mantri Kaushal Kendra (PMKK) scheme has a target to set up 426 PMKKs across 409 districts. Currently, the country has more than 250 PMKKs. The Skill India programme looks to offer a passage for overseas employment through special programs mapped to global job requirements and benchmarked to interna-

the country has more than 250 PMKKs.

tional standards. The Skill India programme also envisages maintaining a national online database, known as the Labour Market Information System (LMIS), which will match the demand and supply of skilled workforce in the country and thereby decrease the asymmetry that exists.

Future Plans

Government of India and various state governments have also conceptualised projects with various multilateral agency to develop and strengthen the skill ecosystem in India. Some of them are as detailed below: SANKALP at an estimated outlay cost of approx. US$0.7 billion is envisioned to provide training that is

relevant to the market, to 35 million youth. It will also focus on setting up assessor academies that will assess the quality of the training provided by institutes. Thus the scheme presents a huge opportunity for national and international assessment agencies. STRIVE at an estimated cost of approx. US$343 million12 seeks to focus on the quality of vocational training provided by Industrial Training Institutes. Additionally, it will also focus on providing stronger apprenticeship programs through the involvement of Small and Medium Enterprises and various business associations. The scheme provides opportunities for Massive Open Online Course (MOOC) providers, knowledge providers in curriculum development and training of trainers

With an outlay of approximately US$78 million, MSDE aims to provide entrepreneurship education and training

to over 0.7 million students in 5 years (2016-17 to 2020-21) through 3,050 institutes.

by Subject Matter Experts and industries to invest in vocational training and it is. The Asian Development Bank has supported India’s Skill Development program in Odisha, Madhya Pradesh, Himachal Pradesh, Kerala and Meghalaya with cumulative financing to the tune of US$304 million. The Government of India has also introduced various initiatives like Make in India, Digital India, Housing for all, National Highway development project, inland waterways development which have a multibillion dollar outlay and is expected to help India maintain the current GDP growth rate, thereby translating into increased job opportunity. CC october 2019 - CargoConnect

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Interview To what extent has TVS Supply Chain Solutions been responsive to India’s dynamic market and innovating its logistics and supply chain management processes?

We are an agile organisation, growing and evolving constantly to cater to the ever-changing needs of customers. We understand the dynamic nature of the market and in most of the cases, we act proactively to forecast any changes and be adequately prepared. With high volatility in demand and the need to provide best value at lowest cost, we believe in increasing the overall efficiency of the supply chain by providing novel end-to-end solutions built on digital innovations. This enables total logistics cost reduction, visibility across the chain and achieving the service deliveries, thus providing full satisfaction to the end customer.

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? We have grown from a warehouse and transportation logistics service provider to an Indian MNC that offers fully integrated supply chain solutions across the globe, backed by technological innovations. We provide various other integrated services such as vendor management, sourcing, demand planning, inventory optimisation, resource optimisation, packaging solutions, project management solutions for telecom sector, material handling solutions, reverse logistics and field engineering. Besides, we provide technological solutions such as warehouse management system (WMS), transportation management system (TMS), and last mile track and trace system which ensures a transparent and efficient supply chain. For example, we provided an integrated packaging and transportation solutions to a two-wheeler manufacturer, increasing the number of engines moved per truck by 100 per cent and

52 CargoConnect - october 2019

also reducing the existing packaging cost by 34 per cent.

How far have you been successful in implementing technology to effectually streamline your logistics and supply chain management services?

We strive hard when it comes to technology adoption and implementation and have been successful in staying ahead of the curve. We have many success stories with customers cutting across various sectors where we have added value through technological innovation. Fittingly, Indian Oil has recognised us as the ‘Best Technology Adopter of the year’ in surface logistics. We have set up a centralised ‘Smart Centre’ for entire pan-India operations, which provides end-to-end visibility and monitors the lead indicators. This enables us to work proactively in preventing any deviations from plan, achieve our service-level

Capturing synergies in integrated logistics


agreements (SLAs) with customers and improve our operational efficiency. Operational data collected are analysed by our dedicated business intelligence team, and based on that shortterm and long-term strategic decisions are taken.

To be more flexible and responsive towards supply chain and logistics management, are you strategising on expansion and other related projects to further align your services? Core strength of our organisation has been the ability to continuously evolve and keep furthering our services. Today, we are present in 19 countries, providing services such as warehousing, transportation, inbound logistics, last mile fulfilment, packaging, maintenance, repair and overhaul (MRO), international freight movement, and 4PL services for various sectors. We have broadened our scope through strategic acquisitions of com-

Through a combination of the organic and inorganic route, TVS Supply Chain Solutions (TVS SCS), formerly known as TVS Logistics Services Limited (TVS LSL) which started off as a logistics provider, has developed into an integrated supply chain and logistics services firm catering to sectorsautomobile, beverages, information technology, healthcare, telecom, retail, consumer goods and defence, with presence in 14 countries. R Shankar, CEO- India, TVS SCS, in a conversation with Upamanyu Borah, speaks about how their ability to look at the overall supply chain and the capability to solve customer challenges beyond basic logistics activities, differentiates them from their competitors.

panies with niche capabilities in overseas market. We have been successful in cross deploying the acquired capability from one region to another, thus expanding our services globally.

Along with offering excellent logistics and supply chain solutions, do you also structurally invest in trend research and solution development?

Yes, we do. In the pursuit of providing, tailored solutions to our customers, we keep strengthening our solution development capability. Leveraging our global operations, we cross-deploy many best practices and innovative solutions from matured supply chain markets to developing markets. We have a dedicated pan-India solu-

With high volatility in demand and the need to provide best value at lowest cost, we believe in increasing the overall efficiency of the supply chain by providing novel end-to-end solutions built on digital innovations. tion development team, who are enrolled in structured training and upskilling programs on a regular basis. Besides, we have an internal team working on market research. In the past, we have collaborated with external consultants to study the market. This is an ongoing activity which enables us to be abreast of the market trends, discover problems of supply chain that our current and potential customers are grappled with, to be able to deliver cutting edge and bespoke solutions.

Any key sectors you’re looking at to explore in the near future?

Over the past 15 years, from servicing the auto sector, we have broadened our scope to verticals such as Engineering and Industrial, Defense, Consumer Products, Tech & Telecom, Beverages,

Leveraging our global operations, we cross-deploy many best practices and innovative solutions from matured supply chain markets to developing markets.

Office Automations, and many more. Today more than 50 per cent of our business comes from non-auto sectors. Our pan-India presence with core service offerings and capability to access remote locations helps us in tapping the unexplored business verticals. We constantly explore other sectors and provide solutions to customers where we feel we have the capability to add value and make a difference. Our technology and IT systems enable us to differentiate ourselves and add value to customers cutting across all sectors. We have recently tied up with one of the largest constructions and infrastructure companies in India to provide transportation services to them.

What challenges you foresee in the year 2019 for your company? What strategies would you follow to overcome those challenges? Owing to the current slowdown in the market, there will be challenges in handling volatile volumes and stringent need for cost savings. We are looking at it as an opportunity to help our customers, reduce their total logistics cost through value addition and making their supply chain leaner and more efficient. We practice continuous improvement by adopting Toyota Production System (TPS) and have a dedicated team called SEAT- Self Enhancement Activity Team, with more than 200 people certified and trained by a Japanese expert. They implement lean methodologies in all our facilities across India to eliminate waste and increase the efficiency, thus reducing the total logistics cost and sharing the benefits with our customers. CC

october 2019 - CargoConnect

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Shipper Speaks

A risky but useful proposition is to bridge the gap in demand and supply through outsourcing In reality, few companies, even those long established, can unequivocally tackle all supply chain related concerns affirmatively. That’s no slight towards the professional capabilities of their leaders. Developing a bestin-class supply chain is no easy task, and it takes time. Prashant Bhatmule, Head-Outsourcing- JK Paper informs Upamanyu Borah why supply chain must be at the centre of management attention, and how they are continuously and actively seeking supply chain service improvements.

Journey So Far!

JK Paper is a leading paper manufacturing company of India. It has two large integrated paper manufacturing units – JK Paper Mills at Rayagada, Odisha and Central Pulp Mills at Songadh of Gujarat, with a combined capacity of 4,55,000 TPA. We are the market leaders in India in Branded Copier paper segment with exports to 35 countries, and among the top two players in Coated Paper and high-end Packaging Boards. Our products are sold through extensive distribution network of 188 wholesalers, 14 depots and 4 regional marketing offices, covering nearly 4,000 dealers. Additionally, JK paper has started the focussed distribution through retail network in various cities to expand the reach to customers. JK Paper has recently invested substantially (about `1775 cr) in expanding and modernising its capacity at JK Paper Mills, Rayagada. It involved installing state-of-the-art machines with 1,65,000 TPA of paper capacity and a pulp mill with 2,15,000 TPA. This has significantly reduced water and energy usage.

Adopting Unique Strategies

JK Paper has been working in the sphere of paper manufacturing and distribution for over 50 years, and thus was destined to lead all areas of business, with supporting services of supply chain to meet the overall requirements.

54 CargoConnect - october 2019

Paper needs to be handled carefully, and hence we have got all special process at place for its efficient handling. Packaging is automated, boosted by technology, and the speed of all allied activities is used to ensure paper is produced rigorously. The paper reels weigh around 800 kg and needs to be handled through pallets for ensuring ease of handling. Since storage becomes a big challenge, we use vertical heights to ensure maximum advantage. The reams are specially packed online, after cutting to size and are wrapped online to deliver the ready-to-sell product. The storage

JK paper has been working in the sphere of paper manufacturing and distribution for over 50 years, and thus was destined to lead all areas of business, with supporting services of supply chain to meet the overall requirements. of reams on pallet is automated, along with reel handling too. There are different brands/different GSM/different sizes –standard/nonstandard making the supply chain much difficult with the scale of volumes.

Relationship Management

JK Paper has a majority of automatic lines for production, keeping ‘agility’ as the main motto. Transportation surely is a complex process, but the same and all the related matters to be captured are automated through Systems Applications and Products (SAP) to ensure Turnaround Time (TAT). The various modules used include entry to exit of all materials, offering visibility to the sales team for right update to the customer. The vendor relationship is being treated as the most centric process to make the operations smooth. Besides, we organise an Annual Transporter meet additionally to understand the issues, resolve the same and take suggestions from them. We strongly believe that transporters or any business partner are the most important link in the supply chain. The relationship with transport unions in some of the units has now become integral to the business itself because of speciality in treatment.

Overcoming Complexities

Volatility of demand and tight inventory management is a critical factor in supply chain management of our products. Added to this, the very volatile price trends of paper in import market make it too complicated and difficult to manage the complex situations at times. Usage of information technology on various operations and processes en-


ables a flexible and agile management of inventories. With additional support by LSPs on various requirements like transport management, flexible volumes in warehousing management, etc. is the key to success.

ing/Jio tracking, etc. are used to get the data collected and accordingly the route evaluation is done which helps to economise the freight and helps ensure on-time deliveries.

to our business to avoid excess of stocking in absence of proper time management which may lead to the most in appropriate and most expensive ‘Mill stoppage’ which is beyond acceptability.

Technological Innovations

Outsourcing of Services

Outsourcing is the need of hour, to have overall control and for economic support to the organisation. JK Paper strongly believes in outsourcing, not only in logistics but also in production wherein certain activities are outsourced. Logistic partners are used for the services of warehousing, transportation, custom clearance, etc. to the maximum extent. We strongly believe that if we

Partnering with LSPs

Innovation is key to success. In order to be ready for tomorrow, it is essential to be updated on current trends and to have future anticipations at place. Taking the leads from Uber/Ola, etc., we have tried to deploy digitisation to an extent. Recently, we have employed the next-generation, intelligent ERP business suite ERP SAP Hana. The technology helps to have the clarity for tomorrow, with the different analytics and AI it uses for interpreting trends and movements. We have also deployed digital systems and introduced best practices for warehouse management.

Creating Value

In an aggressive market as India, where the order to compete on the import prices from China is evident in any sector (due to harmless government policies on imports from China), it is essential to tighten the belts and use the discrimination of usage of the imports to an extent. A risky but useful proposition is to bridge the gap in demand and supply through outsourcing of goods. It is being used widely and successfully uses the strategies for flexible trends.

Transportation Management

Transportation is an evolving area of business, leading to new ventures at all times. Economisation of transport cost is very essential from time to time, and thus we are trying to work upon different mode of transport like Rail/Waterways, etc. Rail is extensively used for coal transport to mill and also for paper transport to other cities including export loading. Besides, today’s digital age enables visibility which is essential, with big data analytics helping find economic routes. Various tools like Vehicle track-

Various tools like Vehicle tracking/Jio tracking, etc. are used to get the data collected and accordingly the route evaluation is done which helps to economise the freight and helps ensure on-time deliveries. have to succeed, outsourcing of the services is essential, helping us to freely focus on core activities and follow the path of continued improvements.

Importance of Logistics

Logistics has changed the scenario in any industry as seen across the length and breadth of supply chain. Today, logistics has also been seen as a profit centre in many organisations, making it a focal point in the industry. In this era of uberisation, customers would like to know the delivery of the goods before the order is confirmed. JK Paper is no exception to this expectation, and therefore logistics has been taken as priority by the management. JK Paper’s overall spent for logistics varies from 3 per cent to 8 per cent of the cost depending on distance from mill to customer location. The efficiency of the mill is decided by the logistics, due to the voluminous product. The speed of logistics is critical

We are dealing in volumes and thus financial strength is must to have business partnerships, in addition to the technology savvy team and platforms used by LSPs. Collaboration is very important for mutual growth, and hence inputs are also taken from LSPs to share on mutual gains for the same. Creativity and value addition is also considered for selection of LSPs in order to be more agile and competitive for tomorrow. It helps us to grow together as flexible and competitive.

Warehousing Tactics

Managing and handling voluminous products are critical to an evolving supply chain in any industry. As process industry is space driven, buying storage space gets too costly. Thus, we have a very narrow margin to play on the inventory. In order to meet all varied demands in the market with limited space management option, we need to vitally use new trends and tactics from time-to-time. Warehousing is used outside the mill on flexible management basis, and yields the necessary results. The output needs to be consistent with regard to the manner of handling and hence the need to train supporting business partners to handle the materials safely, becomes imperative. It also calls for a digitised inventory management within the mill backed by barcoding/RFID, and the ARS systems are used in depth for such voluminous products wherein a variety of SKUs need to be handled. Besides, we are using different softwares for day-to-day planning and optimisation of wastage, etc. Further, software systems are used to monitor logistics, be it TAT of vehicles or prioritisation of vehicles for loading, along with the volume of trucks required to be handled in a day for incoming and outgoing materials. CC

october 2019 - CargoConnect

55


Technological innovation and industry expertise is essential to achieve supply chain optimisation

Shipper Speaks

Supply chain is a prime area for innovation in the apparel industry. By optimising efficiency, visibility and responsiveness when things don’t go as planned, businesses can drive customer acquisition and loyalty in a fiercely competitive marketplace. While the sector has been relatively slow to adopt supply chain technology, businesses have a growing interest in implementing tools and processes to transform their operations. Suresh Chugh, GM & Head- Logistics, Raymond Apparel, in an interview with Upamanyu Borah highlights how a streamlined supply chain is fundamental to getting huge volumes of ever-changing SKUs to the market quickly.

Organisation and Operations

Incepted in 1925, Raymond is a diversified group with majority business interests in Textile & Apparel sectors as well as presence across diverse segments such as FMCG, Engineering and Prophylactics in national and international markets. With over 1100 exclusive stores spread across 380+ cities and an expansive network of over 20,000 points-ofsale in India, Raymond is a textile powerhouse with state of the art manufacturing infrastructure, best industry practices that has raised the bar of Indian textile manufacturing. Over the years, Raymond has emerged as a pre-

Supply Chain challenges at Raymond

ferred choice for top design houses across 55 countries. Raymond is also an aggressive player in the ready to wear apparel segment with reputed brands such as Park Avenue, Raymond Ready To Wear ColorPlus & Parx that are a part of its product portfolio.

Factors driving tech-enabled Procurement

E-Auction, automation, strong vendor base, stringent selection of vendors/ suppliers and their integration through communication protocols such as Application Programming Interface (API), is enabling the growth in procurement

Solutions for overcoming them

Imbalanced load from month to month and week to week.

Timely space and resources planning helps in managing the situation.

Bin space shortage during peak months.

Creation of virtual bins in GR area and increasing the bin capacity temporarily helps a lot during such situations.

Production delays

Monthly docking plans are made and weekly follow-ups are done for plan v/s actual receipts. Alerts are raised by the planning team to ensure that connectivity is fulfiled as per the plan or commitment.

Last mile delays, pilferages and misrouting of consignments.

Flexible Manufacturing System (FMS) planning and implementation, Application Programming Interface (API) integration, weekly meetings with all Logistics Service Providers (LSPs), load balancing, LSP ranking basis their performance, etc.

No real-time visibility of orders and consignments.

API integration and FMS implementation.

56 CargoConnect - october 2019

in India. Implementation of technology at all stages, right from selection of vendor, ordering process, order tracking, bills processing, etc. has lead to improvement in the end-to-end procurement process.

Tech-enabled Procurement: Requirements

Things to be kept in mind and implemented while going for digital transformation in procurement:  Reallocate resources from operational focus to value creation.  Embrace digital transformation with open mind.  Accuracy of data.  Analytics-based decision making.  Focus on customer centric service design and delivery.  Upgrade skills of the executives involved in the procurement function from time to time.

Challenges in technology adoption

Human tendency is always to resist any kind of change unless its real benefits are communicated timely and in a proper manner.

Best Practices

Raymond follows various best practices in the supply chain such as Advanced Ship Notice (ASN) implementation, E-Auction, path optimisation


Shipper Speaks Managing back-end supply chain

for better picking efficiency and productivity, inventory storage optimisation for maximum usage of available space, improvement of inventory velocity and inventory turns by segregation of old season merchandise and liquidation. Besides, to implement Flexible Manufacturing System (FMS) and lean logistics, latest technologies including voice picking, sorters, etc. are deployed. Apart from this, LSP ranking system helps to get best results on last mile deliveries. Further, implementation of strategies such as Genba Kaizen and 5s further helps in cost reduction and proper housekeeping as well as safety.

Warehousing Strategies

After GST implementation, Raymond has been working on network optimisation and planning to consolidate its network structure which was earlier to address the specific zone-wise bottlenecks regarding permit issues, CST benefits, etc. We are focussing a lot on inventory management and working towards improvement of inventory turns by implementing various strategies. Raymond believes in removing bottlenecks and brings agility into the system to provide better services to its internal and external customers. We are working on various solutions and in the process of deploying of latest technologies to improve speed and efficiency of operations. Above said, we evaluate the processes from time to time and take actions, monitor safety norms and work upon them to provide the best working environment to keep up the morale of staff and workers.

Ensuring smooth coordination

Raymond follows stringent selection

process while getting the suppliers, 3PLs and LSPs on board and then has the review meetings with them and associated departments from time to time. By using latest communication systems (WhatsApp/E mail groups) which are much faster as compared to the earlier conventional methods, we establish better, clear and faster communication. Also, clearly defined service-level agreement (SLAs) and Key Performance Areas (KPAs) and their monitoring gives us better control over the operations.

Expectations from LSPs

Logistics Service Providers (LSPs) should deliver the shipments timely

clearly defined servicelevel agreement (SLAs) and Key Performance Areas (KPAs) and their monitoring gives us better control over the operations. and safely at optimum cost and be able to provide real-time visibility of each shipment. They should have the flexibility to provide the extra-support during peak seasons and capability to integrate the API with our FMS which helps in delivering the shipments to our customers at a faster pace and free of risk. Besides, LSPs need to work on the reduction of transit times and should provide the Proof of Delivery (PODs) electronically.

Scope for LSPs

LSPs should efficiently handle first and last mile deliveries with offering competitive prices.

Raymond manages the back-end supply chain by adhering to the set standards:  Strengthening the vendor relationship  Implementing right processes  Proper planning and forecasting  Removing short-term bottlenecks  Integration of APIs with vendors/ suppliers  Following properly defined processes  Taking decisions with keeping customers at centre

Next-gen manufacturing supply chain

The next-gen manufacturing supply chain will largely depend on the offerings of Augmented Reality (AR) and Virtual Reality (VR) for cost reduction and managing sustainability. IOT pushing autonomous supply chain management and collaboration between buyers and suppliers will be the way forward. Also, new technologies and automation of all processes using AI and ML will play a major role in deriving the best results in the manufacturing supply chain.

Megatrends

There are a lot of changes happening in the domain of supply chain which includes Digital Supply Networks (DSN) that provides an opportunity to improve efficiency exponentially in functions of the supply chain. Today, automation, network optimisation, Artificial Intelligence (AI), Machine Learning (ML), Internet of Things (IOT), customer centricity, digitisation and technology implementation across all processes of supply chain, manufacturing and procurement are pre-dominant. Also, a significant amount of agility been witnessed in the last 5-7 years and usage of data analytics helps to take appropriate actions timely. Another megatrend which has emerged is dependency on 3PL and 4PL. Lot of improvement has been noticed in terms of real-time visibility and tracking of orders and shipments, helping companies offer better logistics services. CC

october 2019 - CargoConnect

57


Commerce ministry official calls for creation of e-platforms for logistics players

National Logistics Policy to soon be released, says Piyush Goyal

I

ndia will soon come out with a national logistics policy to bring down the cost of logistics to at least below 10 per cent, Commerce and Industry and Railways Minister Piyush Goyal has said in a statement. Addressing the Asia Pacific Trade Facilitation Forum 2019 in the capital, Goyal also

said that the Government was on a national effort engaging with Railways, ports, shipping industry, airline industry and roads transport ministry to collectively work on a programme to bringing down the logistics cost. Goyal stated that the implementation of GST in India has shown significant results

particularly in terms of bringing down travel time to long distances through road transport with entry points becoming seamless (very few check posts). The efficiency of road transport has caused little bit of stress for the Railways, who are competing with far more e f f ic i e nt r o ad t ra n s p or t system, he added.

Focus now on port led-industrialisation: Sagarmala Development

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OPIC

AL

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agarmala Development Corporate Ltd (SDCL) will shift focus on port-led industrialisation to get cargo to ports than looking at new proj-

ects. “With infrastructure lying idle at ports, it has been decided not to look at projects to add more capacity at ports. The focus is more port-led industrialisation, which in turn will get cargo to ports,� according to a senior official of the three-year old Sagarmala Development Corporate Ltd, which assists Central/State/ port level/private sector Special Purpose Vehicles with equity support for projects to be undertaken by them.

While the government in the past had acted fast in creating capacity at ports, the utilisation has been quite low due to wanting of cargo, said Dilip Kumar Gupta, Managing Director, SDCL, which is a US$110 billion coordinated effort across over 60 agencies for over 600 identified projects. The potential logistics cost s av i n g s ide nt i f i e d we r e `35,000 to `40,000 crore per annum by 2025 under Sagarmala programme, he added.

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Sivasailam, Special Secretary (Logistics) in Department of Commerce (Union Ministry of Commerce and Industry) has called for the creation of electronic platforms to help the logistics industry ecosystem to conduct hassle-free business. Such platforms would go a long way in empowering the micro, small and medium enterprises (MSMEs) in the logistics industry. "A small player with four of five trucks would still have to get connected with the customs and other government agencies for fulfiling statutory obligations. The platforms would also act as aggregators and help the the small players," Sivasailam has said.

Maharashtra govt plans to deliver emergency medicines through drones

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he Maharashtra government is planning to deliver emergency medicines through drones. The service, expected to be launched in early 2020, will be operated by California-based automated logistics firm Zipline. Announcing the partnership with Zipline, the state government said the initiative will be supported through a grant from Serum Institute of India (SII). A total of 10 distribution centres are planned across Maharashtra in phases over the next few years.

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n ews Govt forms task force to identify infra projects worth `100 trillion

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he government has constituted a highlevel task force to identify infrastructure projects for `100 trillion investments by 2024 -25 a s I nd ia a i m s to become a $5 trillion economy. The task force, headed by the economic affairs secretary, will draw up a 'National Infrastructure Pipeline' of `100 trillion, the finance ministry said in a statement. This would include greenfield and brownfield projects costing above `100 crore each. The task force will comprise secretaries from

different ministries, other senior officials and Niti Aayog CEO. It will identify technically feasible and financially/economically viable infrastructure projects that can be initiated in 2019-20. Further, it has been asked to list the projects that can be included in the pipeline for each of the remaining five years between fiscals 2021-25. The task force, constituted by Finance Minister Nirmala Sitharaman, will submit its report on the pipeline for 2019-20 by October 31, 2019 and on the indicative pipeline for 2021-25 by December-end, the ministry said.

India Bangladesh coastal shipping pact may be thrown open to larger ships

I

ndia is seeking to remove the size restriction on vessels plying between India and Bangladesh under the coastal shipping agreement signed between the two neighbours in June 2015 as the pact comes up for renewal next year. The coastal shipping pact currently permits vessels of up to 6,000 gross tonnage (GT) to ply due to size restrictions mandated by the River-Sea Vessel (RSV) rules framed separately by India’s Directorate General of Shipping and the

Department of Shipping, Bangladesh. This is because, Article II of the pact, signed on June 6, 2015, covers only Indian and Bangladeshi flag vessels that comply with RSV or equivalent

standards to run services between the two countries. The RSV category was ag reed upon by bot h t he countries because of its lower construction and operation costs without compromising on the safety of the vessel. Currently, there is no restriction for vessels complying with international standards to trade between India and Bangladesh. However, the coastal shipping agreement permits lower standard only to trade between the two countries.

Inter-terminal transfer of boxes at JNPT boosts rail volumes in August

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he Jawaharlal Nehru Port Trust, the country’s busiest container gateway, handled a record volume of rail containers in August after the port authority brokered a new deal on inter-terminal rail handling operations among all the five container terminals at the port which took effect from August 1. JNPT’s inland container depot (ICD) rail

volumes hit 70,398 twenty-foot equivalent units (TEUs) in August from 68,374 TEUs in July. From January 2019 till date, JNPT’s rail volumes have touched 514,694 TEUs. The inter-terminal transfer of containers is a system unique to JNPT, wherein container train operators run mixed trains that carry boxes designated for more than one container terminal.

Spicejet takes lease-delivery of its first freighter jet

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picejet’s cargo arm SpiceXpress has taken the lease-delivery of its first plane — a 737-800 Boeing Converted Freighter. SpiceXpress, the first cargo airline across South Asia, has leased the standard-body freighter from NGF Alpha of Spectre Cargo Solutions, Boeing said in a statement.

Built on the next-generation 737 passenger jets, the 737-800BCF offers lower operating cost per payload tonne than older standard-body freighters, the company claimed. "We are expanding the markets currently we serve, particularly in the Middle East, Hong Kong and Bangladesh, and the new delivery will help us in our strategic direction," said Ajay Singh, chairman and managing director, SpiceJet.

UPS expands express services to India

U

PS has announced the addition of three new countries served by UPS Worldwide Express, and broadened its reach across 76 cities in the Indian Subcontinent, Middle East, and Africa (ISMEA). In India, the UPS Worldwide Express import service is expanding across seven cities including Delhi, Faridabad, Gurgaon, Pune, Manesar, Bangalore and Chennai. UPS customers in these cities can now receive packages earlier in the day, giving Indian businesses the opportunity to receive critical parts faster and ensuring their supply chains can operate more efficiently. The UPS Worldwide Express service offers guaranteed delivery on the next business day by 10:30 am, noon, or 2 pm, depending on the destination. october 2019 - CargoConnect

59


n ews Hyderabad International Airport is world’s third fastest growing airport

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he GMR Hyderabad International Airport has been featured as the third fastest growing airport in the world in terms of pas-

senger growth. The Airports Council Inter nat ional (ACI) had revealed these findings as per its latest World Airport Traffic

Report. The Hyderabad Airport has been ranked third and the second fastest growing airport in the world and India, respectively, in the category of over 15 Million Passengers Per Annum. Hyderabad International Airport registered a passenger growth of 21.9 per cent in 2018 over the corresponding year. Cu r rent ly, t he a i r por t i s served by 29 passenger airlines connecting 69 destinations both domestic and International. On an average the airport handles close to 60,000 passengers and over 500 air traffic movements daily.

Export-import headwinds to continue in coming months, says Maersk

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ndia’s containerised trade growth in Q2 2019 slowed to one per cent from nine per cent over the same period last year, according to Maersk India Trade Report. This was due to a host of international factors such as slowing trade growth, and growing trade tensions, coupled with domestic factors like

rural consumer distress, tightening liquidity and a slowdown in key manufacturing sectors, it said. Combined, these triggers impacted India’s economic activity, slowing overall importexport growth, it added. As per the report, West India delivered the highest growth with imports growing at four

per cent and exports at 11 per cent. North India delivered one per cent growth in imports and a decline of nine per cent in exports. South India registered one per cent import growth and two per cent export growth while east India recorded two per cent growth in imports and a decline of one per cent in exports.

VOC Port records 8 per cent growth in cargo traffic

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he V O Chidambaranar Port (formerly Tuticorin Port), has recorded eight per cent growth in cargo traffic till August in the current financial year. The port had a 13 per cent growth in container handling so far, said TK Ramachandran, Chairman, VOC Port Trust. “The steps we have taken in the past helped the

60 CargoConnect - october 2019

port in this performance,” he said at the third edition of CII Port Conclave 2019 - Port-Led Industrialisation. Ramachandran said due to various efforts, the dwell time of vessels at the VOC port is less than 48 hours as against 70-100 hours in some of the other ports. Other factors like average output have also im-

Nippon Express to Acquire 22% Stake in Future Supply Chain

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ishore Biyani’s Future Supply Chain Solutions Ltd (FSC), which provides supply chain and logistics services to businesses, has said that it will sell 22% stake in the firm to Nippon Express Co, one of Japan’s largest logistics company. FSC, in a statement said the proposed acquisition, a combination of primary issuance and secondary purchase, will be made by Nippon Express (South Asia & Oceania) Pte Ltd— a subsidiary of Nippon Express. As part of the deal, FSC would sell about 10 million shares in the company at `664 per share, a 22% premium to its Thursday’s closing price.

ESR partners with Future Group to invest close to `300 Crore

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proved considerably, he added. A port trust release said up to August 2019, the port has handled 15.15 million tonnes, an increase of about 8 per cent over the corresponding period last year.

SR India Investments Holdings, a subsidiary of Asia Pacific's leading logistics real estate platform ESR, has inked a pact with Kishore Biyani's Future Group to set up two industrial and warehousing parks with an investment of nearly `300 crore. The two state-of-the-art industrial and warehousing parks would be developed in Nagpur and Jhajjar to service the northern and central regions. The two sites, with a total area of approximately 75 acres and a developable area of approximately 1.3 million sq ft will be jointly developed by Future Market Networks and ESR, with latter as the majority partner.


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n ews 81% APAC biz leaders say tech implementation key to thrive: Zebra study

E

ighty one per cent of APAC business leaders b el ieve tec h i mple mentation is the key to compete and thrive in an on-demand economy, a new study by Zebra Tec h nolog ies, a global leader in providing solutions and services to enterprises, said. Zebra Technologies 'Ware-

housing Asia Pacific Vision Study' analyses IT and operations decision makers from manufacturing, transportation and logistics, retail, post a nd pa rc el del iver y a nd wholesale distribution industries for their current and planned strategies to modernise warehouses, distribution centres and fulfilment centres.

The study highlights the forward-thinking fulfilment strategies that companies are focusing on to keep up with the growth of the on-demand economy. B ot h autom at io n a nd worker augmentation solutions will be a key focus for decision maker’s plans over the next five years.

Celebi launches bonded trucking from Kolkata, Indore, Vizag, Jaipur and Goa

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elebi Delhi Cargo Terminal Management India Pvt Ltd, in collaboration with their business partner Shreeji Translogistics Ltd, have announced the start

of their bonded trucking service from Kolkata, Indore Airport, Vizag and Goa to Celebi Terminal at Delhi IGI Airport from October 1, 2019. The move is to provide their customers a possibility to ship air cargo in an efficient, safe, process driven and cost-effective manner. Murali Ramachandran, CEO India, Celebi Aviation Holding Inc said, “We are happy to launch Bonded Road Feeder Services from Kolkata, Vizag, Indore and Goa which have been the requirement of our customers for long time. Bonded trucking is the future in India and is here to stay.”

Indian Ports Association upgrades PCS 1x with eDO facility

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ndian Ports Association (IPA) has launched a value-added service - Electronic Delivery Order (eDO) facility - to its cloud based new generation technology Port Community System ‘PCS1x’. The eDO is a single platform to perform all eDO related activities including e-invoice and e-payments, with highly secure data interchange between requester and provider. The

62 CargoConnect - october 2019

service will help the trade save time and money in clearing cargo, speed up delivery order extension and the empty offload process. Stakeholders can request invoice, view invoice, make payment and secure eDO on PCS1x post login. For empty offload at depot customers need not carry a copy of the delivery order since the empty yards are being onboarded and will be able to access the same electronically.

Hiranandani Arm GreenBase inks industrial and warehousing deal with Vestas India

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reenBase, a wholly owned subsidiary of Hiranandani Group has inked a deal to build a wind turbine park and warehousing set-up for the wind turbine manufacturing multinational Vestas India in Chennai. The built-to-suit development will be spread over half a million sq ft at the Industrial and Logistics Park, located within Hiranandani Parks, Oragadam. The group has allocated 115 acres for the Industrial and Logistics Park out of 430 acres of the mixed-use integrated township, Hiranandani Parks in Oragadam, Chennai.

Teleport expands into India through partnership with Zeal Global Services

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eleport, the digital cargo and logistics platform of AirAsia, and Zeal Global Services Pte Ltd have announced a new partnership to establish a local subsidiary in India. The partnership will help facilitate and strengthen market accessibility for retail, e-commerce and international freight companies looking to connect India to consumers in Asean and beyond. In addition, this partnership will also help support the cargo growth of AirAsia India as the airline pursues international expansion later this year.


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International

Saudia Cargo enhances its presence in Europe & Africa

IATA for single certification of aircraft worldwide

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he CEO and DirectorGeneral of International Air Transport Association (IATA) Alexandre de Juniac have called for single certification of aircraft to be fol-

lowed worldwide. “The real point is to restore mutual trust among regulators and a complete alignment to ensure that the single certification system

works properly as it has done for the past 70 or 80 years. That is the key priority,” the IATA DG said in an event. He said single certification means that if Federal Aviation Authority or any other agency certifies a plane, then other countries follow and certify the plane.

Emirates SkyCargo supports five years of exports from Belgium and Norway

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mirates SkyCargo has completed five years of operations to Belgium and Norway. Since September 2014, the freight division

of Emirates has flown over 235,000 tonnes of cargo to and from these countries; stimulating trade and helping local businesses reach global markets. The airline has facilitated over 60,000 tonnes of exports from Belgium over the last five years. Soon after the launch of passenger flight services to Brussels, the air cargo carrier also started scheduled freighter operations to the city in 2015. In Norway, Emirates Sky-

Cargo carried 105,000 tonnes of cargo to and from Norway since the start of its operations in the country. The carrier added to the economic growth of Norway's seafood industry by flying close to 62,000 tonnes of Norwegian salmon from Oslo to customers across the Middle East and Asia. Emirates SkyCargo launched a weekly freighter service on its Boeing 777 freighter aircraft to Oslo from October 2016.

Unisys to help Malaysia Airlines expand air cargo online booking options

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nisys is helping MASkargo, the cargo division of Malaysia Airlines; expand its range of cargo booking options with a new online booking service via the airline’s website. The new service from the information technology company provides an online option for MASkargo customers

64 CargoConnect - october 2019

who at present use offline methods to book cargo shipments, enabling them to access MASkargo’s space inventory, purchase services and to track deliveries 24×7. It augments MASkargo’s current online distribution strategy, which is based on the Digi-Portal independent global marketplace. Encouraging more

customers to use online booking services is a key step in the Asian airline’s digital strategy. Under the engagement signed in July 2019, Unisys will provide Digi-Connect systems integration services to link the airline’s website to the core Unisys Digistics air cargo digital logistics management solution.

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audia Cargo Company enhanced its presence in the African & the European continents adding new freighter flights alongside extra belly-capacity onboard Saudia passenger flights during the high season aiming to increase its network capabilities starting this September. Saudia Cargo added a second additional weekly freighter flight to JFK Airport in New York via LGG Airport in Liege, Belgium by a 747-400F freighter aircraft. Moreover, Saudia Cargo has become the largest player in the Kenya-Europe market by adding four weekly freighter flights from Nairobi airport to Europe as a total of 11 flights per week. In addition, the company added an additional flight to Khartoum International Airport via a 777F aircraft.

AP Cargo reinforces digital transformation with Ramco Logistics

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P Cargo Logistic Network Corporation, Philippines’ leading domestic provider of express logistics for air cargo and other goods, has implemented new logistics software by Ramco Systems. With this software, the company plans to improve tracking, planning and management of its air freight operations nationally in more than 80 branches worldwide. The cloud-based logistics ERP suite includes modules for Transport Management System, Fleet Maintenance System, Supply Chain Management, Finance Management as well as Human Capital Management.


International Qatar Airways inaugurates its new office in Amman

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atar Airways has launched its new office in Amman, Jordan. The airline has 21 weekly flights (three flights per day) from Doha to the Jordanian capital. The inauguration was done in the presence of transport minister of Jordan, Eng. Anmar Khasawneh and Qatar Airways Group chief executive, Akbar Al Baker. The ceremony was also at-

tended by several senior officials and VIPs, including minister of tourism and antiquities of Jordan, Majd Shweikeh, and the minister of digital

economy and entrepreneurship of Jordan, Mothanna Ghairaibeh. Ot her notable figures who attended the ribbon-cutting ceremony include the Ambassador of Jordan to Qatar Zaid Al Lozi; c h a i r m a n of t h e board of commissioners of the civil aviation regulatory authority of Jordan Captain Haitham Misto; and interim Chargé d'affaires of the Embassy of the State of Qatar to Jordan Abdulaziz bin Mohammed Khalifa Al Sada.

Growing demand for services prompts APAC airlines to sign agreements with Boeing

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everal Asia-Pacific airlines have signed up with Boeing Global Services for digital and supply chain solutions, in order to

support the growing demand for services in the region. These digital and supply chain solutions enhance airline crew situational awareness and provide cost savings across fleet-wide operations. According to Boeing’s 2019 Services Market Outlook, the Asia-Pacific commercial aviation services market is projected to grow by five per cent annually over the next twenty years into a $3.4 billion avia-

tion services market by 2038. “We continue to establish and grow relationships in this key region of the world, working closely with our Asia-Pacific customers to understand their unique operating requirements. We’re evolving our digital services and parts support to meet our customers’ needs while increasing the efficiency of their operations,” said Stan Deal, president and CEO, Boeing Global Services.

Bolloré Logistics transports train part shipment from South Korea to India

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olloré Logistics' India and South Korea teams successfully transported a train’s 23.5 metre-long part and other equipment from Incheon to Mumbai within a limited span of nine days. Destined for one of the world’s leading aerospace and trains manufacturers, the shipment was handled by

qualified Korean and Indian teams who worked closely together to offer a custom-made transport solution, which would meet the manufacturer’s expectations. The shipment was transported from the shipper factory to airport (ex-works) in collaboration with various stakeholders (trucker, carri-

er’s local agent and groundhandler). Bolloré Logistics India planned and proposed the cargo offload methodology, coordinated with Mumbai Int e r n at i o n a l A i r p o r t Lt d (MIAL) and other agencies for special authorisations requested for cranes, trailers & handling staff.

CEVA Logistics chooses Kontainers for digital voyage

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lobal freight forwarder CEVA Logistics has opted for e-commerce software provider for freight brands Kontainers to power its primary customer-facing e-commerce portal. The organisations have signed a multi-year, seven figure contract for Kontainers' flagship product Enterprise. Kontainers Enterprise is designed for large freight brands with heavy transactional volumes and a need to highly customise interfaces. It provides a complete digital experience across 12 modules: instant rates, booking, customs, trucking, FCL/LCL, global schedules, BOL (bill of lading), chat support, dashboard analytics, payment system and a full back office application. Apart from Enterprise, Kontainers other digital freight execution offerings include Edge for mid-size logistics/freight forwarding businesses and Essential for small forwarders.

CHAMP Cargosystems joins the Animal Transportation Association

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T solutions provider to the air cargo industry CHAMP Cargosystems has joined the Animal Transportation Association (ATA). This membership will allow CHAMP Cargosystems to develop a close collaboration with all the experts involved in animal transportation and work on next generation information systems together. This will ensure safe and efficient transportation for animals while improving airline safety. CHAMP’s innovation team has been developing new animal transportation solutions with the objective of improving the communication between the shipper, forwarding agent, and airline. october 2019 - CargoConnect

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AUTOCONNECT 2019

draws tremendous appreciation

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rganised by Surecom Media, AUTOCONNECT 2019 – Automotive Logistics Conference was convened at Shangri- La's - Eros Hotel, New Delhi on September 19, 2019. This year’s edition was endowed with participation by more than 150 OEMs and logistics professionals from around the country and abroad. Four intriguing panel discussions were held in the conference which touched the inherent aspect of India’s Automotive 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 industry. The conference formally commenced with the lighting of lamp by dignitariesAchal Paliwal, CEO, TML Distribution

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Company; Amlan Bose, VP- Global COE- Asia Pacific, MEA, South America, Ford Motors; Abhik Mitra, MD, Spoton Logistics; Dr Raman Prasad Singh, Dy Adviser, NITI Aayog; Senthil Kumar D, Lead - Sales Distribution & LogisticsLCV, Ashok Leyland; and Smiti Suri, Publisher- Surecom Media. Achal Paliwal, CEO, TML Distribution Company, addressed the conference in the inaugural session. He informed that global manufacturing is experiencing its sharpest and most geographically widespread downturn as the US-China trade war weighs on factories around the world. Counting on India’s capacity, capability and domestic demand, Paliwal said, “The industry is facing unprecedented shift in customer’s aspirations, technological and emission expectations

and need to support path-breaking policy reforms. Once the dust of economic reforms and anti-reform propaganda settles, India may be the largest beneficiary of investment diversion.” The 1st panel discussion of the conference titled ‘India will be Electric’ covered the topics- Investment strategies, supply chain solutions and logistics challenges powering India’s electrification. Changing regulations regarding EVs and battery production, and sales and transport across the supply chain. Storage, transport, and import export issues. The panel saw eminent speakersPrerana Chaturvedi, Spokesperson and CEO, Evolet; Jitesh Dodiya, Chief Electric Engineer, Menza Motors; and Pranav Singanapalli, Founder & CEO, eMotion Motors; and Divyanshu Tambe, Executive Director - Transport & Logistics, Ernst & Young.


Talking about the issues related to electric vehicles supply chain, Jitesh Dodiya said that being an OEM, they have to worry for the vehicle parts and not the charging infrastructure. “When we talk about electric vehicles, the components are different. We need companies manufacturing those components to evolve. Unless and until companies producing those components and parts don’t evolve, it will be quite critical for us to cater to the big service and spare network,” informed Dodiya. Considering the future prospects of electric vehicles, Prerana Chaturvedi said the industry will have to move to an industry 4.0 format and that India would also need to reskill a large number of motor mechanics. “They cannot repair EVs because of the sophisticated electronics. More importantly, India should utilise the next few years to become a

leader in next-generation battery technology. This is an honourable way to pursue EV dreams without being critically dependent on any country. This will require setting up of a high-ambition, well-funded institution headed by recognised experts,” stated Chaturvedi. In the 2nd panel discussion, Manish Kumar Gupta, Divisional Head- Parts Centre and Transport, Honda Motors; Rajesh Choudhary, Senior Director- Solution Development, Delhivery; Deepak Kumar, National Sales Head, V-Trans; Jayaprakash Loganathan, Sr ManagerSCM, JK Fenner; Mayank Dwivedi, VP, Spoton Logistics; and Divyanshu Tambe, Executive Director- Transport & Logistics, Ernst & Young, deliberated on the subject ‘Mastering the auto supply chain’. Many new details came to limelight including the changing dynamics of the aftermarket and how

service parts deliveries will change in this new environment. Manish Kumar Gupta said that it’s not the time to only look into the direct costs; but to look into the customer or the dealer’s perspective. Besides, auto companies have to work upon lowering the inventories. Also, companies have to work systematically with the transporters or logistics service providers and do proper reason analysis if any damage is happening due to unhealthy loading practice or inadequate packaging instead of just blaming them. In terms of transportation and storage, Gupta said, “Today, there is warehouse consolidation, proper supply chain visibility, better service providers with efficient vehicles fleet who take care of their drivers through CSR initiatives; all these are aimed at benefitting the industry in the long-term.”

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Mayank Dwivedi stressed on the fact that OEMs and Tier I, II and III suppliers should be open to new ideas such as API integration, transparency and flow of information wherein a vendor can use the service provider’s webbased portals and that they should give fair chance to logistics service providers who are servicing or offering them services, helping improve on the two most important parameters- fill rate and lead-time service level. From a service provider perspective, Rajesh Choudhary said, “Delhivery is gearing up by investing a lot in

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infrastructure, be it technology or fleet management. As an integrated solutions provider, we are engaging with a lot of automotive companies for end-toend supply chain solutions so as to help them consolidate on cost benefits and make them leaner and efficient through extensive offerings of technology.” The post lunch session kicked off with the 3rd panel discussion on ‘Outbound Logistics – New Business Models’. Industry leaders who took to the stage were R S Kapoor, VP- Supply Chain, Maruti Suzuki India; Vipul Nanda, President, Car Carrier Association;

Manish Kumar Gupta, Divisional HeadParts Centre and Transport, Honda Motors; Senthil Kumar D, Lead- Sales Distribution & Logistics- LCV, Ashok Leyland; and Nidhish Kuchhal, GM- Demand Chain Management, Mahindra & Mahindra. The value-adding points that emerged during the discussion were the sector’s future infrastructure requirements, where the industry can collaborate, why some parts of the supply chain still have a fragmented approach and how to overcome those, etc. During the session, R S Kapoor proved quite vocal, informing that be-


who are servicing OEMs should look to cost reduction and efficiency in vehicle deliveries. Further, Senthil said that Government and transporters should create facilities and build the right approach to retain drivers or tackle the issue of driver shortage.

ing the country's largest carmaker, Maruti has drawn up a plan, based on which at least 50 per cent of its cars will be transported through the railways by 2030. The company is currently using around 30 rakes for transportation of its cars, of which more than half include flexi-deck auto-wagon rake, specially designed by the company. Nidhish Kuchhal seemed optimistic as he talked about the boosters for productivity improvements such as transit time reduction post-GST, introduction of AFTO policy by the railways which has increased railway's share in transportation of automobile. Besides, Kuchhal mentioned about the hub and spoke model which will enable bulk movement of vehicles, and coastal shipping as well as collaborative logistics framework as enablers which will help to manage costs and improve on efficiencies in the future. Talking about the current scenario, Senthil Kumar D said that car carriers

The 4th and the last panel discussion witnessed professionals and specialists from the fieldAmlan Bose, VP- Global COE- Asia Pacific, MEA, South America, Ford Motors; Sameer Gupta, Chief Manager (Supply Chain), JK Tyres & Industries; Mudit Chandra, Director- Freight Marketing, Railway Board; Ramesh Venkat, Head- Industry Partnerships, Logistics Sector Skill Council; and Teja Vardhan Podipireddy, Manager- Demand Planning, Mahindra and Mahindra, sharing their knowledge and expertise on the topic ‘Optimising and keeping pace with Supply Chain growth: Managing Present Conditions and Infrastructural Bottlenecks’. The panel stressed on the vital role that technology plays in the sector, and that positioning the right infrastructure has been a challenge and therefore automotive companies, OEMs and logistics service providers alike should be pro-active to address the prevailing issues so as to map out logistics and supply chain strategies that need to be closely aligned with the company’s manufacturing and commercial strategies.

About AUTOCONNECT AUTOCONNECT- Automotive Logistics Conference; the largest and most prestigious annual event of its kind, brings together key stakeholders from the entire Automotive supply c ha i n. AU TOCON N EC T, powered by CARGOCONNECT Magazine, is part of Surecom Media’s CONNECT series of conferences that also i ncludes PH A R M ACONNECT: Pharma Supply Chain

Con ference, F MCGCON NECT: FMCG Logistics Conference, and APPARELCONNECT: Apparel Logistics 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.

Commenting on the crucial aspect of creating and driving a culture of innovation in the workplace, Amlan Bose said that, “It is important for the senior leadership of any organisation to spend some rich time, at least a few hours every day or once a week, in understanding and ideating the strategies of tomorrow.” Bose also enlightened the attendees about Ford's dynamic supply chain, and how they have been efficiently innovating its management. Highlighting the railways initiatives in addressing the automotive industry’s concerns, Mudit Chandra expressed, “As far as delivery is concerned, capacity constraints has been a major issue in freight trains. We are eagerly awaiting the commissioning of dedicated freight corridors which will help triple our capacity in a single stock; the move likely to be effective by 2021. Until then, we will monitor every freight train at the highest level on a daily basis, which is currently being practiced. And wherever there are detentions and bottlenecks, all possible efforts are being made to counter or address the issues, along with counseling the staff and supervisors.” Speaking on the creation of a potential-skills ambience, Ramesh Venkat said their industry-best training modules help any organisation's strong supply chain workforce build capabilities across domains of product delivery and customer experience.

AUTOCONNECT 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. AU TOCONN EC T a nd 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 Subcontinent. october 2019 - CargoConnect

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AUTOCONNECT 2019 honours

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Testimonials R S K apoor VP- Logistics, Maruti Suzuki India

events.

What an experience it was to be a part of such a fruitful discussion on the evolution of the country's auto supply chain. Best wishes to all the members for the upcoming

A mlan Bose VP- Global COE- Asia Pacific, MEA, South America, Ford Motors

Conference like this is always great as it brings all the industry brethren and experts together and offers the opportunity to share our painpoints and understand everyone's line of thoughts. I am sure all of us will be going back today with some key takeaways and some good practices that can be imbibed to invigorate the supply chain operations further. Achal Pali wal CEO, TMLD Co, Tata Motors

AUTOCONNECT is doing a tremendous job. And it is indeed commendable to observe. T he kind of people who are joining and deliberating on the subject and the types of issues touched upon are remarkable. I am sure that the elaborate discussions on the subject matter will be helpful for all the attendees. V ipul Nanda President, Car Carrier Association

Media has a great role to play in boosting the sentiments of the industry by focussing more on positive ne ws. Undoubtedly, Surecom Media has lived up to the expectations of the industry leaders to a great extent. M udit C handra Director- Freight Marketing, Railway Board

AUTOCONNECT 2019 brought together the consortium of auto supply chain players and threw open the opportunity to exchange the innovative ideas. Now thats an acheivement in itself during a period of slowdown. Sandeep C houdhary CEO, Mercurio Pallia and Director GEFCO India at GEFCO Group

AUTOCONNECT is opening up a forum for all the stakeholders to come and discuss the current challenges in India's auto supply chain industry and explore the best suitable way to curb them in seamless manner. It is always an overwhelming experience to exchange the innovative ideas with industry peers.

Jayaprakash L Sr Manager- SCM, JK Fenner

First of all, I would like to thank Surecom Media for giving us all the opportunity to strike a conversation on the array of issues India's auto supply chain industr y is dealing with. It is appreciable to see AUTOCONNECT establishing a strong link between all the top industry players and experts and providing a platform to discuss the issues as well as new initiatives. P rerana C haturvedi Spokesperson and CEO, Evolet

Rather than all of us sit and wait, it’s high time we started to work together towards the larger cause. It was quite an insightful panel discussion on the need of electric mobility in India. Also that the other panels are quite value-adding. Senthil K umar D Lead – Sales distribution & Logistics – LCV, Ashok Leyland

I am all praise for Surecom Media to o r a ga n i s e s u c h a n e v e n t w h i c h c a n command the attention of seasoned auto supply chain players. It was an enriching experience to grasp the vision of stakeholders on the uptake of electrical vehicles in India and other paramountly important issues. N idhish K uchhal GM- Demand Chain Management, Mahindra & Mahindra

Congratulations to the entire fraternity of AUTOCONNECT. I appreciate the efforts of Surecom Media team to arrange this wonderful event and provide networking opportunities with industry colleagues. Wishing the team all the best for your future endeavours. R amesh V enkat Head- Industry Partnerships, LSC

Many thanks to the entire AUTOCONNECT team for throwing open a platform for industry stalwarts to trigger discussions on var ious iss u es assoc iated w ith auto logistics and collectively making an effort to find the expedite solutions. K P rabhakaran VP - Operations, Trac1 Logistics

Glad to be a part of such a gathering at AUTOCONNECT. It is always great to listen what industry speaks from the very people who strive to drive it in the most cost-effective manner. Having an instructive discussion on the ways to reduce logistics cost is profitable to all the attendees. october 2019 - CargoConnect

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EVENTS SIAM Convention assured Auto Sector of pro-reform policies for revival

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ociety of Indian Automobile Manufacturers (SIAM) organised its 59th Annual Convention titled ‘Building the Nation, Responsibly: Moving into a New Era of Auto Industry’ on September 05, 2019, in New Delhi. At the convention, Chief Guest Nitin Jairam Gadkari, Hon’ble Minister for Road Transport & Highways and Micro, Small & Medium Enterprises, Government of India, provided assurance to the automobile industry of support from the government and said that he will take up the industry’s demand of GST reduction with the finance minister. Gadkari said, “GST on electric vehicles has been reduced from 12 per cent to five per cent. I will propose to the finance ministry to make the same benefit available for hybrid vehicles.” Also speaking at the event, Rajan Wadhera, President, SIAM & President (Automotive Sector), Mahindra & Mahindra Ltd highlighted the need for the government to consider a single nodal regulatory ministry for the auto industry. Besides, speaking on the auto component industry, Ram Venkataramani, President, ACMA & Director, Amalgamations Component Group, said that the

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auto component industry crossed the 57 billion dollar mark in 2018-19. Talking about the importance of the sector, he said “The industry currently employs 50 Lac people and contribute 2.3 per cent to the country’s GDP. The current transition to BS VI norms has also impacted our revenues to an extent.” Kenichi Ayukawa, Vice-President, SIAM and MD & CEO, Maruti Suzuki India Ltd, appreciated Gadkari’s assurances to help the auto industry and highlighted the need to collaborate with various stakeholders to break-through the crisis.


Atlas Aviation celebrates 10 years of successful operations in India

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tlas Aviation India, a cargo GSA company based in Mumbai, with offices located at all the major airports in India, recently completed 10 years of successful operations in the country. Pramod Menon, VP- India, Atlas Aviation said, “This is a proud day for Atlas Aviation India. Thanks goes out to all our suppliers and partners throughout India and beyond over the past decade. We have experienced year-on-year growth every year over those 10 years.” Further, Menon said, “Atlas Aviation

started as a CSA for JBW Aviation- a multinational GSA company. Going steady, we started representing Czech Airlines, Air Baltic, Pamir Airways, Solar Cargo, among others.” At present, Atlas Aviation works with various GSA partners worldwide to explore potential cargo business opportunities from India to worldwide. The firm’s major partner is Airline Services International, one of the leading GSA companies based in North America. Atlas Aviation is a part of this group in India.

ACCD glitters through the night

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he Air Cargo Club of Delhi (ACCD) hosted a club night for the committee’s members and their families. The theme party saw members, accompanied by their spouses, all decked out in their finery, and relishing pan Asian and European cuisines.

A nostalgic retreat

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avier Britto, Chairman, Kerry Indev Logistics, and an alma mater of one of the finest Jesuit institute in India, St Joseph's College, Tiruchirappalli, has been invited to deliver a speech among the august audience on the occasion of their Dodransbicentennial Celebration marking 175 years of success. october 2019 - CargoConnect

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EVENTS

Skyways Group hosts Annual General Meeting 2019

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kyways Group hosted its 36th Annual Meet at Hotel Radisson Blu Plaza, New Delhi, from August 08 10, 2019. The event which also

PROFILE

I

commemorated the company’s 37th Founder’s day on August 08, 2019, saw over 350 employees participating from across the company’s offices.

The meeting witnessed guest speakers- Capt Sanjeev Rishi, Promoter, Sanjvik Terminals; Selahaddin Burak Omeroglu, VP- Cargo SalesMESA Region, Turkish Airlines; Dr Pawan Agrawal,

Mumbai Dabbawala; Saurabh Kanwar, Co-Founder, ATKT; Sasi Nair, Area General manager– North India, CMA CGM Agencies (India); John Livingstone, Founder, CEO & Product Architect, Johnette Technologies; and Pancham Hariramani, Managing Partner, Talent Square, as moderator.

Gandhi Automations introduces innovative line of high-speed doors

mprove your log ist ics ac t iv it ies, wa rehous e, transportation and material handling services with Gandhi Automations prime high-speed roll up door for interior use. Its fast door cycle helps you to gain valuable time in your daily business activities. T h e h ig h - s p e e d do or offers significant energy savings, better climate control and improved employee comfort, resulting from the superior seal of the high-speed door. Besides, it helps eliminate dust, dirt, humidity and draught from working spaces. The main function of a high-speed door is to act as a barrier. High-speed doors protect us from damage, saves

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energy and help to separate processes for optimal productivity. A high-speed door's most important job is to open and close quickly and safely every time the need be. Ga nd h i Autom at io n’s revolutionary line of highspeed doors is designed with these efficiencies in mind to bring workflow to its high potential. Known for highspeed, low-maintenance and maximum uptime, Rite-Hite doors offer the industry's widest range of solutions to fit every need. Gandhi Automations has a large collection of high-performance, high-speed door solutions in roll-up and bi-parting designs, available in versatile track configurations. Capable

of moving at 100 inches per second (2.5 m/sec), the cycle times of these doors maximise energy savings by m i n i m i si ng t he amount of air that escape each time the doors open and close. Unlike tradit io n a l h a r d b i par t i ng doors, f lexible highspeed self-repairing roll-up doors have the ability to withstand forklift impact and snaps right back into their tracks. This is a huge benefit in a warehouse space, where damaged doors can mean significant expens-

es in terms of downtime and service calls, as well as energy loss. For details, visit www.geapl. co.in


SURECOM MEDIA


UpComingevents Logistics and Supply Chain

Air Cargo

Pharma EVENT: CPhI &

P-MEC India 2019

ORGANISED BY: UBM DATE: November

EVENT: Breakbulk Asia ORGANISED BY: Hyve Group PLC DATE: March 18 - 19, 2020 WHERE: Shanghai World Expo

Exhibition & Convention Center, Shanghai, China Leading conference and exhibition for project cargo and breakbulk professionals offering an unparalleled opportunity to connect with the industrial project supply chain – shippers and service providers, local and international – who are involved in today’s megaprojects that revolve around China's One Belt, One Road program. To know more visit www.asia. breakbulk.com

EVENT: ACAAI 45th Annual Convention ORGANISED BY: The Air Cargo Agents Association of India (ACAAI) DATE: November 21 - 24, 2019 WHERE: The Westin Siray Bay Resort & Spa, Phuket, Thailand This is the annual prestigious event for the members of ACAAI and the trade. The convention will also be attended by invited dignitaries from all segments of the freight forwarding and logistics business, government ministries and departments, airlines, airport authorities, custodians, etc. This year, the theme of the convention is ‘End-to-End Logistics - The Way Forward’. The convention will offer delegates a fabulous opportunity to engage in business sessions, networking opportunities and fellowship. To know more visit www.acaai.in

Road Transport

26 – 28, 2019 WHERE: India Exposition Mart, Greater Noida CPhI & P-MEC India is the ideal event for companies wanting to pick up on the latest trends and innovations the market has to offer. At CPhI & P-MEC India, you will meet the movers and shakers from India's pharma machinery, technology and ingredients industries, giving you a competitive advantage that will help grow your business. To know more visit www.cphi.com

Cold Chain 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: 15th Annual 3PL & Supply

Chain Summit: Europe

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

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Event: 26th World Road Congress Organised by: World Road

Association (PIARC)

Date: October 6 - 10, 2019 Where: Abu Dhabi, UAE

Bringing together more than 1,200 international experts, leaders in the field of transport, active in the 22 Committees of PIARC, this Congress will focus on “Connecting Cultures - Enabling Economies". The event will host 150 presentations with more than 50 workshops and sessions. To know more visit www.aipcrabudhabi2019.org

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


APPOINTMENTS TIACA appoints Celine Hourcade as Project Manager

Delta appoints Walpole as VP Cargo & Logistics

TIACA has appointed Celine Hourcade as Project Manager to lead Sustainability Program and Cargo Service Quality Project. Hourcade will be responsible for the development of TIACA’s Sustainability Program, including the first Sustainability Award, and the delivery of the Cargo Service Quality (CSQ) objectives for the tool, which went live in February 2019. Hourcade has 18 years of experience in international business, mainly in the aviation industry, working for WaveStone, Amadeus, and then for IATA for 13 years, joining its Cargo Department in 2008, where she focused on advocacy, sustainability, industry transformation, and innovation projects.

Delta Cargo has appointed Rob Walpole to the newly-created position of Vice President– Cargo Operations and Logistics. This new position will see Walpole lead Delta Cargo’s global operations and Delta Logistics Control Center teams. Walpole comes to the US carrier from DP World, where he served as COO– Global Logistics and Supply Chain. He also served as CEO at Schenker, Inc Airways.

Kerry Logistics names John Parkes as MD- Integrated Logistics

WFS appoints Paul Carmody as Managing Director – UK Cargo

Richard Corrado elected President of ATSG

Camilo Garcia Cervera joins WebCargo by Freightos

Volker Sauerborn to join Hellmann Worlwide Logistics

Kerry Logistics Network Limited has appointed John Parkes as its Managing DirectorIntegrated Logistics. Based in Hong Kong, Parkes will oversee the overall management of Kerry Logistics’ global integrated logistics business. An industry veteran, Parkes has over 35 years of experience in the transportation and logistics industry.

DHL Supply Chain appoints Hendrik Venter as CEO

Hendrik Venter has been appointed as the CEO of DHL Supply Chain for Mainland Europe, Middle East and Africa, effective 1 October. In his future role as CEO for MLEMEA region, Venter will head the DHL Supply Chain business in 25 different country markets. Venter’s various management positions at DHL Supply Chain since 2009 include initially working in South Africa as Director Healthcare, Technology & Automotive and, from 2013 onwards, headed DHL’s contract logistics business in Poland as Managing Director. In 2015, he was appointed CEO Central Europe until his area of responsibility was expanded to include the Eastern Europe region in 2018.

Worldwide Flight Services (WFS) has appointed Paul Carmody as Managing Director of its cargo operations in the United Kingdom. In his new role, Paul is responsible for all aspects of the company’s cargo operations in the UK, reporting directly to John Batten, WFS’ EVP Cargo, Europe, Middle East, Africa & Asia (EMEAA). Paul was Head of UK Operations for WFS in the UK prior to this promotion. He has a wealth of experience in the cargo handling industry, also holding senior positions at Menzies Aviation in Canada and the USA prior to joining WFS in 2009.

Camilo Garcia Cervera has joined WebCargo by Freightos, the business unit for digitising logistics service provider, as global VP Business development. He will head airline relationships at WebCargo. Camilo is an air cargo industry veteran with 20+ years experience. Before joining WebCargo by Freightos, Camilo immediately before served as director of sales, marketing and products at IAG Cargo. He has also worked at British

The board of directors at Air Transport Services Group has elected Richard Corrado as President, effective from 16 September. As President, Corrado will be responsible for goalsetting and oversight of all ATSG business. Since 2010, Corrado has extended ATSG’s business model known as A+CMI, allowing customers to separate the aircraft lease from the crew, maintenance and insurance. He also recognised the growth of E-commerce and placed midsize, medium-range Boeing 767 Freighters at the centre of the express network.

Volker Sauerborn will join international family-owned company Hellmann Worldwide Logistics as Chief Operating Officer Contract Logistics, in

November, this year. From 2006 onwards, Sauerborn was Vice President Sales & Business Development Contract Logistics at Kuehne & Nagel. For the last four years he has been the senior vice president of the region Germany West where he was responsible for all products in the region.

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PEOPLECONNECT niki frank

Chief Executive Officer, DHL Global Forwarding India

The biggest challenge Throughout my career, I have faced multiple challenges. The biggest one so far was the management of our business turnaround in 2015/16. After the failure of our IT transformation and a leadership change, we had to rebuild the organisation, bring back the morale into the teams and build up the business confidence with our customers again. As part of the management board, I felt privileged to help drive this turnaround of a global business that is active in more than 150 countries.

Values for success I believe in the three bottom lines that are an integral part of our company’s strategy. We want to be the ‘Employer of Choice’ for our people, the ‘Provider of Choice’ for our customers and the ‘Investment of Choice’ for our investors. And for me, these three stakeholder groups ultimately define whether we are successful or not. In my work, I live by these bottom lines. My belief is that as a successful manager, you need to know your people, your customers and your numbers. Interests and hobbies Besides work, my main priority is my family. Spending time with them gives me energy, inspiration and sometimes the necessary distraction to get a different perspective. Together we enjoy travelling and experiencing different countries and cultures. And whenever I have the time, I like exercising or going for a run. Message for aspirants Logistics is an exciting industry and it is becoming more important and more invigorating. We are in the middle of an evolution (or some might say revolution), driven by trends like digitisation and the boom in E-commerce. This will undoubtedly change the way we work and potentially the entire logistics industry. There is no better time than now to join this industry a nd b e come a pa r t of t h i s change. CC

As a successful manager, you need to know your people, customers and numbers

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Interviewed by Upamanyu Borah

Journey so far! After working for Boston Consulting Group (BCG) as management consultant for almost 8 years, I was looking for a new challenge. When coming across Deutsche Post DHL Group (DPDHL), I started to realise how exciting the logistics industry is. Without logistics, nothing would work. And on top of that, DPDHL as the global market leader truly lives up to our purpose of ‘Connecting People - Improving lives’. I started my career in DPDHL’s Corporate Center as VP- Corporate Strategy, a natural extension of my experience with BCG. From there, I moved into the Freight division of DHL Global Forwarding, driving the global business strategy for the largest freight forwarder in the industry. And since June 2019, I am excited to be responsible for the company’s business in India, one of most important markets for us today and in the future.


18-19 March 2020 Shanghai World Expo Exhibition & Convention Center (SWEECC) Shanghai, China

global reach market know-how

new business

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Cargo Connect October 2019  

Cargo Connect October 2019