logisticsweek 16-31 december 2011

In their publication “Delivering Tomorrow – Towards Sustainable Logistics”, DHL points out one of the most critical parts of any delivery: The last mile. A chain reaction of events can occur if the customer will not be there to receive the package. These events will cause the carrier extra money, time, re-sources and also the carbon footprint of the shipment will be increased.

What can be done to improve the last mile and create more successful deliveries? The goal is to make sure the carrier has the right address and somebody will be there to receive the shipment. A lot of truck, air and express parcel service providers offer their customers

A few days ago, in a mutually agreed upon appointment, we were ushered into the office of the

supply chain head of a well-known departmental store. We were scheduled to speak for over an hour. Ten minutes into the meeting, he inquired whether we could reschedule the appointment. His reason? “Christmas and New Year is upon us, and we are not seeing the sort of sales we thought we would.”

Although the situation worried him, he seemed certain that buying has been curtailed because people perceived a slowdown.

Cut to a recent government commissioned report into the health of high street by retail guru Mary Portas that acknowledges how economic conditions have produced more pessimism than profit over the last few years. The report looks at ways the industry can stop the growing number of high profile retail establishments slipping towards liquidation. Since high street retail is closely linked with other industries - such as the logistics that bring in goods from across the world – it is imperative that one’s good health will benefit the other, even if indirectly.

Manufacturers and logistics need to find a way to ensure that retail slips into the black to duck the gloomy predictions by soothsayers.

Your’s truly,Jayashree MendesEditor, LogisticsWeek

Launched across international and domestic markets, the service will allow customers the option to neutralise their carbon footprint and build a better environment.

Identifying Best Practices Column Frost & Sullivan recently hosted the 2011 edition of Manufacturing Sum-mit in Mumbai.

Women employees can multi-task and are more adaptive in times of change, says Darryl Judd, COO, Logistics Executive.

The Last Mile

PAGE 9

automatic shipment status alerts which can be set up on request. This is great for compa-nies who control how their freight comes in, and request that their suppliers ship collect. But in cases when suppliers select the ship-ment method and ship using their house car-riers most often the tracking information is not passed on to the recipient.

Though there are big companies like on-line stores who notify their customers that a product has shipped and inform them about the tracking number, a lot of smaller busi-nesses are not doing this. For them the ship-ment is out of their mind when it has left the facility, and their customer has only partial or vague information about how and when to expect it.

Editor’s NoteClosing In

soothsayers.

Your’s truly,

`25logisticsweek.com

December 16–31, 2011

And here it is where the sustainability fac-tor of a supply chain can be improved. If the shipper sets up their ERP system with an au-tomatic e-mail system which sends tracking number and delivery address to the customer, the customer will be able to double check the address, monitor the progress of the ship-ment, and know roughly when to expect the shipment. If the customer is a small contrac-tor for example, then they might not always have somebody at their facility to receive the items and thus they will need to plan ahead.

One might also argue what if the ship-per is a small company where there might not be an ERP system in place. In that case good customer service can be demonstrated via a hand typed e-mail with the tracking information send to the customer after ship-ment was picked up. Through an advanced notification system e-mail using ERP or by hand, the visibility of the supply chain could be significantly improved and unnecessary truck miles reduced. Good communication increases efficiency, and sustainability is all about increased efficiency.

What can the trucking companies and ex-press parcel services do to increase sustain-ability besides providing excellent tracking information? They can do driver training, route optimization, improve their online communication tools, upgrade equipment, use biofuels, put solar panels on their distri-bution centers, and many other things.

But keep in mind the trucker will bring the items only from point A to point B. Who-ever this point A and point B are, they need to work together and communicate openly to make it a successful logistical transaction and thus reduce the carbon footprint of the shipment.

LSPs need to implement the right technologies to ensure last mile connectivity, thus delivering to the customer’s expectations.

Peter Diehm

PAGE 6

The article was written by Peter Diehm for www.globallogisticsmedia.com

2 December 16—31, 2011 www.logisticsweek.com

Redington Acquires Stake In Overseas Arm

Chennai-based Redington (India), a provider of supply-chain man-agement for IT and non-IT products, is acquiring 25.97 per cent stake of its Cayman Island-based overseas business holding arm Red-ington International Holding Ltd, from the Gulf-based private equity fund Investcorp or IVC, for $113 million.

At present, Redington owns around 69 per cent stake in Reding-ton International through a wholly-owned Mauritius-based entity. With this stake buy, Redington’s shareholding in its overseas arm will go up to around 95 per cent. The balance is held by the employ-ees of the Redington group.

Three years ago, Investcorp invested $98 million to pick up 36 per cent stake in Redington’s Middle East and Africa (MEA) business.

IBM To Acquire EmptorisIBM is on a roll. After announcing it would acquire cloud-based com-merce analytics software firm DemandTec last week, Big Blue said it had signed a definitive agreement to acquire cloud and on-premise analytics software specialist Emptoris.

Financial terms of the deal were not disclosed. IBM snapped up DemandTec in a $440 million cash transaction.

Emptoris focuses on cloud and on-premise analytics related to procurement and the supply chain. IBM pointed to a recent exam-ple: Emptoris helped a large global oil and gas company establish a centralized sourcing network across its operations in more than 80 countries, giving it the ability to focus on the most strategic, highest-cost and frequently purchased items. As a result, IBM said the oil and gas company, which runs thousands of sourcing events per year managing more than 15,000 suppliers in 10 languages, has been able to reduce its costs on the managed categories of goods by more than nine percent.

Emptoris’ leadership in the ‘buy’ or supply chain capabilities of Smarter Commerce enables customers to better source, optimize and control enterprise spending. Procurement officers need to man-age the full engagement, integrating suppliers with key internal sys-tems and have the capability and visibility to manage compliance and mitigate supply risk.

The acquisition is the latest in a raft of deals that fall under the umbrella of IBM’s Smarter Commerce Initiative, which it launched in March 2011 with the aim of helping companies respond to shift-ing customer buying patterns by automating their buying, market-ing, selling and service processes. IBM said this area represents a $20 billion market opportunity in software alone.

IBM is looking to Emptoris to build on the “buy” aspect of its Smarter Commerce initiative. Big Blue plans to use the compa-ny’s spend management solutions to build on the B2B integration and supply chain management capabilities it picked up with its 2010 acquisition of Sterling Commerce. IBM said the acquisition will also complement the Supply Chain Management (SCM) Busi-ness Process Outsourcing capabilities of its Global Process Ser-vices Organization.

Food Logistics Selects Logility In Annual ListLogility Inc., a leading supplier of collaborative solutions to opti-mize the supply chain, announced that Food Logistics magazine has selected Logility for inclusion in its annual FL100 for the eighth con-secutive year. This year, Logility Voyager Solutions was recognized for helping food and beverage companies differentiate themselves in the marketplace, while simultaneously facilitating improved safe-ty and traceability throughout the supply chain.

Ongoing globalization of food supply chains demands closer col-laboration with suppliers and enhanced visibility from farm to fork, according to Lara L. Sowinski, editor-in-chief at Food Logistics. Tech-

News and other happenings and events in India and other parts of the world we heard of in the last fortnight.

nology is a powerful tool that can ensure compliance, mitigate risk, and serve as a market differentiator in today’s highly competitive environment.

Logility enables companies in the food and beverage industry to meet the supply chain challenges they face daily such as seasonality, new product introductions to meet changing consumer tastes, and food production and transportation needs for fresh-pack, frozen and shelf stable items. Logility Voyager Solutions helps food and bever-age companies increase forecast accuracy through better demand planning; decrease inventory while improving product availability; optimize manufacturing production across multiple plants; stream-line sales and operations planning; and lower transportation and distribution costs.

Recognized industry-wide for its rapid implementation, quick ROI, ease-of-use, and ability to solve complex problems, Logility Voyager Solutions is a comprehensive supply chain so-lution suite which features performance monitoring capabili-ties to increase supply chain visibility and boost performance in key areas including demand, inventory and replenishment planning, sales and operations planning (S&OP), manufactur-ing planning and scheduling, supply and inventory optimi-zation, transportation planning and management, and ware-house management.

Tool Targets Supply Chain Carbon Emission HotspotsA so-called supply chain environmental analysis tool (SCEnAT) has been developed by at the University of Sheffield, aimed at helping manufacturers to cut carbon emissions. The tool, which is already being used by a number of international companies and is being considered by aircraft engine manufacturer Rolls-Royce, creates a database of carbon usage.

According to developer Professor Lenny Koh, of the University of Sheffield’s Management School, it also arms businesses with ways to reduce carbon emissions and associated costs, as well as provid-ing interventions and offering guidance and support. “There was a need for a tool for carbon emissions accounting and management across product supply chains,” explains Koh, who is director of the Logistics and Supply Chain Management (LSCM) Research Centre and director of the Centre for Energy, Environment and Sustainabil-ity (CEES).

“SCEnAT was created by identifying shortcomings in existing tools and proposing a new framework to provide businesses with a holistic understanding of their supply chains – as well as ensuring partners within the networks have a shared understanding of their emissions,” continues Koh.

“Tools like SCEnAT can be used in a very creative way by Rolls-Royce, for instance in assessing the total carbon impacts on differ-ent supply chain distribution options,” states Ian Shellard, global physical logistics director at Rolls-Royce.

Broekman Logistics Makes Arshiya’s FTWZ Distribution HubBroekman Logistics India Private Limited has begun utilizing Ar-shiya’s FTWZ in Mumbai (Panvel) as a hub for all of Broekman’s distribution activities into India. Broekman Logistics India Private Limited is part of the Broekman Group which specializes in Ship-ping, Automotive, Logistics and Special Products.

Operating as the unit holder in the zone Broekman Logistics In-dia Private Limited will be using the FTWZ in Mumbai to cater to their India based customers specially in the chemical and engineer-ing products segment. The zone will be the central hub for all im-ports of Broekman Logistics India Private Limited, for feeding their customers across India. Broekman Logistics also operates a signifi-cant facility in Rotterdam Port where it does similar such activities for catering to its European customers..

In BrIef

Volvo Bets Big With ConcorVolvo is warming up to the potential of Inland Contain-er Depot (ICD) of Container Corporation of India Limited (CONCOR) at Whitefield, Bangalore.

Volvo India, one of biggest automobile manufacturer in India has entered into an agreement with CONCOR for their export import logistics in India and has taken over a space of 1.5 lakh square feet of area at Whitefield ICD.

Under this green cargo agreement between the two parties, Volvo India is set-ting up a hub for their accu-mulation and distribution of their cargo from this place to their factories at Peenya and Hoskote in Bangalore and to their new factory at Pitham-pur in Indore.

The imports meant for Volvo is railed out from Chen-nai Harbour and unloaded at ICD/WFD, Bangalore. The im-porter will then file the bill of entry for home consump-tion (customs clearance) at the ICD. After clearance this cargo is shifted to the ware-house taken over by them. The cargo is unpacked, segre-gated and is re-consolidated.

The packing is done ac-cording to the requirements of each factory of Volvo In-dia. The material is then sent either by road or rail to the respective destinations of Volvo India.

Volvo India is planning to import the completely knock down kits of the bus equipment for assembling at the ICD. It is a well known fact that all buses for inter-district and JNNURM are purchased from Volvo India only. They are now planning to take extra space for closed and open bonding for this purpose.

3December 16—31, 2011 www.logisticsweek.com


In this section, LW provides a recap of policy decisions of the last fortnight thatimpact various areas of the industry.

Food Security, Pharma Pricing On List

cabotage lawThe Union Ship-ping Secretary, K. Mohandas, has declined to give a specific time frame for

the relaxation of the Cabotage Law for the International Con-tainer Transhipment Terminal at Vallarpadam, saying that there is a need for a Government policy before coming up with any an-nouncement in this regard.

Speaking on the sidelines of the Cochin marine seminar, organised by the Institute of Marine Engineers (India) - Ko-chi branch, Mohandas said that since it requires a major policy decision, consensus among vari-ous ministries are required.

The Government is not look-ing for Cabotage relaxation for not just ICTT but for other major ports also. He also said that the Indian Ship Owners Association has come up with its strong pro-test against the relaxation of the Cabotage Law fearing that their business would be badly affected with the entry of foreign ships in the Indian waters.

However, the Shipping Secre-tary stressed the need for allow-ing foreign ships to engage in coastal trading in Indian waters

all the 348 drugs specified in the National List of Essential Medi-cines 2011 will be under price control. Sales of these drugs form three-fifths of the country’s Rs 60,000-crore pharma market.

A couple of months ago, when the draft NPPP, 2011, was circulated for feedback, it met with stiff all-round opposition over fears that it will increase prices of medicines.

“The method of setting the ceiling price as the weighted average of the top three brands effectively means topping off the prices of the top brands,” the WHO said, adding that this will increase the prices of medicines. It also said that international body IMS Health data, which will be used to fix the ceiling price, have several limitations as the Mumbai-based firm’s study does not factor in discounts, rebates and bundling offers given to stockists and chemists.

food security billThe cabinet has cleared the flag-ship food secu-rity bill. The bill is likely to be

tabled in Parliament in the ongo-ing winter session.

as there was huge potential in the sector.

The Government is trying to find out a solution by making necessary changes in the laws applicable for both the depart-ments for their smooth function-ing. This is for the first time that a port is functioning under SEZ in the country and there were some legal tangles on operational roles.

pharma pricingThe Gov-ernment is unwilling to offer a time-frame for the

implementation of draft National Pharmaceutical Pricing Policy (NPPP), 2011 as it is awaiting the response from the concerned ministries and stakeholders. The final draft policy would be pre-pared considering the feedback.

The draft NPPP, 2011 pro-poses to regulate the prices of drug formulations only, unlike the existing principle of control-ling the prices of specified bulk drugs and their formulations as adopted in the drug policy, 1994.

The policy seeks to bring 60 percent of the total domestic pharmaceutical market under price control. It proposed that

Food and public distribution minister had reviewed the fi-nancial implications of pulling off the legislation, which is esti-mated to cost Rs 95,000 crore — about Rs 27,663 crore more from what the government currently spends on food subsidy.

The bill seeks to guarantee affordable food to 63.5 percent of the country’s population, covering 75 percent of rural households and 50 percent of ur-ban dwellers. India is among 29 countries with the highest levels of hunger, stunted children and poorly fed women, according to the International Food Policy Re-search Institute’s Global Hunger Index.

Making food a legal entitle-ment, as provided for in the food security bill, would require the government to make massive investments in the farm sector, to the tune of Rs 3.50 lakh crore.

air cargo woesThe Indian gov-ernment plans to enact a new civil aviation policy within

the next few months. The new policy is to boost investment and cater to the infrastructure

needs of the fast-growing sector. Simultaneosuly, the ministry is also working on a new economic regulatory mechanism for moni-toring, but not setting, air fares.

The new aviation policy will focus on attracting more private sector investment into the ailing industry and improving the cost viability for the stakeholders. It will also look at establishing a promotion board for air cargo.

According to Associated Chambers of Commerce and Industry of India, the air cargo industry is averaging annual growth of 12 percent.

Indian airports handled a to-tal of 2.33 million tons of cargo in 2010-2011, up from 0.5 mil-lion tons in 2005-2006. While domestic cargo is expected to increase from 0.8 million tons to 1.7 million tons by 2016-2017, international cargo traffic is pro-jected to move up from 1.5 mil-lion tons to 2.7 million tons dur-ing the same period.

Zaidi says the air freight sta-tions at Mumbai and Chennai will become functional soon to keep up with the traffic. He says the ministry is also looking at reforming customs procedures, saying faster clearance of cargo is essential to maintaining high growth rates.

PolIcy UPdates

From the stables of LOG.INDIA, the country’s most respected logistics and supply-chain magazine, comes the LogisticsWeek Director 2012, a much-awaited reckoner that will list India’s 3PLs, 4PLs, transporters, solutions and service providers in the material handling and warehousing space, freight forwarders, shippers, cold chain service providers and all the stakeholders of the industry. Do not miss the chance to reach out to the decision-makers of the industry.Avail of huge early-bird discounts, NOW


India is $1.6 trillion dollar economy which is growing at an average annual rate of 7.5 percent. No global cor-poration can ignore that. To do business successfully in that geography, their Indian business units and partners must be able to overcome the challenges from several domains: supply chain, regulatory and socio- cultural. I am going to write about the first one here.

Recently I came across this post where the author has given a very good perspective of supply chain issues, mainly infrastructure (unpaved roads), taxation (tax on movement of goods) and has an interesting takeaway in the end, “Traditional methods of supply chain design and management do not always apply,” and I fully agree with that statement.

Let’s look at couple of success stories. In spite of chal-lenges, there exist very good examples of six sigma supply chain setups in India, like Dabbawalas, which operates in the most populous city of India, Mumbai. Dabbawalas is a company which picks up and deliv-ers fresh and home cooked lunch to office goers. It’s a highly specialized business service that involves vari-ous lunch box carriers throughout the city and they do close to 200K deliveries a day with less than one error in 6-million (if you are vegetarian you can be assured you never end up with chicken curry lunch). Readers may refer to Wikipedia for more details on their busi-ness and for more technical insight they may read the Harvard Business Review case study on in its success, and how FedEx learnt from it for better operations of its Indian BU.

Another good example of success in setting up a sup-ply chain is major auto manufacturer, Maruti. By estab-lishing close collaboration with its suppliers, it over-came typical challenges posed in the country. Here’s a very interesting article in CIO India titled: How Maruti Identified a Smart Supply Chain System

Lack of a good infrastructure makes getting the raw materials and carrying out the finished goods distri-bution very complex ? there is more than an average number of distribution points or warehouses a product has to go through before reaching the end user. The cur-rent state of infrastructure in India forces companies to use several modes of transportation in the value deliv-ery process. The highways and rail systems do not reach major portion of the country, and a product has to travel on train, truck, or auto/cycle rickshaw before landing into the end customer’s hands. Every time the mode of transportation changes, there is handling, sorting, and storage involved – this make the supply chain very com-plex and decreases the reliability of whole chain.

In my opinion, to have more reliable and successful supply chain setups in India corporations should keep these things in mind:

Visibility: As the number of warehouses and dis-tribution points grow, better visibility into your net-work becomes more necessary for customer service and a competitive edge. If youknow what is where, then you can control it. Systems should be able to do all kinds of simulation for exceptions, so decisions can be made quickly.

Collaboration: As cited in Maruti example, the way to beat the supply chain challenges was to collaborate with suppliers and distributors. This makes the supply chain issue not a company issue, but an issue of the en-tire value chain – from supplier to end product distribu-tor – and everyone tries to overcome it.

Simplification: Keep it simple, in fact, very simple. Use a system which is clear to understand, not only by your employees, but also by your customers and suppli-ers. India is a country of several languages and several cultures. There is huge risk of “lost in translation” if an-ything is complex. Use visual tools as much as possible.

Flexibility: Pick a supply chain solution which can work with several applications. When collaborating with local suppliers and distributors, it should be no surprise to discover that some of them still operate on dated custom-built systems. The supply chain solution should be flexible enough to work with all of them.

Mobile Phones: This is one technology that almost everyone has access to. Access to them is very inexpen-sive, and most people have them (over 800 million out of 1.2 billion in India). Any supply chain strategy should leverage this, similar to how Marketing firms have used mobile phones very effectively with SMS campaigns.

World class Supply chain is the mantra for building competitive advantage; having good understanding of country specific needs and having solutions for them will enable corporation to be world class across all ge-ographies..http://bit.ly/uxrJwq

Pradeep Chadha

blogs, Journals, book releases

Food Security, Pharma Pricing On List


Who can participate:1. SupplyChainHeadsandlogisticsdecisionmakersfromenterprises

2.GM,BusinessUnitsHeadandStartegicPlanningManagers3. SeniorExecutivesfromLogisticsServiceproviders...

Identifying Best PracticesFrost & Sullivan’s Manufactur-ing & Process Consulting Prac-tice recently hosted the 2011 edition of Manufacturing Sum-mit at The Orchid, Mumbai. Best practices from industries identified during the assess-ments of The Economic Times India Manufacturing Excel-lence Awards in partnership with Frost & Sullivan were pre-sented at the Summit.

In his opening remarks, Ni-tin Kalothia, Deputy Director, Manufacturing & Process Con-sulting, Frost & Sullivan, South Asia and Middle East said, “In-novation is the key to create a

event rePort

competitive advantage and dif-ferentiate you from the peers and this should be the focus area for companies. Besides product innovation, companies have to focus on innovation at various stages of the product life cycle. Understanding and identifying this need and align-ing the companies’ initiatives along these areas which provide room for innovation is impor-tant to reap the real benefit of these projects.”

For instance, use of new technologies to get unbiased feedback from customers in real-time, understanding their

perception and using these in-puts to identify opportunities will lead to creating the re-quired differentiation, opined Mr. Kalothia. He further added that efforts towards innovation in an organization have to be aligned to a single core instead of people innovating in differ-ent areas without a clear focus.

While companies presented best practices in various areas, one takeaway that evolved was the involvement of top manage-ment which is the key to suste-nance of these initiatives in the organization. Another common thing among the presentations

was the need for continual im-provement in these systems. Companies highlighted the need for continuous improve-ment even when these initia-tives have given the desired result in the first place.

The summit saw knowledge exchange on best practices, new trends and future chal-lenges by industry stalwarts and discussed the constraints and ways to overcome while deploying these best practices in their organization.

The best practices presenta-tions identified by Frost & Sul-livan, were: l Custom(er)izing Manufactur-ing Excellence by Diebold India Private Limited l Implications of Lean for a Commodity Product by Nilka-mal Limited, Sinnar l Effective Implementation of Daily Work Management Prin-ciples by Spicer India Limitedl Project Timeline Manage-ment and Internal Quality Ma-trix by Alstom Projects India l Limited Quality Assurance through “Customer Satisfac-tion Officer” by Laguna Cloth-ing l Private Limited Leveraging IT in Warehousing by Doom Doo-ma Factory (HUL) l WCM Systems at Fiat by Fiat India Automobiles Limited l Effective CBM in a Process In-

dustry by Shree Cement Limitedl Effective Deployment of Warehouse Management Sys-tem by United Phosphorus Lim-ited (Unit-3)l Total Process Management by IP Rings Limitedl KGD6-Built World Class! by Reliance Industries Limited (Ex-ploration and Production)l KGD6 SFMC: Focused System to Identify and Improve Bottle-necks in Production - its Struc-ture and Implementation by Bosch Limitedl Building Management System by Wyeth Limited (a subsidiary of Pfizer Inc.) l Advanced Automation and Materials Handling for Stra-tegic Advantage by Tata Cum-mins Limited l Facility Designed Lean for a Lean Product by Tata Motors Limited

Some of the key speak-ers during the summit were: Ramesh Vishwakarma, Plant Head, Tata Motors Limited; Luiz Benacchio, Operations Direc-tor - Hydro Business, Alstom Projects India Limited; Sarbajit Ghose, Executive Director, La-guna Clothing Private Limited; Ravi Gogia, Head, Car Division, Fiat India Automobiles Limited; V S Iyer, Vice President (Op-erations), Nilkamal Limited; and, V. D. Mali, Vice President (Mines), Rawan Cement Works, Ultratech Cement Limited.A sweeping view of the audience at the Frost & Sullivan event.

Hamburg Media & ISCM workshops for Supply Chain & Logistics Decision MakersCompaniesaretodayfacingincreasinglevelsofcompetitivepressureanddifficultywithregardtomaintainingandimprovingprofitability.TodayIndiancompaniesarenotonlyfacingthesethreatsfromtheirlocalcompetitorsbutalsofromtheMNC’swhoaretryingtogainspaceinthefield.Alsothesecompaniesareseekingthenewmarketglobally.Themanagementofthesecompaniesarebeingforcedtoseekandimplementinnovativestrategieswithwhichtoadvancetheircompany’sadvantageaswellasprofitability.HamburgMediaandISCMinassociationwillconductatwodayeachworkshopsonManagingGlobalLogistics,BusinessforecastingandMacroEconomicsforlogistics.

Programs offered by Hamburg Media in collaboration with ISCMDates Program Faculty

6th & 7th January, 2012 Business Forecasting & Demand PlanningDr. Vaidy Jayaram, Associate Professor, University of MiamiMr. Piyush Shah - Associate Professor, Durgadevi Saraf Institute of Management StudiesDr. Rakesh Singh - Chairman, ISCM & Director, Durgadevi Saraf Institute of Management Studies

27th & 28th January, 2012 Managing Global LogisticsDr. Rakesh Singh - Chairman, ISCM & Director, Durgadevi Saraf Institute of Management StudiesMr. Piyush Shah - Associate Professor, Durgadevi Saraf Institute of Management Studies

17th & 18th March, 2012 Macro Economics for Logistics Dr. Rakesh Singh - Chairman, ISCM & Director, Durgadevi Saraf Institute of Management Studies

VenueMDp auditorium -1, 6th Floor, DSiMS,Malad, Mumbai.

Fees per participant: 20,000/- + 10.3 Service tax For LoG.india /Logisticsweek Subscriber: 10,000/- + 10.3 Service tax

Formoredetailscontact:Upendra KshirsagarTel:02261162345/6112357Email:[email protected]/[email protected]

Hamburg Media Private Limited Building No. 4/6, 1st floor, Sona Udyog Premises, Parsi Panchayat Road, Andheri East, Mumbai – 400069

Hamburg Media Private LimitedRed Dot Building28 Maxwell Road, #03-05Singapore 069120

INDIA

SINGAPORE

www.hamburg.co.in | +91 22 40155937


Cement business is a long-term play. If you wish to have a strong cement company in India, you

should not aim to be a two-million tonne venture. Instead, the focus must be a wide geographical pres-ence.

Sumit Banerjee, Vice-Chairman, Reliance Cement, in an interview with Business Standard on

reasons for the oversupply.

Something strange has been happening to our atti-tude to business risk in the UK, which may explain

the borrowing strike. For the first time in decades, man-agement teams have stopped chasing growth for its own sake and turned away from the busy fool option. Without growth, there is much less pressure on work-ing capital resources. This is why, after the worst world recession for over 70 years, corporate insolvency rates in one of the most globalised economies on earth are at a 30-year low, measured as a percentage of active UK businesses.

Nick Hood, in a blog written for SupplyManagement.com

No one sector has the solution to the challenges facing our food production system. It will require

innovative approaches, with scientists, farmers, food industry and policy-makers working in partnership to improve the efficiency, sustainability and resilience of our food supply chain.

Farming Minister Jim Paiceon the Centre of Excellence for UK Farming (CEUKF) conference where delegates debated how the UK could become the best place to

produce nutritious food, against the backdrop of challenges.

American companies must “buy American”— that is, purchase only computer hardware assembled in

the United States. Companies should be “nervous” about computers built in countries with totalitarian regimes that might intentionally embed malware code in the hardware.

Dennis Omanoff, a Sr. VP and chief supply officer at McAfee Inc.after the earthquake and tsunami in Japan that served as a powerful reminder of the fragility of today’s far-flung global supply chains.

The greatest challenge for FMCG companies this year was managing inflation and the high volatil-

ity of currency and other commodities. Companies have managed this through a combination of effective cost management and price increases.

Sunil Duggal, Dabur India Chief Executive Officer.

If you look at the chip development and process development teams of Intel, they are distributed

around the US, Israel and increasingly, in India. In fact, the Indian centre has now overtaken the Israeli one. Again, we have the Intel Inside brand, but there is no way to tell how much of it came from Israel ver-sus India. What we are trying to argue is that there are significant Indian contributions here which clear-ly are innovative and create value, but they are not seen by the end consumer.

Phanish Puranam, Professor at the London Business School (LBS),

on how India is gradually becoming the innovation hub for the West, in an interview with ET.

Following a poor July and August of pre-Christmas orders, we, and no doubt our competitors, ex-

pected a rush on freight as recession-hit shops that had under-ordered in the summer struggled to keep up with the Christmas demand. Instead there was no rush, sending a worrying signal that consumer de-mand was in decline – even at the most profitable time of the year. Whereas prices in August increase by up to 50%, this year they fell by 20-30%, belying

the dismal confidence of European retailers. Logistics is as an effective eco-nomic barometer.

Matthew Marriott, Commercial Director of Hellmann UK.

Online retailers will continue hir-ing to fuel the service sector’s

latest growth engine. India has 11 million online consumers. The number of e-buyers will grow to

38 million by 2015.

Indian Railways generated `43,107 crore revenue earnings from com-modity-wise freight traffic during

April-November 2011.

Straights And Bends


A New HorizonPorts UPdate

In this section, LW will provide the latest in ports and shipping news and a status on how the major ports have fared this fortnight.

Dharma Port Inauguratedn Orissa Chief Minister Naveen Patnaik inaugurated an all-weather port at Dhamra on De-cember 18. The Dhamra Port is a 50:50 joint venture project of L&T and Tata Steel. The port’s construction had started in 2007, and it commenced com-mercial operation in May 2011. The port’s master plan envi-sions 13 berths, which would handle liquid, dry bulk, break bulk and containerized car-goes. The port has a deep draft of 17.5 meter, which can handle cape size vessels capacity up to 180,000 DWT. The DPCL has built an 18-km channel to con-nect the port with deep sea and a 62-km fully-electrified rail link to connect the port with the Howrah-Chennai main line for transportation of cargoes.

MPSEZ Holds New Recordn Mundra Port and Special Eco-nomic Zone (MPSEZ) handled 1,11,699 metric tons of steam coal in 24 hours breaking Krishnapatnam Port’s national record of best coal discharge performance of 106,171 MT in July 2011. The Mundra port’s West Basin terminal, Asia’s largest coal import facility, which broke Krishnapatnam’s record, also improved its own record of 95,000 MT in June 2011. The West Basin terminal has a capacity of 1.6 MT per day, which is being expanded to 3.2 MT per day.

Weekly Service Connects Kochi-Chinan A new weekly cargo ves-sel service has begun recently connecting Kochi to China. It

also connects other major des-tinations like Singapore, Port Kelang, Hong Kong, Shanghai. It will also offer connectivity with the US west coast, Aus-tralia and South America. M.V Irenes Reliance was berthed at Kochi on December 18. It has a length of 222 meters and a ca-pacity of 2824 TEUs. This serv-ice will ensure faster transit time from South India to these destinations.

Indian Ports Handle 870 Mn Tons nIndian ports handled total cargo traffic of around 870 million tons in 2010-11. Major ports handled around 570 mil-lion tons, whereas non-major ports handled around 34 per-cent of the total cargo at 300 million tons. Kandla, Visha-

khapatnam, JNPT and Chen-nai handled 48.4 percent of the major ports’ cargo in 2010-11. The total traffic handled is expected to go up to 2495 mil-lion tons by 2020. To handle a surge in traffic, the capac-ity at the ports is expected to enhance to 3,130 million tons by 2020. Orissa Bans Two Portsn State of Orissa has canceled export permits to two minor ports after they failed to co-operate on a state-led investiga-tion into illegal mining. Orissa is India’s top iron ore producing state. The two ports in ques-tion- Gangavaram and Kaki-nada - accounted for less than 6 percent of the iron ore shipped out in the first seven months of the current fiscal year. Out

of 35 million tons of iron ore exported out of India, two mil-lion tons were shipped through these ports.

Invest To Increase Port Capacityn G.K Vasan in his inaugural address at a seminar on devel-opment of ports in Chennai stated that an investment of Rs 2.77 lakh crore will be re-quired in the next ten years to enhance the cargo handling capacity at Indian ports to 3,130 million tones. About 80 percent of our India’s exports are carried out by sea, out of which 60 percent is carried through containers. India’s share in the global trade is around 1.5 percent and the plan is to reach at least 5 per-cent in the next ten years.

Port Traffic This FortnightPort of ChennaiThere was a drop in the cargo and container han-dling activity at the port this fortnight, recording a 15 percent drop in cargo handling and 12 per-cent drop in container handling.

Port of CochinThis fortnight the port’s cargo handling activity plummeted by 21 percent; meanwhile, the con-tainer handling activity rose by six percent.

Port of EnnoreThere was a steep rise in the percentage of cargo handled by the port this fortnight by 25 percent.

Port of JNPTThere was a drop in the percentage of container handled at the port by 32.5 percent, as compared to last fortnight.

Port of MumbaiThe cargo and container handling activity has been slumping over three weeks now. This fort-night, the port reported a rise in cargo and con-tainer handling activity by 15 percent and 31 per-cent respectively.

Port of ParadipThe percentage of cargo handled at the port has risen by 12 percent since last fortnight.

Port of TuticorinThe average handling per day has been fluctu-ating over two fortnights now. Since last fort-night, the port traffic has declined by a slight four percent.

Port of MundraThere has been a considerable decline in the per-centage of cargo handled since last fortnight by ten percent.

Port of Chennai

Total Cargo Handled 1342000 T

Total Container Handled 26080 TEU

Port of ennore


Cars 8700 Nos

Port of JnPt


Port of tutiCorin


Port of Mundra


Port of MuMbai



(Data available for eleven days)

(Data available for eight days)

(Data available for nine days)

(Data available for ten days)

Port of CoChin



*Disclaimer: Due to public holidays, server breakdown, failure in updating website regularly and such related issues, traffic data for the above mentioned were extrapolated from select few days.



(Data available for six days)

Port of ParadiP


(Data available for all fifteen days)


The Supply Chain Of Womenomics

Most of us have heard of the APEC Summit, held

in Honolulu recently, if for no other reason than President Obama’s controversial decision to stop the custom of APEC leaders dressing in traditional gear. There was however less coverage of a slightly more significant event at the Sum-mit called the San Francisco Declaration, which was passed by Hilary Clinton who humbly noted that it “might just make the history books”. This Dec-laration was designed to help promote women in the work-place but unlike its precursors, the San Francisco Declaration wasn’t motivated by altruistic design but by new econom-ic data which suggests that women in the workplace have had more of an impact on eco-nomic growth than previously thought.

The idea that women can be key contributors is still a hard concept to promote in most sectors. Unfortunately this is particularly true in the supply chain and logistics industry, which is still largely male domi-nated. There is a lack of reliable data in the market place but recent surveys would suggest that globally the numbers of women participating in supply chain and logistics are as low as 20 percent - 30 percent. Ac-cording to the industry group “Women in Supply Chain, UK” Women account for just 22 per-cent of the logistics workforce in England, compared with 46 percent in other sectors, and women hold fewer than 10 per-cent of the managerial roles in Logistics.

However there is evidence that things are changing. The number of women taking up tertiary study in supply chain and logistics is higher than ever, with universities globally running a wide range of initia-tives to increase diversity. At the same time, there has been an increased awareness that supply chain and logistics qual-ifications are no longer a male domain. The result being that there is a growing pool of tal-ented women coming through at university level.

colUmn

The participation of women in industry at unskilled and certificate level has also risen. All across Asia women have and continue to dominate light manufacturing sectors (such as electronics assembly) that have proved crucial to the region’s economic takeoff. It is no co-incident that there has been a dramatic increase in economic performance at a similar rate to the rate of women entering the workforce in Asia. After all, as The Economist, one of the world’s leading business magazine’s recently pointed out, the increase in employ-ment of women in developed economies during the past de-cade has added more to global growth than China has.

Unfortunately once they have entered the workforce the integration of women has not been as successful. Most wom-en have succeeded beyond the lower and middle management tiers of most companies. Ste-fanie Moran, Country Manager of Logistic Executive Austra-lia is all too familiar with this problem “I have interviewed many innovative and commer-cially talented women who just aren’t cutting through to the top layer”.

This has been attributed to a range of barriers such as the having a male dominated workforce and the perceived juggling act that women are seen to struggle with once they have a family. There is even dis-crimination from other women known as the “Queen Bee Syn-drome”. According to Debbie

Reich, National Terminals and Rail Manager at Cement Aus-tralia “the Queen Bee is a di-rect product of the incredibly competitive work environment and the many extra barriers that women have to face to be recognized”. In Debbie’s very successful career she says she found that frequently male col-leagues make better mentors than women for this reason.

Stefanie however adds that things are changing “It’s quietly encouraging that more of my clients are starting to recognize the untapped potential in these women”. By this she is referring to in increase in initiatives be-ing introduced to attract more women into the supply chain and logistics industry. These in-clude flexibility in work-life bal-ance programs (working from home and with flexible work hours), on-site child-care servic-es and career-pathing and men-toring for women to fast track their careers. For example, Wal-Mart recently announced that they would invest $100 million to help women to de-velop their jobs skills, including women who work for Wal-Mart suppliers.

This shift has been prompt-ed by a range of new devel-opments, ranging from new market research to changes in industry.

In terms of research, there was a recent study by McK-insey indicating that women went from holding 37 percent of all jobs to nearly 48 percent in developed countries in the last 40 years. The productivity gains attributable to this mod-est increase in women’s overall share of the labor market ac-counts for approximately one-quarter of the current US GDP. That works out to more than 3.5 trillion US dollars and more than half the GDP’s of both Chi-na and Japan.

There is also a new age of market turbulence ushered in by the GFC and increasingly influenced by globalization. Consequently, the role of the Supply Chain professional has increased in complexity. The offshoot of this is a more favor-able environment for women to

gain management level roles. To explain, Supply Chain

and Logistics Leaders have had their skills recognized and sub-sequently their roles elevated as more demands are placed on them. They have been chal-lenged to increase their soft skills to meet new manage-ment needs in areas such as interpersonal skills and people management, qualities, which have been inherently attributed to women. According to Debbie Reich “relationship building is something women definitely bring to the workplace, howev-er they only succeed if they use this skill selectively as part of their repertoire. They still need to be able to make the hard de-cisions“. Debbie went on to add “women are also more adaptive in times of rapid change as they generally multitask more broad-ly than men and with so many different streams and complexi-ties in Supply Chain, requiring constant revision and evolution, this agility increasingly dictates commercial survival”.

Aside from government and corporate involvement, it is the ground root initiatives that have proven the most exciting as they have been created on a voluntary basis by forward thinking men and women within the supply chain and lo-gistics community.

In Singapore, for example, Supply Chain Asia, one of the regions leading industry as-sociations is behind the newly created the Women in Supply Chain Group, formed to facili-tate this paradigm shift. The Group, which will operate via LinkedIn and in conjunction with Supply Chain Asia, offers an open forum of support and mentoring to women in the sector, with the aim of improv-ing the career life of women al-ready working in logistics (and therefore retain their talents) and to address the gender im-balance issue.

Women are encouraged to share their stories with the hope of developing other women and offering further insight into means by which to advance their careers through the corporate maze. Corporate

events, courses and networking opportunities are to be hosted via the group and its news has been well received amongst the more than 22,000 Supply Chain Asia members and subscribers.

In recent years there have been a wellspring of similar groups, too many to mention. All have been set up with a similar philosophies and ob-jectives. For example, an Aus-tralian government supported initiative, Women Moving For-ward (WMF), is a formalised mentoring program run by the Chartered Institute of Logistics and Transport Australia. This program, which is specifically aimed at the Transport and Lo-gistics (T&L) industry, is open to any woman in any role, in any region, in any T&L company wanting to provide high value, low cost, self-paced mentoring programs to develop and retain women in the sector. To date more than 200 companies have taken advantage of this pro-gram with demand growing.

In the UK, Women in Logis-tics UK was formed in 2008 as a non profit group made up of over 2,000 women and men from the logistics sector, set up to support the careers of women in the logistics field. The interest in these and other groups demonstrates that there is a sustainable shift towards the investment in women worldwide.

Whilst slow in coming, in-crementally these changes will add up to a major paradigm shift. The outcome will be greater participation of women in Supply Chain and Logistics and will address the war on talent by nurturing the very talented people right under our noses.

Women employees in an organization have had more impact on economic growth than is known. They can also multi-task and are more adaptive in times of change, says Darryl Judd, COO, Logistics Executive.

Darryl JuddCOO, Logistics Executive

The author can be reached at [email protected]

Darryl Judd, COO, Logistics Executive, has 20+ years of executive experience in aviation, supply chain and logistics transport industry, and held executive positions within the airline & aircraft leasing/charter industry. He is regularly called upon to manage key human resources consulting projects and supporting business to drive changes, particularly around M&A activity and international executive management.


A low-down on developments in surface transport last fortnight.

RaIlWay PROjECTS IN NORTH-EaSTn Gauge conversion of Rangiya-Murkongselek (510.33 km) sec-tion is a sanctioned National Project. On this project, land acquisition, earthwork, bridg-es and track work have been taken up on entire stretch and the works are in various stages of progress. Rangiya–Rang-para North (123.6 km) section of this project is targeted for completion by March 2012. An expenditure of Rs. 565.27 crore has been incurred upto March, 2011 and outlay of Rs. 283.00 crore has been provided for this project for the year 2011-12.

A dedicated non lapsable fund namely “North Eastern Region Rail Development Fund” (NERRDF) has been created for providing assured fund flows to National Projects of Northeast Region.

INCREaSE IN FREIgHT aND PaSSENgER TRaFFICnFreight traffic has grown from 833.39 million tonne in 2008-09 to 921.73 million tonne in 2010-11 whereas passenger traffic during this period has gone up from 6920 million pas-sengers to 7651 million pas-sengers. Track kilometers have gone up from 86937 in 2008-09 to 87087 in 2009-10. Figures for 2010-11 for track kilometers are under finalization.

Traffic output is not solely dependent on track kilometer

Network Worth

as output also increases due to technological and operational improvements like advanced signalling system, better load-ability of wagons, punctual-ity of operation, better wagon turn-round among others.

FREIgHT RaTE DuRINg BuSy SEaSONn The rates at which busy sea-son charge and development surcharge are levied have been marginally enhanced with ef-fect from October 15, 2011.

Busy season charge in case of coal and coke stands revised from 5 percent to 10 percent and in case of all other com-modities, from 7 percent to 10 percent. The rate at which de-velopment surcharge is levied has been revised from 2 per-cent to 5 percent.

The assessed impact of the increased rates on the prices of essential commodities is ex-pected to be negligible.

TRaNSPORT INFRaSTRuC-TuRE gROWTH n Construction IQ has released the Land Transportation Out-look 2012 which focuses on the growth and development of the Tunnel and Bridge construction sectors in Asia.

The report outlines the project pipelines in the Asian road and bridges infrastructure segment, revealing a strong emerging market bias with the largest investments gravitating

towards developing economies of China, Vietnam and India.

These countries have the greatest potential for growth in the coming years, attributing to the numerous urbanization and modernization initiatives being pursued by the respective governments.

TaRgETS FOR CONSTRuCTION OF NHn The National Highways Au-thority of India (NHAI) has fixed the targets for construc-tion of national highways in the country. The target for the year 2011-12 was 2500km. the construction of 823km has been completed till October 2011.

Progress in implementation of National Highway Devel-opment Projects has been af-fected mainly due to poor per-formance of some contractors, delays in obtaining forest/wild life/ railway clearances, law and order problems in some states apart from delay in land ac-quisition. In order to expedite implementation of projects, Regional Offices, each headed by Chief General Manager have been set up by NHAI for close monitoring of implementa-tion of projects. Measures have been taken to expedite the land acquisition, shift utilities etc. Achievement of targets is being monitored closely. Projects are periodically reviewed at field and at Head Quarters.

The LW CROSSWORD

across:1. Peoplewithavestedinterestinacompanyorinaproject4. Ataxassessedbyagovernmentongoodsenteringorleavinga

country5. Movingshipmentsthroughregularchannelsatanacceleratedrate6. Thenumberoftimesalaboractionistakenduringamanufacturingor

assemblyprocess7. Howquicklyandefficientlyacompanycanrampuptomeetdemand11. Thedocumentwhichdescribesabusinesstransactiontobeperformed12.Arepetitivepatternofdemandfromyeartoyear13. Functionassociatedwiththestorageandissuingofitemsthatare

frequentlyused15. Separatingitemsaccordingtotheirintendeddestinationwithina

plantorfortransit16.Totalliftingcapacityofashipexpressedintonsof2240lbs18.Acomputertermwhichdescribesworkdoneoutsideofthecomputer

system19.Assigninganemployeemultipletaskswhichareperformed

concurrently20Timeormaterialandsupportthroughputand/orduedate

performance21.Placingcustomer-specificstickersonboxesofproduct

down:2. Thebreakdownoftheworkinanactivityintosmallerelements3. Amathematicaltechniquefortestingtheperformanceofasystem

duetouncertaininputsand/oruncertainsystemconfigurationoptions8. Anenterprisethatprovidesservicestogroupshipments,orders,and/

orgoodstofacilitatemovement9. Atypeofmanufacturingprocessusedtoproduceanarrowrangeof

standarditemswithidenticalorhighlysimilardesigns10.Tagged,logged,andkeptinasecureareapendingdisposition13. Aspecificactiontoachieveanobjective14.Anadd-onchargetotheapplicablecharges15. Aproviderofgoodsorservices17. Determiningwhereashipmentisduringthecourseofamove.

*Rates are indicative Source: Trimurti Cargo Movers Pvt. Ltd.

Chief Editor and Publisher: JacobJoseph [email protected] Director: [email protected] Editor: [email protected]:[email protected] Executives: AnujaA,PrithaDeyChief Designer: ShivasankaranPillai

Singapore Bureau: [email protected]:+6596553730AD-SAlES SinGAPorE: [email protected]: [email protected]@logisticsweek.comSnehalPhatnaik

PrintedatPrintHouseIndiaP.Ltd.,Rabale

MIDC,NaviMumbai-400705,IndiaandpublishedatBldg.4/6,SonaUdyog,ParshiPanchayatRd.,Andheri(E),Mumbai-400069.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeansincludingphotocopyingorscanningwithoutthepriorpermissionofthepublishers.Suchwrittenpermissionmustalsobeobtainedfromthepublisherbeforeanypartofthepublicationisstoredinaretrievalsystemofanynature.Noliabilitiescanbeacceptedforinaccuracies

ofanydescription,althoughthepublisherswouldbepleasedtoreceiveamendmentsforpossibleinclusioninfutureeditions.Opinionsreflectedinthepublicationarethoseofthewriters.Thepublisherassumesnoresponsibilitiesforreturnofunsolicitedmaterialormateriallostordamagedintransit.AllcorrespondenceshouldbeaddressedtoIndustrialSourcingMediaPrivateLimited..AlldisputesaresubjecttotheexclusivejurisdictionofcompetentcourtsandforumsinMumbaionly.

sUrface transPort UPdates

1 2 3

4

5

7 8

6

9

10

11

12

13

14

15

16 17

18

19

20

21

EclipseCrossword.com

Singapore: HamburgMediaPrivateLimitedReddotBuilding,28Maxwellroad,#03-05,Singapore-069120PermitNo:MICA(P)179/08/2011Dubai Office:[email protected] office:HamburgMediaLimited78YorkStreetLondonW1H1DP,UnitedKingdom

AnswersAcross: 1. Stakeholders 4. Tariff 5. Stockchase 6.Touches 7. Scalability 11. Tender 12. Seasonality 13. Stores 15. Sortation 16. Deadweight 18. Offline 19. Interleaving 20. Buffer 21. StickeringDown: 2. Tasks 3. Simulation 8. Consolidator 9. Line 10. Quarantine 13. Strategy 14. Surcharge 15. Supplier 17. Tracing

TRUCK FREIGHT RATES*Following are the truck freight rates (in `per tonne) from metros to metros

origin destinationsNew Delhi Kolkata Mumbai Chennai Bengaluru

New Delhi — 2,800 2,000 4,000 3,750

Kolkata 1,650 — 2,500 2,100 2,400

Mumbai 2,300 4,000 — 2,400 1,950

Chennai 3,750 3,450 2,100 — 825

Bangalore 2,000 3,150 1,000 800 —

EclipseCrossword.com


INDIA

GOOD TO GO: GST Bill looks well on its way. The industry weighs in...10

STOPWATCH: Warehouses need to set labor standards. Here’s why...20How Atul Agarwal, Associate General Manager

(Supply-Chain), Dabur India Ltd., runs a lean

supply-chain for its over 300 products.

Page 24

LIFE SUPPLY

April 2011 Vol. 4 — No.8 `100INDIA

TElEcom

logisTics 20

Movement of telecom

network equipment opens

a window of opportunity

NEglEcTEd

waTErways 44

India is ignoring inland

waterways at its own

peril

low

adopTioN 24

Why WMS still does

not have enough

takers in India

amit mukherjee, Vice-

president (iT and supply chain)

and group cio at rpg, has

deployed exemplary supply-

chain strategies at spencer‘s

retail >> page 34

Method In Motion

October 2010 | Vol. 4 – No.2

IndIa’s LeadIng LOgIstIcs MagazIne

` 100

www.logisticswe

ek.com

RIGHT MOVES: What goes into choosing the right location for a warehouse...46

TOWERING ABOVE 38

Unravelling India’s telecom

logistics, end to end.

IA

GST Bill looks well on its way. The industry

GST Bill looks well on its way. The industry

Warehouses need to set labor standards. Here’s why...

ng L

A

ng L INDIAINDIA

TElEcom logisTics 20Movement of telecom network equipment opens a window of opportunity

NEglEcTEd waTErways 44India is ignoring inland waterways at its own peril

low adopTioN 24Why WMS still does not have enough takers in India

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

Method In Motion



` 100

www.logisticsweek.com

30

GET SET, GO 38The true story of supply-chain education in India.

October 2011 Vol. 5 — No.2 `100

Education

Special

Pg.38

bor standards. Here’s why...

What goes into choosing the right locatio

What goes into choosing the right location for a warehouse...GST Bill looks well on its way. The industry

GST Bill looks well on its way. The industry weighs in...weighs in...10

bor standards. Here’s why...20

n for a warehouse...46

30The true story of supply-chain education in India.

Vol. 5 — No.2 `100

Education

Special

Pg.38

weighs in...10

INDIA

ADVERSE REACTION: An inefficient cold-chain is killing children in India...10

GREEN LIGHT: How Ericsson India is reducing its supply-chain carbon footprint...18

Dr Ravi Prakash Mathur, Director, SCM -

Logistics, Dr. Reddy’s Laboratories Ltd., describes how the pharma giant manages

its supply-chain like no other Indian pharma company.

Page 36



The Right Prescription

July 2011 Vol. 4 — No.11 `100

INDIA





Method In Motion



` 100


VALUE OVER COST: An edited transcript of ASC Summit offers key learnings...26

THE FOOD CRISIS 54An ISB Prof. shows how to ensure food security.

Hamburg Media Pvt. Ltd., Building No.4/6, Sona Udyog, Parsi Panchayat Road (Old Nagardas Road), Andheri (East), Mumbai - 400 069 INDIA Ph: 022-61162345 Email: [email protected]


INDIA

You can also subcribe for your copies online at: http//logisticsweek.com/shop/

As fl ooding in Thailand disrupts supply chains in many industries, the event—along with Japan’s March earthquake and tsunami—is prompting many to consider aspects of supply chain risk that might have been previously overlooked, says a recent report in Business Insurance.

While many expect global sourcing to become an even larger factor for businesses going for-ward, recent events are prompting companies to consider the geographic concentrations of suppliers, the need for backup suppliers and re-engineering processes to accommodate backup components should supply chains be disrupted.

With an estimated 45 percent of the world’s hard-drive production located in Thailand and fl ooded plants affecting production by major manufacturers such as Seagate Technology Inc. and Western Digital Inc., some analysts say the disruption could affect PC production through the fi rst half of 2012.

The fl ooding also has had a major impact on the auto industry, where disruptions at Thai auto manufacturing plants and parts producers re-portedly is expected to result in lost production of 250,000 vehicles worldwide.

Many Japanese companies relocated produc-tion to facilities in Thailand after the March earthquake and tsunami. London-based law fi rm Reynolds Porter Chamberlain L.L.P. said the move to Thai facilities helped many Japanese compa-nies mitigate their losses after the Japan disaster. But many now face further losses as a result of the fl oods in Thailand.

“The problem for insurers who provide busi-ness interruption cover to Japanese manufactur-ers is that they have to cover the losses stemming from the Thai fl ooding because so many business-es moved some or all of their supply chain there,” Daniel Saville, legal director in the reinsurance and corporate insurance department of Reynolds Porter, said in a statement. “Moving production from Japan to Thailand was “Plan B.’ The ques-tion now is whether those businesses have a “Plan C,’” he said.

Bad logistics is often the cause for unhappiness and displeasure. It could be due to numerous

reasons from traffi c snarls, to delays in paper work or some little-known regulation that could cause delays in delivery. But to the receiver, it is bad logistics.

Often, when you have asked for something to be delivered at a pre-decided destination and especially if you are eagerly awaiting the delivery, nine out of ten times it will never arrive on the scheduled date. This happens so often each time I order some books/CDs/appliances. The service provider will tell you that he has made more than one trip and there was no one home. And then you get into an argument.

Is ensuring prompt delivery so tough? Don’t responsible people sitting in offi ces take stock of goods that have arrived and those that need to be delivered? Is the infrastructure in such doldrums? Surely, they are not short-staffed. Nor do people live in such remote areas (In the movie Il Postino, a make-shift postman delivers a letter with prompt regularity to his only customer who lives on the top of a hill) where they need to search out more deliveries within the area to justify their trip.

And God help you if your parcel happens to be a passport.

Your’s truly,Jayashree Mendes

Editor, LogisticsWeek

Disasters in Japan, Thailand highlight need for continuity plan

Bangkok

Interview In For TheLong HaulMs. Shagun Kapur Gogia, Director/Founder of Tuscan Ventures, has grand plans for the cold chain industry in India. PAGE 11

Varun Dhawan, VP-Taxation, Blue Dart Express Ltd., simplifi es the issues with GST that have boggled many in the logistics industry.

Firms Rethink Supply Chain Risks

PAGE 4

Gerry Alonso, senior VP of claims at Fac-tory Mutual Insurance Co., noted that the “slow developing” nature of the Thai catas-trophe makes it diffi cult to get a handle on the extent of losses. And, the duration of the fl ooding could exacerbate the losses.

“We’ve had some clients that have been able to procure divers and go in there, but that gives you an idea of what you have.” Mr. Alonso said. “The frustrating part from a claims perspective, you can’t assess loss-es until the water’s gone.”

William J. Montanez, director of risk management at Ace Hardware Corp. and a member of the board of the Risk & In-surance Management Society Inc., said his company hasn’t been affected by either ca-tastrophe, though it relies on overseas sup-pliers. Mr. Montanez said, “At the back end, we have to look at safeguarding and how we can make it less risky to do it.”

With the Thai fl oods raising awareness of the risk of geographical concentrations of suppliers, Linda Conrad, director of stra-tegic business risk management at Zurich Financial Services Ltd. in New York, said her company has been working with clients to

identify where suppliers and industries are concentrated. “I think this illustrates the need for better continuity plans, including backup supplier arrangements, diversify-ing the locations of suppliers and using dif-ferent backup suppliers than competitors.”

Ms. Conrad also said companies are starting to ask existing suppliers about their own continuity plans. “People are also starting to do a lot more scenario anal-ysis, including calculating the potential impact of having to re-engineer processes if alternative components or parts don’t match the specifi cations.”

In general, the recent supply chain dis-ruptions are leading many companies to embrace “that resiliency mindset of: Let’s try to think through some hypotheticals and plan for this when it costs us less than when we are in a crisis,” Ms. Conrad said.

“At the end of the day I think the onus that’s going to be on risk management and management in general is how can we get a preview of what the future might look like and how will we respond to it,” Mr. Montanez said. “That’s what ERM is all about.”

Editor’s NoteEnfant Terrible

Jayashree Mendes

`25logisticsweek.com

November 16–30, 2011

Car manufacturers across the world suff er delays as factories lie submerged.

Sour

ce: c

leve

land

.com

INDIA

RETAIL LACUNAE: Retail logistics managers rue lack of standardization....30BIGGER PICTURE: How supply-chain hurdles dent company bottom-line...14

Britannia’s Replenishment Manager, Raviraj Rodrigues (right) and National Distribution Manager Sanjay Mukherjee (left), manage the supply-chain of the FMCG major while clearing the roadblocks and ensuring seamless logistics. A sharp look. Page 20

CRUNCH TIME

INDIA

OLD ORDER: How auto cos manage service logistics for phased-out models...08THE FOREIGN HAND: How FDI in Retail would change India’s logistics...25

Jayakumar Krishnaswamy, AkzoNobel’s SCM head, is managing a 24x7 supply-chain. Here’s how he plans to accomplish it.

Page 16

COLOR OF INNOVATION

INDIA





Method In Motion



` 100


PRO-LIFE SCM: Amid all the din around green logistics, some practical wisdom...30

GET SET, GO 38The true story of supply-chain education in India.

October 2011 Vol. 5 — No.2 `100

Education

Special

Pg.38

CII SUMMIT: Highlights from arguably the biggest congregation of SCM chiefs...36

WALK IN THE PARK 44A detailed analysis of India’s logistics parks

December 2011 Vol. 5 — No.4 `100

log.indiaYear Cover Price By Post By Courier Online (PDF)

1 `1200 `1080 `1320 $ 50

2 `2400 `2040 `2520 $ 90

3 `3600 `2880 `3600 $ 135

LWYear Cover Price By Post By Courier Online (PDF)

1 `600 `550 `900 $ 30

2 `1200 `1000 `1720 $ 50

3 `1800 `1600 `2680 $ 75

LOG.India & LWYear Cover Price By Post By Courier Online (PDF)

1 `1800 `1600 `2120 $ 75

2 `3200 `2900 `4040 $ 135

3 `5400 `4100 `6030 $ 200

Subscribe to LOG.IndIa and LWIndia’s only magazine and newspaper providing

engaging stories on SCM and logistics.

Name:....................................................................................................... .Designation:...............................................................................................

Company.Name:....................................................................................... .Industry:.....................................................................................................

Address:....................................................................................................................................................................................................................... .

City........................................................................................................... .State..............................................Country................................................. .

PIN:.......................................................................................................... .Tel:.No...........................................Fax:.......................................................

Mobile.No................................................................................................. .E-mail:........................................................................................................

DD./.Cheque.No....................................................................................... .Drawn.on.(Bank):.......................................................................................

Dated:...................................... for.Rs....................................................... .in.favour.of.“Hamburg Media Private Limited.”

Account.Transfer:.Remittance.should.be.made.to:.1).Beneficiary.Account.:.Hamburg.Media.Private.Limited...2).Account.No.:.0561084000

3).Swift.No.:.DEUTINBBXXX..4).I.Ban.No.:.DE.84500700100953478500..5).IFSC.Code:.DEUT0784BBY..6).MICR.Code:.400200000

7).Information./.proof.of.transfer.with.swift.message.copy.shouldbe.mailed./.faxed.to.Hamburg.Media.Private.Limited.

Yes I am interested in the special offer for 3 years 2 years 1 year

Fill in BLOCK LETTERS

logisticsweek 16-31 december 2011

Documents

high street retail

suppliers ship

retail slips

logistics executive

sustainable logistics

health of high street

shipment method

supply chain head