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‘SMART LOGISTICS’ is a techno-commercial magazine aimed at providing smart solutions for the logistics companies to spearhead the growth momentum. An eclectic mix of business insights, technological developments and growth opportunities, this monthly magazine is a ready-reckoner for news, views, growth opportunities in logistics industry.

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Page 1: Smart Logistics - September 2012
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AUGUST 2012 • SMART LOGISTICS • 5

VIEWPOINT VIEWPOINT

TURNING POTENTIAL INTO PROFIT

Archana [email protected]

IT’S easy to name ‘mobility’ and ‘wireless’ as trends, but it’s less clear exactly what direction these developments are heading in and how they can be used to improve business. What’s missing in all this attention is context, particularly regarding how adoption of these technologies is creating improvements in enterprise and supply chain operations.

For example, identifying mobile computing, printing and GPS as growth technologies doesn’t explain how a certain field service provider combined them to save at least 40 minutes per crew per day, and up to $2.1 million in overtime. In short, this edition of Smart Logistics dedicated to the new age smart technologies is not just information of these new vectors of visibility, but what it can do to our businesses…the leap from potential to profit!

It becomes all the more important to delve into details about this ‘forever hot topic’ because yesterday’s supply chains have evolved into today’s complex supply networks. Unique lineups of businesses and individuals are drawn together, creating a series of opportunities for each other. This reality makes managing the supply chain more complex than ever. With a vast number of products offered through physical stores, catalogs, websites and the quickly developing m-commerce channel, retailers are utilising advances in technology to improve supply chain efficiency.

Many firms have found that they can make major reductions in cost by leveraging their warehouse and transportation management systems, and using barcodes, advanced picking & even RFID technologies. Other firms have dramatically reduced inventory and improved customer service by using advanced planning & scheduling systems. Still others have saved millions by performing an in-depth facility network optimisation analysis. Many companies have balanced the pain versus the gain of new technology and achieved huge benefits. If properly applied, technology can be a major part of turning your supply chain into a generator of economic profit, enabling companies to cut cost and inventory as well as enhance customer service.

So, what is the next big thing that will shape supply chain technology? We believe it will be technology that clearly drives economic profit, both short term and long term, and it will be heavily influenced by the external environment. For example, if transportation costs in the long run increase much faster than overall inflation, companies will need to apply increasingly powerful technology which can answer some tough questions.

If customers of the future require more choice and customisation, it is safe to say that firms will need to handle and react to increasingly large volumes of data and customise supply chain service & product solutions for individual markets.

So, as we soak in technology, it is important to acknowledge that creating a profitable supply chain requires a commitment from management to execute proper technology & processes, and a variety of obstacles lie in the way of achieving this goal. But companies that successfully offer product-enhancing services to their customers significantly increase revenue, drive long-term customer retention and increase customer loyalty.

That’s the recipe for turning potential into profit.

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VOL. 03, NO. 06 SEPTEMBER 2012CONTENTS

Looking For A Specific Product?Searching and sourcing products were never so easy.

Just type SL (space) Product Name

and send it to 51818eg. SL Forklift and send it to 51818

S

VIEWPOINT 5NEWS, VIEWS & ANALYSISLatest Happenings In The World Of Logistics 10TECHNOLOGY & INNOVATIONSCutting-edge Solutions 15PRICE TRENDS 18TENDERS 55EVENT CALENDAR 59PRODUCT UPDATE 62PRODUCT & ADVERTISERS’ INDEX 64PRODUCT & ADVERTISERS’ INQUIRY FORM 65

ALSO IN THIS ISSUE

TIPS & TRICKSTechnology Selection7 Ways To Identify The Best-fi t Technology 54EVENT REPORTS

Engineering Expo Ahmedabad 2012Brimming With Bright Prospects 56Supply Chain Transformations 2012Deriving At Logistics’ Possibilities & Opportunities 58

IN CONVERSATION WITH‘Technology Can Signifi cantly Alter The Dynamics Of Supply Chain’ R Rajesh Balaji, VP – Manufacturing and Logistics Practice, Cognizant

20

SPECIAL FOCUS: TECH TRENDS IN SUPPLY CHAIN

Supply Chain Tech InnovationsTrending Technologies 2012 And Beyond... 24

22GenX Technologies Aligning Supply Chain Performance

New-age Rail TechnologiesTime To Bring Rail Freight On Track 26New-age Shipping TechnologiesEnhancing The Logistics Experience 29Execution-driven Planning SolutionsBridging The Gap Between Planning And Execution 31Multi-enterprise SystemsEnabling Visibility Of A Responsive Supply Chain 33Remote Monitoring TechnologiesSmart Tracking Solutions For SCM 35Green TechnologiesWading Its Way Through The Supply Chain 37RFID Benefi tsOffering Unmatched Flexibility, Delivering Fast RoI 39

SECTOR WATCHRail LogisticsTime To Encash On The Rail Advantage 44

RETAILMulti-store & Multi-location ManagementTech Edge For Retailing Brilliance 42

WAREHOUSING & DC

50PhysicalityEnsuring Quick Returns On Investment

AUTOMATION TRENDS

52OneSCM Demand CollaboratorMitigating The Bullwhip Effect

STRATEGY

48Multimodal TransportationHarnessing The Power Of Last Mile Connectivity

SHIPPINGOcean Freight Unlocking Value In Hidden Cost Drivers 46

Cover Illustration: Chaitanya Surpur

Page 8: Smart Logistics - September 2012
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FOUNDER & EDITOR, NETWORK 18Raghav Bahl

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Views and opinions expressed in this magazine are not necessarily those of Network18 Media & Investments Ltd (Network18)*, its publisher and/or editors. We at Network18 do our best to verify the information published but do not take any responsibility for the absolute accuracy of the information. Network18 does not accept the responsibility for any investment or other decision taken by readers on the basis of information provided herein. Network18 does not take responsibility for returning unsolicited material sent without due postal stamps for return postage. No part of this magazine can be reproduced without the prior written permission of the publisher. Network18 reserves the right to use the information published herein in any manner whatsoever.

Publishing

Printed by Mohan Gajria and published by Lakshmi Narasimhan on behalf of Network18.Executive Editor: Archana Tiwari-Nayudu

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SMART LOGISTICS is registered with the Registrar of Newspapers of India under No. MAHENG / 2010 / 34343. Network18 does not take any responsibility for loss or damage incurred or suffered by any subscriber of this magazine as a result of his/her accepting any invitation/offer published in this edition.

* ownership of this magazine stand transferred from Infomedia18 Limited (Infomedia18) to Network18 Media & Investments Limited (Network18) in pursuance of the scheme of arrangement between Network18 and Infomedia18 and their respective shareholders and creditors, as approved by the Hon’ble High Court of Delhi and the necessary approval of Ministry of Information and Broadcasting is being obtained.

Page 10: Smart Logistics - September 2012

10 • SMART LOGISTICS SMART LOGISTICS • SEPTEMBER 2012SEPTEMBER 2012

L A T E S T H A P P E N I N G S I N T H E W O R L D O F L O G I S T I C SNEWS, VIEWS & ANALYSISNEWS, VIEWS & ANALYSIS

A partnership to promote imports

and re-exports of apparel and fashion

between Asia, the Colon Free

Zone (CFZ) and Latin American

destinations was signed by Panamanian

company Exclusive Brands Logistics

Corp (EBL) and Damco Panama.

The logistics deal is the first of its

nature for the fashion industry in

Panama. The hub will handle around

35,000 cubic metres (CBMs) of goods

per year.

EBL is a leading provider of value-

added services, including packing and

labelling, to the fashion and apparel

industry in the CFZ—the commercial

distribution centre located at the

Atlantic gateway of the Panama Canal.

Under the agreement, EBL will

provide specialised services for luxury

fashion brands, while Damco—the

logistics arm of AP Moller–Maersk

Group—will provide supply

chain, transportation and freight

forwarding services from source to

final destination.

“In this partnership, there are three

key points: the origin of the purchase,

the CFZ and the final destination

of the goods. EBL does the value-

added logistics service in our Panama

facilities and Damco does the

transportation and international supply

chain, allowing customers to focus

on their purchasing and sales,” said

Alfredo Maduro, MD, EBL.

In Panama, Damco has warehousing

facilities on both the Atlantic and

Pacific side, with operations in Panama

Pacifico Special Area, in the Corozal

processing zone and the industrial area

of Parque Sur.

THE government plans to provide

road connectivity to around 50

minor ports in the next five years.

“The government envisages to

undertake a special package for the

development of road connectivity

for about 50 minor ports in the

12th Five Year Plan (2012–17),”

Jitin Prasada, Minister of State for

Road Transport and Highways,

recently informed the Lok Sabha in a

written reply.

The National Highways Authority

of India (NHAI) received proposals

for the development of road

connectivity to six non-major ports in

Odisha (i.e., Astranga, Baliharachandi,

Gopalpur, Dhamara, Chudamani

and Subarnarekha), from the State

Government of Odisha.

He added, “It is premature

for indicating any timeframe for

completion of these projects.”

Apart from 50 such ports, there

are 12 major or big-size ports—

Mumbai, Jawaharlal Nehru Port

Trust, Kolkata (with Haldia),

Chennai, Visakhapatnam, Cochin,

Paradip, New Mangalore, Marmagao,

Ennore, Tuticorin and Kandla.

DAMCO AND EBL CREATE THE WORLD’S FIRST LOGISTICS HUB IN PANAMA

MIV Logistics Pvt Ltd, a company promoted by Infrastructures Kerala Ltd

(INKEL) in association with Mfar Enterprises Pvt Ltd and VKL Estates Pvt

Ltd is developing a container freight station at Vallarpadam.

It will come up on 18.5 acre of land taken on lease from Cochin Port Trust

for 30 years at an estimated cost of `70 crore. The facility is expected to be partly

operational by December and fully operational by October 2013. When fully

commissioned, it will have a capacity to handle 1 lakh TEUs per annum, both

for export and import. The facility will have a warehouse of 60,000 sqft capacity.

It will have an open yard of over 5 lakh sqft for storage of containers.

CONTAINER FREIGHT STATION TO COME UP IN VALLARPADAM

ROAD CONNECTIVITY TO 50 MINOR PORTS IN THE NEXT 5 YEARS

CEVA Logistics recently opened its

new multi-user warehouse complex

in Auckland, as part of the company’s

commitment to strengthen its

international airfreight, oceanfreight

and contract logistics operations

in New Zealand. The 16,500 sqm

complex is strategically located

within the Auckland Airport

Business District—the largest

transport hub in New Zealand—

ensuring proximity to business

activity and air service connectivity

throughout the country as well as

overseas. The district also provides

easy access to Auckland and is

within 35 km of both the Auckland

CBD and Port of Auckland.

The complex boasts over 4,000

pallet positions, Technology Asset

Protection Association (TAPA)-

level security and a state-of-the-art

warehouse management system.

With a layout configured for

maximum efficiency, this multi-user

facility is designed to deliver a range

of tangible benefits to customers’

supply chains through economies of

scale and best practice processes.

Grant Lowe, Country Manager,

CEVA, New Zealand, said, “The

new facility will enhance our service

to existing and prospective customers,

while extending the reach of our

integrated freight management &

contract logistics service capabilities

across both the North and South

Islands of New Zealand and into

Australia and the Asia-Pacific region,

which is becoming increasingly

important to our customers. We

have experienced strong growth over

the past 12 months and the new

facility marks both an important step

forward in addressing new market

opportunities and reinforcing New

Zealand’s strategic importance to

CEVA in the region.”

CEVA EXTENDS ITS FOOTPRINT IN NEW ZEALAND

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12 • SMART LOGISTICS SMART LOGISTICS • SEPTEMBER 2012SEPTEMBER 2012

NEWS, VIEWS & ANALYSISL A T E S T H A P P E N I N G S I N T H E W O R L D O F L O G I S T I C SNEWS, VIEWS & ANALYSIS

GATI Ship Pvt Ltd, a 100% subsidiary

of Gati Ltd, recently announced

a dedicated shipping route service

between Chennai-Yangon-Chennai

to help businesses maximise the trade

potential between the two countries.

Gati Ship is the only licenced

operator making several voyages a

month between India and Myanmar via

Port Blair. It is the only direct service

operator on the East Coast of India–

Myanmar route. Gati also operates

two container yards at Chennai and

Port Blair, which increases capability

and provides for efficient handling of

the cargo.

“With the opening up of trade

relations between India and Myanmar

and an aggressive bilateral trade

projection, we see a lot of business

potential on this route. Our expertise

and excellent relations in the Myanmar

Shipping industry will be an added

advantage,” said Dhruv Agarwal, VP,

Gati Ship.

The trade potential between India

and Myanmar is expected to double

to $2 billion by 2015. The proposed

Kaladan Multimodal Transit Transport

Project envisages a direct trade corridor

between a port in Myanmar and Indian

ports on the eastern coast, which will

then pass through riverine transport

and lastly by road to Mizoram. It

would further boost trade between the

two countries.

AUTO major Toyota is setting up

a KES 1.28 billion logistics hub

in Nairobi that will be used by 13

countries to source vehicles directly

from Japan. With the help of its

trading and investment arm, Toyota

Tsusho Corporation, the firm signed

an MoU with the Vision 2030

Delivery Board that will facilitate

the establishment of the centre and

support collaborations with the Kenyan

Government in the automobile, power

& energy, petroleum and mineral

resource, environmental infrastructure,

agricultural industrialisation areas.

Kuniaki Yamagiwa, MD, Toyota

Tsusho Corporation (TTC), said,

“Kenya has caught attention in recent

years as a major African hub, as the

nation has grown rapidly along with the

economic development of the Common

Market for Eastern and Southern

Africa, Comesa. It is a priority in the

company’s global 2020 vision.”

“The hub will also house a technical

training centre that will offer both

managerial and mechanical courses

for prospective employees in the

automotive industry. The project is

underway and will be operational soon.

Apart from technical training, the

institute will also bring up people with

managerial skills,” said Dennis Awori,

Chairman, Toyota Kenya.

ABG Shipyard Ltd, the country’s

largest private ship building

company, announced 22% increase

in total income to `640.64 crore for

the quarter-ended June 30, 2012, on

the back of strong order execution by

the company as against `525.13 crore

in the same period of last fiscal. Net

Profit in Q1FY13 increased 3.12% to

`41.31 crore as against `40.06 crore

in the corresponding period of the

previous year. EBIDTA increased by

35.56% and stood at `166.26 crore

for the quarter. The total order book

stands at approximately `16,500

crore as on June 30, 2012.

GATI SHIP ANNOUNCES A DEDICATED SHIPPING ROUTE ON THE CHENNAI-YANGON-CHENNAI STRETCH

TOYOTA TO SET UP LOGISTICS CENTRE IN NAIROBIABG SHIPYARD Q1FY 2013 TOTAL

INCOME RISES 22% TO `640.64 CR

Gati Plans Expansion In Cold Chain Arena Gati Kausar—a division of the company that handles distribution of temperature-controlled products—has increased its reefer fleet size from 140 to 162 this year. “By 2015, we plan to have a fleet size of 350, with focus primarily on organised retail, including food chain, pharmaceuticals and dairy and agro products,” said a company statement.The company also plans to develop customised cold storage units to cater to different temperature-sensitive products, including pharmaceuticals.“Going forward, there will be increased focus on trade lanes between India and China, Hong Kong, Singapore and Germany. We will primarily cater to the automotive, telecom and electronics sectors,” it said.

THE International Air Transport

Association (IATA) recently

announced the global traffic results

for July showing slower growth in

both air travel and freight, but with

considerable variation by region and

market. The freight demand in July

was 3.2% lower than it was in the

same month last year. This is down

on the 0.1% year-on-year growth

rate of June. A large part of the

decline was due to a comparison with

a relatively strong July last year, but

the overall trend in air freight is weak.

“The uncertain economic outlook

is having a negative impact on the

demand for air transport,” said Tony

Tyler, Director General & CEO,

IATA. “The cargo business is 3.2%

smaller than it was a year ago. And

passenger markets—except Africa,

China-domestic and the Middle

East—saw demand fall from June

to July. Overall, passenger demand

is still up 3.4% on the previous

July. But the growth trend is clearly

slowing. This, along with rising fuel

prices is likely to make it a tough

second half of the year.”

‘INTERNATIONAL AIR TRAFFIC UP IN JULY, FREIGHT FALLS’

Page 13: Smart Logistics - September 2012

NEWS, VIEWS & ANALYSIS

SEPTEMBERSEPTEMBER 20122012 • SMART LOGISTICS SMART LOGISTICS • 13

NEWS, VIEWS & ANALYSIS NEWS, VIEWS & ANALYSISL A T E S T H A P P E N I N G S I N T H E W O R L D O F L O G I S T I C S

VRL Logistics Ltd, the country’s

premier transport and logistics

company, has added two more feathers

to its cap by bagging national awards in

the recently held CEAT ‘India Road

Transportation Awards 2012’ (IRTA).

CEAT India Road Transportation

Awards seeks to reward excellence and

innovative thinking in various aspects

of road transportation. It attempts to

ensure fair play in the selection of award

winners and does not have parameters

of size and scale. Of the nearly 800

entries received for the third edition

of the award, 13 national awards were

announced. The Hubli headquartered

VRL Logistics Ltd has been selected

for ‘The Best Customer experience in

HTV category’ in the Southern region.

More significantly, Vijay Sankeshwar,

Chairman & MD, VRL Logistics Ltd,

has been honoured with ‘Transport

Personality of the Year 2012’ award.

On this occasion, Anant Goenka,

MD, CEAT Ltd, said, “The third year

of the award saw an overwhelming

response by the fraternity and it

encouraged us to continue with our

efforts to honour the true achievers

of Indian road industry.” From this

humble beginning, VRL has grown

into a nationally renowned logistics and

transport company, which is currently

the largest fleet owner in India. As of

January 31, 2012, VRL owned a fleet

of 3,481 vehicles and finds a mention

in the Limca Book of Records as single

largest fleet owner of commercial

vehicles in India in the private sector.

DHL Global Forwarding, the air and

ocean freight specialist in Deutsche

Post DHL, continues to expand its

global network of its direct Less than

Container Load (LCL) service with

the recent launch of two new services

connecting India with Sweden for

exports and with the UK for imports.

These are strategic countries catering

to a large segment of trade with

India. The new direct LCL services

reduce transit time and total carbon

emissions, efficiently bringing wider

business opportunities to India-based

customers & Indian SMEs.

India and Sweden share a long

tradition of trade cooperation, which

has significantly grown in recent

years and shows potential for further

development. By offering reduced

transit time of 25 days from Nhava

Sheva to Gothenburg, DHL becomes

one of the few consolidators from India

to reach the Scandinavian destination

directly. “The launch of DHL’s new

LCL services from India are strategically

planned to meet the growth of foreign

trade amid the rising global demand

for such services. DHL dedicates

substantial resources to continue

developing and maintaining highly

effective services that include traditional

LCL services & multi-vendor buyers’

consolidations for shipment sourced

from single and multiple countries,”

said Thomas Tieber, CEO, South

Asia, DHL Global Forwarding CEO

(South Asia).

“With the introduction of this new

service, we have further strengthened

our network and ocean freight service

offerings to support our customers’

needs. To offer customers cost-

effective and innovative solutions, we

are constantly looking for opportunities

to extend our LCL service offerings

while contributing to the developing

Indian economy,” continued Tieber.

All LCL services are accompanied

by DHL’s first-class IT solutions such

as DHL Track & Trace and other

tools to allow full visibility throughout

the supply chain. DHL also facilitates

insurance services to customers as a

value-added service.

VIJAY SANKESHWAR BAGS ‘TRANSPORT PERSONALITY OF THE YEAR’ AWARD

DHL LAUNCHES DIRECT LCL SERVICES FROM INDIA TO SWEDEN, UK TO INDIA

• New services from/to India’s key gateway reduce transit time and CO2 emissions

• Reliable and cost-effective solution to benefi t Indian customers amid global economic uncertainty

USPs

THE recently inaugurated IBM

Supply Chain Analytics Center

of Competency (CoC) will create

analytics-based solutions. These

solutions can improve supply chain

efficiencies of organisations by

enhancing visibility as well as tackling

volatility throughout the chain.

According to Fran O’Sullivan,

GM – Integrated Supply Chain,

IBM Global, the supply chain was

a natural area to apply analytics as

it is filled with plenty of raw data.

The company’s supply chain CoC

in Singapore is its third worldwide.

The other two are in India and the

US. The facility, located within the

IBM Singapore Technology Park,

is in collaboration with Singapore’s

Economic Development Board.

The company has high

expectations for the centre to create

innovative analytics tools for any

industry sector and organisation that

has supply chain needs.

The launch of the analytics center

comes a month after IBM signed

a three-year collaboration with

Singapore’s National Environment

Agency to develop analytics

to address urban sustainability

challenges.

IBM SETS UP SUPPLY CHAIN ANALYTICS CENTRE IN SINGAPORE

Vijay Sankeshwar, Chairman & MD, VRL Logistics Ltd, receives the Award for Transport Personality of the Year 2012

Page 14: Smart Logistics - September 2012

14 • SMART LOGISTICS SMART LOGISTICS • SEPTEMBER 2012SEPTEMBER 2012

NEWS, VIEWS & ANALYSISL A T E S T H A P P E N I N G S I N T H E W O R L D O F L O G I S T I C S

REINER A Allgeier has been appointed

as the new MD of DB Schenker

India, the Indian subsidiary of DB

Schenker AG. He has been with DB

Schenker for the past 37 years and has

handled different assignments for the

organisation across the globe. Before

taking over the reins, Allgeier was the

MD for DB Schenker in Philippines.

He will work closely with the senior

management team in India to ensure

the continued commitment of the India

operation to its customers.

Schenker India Pvt Ltd offers a

complete range of international air &

ocean freight and contract logistics

& global supply chain solutions

from a single source. With 36

offices, approximately 1,400 logistics

professionals and 53 warehouses

covering more than 1.3 million of

space, the company is one of the

leading providers of integrated logistics

services in India.

ACCORDING to the latest report from Container Trade Statistics (CTS),

global shipping volumes have witnessed a decline in the second quarter of

the year. According to the report, the sector is hit by Europe’s economic crisis

that continued to act as a burden on demand. As per the data, exports from

Europe (in terms of TEU) grew 3% in the Q2 of 2012, a decline from the

revised first quarter figure of 9.7%, while imports to Europe fell 5.3% in the

second quarter.

Asia saw weaker economic performance in Q2 as imports to the region fell

4.2% in Q2, compared to a growth of 5.8% Q1. And export volumes increased

by only 2.8%. Container exports from North America decreased 6.5% in Q2,

while exports in the Q1 of the year were at -0.6%. However, the import figure

indicates a positive picture, up 9.9% in the Q2, compared to a growth of 3.7%

in Q1. Negative export growth was reported in South America, the Middle

East and Africa.

ACCORDING to official sources, the

shipping ministry will soon place the

proposal before the Union Cabinet for

its approval to finalise the modalities

for two new major ports in Andhra

Pradesh and West Bengal. Sources

said the ministry is in the process of

finalising the locations in consultation

with the respective states. The two

ports will help in generating a target

capacity of 244 million tonne (mt) at

an estimated cost of `14,500 crore.

As per the Maritime Agenda

2010–20, the Shipping Ministry plans

to enhance total port capacity to 3,300

mt from 1,200 mt at present, entailing

an estimated investment of `2.9 lakh

crore. In addition to its plans to award

25 projects at the Major Ports under

PPP in 2012–13, the government

also proposes to invest more than

`73 crore for developing various

projects in the port sector during the

12th Five Year Plan.

REINER A ALLGEIER APPOINTED AS NEW MD OF SCHENKER INDIA PVT LTD

GLOBAL SHIPPING Q2 VOLUMES HIT BY EUROPE’S ECONOMIC CRISIS

GOVERNMENT TO SET UP TWO NEW MAJOR PORTS IN ANDHRA PRADESH, WEST BENGAL

Christian Stoll To Head DB Schenker Logistics’ Intermodal Activities Christian Stoll has taken over the intermodal activities of DB Schenker Logistics. In his role as Head of Intermodal at Schenker AG headquarters in Essen, Stoll is responsible for linking the different modes of transport efficiently, i n p a r t i cu l a r , DB SCHENKERhangartner.

His predecessor, Patrick Zilles, has left the company at his own request. His position at DB Schenker was created in light of the growing importance of intermodal solutions in the beginning of the year.

Stoll was previously responsible for the European development of a medium-sized freight forwarding group.

FOUR Soft, a global leader offering

software solutions for the logistics,

transportation and supply chain

industry, will provide its web-centric

warehouse management application,

4S eLog to Panasonic India Pvt

Ltd, to automate its warehousing

facility across 28 locations. The

contract was executed by Four Soft

Ltd, India.

Yutaka Suzuki, VP, Panasonic

India Pvt Ltd, said, “We chose

Four Soft’s web-centric warehouse

management solution as they

have the proven expertise and the

necessary tools in successfully

implementing such large and

complex projects apart from having

a clear understanding & approach of

what our business requires. With our

decision to implement this solution,

we hope that it will offer us better

functionality, cut down our initial

cost of ownership, simplify business

complexities, provide more flexibility

and enhance value to our customers.”

“We are happy to announce our

association with Panasonic India.

They are a global market leader

in electronic products and their

decision to select our WMS solution

speaks of our commitment and

continuous effort to provide world-

class solutions. We are confident

that our solution will address their

problems and help business grow in

a more simplified and efficient way,”

said BalaKrishna Reddy, Head –

Asia, Four Soft Ltd.

FOUR SOFT SIGNS CONTRACT WITH PANASONIC INDIA

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SEPTEMBER 2012 • SMART LOGISTICS • 15

CUTTING-EDGE SOLUTIONS CUTTING-EDGE SOLUTIONS TECHNOLOGY & INNOVATIONS TECHNOLOGY & INNOVATIONS

THE arch-shaped multi-benefit

roofing solution, self-supported steel

roofing from Proflex Systems aims to

revolutionise the purpose and panorama

of large application roofing. The roofing

technology caters majorly to sectors like

warehousing, engineering, cement, rice

mills, sugar industry, textile industry,

railways, food, beverages, automobiles,

processing & pharma, among others, for

their self-supported roofing solutions.

The core of this technology lies

in its formation that makes it self-

supporting and sustains external load

factors without any supporting steel

structure and intermediate columns.

It is a self-supported structure without

trusses, purlins or ancillary support,

with unobstructed clear spans 9–35

metre. Besides, Proflex installs roofing

with an incredible speed, which leads

to an excellent application,

especially in time-bound

construction projects. It also

provides for full proofing

against water seepage and

extreme weather conditions,

while providing enhanced

protection to goods stored.

When compared to the traditional

roofing, it takes less time for installation

and needs no supporting steel frame

structure at regular intervals. The

roofing system is based on the arch-

principle. To carry out a calculative

analysis of Proflex Systems, a special

design & engineering process and

software is used. With the use of this

software, a considerable amount of

time and expense is saved in designing

& selecting the most economical arch

structure configuration.

Self-Supporting Roofing Solution To Revolutionise Warehousing

• It provides larger enclosed volumes, free movement & effective handling of goods and higher fl exibility in space utilisation.

• The roofi ng panels are mechanically seamed (inter-locked) and are free from holes, nuts, bolts, overlaps or sealants. It ensures zero maintenance and is also resistant to extreme weather conditions.

• This unique mechanical seaming of panels ensures 100% leak-proof roofs.

USPs

Invites You ToIndia’s Largest

SME Gathering

CUT H

ERE

Page 16: Smart Logistics - September 2012

16 • SMART LOGISTICS • SEPTEMBER 2012

Cutting-edge solutions, continued

COGNEX Corporation, the world’s

leading supplier of machine vision

systems, has introduced the In-Sight®

7010, an entry level vision system

developed specifically for inspection

tasks where vision sensors are too

limited and a standard vision system

may not be cost effective.

Every aspect of the In-Sight 7010

has been designed to make deploying

a vision system easier than ever before.

It is a completely self-contained

vision system that includes autofocus

optics and integrated lighting in a

compact IP67 rated industrial housing.

Applications can be configured quickly

using the intuitive EasyBuilder®

user interface. The vision library on

the In-Sight 7010 has been simplified

to focus on the tools most frequently

used in straightforward vision

applications.

“We are very excited about the

In-Sight 7010. We believe it will

open up a new range of applications

where vision systems can be applied.

The In-Sight 7010 can be taken right

out of the box and put straight on

the production line with minimum

time, cost and effort,” said Bhaskar

Banerjee, Business Unit Manager,

Vision Systems.

Entry Level Vision System with Autofocus and Integrated Lighting Introduced

• Integrated Autofocus: The built-in autofocus capability of the In-Sight 7010 makes it ideal for production situations requiring regular part changes, or applications that require the vision system to be placed in hard-to-reach spaces where manual focus adjustment would be diffi cult.

• Integrated Illumination: The compact In-Sight 7010 features integrated white lighting that is suitable for most vision applications. If a specifi c colour light is required to highlight particular parts or features, four optional coloured lights are available.

USPs

Auto & Auto Components | Chemicals & Allied Products | Testing & Measuring Instruments Electrical & Electronics | Hydraulics & Pneumatics | IT Products & Services | Automation | Instrumentation | Material Handling Equipment | Packaging Machinery | Wires & Cables Machine Tools & Accessories | Pipes & Fitting | Plastics & Polymers | Safety & Security | Process Machinery & Equipment | Light & Medium Engineering

225+ participants | 15,000+ business visitors expected 15,000+ products on display | Business transactions worth ` 80 crore

expected Spread over 4312 sq mtr | Showcasing more than 30 diverse industry categories.

5 - 8 October 2012Gujarat University Exhibition Hall

10 am - 7 pm

Exhibitor ProfileCU

T HER

E

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18 • SMART LOGISTICS • SEPTEMBER 2012

PRICE TRENDSThe RFI stood at 176 points in the month of August 2012 which is 2 points higher in comparison to the corresponding

period last year.

ZONAL FREIGHT TRENDS The overall freight rates have increased by 1.75% as compared to last month. The freight rates from Delhi registered the

highest increase of 5.63% in comparison to the last month due to the shortage of vehicles and insufficient availability

of return load, whereas the freight rates from Chennai registered the highest decrease of 1.37% in comparison to last

month due to less dispatch of material.

INDEX TREND FOR 5 YEARS:

COMMERCIAL VEHICLES DOMESTIC SALES: The overall Commercial Vehicles (CVs) segment registered a growth of 4.74% in April–July 2012 as compared to

the corresponding period last year, while Medium & Heavy Commercial Vehicles (M&HCVs) registered a negative

growth at -12.75%. Light Commercial Vehicles grew at 18.02%.

FORECAST FOR SEPTEMBER 2012: The RFI in September 2011 over September 2010 had registered an increase of 1 point. The freight rates in September

2012 will remain stable due to the ongoing monsoon in many parts of the country.

Knowledge Partner: Transport Corporation of India (TCI); website: www.tcil.com; e-mail: irf [email protected]

Indian Road Freight Index (IRFI), a service introduced by Transport Corporation of India (TCI), is an index of weighted average lorry freight rates across various routes, calculated based on the route density and the dynamic freight rates of routes across the country.

IRFI Trend for August 2012

TRENDS FOR AUGUST (Y-o-Y)

179

177

175

173

171

169

167

1652008-09

172

171

174174

176

2009-2010 2010-2011 2011-2012 2012-2013

SMART LOGISTICS APRIL 2010

Page 19: Smart Logistics - September 2012
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20 • SMART LOGISTICS • SEPTEMBER 2012

ROLE OF TECHNOLOGY IN SUPPLY CHAIN The efficiency of a supply chain is

measured by ‘the flow of products’

and ‘the flow of information’. Any

improvement in one of them can

significantly improve the performance

of the supply chain. Information

Technology (IT) has always been a vital

element towards ensuring the success

of complex supply chains. Apart from

the usual improvements in inventory

management and informed decision-

making, technology can significantly

alter the dynamics of the supply chain

in the following three ways:

Improved Collaboration: Collaboration

has altered marketplace dynamics by

broadening the scope of competition

and bringing non-competing businesses

on the competitive forum. Leading

retail companies are competing on

the collaboration front, in which agile

support from supply chain partners has

become the secret sauce of the business

model innovation.

Visibility: With the advent of

integration and cross-functional

support, supply chain processes

have improved the visibility of key

performance indicators. The support

extends in three phases—improved

Technology can can significantly alter significantly alter thethe dynamicsdynamics of supply chain“IT has delivered end-to-end solutions to improve supply chain performance. However, emerging trends have opened new avenues for capability enhancement and predictive analysis,” explains R Rajesh Balaji, VP – Manufacturing and Logistics Practice, Cognizant, during an exclusive interaction with Nishi Rath. Excerpts…

IN CONVERSATION WITH IN CONVERSATION WITH R RAJESH BALAJI R RAJESH BALAJI

Page 21: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 21

ability to monitor performance, make

decisions and leverage predictive

analytics.

Transparency: With the advent of

social media, the word about a quality,

service or policy glitch on the part

of a manufacturer can spread around

quickly and cause irreparable damage to

the firm’s reputation. Institutionalising

best practices and effective brand

management across the supply chain

have therefore become imperative.

LATEST TECHNOLOGIES ADOPTED TO STRENGTHEN SUPPLY CHAINIT has delivered end-to-end solutions

to improve supply chain performance.

However, emerging trends have

opened new avenues for capability

enhancement and predictive analysis.

The future of supply chain belongs to

firms mastering the Social, Mobility,

Analytics and Cloud (SMAC) stack of

technologies. To determine the trends

that are shaping the supply chain

execution software space, one should

look into the areas of technology that

organisations are investing in. Some of

these latest trends include:

Cloud Computing: Cloud technology,

with its unique features such as

accessibility, low investment strategy

and user friendliness, has affected the

supply chain in myriad ways. Some of

the key impact areas include the ability

to offer Software as a Service (SaaS)

solutions, create a partner ecosystem

at low cost, harness collaboration for

sourcing & procurement and improve

compliance.

Mobility: Enterprises are moving

towards adapting the ‘anywhere-

anytime’ business model. Mobility

and mass adoption of smartphones

offer advantages to firms focussing

on mobile applications. Some of these

areas include:

• Logistics order processing improves

accuracy and efficiency: Mobility offers

integrated hardware and software

systems, which allow real-time data

collection with accuracy and agility

that help in faster order processing.

• Manufacturing improves process

efficiency: Machine uptimes are

critical for process efficiency.

Mobility offers unique capabilities,

such as real-time tracking of asset

health and KPI monitoring that aid

real-time problem-solving.

• Individualised Promotions (RoI

on Trade Promotions): Given the

proliferation of handheld devices,

companies offer unique advantages

to loyal customers by targeting

focussed promotions.

Next Generation Analytics – The first

steps to ‘Big Data’: With the use of IT

tools such as ERP, RFID, Internet,

and so on, companies have generated

a set of first-level data that essentially

reflects the past performance or

compares performance against the

set benchmarks. Now, with increased

computing available, it has the ability

to analyse a variety of data to help:

• Make strategic and tactical

decisions based on data that show

key performance indicators

• Manage demand-supply gap by

monitoring real-time sales data and

comparing it with historical data

trends

• Perform customisation by

automatically extending offers and

promotions depending on stock

availability & customer profile.

Social Vibes: The real-time nature

and ingenuity of social media data is

insurmountable in comparison to data

collected by any other means. These

include:

• Product design and 360-degree

feedback: This forum allows users

to interact with the manufacturer

in product reviews, shopping

experience, etc.

• Demand forecasting: To a certain

extent, social data inputs can also

form the basis for success or failure

of products and hint at demand

forecasting.

• Targeted promotion: It has become

a must for companies to have

‘Facebook’ page or ‘Twitter’ handles

and interact with the end user.

By adopting technologies that

are in-line with the aforesaid trends,

manufacturers can improve visibility

across the supply chain and execute

more efficiently with higher customer

service levels.

FUTURE OF TECHNOLOGY IN SUPPLY CHAINWe believe that the future of work

depends on four forces—globalisation,

virtualisation, next-generation

technologies (such as cloud computing)

and the millennial generation of

consumers. In an attempt to be future-

ready, every entity is focussed on

digitisation and is establishing a digital

agenda to achieve that. The digital

agenda provides a way to manage huge

data assets, obtain insights through the

use of analytics and convert them into

data that can be insured by the digital

consumer. It is a daunting task and has

typical complexities of adopting newer

business models, changing management,

redefining budgets and having a fresh

look at the technology roadmap.

Towards this, we believe that the new

master IT platform will be based on

four key technologies—SMAC.

[email protected]

R Rajesh Balaji is currently the Vice President of Cognizant’s Manufacturing and Logistics practice. He is responsible for the service delivery, growth and practice development across all industries, including automotive, manufacturing, industrial, oil & gas, process, utility & logistics, globally. Prior to this, he was the Delivery Director for Industrial Manufacturing where he was responsible for incubating and building Cognizant’s Industrial Manufacturing Practice from a single customer to a global practice with multiple customers. He has a Bachelor’s Degree in Industrial Engineering from the College of Engineering, Guindy, Anna University, Chennai (India).

CREDENTIALS

Page 22: Smart Logistics - September 2012

22 • SMART LOGISTICS • SEPTEMBER 2012

SPECIAL FOCUSSPECIAL FOCUS GENX TECHNOLOGIES GENX TECHNOLOGIES

PRATEEK SUR

TODAY, companies are often

considered parts of multi-network and

multi-echelon supply chains and not

as autonomous entities. Supply chain

management (SCM) proposes that

integrated control of these networks

can provide significant benefits. The

utilisation of Information Technology

(IT), considered vital for running these

networks, has been linked with major

supply chain efficiency improvements.

Elaborating on the same, Asim Behera,

GM India, Swisslog, expresses, “I have

always believed technology to be an

enabler. IT is a very powerful tool and

when applied efficiently, it can simplify

many processes. Right from inventory

management to tracing, tracking and

demand forecasting, IT can be an

excellent tool.”

Although the significance of IT for

proficient SCM is widely accredited,

experimental research assessing how IT

is in practice for the purposes of SCM

is narrow. More particularly, majority

of the prior research has focussed either

on modelling the benefits of inter-

organisational information technologies

and information allocation, or on

assessing the impact of specific

technologies on supply chain efficiency.

Consequently, the definite uses of IT

in SCM as well as the reasons for

using IT in an explicit way still remain

uncertain. The major question to be

asked is: “How and for what purposes

do companies use IT in SCM?”

EXISTING IT TOOLS IN SCMElectronic Data Interchange (EDI)EDI technology has been extensively

used by firms in supply chains to ease

dealings and information exchanges.

EDI is a computer-to-computer

exchange of structured data for

automatic processing. It is used by

supply chain partners to exchange vital

information required for the effective

management of their businesses. These

structural links are habitually set up

between organisations that have a

long-term trading relationship.

Here employees need not collate

the information manually. EDI has

many benefits, for example, it provides

highly accurate and efficient timely

information about its customers’

sales. Moreover, it is utilised for

sending invoices, bills of lading,

confirmation of dispatch, shipping

The exercise of Information Technology (IT) is believed to be a prerequisite for the effective organisation of today’s complex supply chains. In spite of the acknowledged signifi cance of the application of IT in supply chain management (SCM), the number of empirical studies assessing the use of IT in the supply chain context is limited. The use of IT for SCM purposes can be divided into transaction processing, supply chain planning & collaboration and order tracking & delivery coordination. It is further believed that the drivers between these three uses of IT in SCM differ from one another—a factor that makes the role of IT in context to SCM an important issue for present day logistics. Before we move onto upcoming tech trends in supply chain, here’s listing some of the widely used tech tools to streamline logistics & supply chain…

Other widely used tech tools• Warehouse Management Systems• Transportation Management

Systems• Inventory Management Systems

AligningSupply Chain Performance

Page 23: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 23

details and any information that

the linked organisations choose to

exchange. The main benefit of using

EDI is that a company has to enter

informative needs on the computer

system only once. After doing so, it

is able to speed up the transaction

and also reduce cost and error rates.

The other benefits of EDI include

quick processing of information, better

customer service, reduced paperwork,

increased productivity, improved

tracing & expediting, cost efficiency

and improved billing. Through the

use of EDI supply chain, partners

can overcome the distortions and

exaggerations in supply and demand

information. This is done by improving

the technology to facilitate real-

time sharing of actual demand and

supply information.Although

companies gain a lot of benefits from

EDI, it is often the mismatch between

EDIs expectations and the company’s

activities undertaken to achieve the

desired performance. While larger

organisations are major adopters of

EDI, SMEs often do not use EDI.

Barcoding and ScannerBarcodes are the representation of

a number or code in a form suitable

for reading by machines. Barcodes are

broadly used throughout the supply

chain to recognise and track goods at

all stages in the process. For example,

goods received in a warehouse may

be acknowledged by the warehouse

management system and supplemented

to the stock held in the warehouse.

When put away, the barcode is used

to correlate the storage location with

the barcoded stock, and on dispatch

the stock record is amended. The use

of barcodes can considerably speed up

operations. On the other hand, the

problems can arise if the barcodes are

defaced or the labels fall off during

transit. The maintenance management

must be applied for extending the life

of the equipment. Barcode scanners are

most visible in the check-out counter of

supermarkets and hypermarkets. This

code specifies the name of the product

and its maker company. The other

applications include tracking moving

items such as components in PC

assembly operations and automobiles in

assembly plants.

In 1983, with barcodes printed on

most goods, Wal-Mart introduced

checkout scanners in all its stores.

They updated inventory numbers for

individual items at the point of sale

and enabled headquarters to easily

aggregate sales and inventory data at

its centralised IT department. Later,

in 1987, a satellite communications

network set up linked all the stores

with the headquarters with real-time

inventory data.

Enterprise Resource Planning (ERP) SystemsERP Systems are enterprise-

wide information systems used for

automating all activities and functions

of a business. These are transaction-

based information systems that are

incorporated across the entire business.

Fundamentally, they permit data

capture for the whole business into a

sole computer package. This gives a

single source for all the key business

information actions, such as customer

guidelines, inventory and financials.

ERP systems vendors like Baan,

SAP and Peoplesoft are used by

many companies as the core of their

IT infrastructure. ERP systems have

become enterprise-wide transaction

processing tools which confine the

data and lessen the manual activities

and chores linked with processing

financial, inventory and customer order

information. An ERP system attains a

high level of amalgamation by utilising a

solo data model, developing a common

understanding of what the collective

data represents, thereby establishing a

set of rules for accessing data.

Commenting on the same, Behera

explains, “When your business

transactions are in the 100–300 crore

turnovers, one can think of managing

it via manual or ad hoc tools, but

once it goes beyond that range, ERP

becomes critical to link and simplify

your operations. ERP acts as the

cement that bonds the various facets

of your business such as procurement,

forecasting, material management,

HR, etc. The bond is crucial as all

aspects of your business are interlinked.

You cannot afford to run one unit

efficiently while the other is bleeding.”

The huge costs that are involved

in procuring an ERP application,

installation of such systems entail

widespread change within the

organisation. It will have implications

in terms of Business Process

Reengineering (BPR), which, in

turn, will change the organisational

structure, people and ultimately, the

management. Many companies have

profited from using this system while

some have experienced severe troubles

with their application. Usually, they

also need a lot of customisation and

guidance for every user.

LONG-TERM BENEFITSThere is definitely an exchange in the

benefits of both the integration approach

and the advantages each presents. The

most apt elucidation will depend on

the tactical goals of the supply chain

organisation. If the end aim is to offer

a clean and seamless functionality,

then a tight amalgamation approach

will be more apt. In other cases, such

as organisations with multiple ERP

systems or companies with a need for

offline processing, a loose assimilation

approach will be more effective. In

the long run, it costs less to uphold a

loosely incorporated solution, and thus,

the system will provide itself more

effortlessly to acclimatising to upgrades

and new standards.

[email protected]

Types of IT uses in SCM• Transaction processing• Supply chain planning and

collaboration• Order tracking and delivery

coordination

Page 24: Smart Logistics - September 2012

24 • SMART LOGISTICS • SEPTEMBER 2012

SPECIAL FOCUSSPECIAL FOCUS SUPPLY CHAIN TECH INNOVATIONS SUPPLY CHAIN TECH INNOVATIONS

SUPRITA ANUPAM

WITH speech recognition, Radio

Frequency Identification (RFID),

voice- & Global Positioning System

(GPS)-enabled real-time control and

cheapest real-time monitoring via

cellular technology, the Indian logistics

industry can be said to be in its prime.

Registering an annual growth rate of

around 10%, the industry has attracted

global players to India—an important

and essential location in Asia-Pacific.

Unfortunately, India is unorganised

and uneven. The country has, no

doubt, implemented technology, but

it has been implemented only partially.

Additionally, even infrastructure in

the country is poor and major parts

of India—be it the north, east or

north-east, Andaman and Nicobar

or Daman—are not conveniently

connected to the globe. Globally,

the supply chain, as defined in

Supply Chain Technology (SCT),

comprises of 75% technology and 25%

management. But looking at the state

of affairs in India, arriving at a similar

scenario in India will definitely take

some time.

IS SUPPLY CHAIN A TECHNOLOGY?After the Second World War,

a British Admiral General had

remarked, “We won because we were

better in logistics.” His statement was

not exaggerated, but a true acceptance

of the importance of logistics. Wars

are the darker side of competition;

otherwise competition mainly has a

lot to do with logistics. In the Post

World War era, logistics came up with

new parameters such as planning, flow

design and traffic tracker software as a

matter of concern.

Cost, time and technology have

always been its essential parameters

with the management acting like a

quiver holding together all the arrows,

i.e., the various parameters. In recent

times, the management’s place in

logistics of being the quiver is getting

replaced by technology, as it ensures

that all the parameters are updated and

upgraded. Ultimately, it is technology

which now lets logistics ride high

and sends goods to space for

spacecrafts (for their maintenance and

other purposes).

The recent trends in logistics, viz., demand planning, globalisation, increased competition & price pressure, outsourcing, shortening supply chain cycle with increased complexity, closer integration and collaboration with suppliers, have clearly raised the role of technology in supply chain. The interface between technology and supply chain management thus has risen from windows to gates. But then, after entering the gates, it remains to be seen what’s in store.

Trending Technologies Trending Technologies 2012 and Beyond...2012 and Beyond...

Imag

e C

ourte

sy: P

acka

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SEPTEMBER 2012 • SMART LOGISTICS • 25

Elaborating on the same, Chris

farr, Professor, Florida Institute of

Technology, says, “Gone are the

days when the management held

the upper thumb over technology.

Nowadays, with mechanisation,

design and planning software as its

new wing, technology has automated

management works…but technology

itself cannot be automated.” He adds,

“In the coming years, SCT may gain

more prominence than Supply Chain

Management (SCM). Take space

logistics as an example, it is totally

about technology leaving little room

for management.”

Turning the discussion to India’s

prospect, N Viswanadham, INAE

Distinguished Professor, IISc and

Executive Director, Center Of

Excellence For Global Logistics &

Manufacturing Strategies, ISB, feels

that the same might not happen in

India. He states, “In India, logistics

is service driven. Here, various

independent companies have to sit

together to decide and shape their

own supply chain. This cannot be

automated. Further, segments like rail,

air and warehousing are unorganised.

They need proper management in

contrast to the foreign players in

the US and the UK where a single

player usually has complete control

via technology.”

INSIDEOne major difference in the flow

designs of management and technology

is that management makes it simpler

and easy to simulate. In fact, the

management is meant to work in a

way that is contrary to technology,

which makes the flow steps simpler by

making the overall design complex. In

other words, technology has brought

about supply chain excellence. Chris

avers, “Unlike SCM, here, you do not

need to think about what you have to

do and how you have to do it; you only

need to ensure that the right inputs are

fed to SCT.”

Tech-enabled ERPs and the

recent advancements have provided

the ultimate best-of-breed SCM

solution. These have made feasible the

concept of work modularisation in the

connected world where work packets

can be delivered out of anywhere,

anytime. The role of technology has

grown up to:

• Network and Inventory

Optimisation

• Logistics Optimisation

• Product Lifecycle Management

• Sales and Operations Planning

• Procurement

• Manufacturing Optimisation

• Business Intelligence

OUTSIDEAlthough technology appears to be

at the helm of supply chain for quite

some time now, the outside effects

are yet to be tapped. Financial supply

chains are still full of untapped

opportunities that can be realised by

proven SCT. The effects have risen

beyond the real-time information

environment to transaction—dynamic

early payment discounts, automation

and cost-cutting outsourcing. Besides,

self-evaluation via the right feedback

mechanism has given great relief to

the petrochem companies over model

volatility and prices forecasting.

Industries that came into existence

because of SCT are e-logistics/e-

commerce, e-billing, 4PL and 5PLs.

The other techno-initiatives are

centralising common functionality

through reusable services related

to compliance, screening billing

and pricing, using a common

messaging format (xml), integrating

data fragmented across multiple

databases and other related business

continuity planning.

INSIDE-OUTSIDETechnology with the right blend of

hybridisation in between centralised

control and auto control with regard

to time has created the much necessary

permeable membrane between the

inside and the outside. It has shaped

the flow of information between inside

and outside—be it from the centre

to the terminal or vice-versa, from

provider to consumer or vice-versa.

The interface is no more controlled

manually, and leaves little scope

for liquid management, i.e., cash

forecasting and global multi-companies

information reporting. The digital

market and internet have opened a

different market logistics to further

inside, which is more process centric.

The end-to-end delivery through

various collaborative exchanges can now

be achieved without any manual delay.

Warehousing management software

has its penetration/compatibility to

the transport management software to

ensure the goods transfer without a

second delay.

CAN SCT FULLY AUTOMATE THE PROCESS IN FUTURE?The universe is expanding and so

are human requirements. This is

the same world, where Moore’s law

and Brownian motion still find their

applications and hence, this is where

the machine learning mechanisms need

to be changed accordingly keeping

the route of decision making safe for

management.

[email protected]

Comprehensive connectivity: 802.11 wireless LAN technologies, cellular networks, bluetooth

Voice and GPS communication integrated into rugged computers

Speech recognition Digital imaging Portable printing 2D & other barcoding advances RFID RTLS Remote management Wireless and device security

10 SUPPLY CHAIN DEFINING TECHNOLOGIES

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26 • SMART LOGISTICS • SEPTEMBER 2012

SPECIAL FOCUSSPECIAL FOCUS NEW-AGE RAIL TECHNOLOGIESNEW-AGE RAIL TECHNOLOGIES

SUPRITA ANUPAM

BATTLING for ‘interoperability’—

or technical compatibility—of

infrastructure, the Indian rail network,

over the years, has developed and

adopted different technical specifications

and advancements that were essential

for its Genext image. Research Design

and Standards Organisation (RDSO)

plays an important role in this regard.

But the slow progress does make the

technology upgradation outdated

as soon as it sees some ground. In

addition, the CAGR of rail freight too

is not very encouraging when compared

to that of road freight.

In contrast to the Indian Railways

Vision 2020, the projects are

progressing at a slow pace due to lack

of funds. According to Union Railway

Minister Mukul Roy, “We are not

achieving the desired level of progress

due to limited availability of resources.”

Despite the odds, Indian Railways, as

an organisation, has achieved many

milestones and has many improved and

updated technology solutions which

very few countries in the world have.

SIGNALINGSignaling in Railways facilitates the

safe movement of trains by preventing

derailments and collisions (primary

purpose). It also increases the capacity of

the railway network by safely allowing a

higher density of trains on the network.

In a seminar on Indian Railways Vision

2025, it was assessed that by 2025, the

freight traffic is expected to reach 1,107

million tonne and passenger traffic will

increase by 300%.

Indian Railways began using

colour light signaling in 1920s and

presently, over 70% of the stations

are equipped with MACL signaling.

The remaining stations have Kolkata

Semaphore MAUQ, MLQ & LQ

signaling. There are 5,649 interlocked

stations of which 13 are equipped

with electronic interlocking, 2,100

with relay interlocking, while 3,549

stations have mechanical lever

frames. Unfortunately, there is no

Centralised Traffic Control System

on Indian Railways. Train movements

are telephonically monitored and

controlled from 79 control centres

located 100–300 km apart. The

movement directions are given by

the controller to the station masters

over control telephone circuits, while

the train movement chart is mostly

manually plotted.

After the grand success of the

European Train Control System

(ETCS) in Europe and PTC in the

US, Indian Railways has also began

the implementation of the new

signaling technology—the first of

which was experimented successfully

in the Mathura pilot project.

The transmission backbone of

ETCS is GSM-R radio and OFC

Indian Railways’ heart has been its passengers’ trains irrespective of the profi ts and losses it made, but the engine Indian Railways’ heart has been its passengers’ trains irrespective of the profi ts and losses it made, but the engine has been rail freight for a long-long time. With more than 18,400 trains, covering 6,856 stations daily, sooner or later, has been rail freight for a long-long time. With more than 18,400 trains, covering 6,856 stations daily, sooner or later, the government will have to realise that it cannot carry the ‘heart’ too far and neglect the upgradation of the ‘engine’. the government will have to realise that it cannot carry the ‘heart’ too far and neglect the upgradation of the ‘engine’.

Time to bringTime to bringRAIL FREIGHT RAIL FREIGHT on on TRACKTRACK

Imag

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Imag

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Page 27: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 27

network. GSM-R is a future-oriented

digital radio communication system,

which not only provides mobile radio

communication between a driver and

control, but also has been designed for

additional application of shunting radio

communication, group communication,

addressing functions, diagnostics

& maintenance communication.

As per Chandrika Prasad, Former

Additional Member – Signalling,

Indian Railway Board and Former

Principal Consultant, DMRC, “The

introduction of radio-based ETCS/

PTC signaling will provide over 100%

increase in capacity, with enhanced

safety, better operation & maintenance,

efficiency, additional tele revenue and

real-time train-running information.

This new signaling thus provides a

single-window solution for improving

capacity, safety and efficiency on main

routes of Indian Railways.”

WAGON TECHNOLOGYOf the 7,200 dedicated container

wagons, majority were technologically

dated and unable to provide the kind

of transits and reliability that state-of-

the-art inter-modal services require.

To meet the need for state-of-the-art,

high-speed bogie low height container

flat-wagons, CONCOR has initiated

various procurement actions to replace

the outdated wagons. So far, more than

5,200 BLC wagons have been inducted

in service. Equipped with superior

characteristics such as automatic

twist locks, low beds through reduced

wheel diameter, slack-less draw bars,

the new BLC type wagons, with

increased length (new rakes have 45

BLCs per train) result in an increased

payload per train and are designed

to run at 100 km/h. To this, Ram

Chandra Acharya, Former Member,

Indian Railway, adds, “Special bottom

discharge wagons, special flat wagons,

automated car wagons and specially

designed double-decker car carriers

are now attracting business leaders like

Maruti and Tata.”

Further, design and developments

are being done towards green

wagons based on European freight

concepts. However, there is a need

for huge investments to apply these

advancements all over the country.

He elaborates, “Yes, most of the

US rail logistics—their loading

and unloading—have been fully

automatised. In India, ACC Cement’s

rail logistics, with their advanced

wagons, has automatised the whole

process. This has been initiated for

coal transportation as well.”

TRACK ENGINEERING AND MAINTENANCE EQUIPMENTTrack engineering and maintenance

equipment too have not been

mechanised (as is the case with the

EU rail system). This has posed major

threats to the security as manual

troubleshooting is difficult and cannot

offer cent per cent guarantee. Modern

sophisticated track machines have

been developed for track construction,

maintenance and monitoring. New

technology of alumino-thermic rail

welding, ultrasonic rail flaw detection,

ballastless track for metros, mainlines

and washable aprons have been

developed as a result track engineering

advancements, but these are yet to

be deployed on a commercial scale.

However, these tracks fulfill the ultra-

high speed train requirements.

The development, demonstration

and validation of an Automated Switch

Inspection Vehicle (ASIV)— consisting

of a hy-rail truck with specially

designed high-image-acquisition-rate

laser rail profile—measuring systems

together with new generation analysis

software that analyses key turnout rail

information for automated inspection

of rail portions of turnouts to include

switch points, stock rails, closure rails

and frogs. Nonetheless, Ultrasonic

Contact Rail Testing is to be

implemented to lift the testing barriers.

FREIGHT MANAGEMENT TECHNOLOGYFreight management is part of the

Indian Railways which, in terms of

technology, is almost 10 years behind

the other rail networks across the globe.

Even though the Railway Ministry, as

per the 12th Five Year Plan, is expected

to invest US$132 bn in the next five

years—almost triple the amount

invested in the 11th Plan—a majority

of investments will mainly be used

for the import of electric and diesel

locomotives over the next three years,

constructing new corridors and electric

& diesel locomotive and coach factories.

According to Sam Pitroda, Chairman,

National Innovation Council, “There

is huge potential for technological

improvement in Indian Railways.”

To improve the freight

management, Freight Operations

Information System (FOIS) was

implemented in Indian Railways as

an initiative to leverage the use of

information technology in the freight

segment, as an aid to decision making

and to ultimately improve the freight

services. The system comprises of two

modules—Rake Management System

and Terminal Management System.

After the successful trial in Northern

Railway, the ambitious project has

been introduced in various zones to

enhance the accuracy and reliability

of operating data to provide a real-

time view of the transactions while

serving as a decision-making tool in

the allotment of rakes to customers

and improved asset turnaround. Since

then, many changes and advancements

have been done in FOIS, but as per the

Board’s own assessment, “The system

was not comprehensively designed to

incorporate all the relevant business

rules relating to freight and posed

operational constraints. Consequently,

the perceived objectives of FOIS were

not fully achieved even after more than

seven years of its implementation.”

MODERN SURVEILLANCE SYSTEMSAs per the US assessment of track

to train ratio, since the ratio is

much lesser than the fixed standard

in general, Indian Railways needs

modern surveillance systems to

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28 • SMART LOGISTICS • SEPTEMBER 2012

increase the efficiency and safety

from the insufficient tracks it has.

With better surveillance systems via

ultrasonic radars, Indian Railways

should strengthen the physical and

logical access controls to monitor &

prevent unauthorised access, thereby

keeping the effective off-site storage

of back-up data to strengthen the

network security. Under the modern

surveillance systems, Indian Railways

has to focus on modernising its

IP-based CCTV system, access

control, goods screening, bomb

detection and disposal system that are

not available in 70% of the total track.

ONLY BIG PPP CAN ENSURE THAT DEVELOPMENT IS ON TRACK Given that the government has already

announced its investments in Indian

Railways, which is only 17% of the

total Indian Railways needs to make

a mark globally, only PPPs can ensure

further growth and may bring evenness

throughout the zones. Further, the gap

between its planning and execution is

huge and wasting 30% of the money is

also a major concern that needs to be

sorted out if it wants to stand apart for

some good reasons.

[email protected]

With inputs from Chandrika Prasad, Former

Additional Member – Signalling, Indian

Railway Board

The present R&D being carried out at RDSO

Directorate Projects/Areas

Motive Power 1. Residual life analysis of crankshaft of the locomotive engine

2. Development of fuel cell-powered locomotive

3. Development of direct drive traction motor

4. Development of hybrid battery powered shunting locomotive

Geo-Tech. Engg. 1. Assessment of strength and strengthening of railway formation

2. Construction of new railway formation for heavier axle load

3. Study on stability of cuttings in railway track

4. Application and design of geo-synthetics and reinforced earth structures in Railway formation

5. Design methodology for thickness of blanket based on type of soil, axel load, speed, GMT, track tolerances, maintenance level etc.

6. Prevention of rock fall in cuttings including its detection by suitable warning system and mitigation techniques for failure of cuttings

7. Effect of seismic forces on embankment and design of embankment from seismic considerations

Testing 1. Track simulator

2. Test preparedness for testing at 300 kmph

3. Contactless force/stress measurement

4. Measurement of rail-wheel contact force through other than measuring wheel

5. Capability to use Anthropromorphic Test Device (ATD) for secondary collision environment measurement

Traffic 1. Increasing throughput by reducing speed differential

2. Running of heavy-haul trains and required technology for upgradation/modification in the infrastructure

Engine Development

1. Reduction of emissions of 16, 12 and 6 cylinder ALCO engines as well as 4,000 HP GM EMD-710 G3B diesel engines of Indian Railways as per International standards

2. Upgradation of horse power and reduction in break-specific fuel consumption of 12 cylinder ALCO 251C engine

3. Upgradation of horse power and reduction in break-specific fuel consumption of 6 cylinder ALCO 251C engine

4. Reduction in lube to fuel oil ratio of 16 cylinder ALCO 251C engine to 0.5%

5. Development of electronic fuel injection system for GM EMD-710 G3B diesel engine

Psycho Technical 1. Computer Aided Psychological Testing

2. Human factors in railway accidents

Electrical 1. Control systems for propulsion control as well as train control— various standards and protocols used and their applications, distributed intelligence vs. centralised intelligence, etc.

2. Drive systems for high-speed drives (more than 3,000 rpm)—study of design and maintenance issues of traction motor, bearing, lubrication, etc.

3. Traction converters for high-power locomotive application study of various designs, circuit configurations & topologies, selection of power devices, power capacitors, inductors, etc., and their ratings

Power Supply & EMU

Development of pollution-free fuel cell for replacing 4.5 kW alternators, RRU and battery in slow moving train to improve illumination and passenger comfort.

Traction & Installation

1. Development of Unified Power Quality Controller (UPQC) for improving power factor and reducing harmonic distortion

2. Development of traction transformer condition monitoring system

3. Development of lightning arrestor condition monitoring system

4. Development of intelligent SCADA system for high-density traffic systems having RTUs with independent decision capabilities, integration of protection system, high-speed communication and enhanced human-machine interfaces.

5. Laser-based OHE recording-cum-test car. Development of OHE recording-cum-test car for measurement of OHE parameters and non-contact measurement of OHE geometry under dynamic condition

New-age rail technologies, continued

Courtesy: RDSO

Page 29: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 29

LOGISTICS is the management

of the flow of resources, between

the point of origin and destination

in order to meet the requirements

of customers or corporations.

It involves the integration of

information, transportation, inventory,

warehousing, material handling &

packaging, and often, security. Today,

the complexity of production logistics

can be modelled, analysed, visualised

and optimised by plant simulation

software. Logistics can involve a wide

variety of consumer goods such as

food, IT materials, aerospace resources

and defence equipment. Some of the

key technologies in shipping logistics

include:

FREIGHTGlobal trade has experienced high

growth this decade; during which,

forwarders have been under continued

cost pressure. It is essential that

today’s freight forwarder/Non Vessel

Operating Common Carrier System

(NVOCC) provide comprehensive

services to their customers, while

simultaneously maintaining an efficient

operating environment that is readily

supported by cost-effective Information

Technology (IT). E-Freight solution

has been designed and developed with

accessibility, integration, workflow,

performance and scalability in mind.

It embraces all the key elements found

in a state-of-the-art freight forwarding

system and can be deployed globally,

regionally or locally.

E-Freight comprises of a sea freight

system (ocean freight module) module

and a land freight system module to

provide integrated logistics solutions.

This is ideal for the integrated supply

chain management arena. It has an

integrated cargo consolidation system

which provides a cargo consolidation

solution for all modes of transport

and is considered a complete global

logistics platform. In fact, it provides

complete cargo solutions for the

freight forwarder/NVOCC with a

complete freight fulfillment software

package. It enables the provision of

freight forwarding services through

the freight forwarding software for

export freight forwarding system

(export shipping system) which covers

the global export process. Some of the

options which give a complete freight

forwarding solution in an easy-to-use

freight forwarding system include:

• Supply Chain Inventory

Management/ Supply Chain

Logistics Management

• Integration of freight forwarding

and shipping solutions

• Logistics Planning Software/

Logistics Forecasting Software

• TMS: Transportation Management

Software/ Transport Management

Solutions/ Transport Management

Systems/ Transport Management

Services

• WMS: Warehouse Management

Systems

• Web-based Freight Forwarding

Solutions/ Web-based International

Logistic Portal

• International Freight Consolidation

System/ International Freight

Forwarding/ International Freight

Forwarding Software/ International

Freight Forwarding System

• Logistics Management System/

Logistics Solutions/ Logistics

Systems

• Supply Chain Management/ Supply

Chain Management Solution/

Supply Chain Management

System/ Supply Chain Solutions

E-Freight provides the complete

freight management system through

its freight management software. This

is enabled by web technologies that

build a global logistics platform for

global freight forwarding. This system

provides both export and import

freight forwarding system. The import

shipping system has all the required

functionality for the importer.

E-SHIPPING Shipping lines and agents have been

experiencing increased economic

pressure and growing customer

demand. As a result, maintaining cost-

effective IT has become increasingly

critical. E-Ship provides comprehensive

Logistics is all about movement, i.e., about moving goods from one location to another. To ensure smooth movement of goods from the manufacturer/supplier to the end customer, there is need for logistics technologies, such as E-Freight, E-Shipping and E-Intermodal, among others which are easy to use and enhance the logistics experience.

Enhancing theEnhancing theLOGISTICS EXPERIENCELOGISTICS EXPERIENCE

NEW-AGE SHIPPING TECHNOLOGIESNEW-AGE SHIPPING TECHNOLOGIES SPECIAL FOCUS SPECIAL FOCUS

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30 • SMART LOGISTICS • SEPTEMBER 2012

functionality to meet the unique needs

of various shipping lines including

container, Ro-Ro, break-bulk, project

moves and multiple purposes. E-Ship

supports’ varying service needs such

as port-to-port transportation and

inland transportation, among others.

E-Shipping is a complete enterprise

system that has incorporated end-

to-end functionality for the shipping

line principal and agents. The primary

aspect provides to the principal the

ability to establish/manage controls

of the operational processes as well

as to have a fully integrated and

global information base for effective

management of assets and operations.

E-Shipping is an international

shipping software (shipping solution/

shipping software) or international

shipping system which comprises

of modules for international liner

shipping carriers (shipping lines

software systems) and international

liner shipping agency system (shipping

agency software). This provides the

needed functionality for a complete

liner agency solution, liner shipping

software or liner shipping system.

It covers the ocean carriers software

(shipping line system) requirements

with a full ocean carriers system,

including profit optimisation software.

The system also provides a portal

for shipping and transportation

information. The common elements to

Ro-Ro, break-bulk and containerised

are revenue management software,

shipment process management

systems, yield management software,

voyage planning software and vessel

management software.

E-SHIPPER The E-Shipper solution is designed for

global shippers to allow for more cost-

effective, greener and smarter decision

making during the transportation

planning process. The solution has

been designed and developed with

accessibility, integration, workflow,

performance and scalability in mind. It

embraces all of the key elements found

in a state-of-the-art shipper system and

can be deployed globally, regionally or

locally. The E-Shipper solution covers

all types of cargo including Ro-Ro,

break-bulk, containerised, etc. The key

features of the E-shipper solution are:

• It can be implemented as a fully

integrated solution or as separate

modules

• It can manage all types of

international freight services and

transport modes including air, sea

and land transport

• It is an intuitive user interface that

is completely web based and can

be accessed world-wide via a web

browser on a standard PC

• It offers easy customisation to fit

customer-specific requirements on

a local or global basis

• It has workflow capability enabled to

configure to each customer’s business

rules and organisational roles

• Ii can be implemented on an

Oracle platform that provides high

performance, scalability and security.

E-INTERMODALThe E-Intermodal solution has

been designed and developed with

accessibility, integration, workflow,

performance and scalability in mind.

It embraces all of the key elements

found in a state-of-the-art intermodal

system and can be deployed globally,

regionally or locally. The key features

of the E-Intermodal solution are:

• It has a feature-rich solution for

intermodal transport for all FCL

container moves

• It can manage all types of intermodal

transportation modes of truck, rail,

barge and inland feeder

• It is an intuitive user interface that

is completely web based

• It can easily customised to fit each

customer’s specific requirements on

a local or global basis

• It has workflow capability enabled

to configure to each customer’s

business rules and organisational

roles

• It can be mplemented on an

Oracle platform that provides

high performance, scalability and

security.

STOREThis was developed with usability,

functionality, performance and

scalability as primary concerns. It

encompasses all of the key functionality

required by third-party logistics

providers, which includes the following

functions available via a secure website.

It handles and processes all the

requirements of third-party logistics

provider. It provides logistics providers

and retail stores with a highly effective

tool to conduct their business. All

options in the system are driven by a

master menu and the system is fully

configurable with user access closely

monitored via security encoded access.

The world’s No. 1 database from

Oracle is at the heart of the solution.

The integration within the application

and user-friendly interfaces will help

speed up the transition time for a

company to implement and train

their global, regional and area office

operations. The e-store solution can

be populated from EDI, web entries or

directly by the companies’ clerks.

CHANGING TIMES INDEED! In the logistics industry, change is the

only constant. The rapidly changing

global & industry dynamics and the

evolution of the logistics industry have

considerably transformed the way the

supply chain functions. Fortunately,

there have also been advancements

in the logistics technologies, which

has helped companies match pace

with the oncoming changes and the

emerging challenges that come along

with it. This has not only helped

shippers to meet the varying customer

requirements, but has also played a

major role in enhancing the logistics

experience for shippers.

Dr Purnendu Mishra, Principal Officer-

cum-Joint DG – Tech, Mercantile Marine

Department, Chennai

New-age shipping technologies, continued

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SEPTEMBER 2012 • SMART LOGISTICS • 31

EXECUTION-DRIVEN PLANNING SOLUTIONS EXECUTION-DRIVEN PLANNING SOLUTIONS SPECIAL FOCUS SPECIAL FOCUS

SUPRITA ANUPAM

THERE were reasons when Dwight

D Eisenhower, the 34th President of

the US, had said, “Plans are useless;

planning is everything.” Plans are more

static in nature. Their accountability is

low when compared to the planning,

particularly if we are talking in the

context of logistics. Moreover, the

recent uncertainty has raised the

risk levels, making it impossible for

companies to move on a predicted path

along with the data collected in the

past. According to N Viswanadham,

INAE Distinguished Professor, IISc

and Former Deputy Executive Director

of The Logistics Institute-Asia

Pacific, “Irrespective of whether it is

inbound/outbound/reverse logistics or

warehousing, a connection has to be

made manually. For instance, if goods

are planned to be picked at 9 am, it is

ultimately up to the truck driver who

will execute it.” “However, there could

be delays in execution caused due to

factors like accidents, personal reasons

or the truck’s condition,” Viswanadham

adds. Most technologies facilitate the

process of execution. But here, we

will analyse the technologies that are

responsible for reducing the gap further

between planning and execution.

DATA-MINING TECHNIQUESData mining is defined as the process

of discovering patterns in data,

which must be automatic or semi-

automatic. The patterns discovered

must be meaningful and must lead to

some advantage, usually an economic

advantage. The real-time data sets in

supply chain often contain examples,

where measurements were not taken

The dynamics of the actual business environment is not the same as the planning. With various sensing technologies and telecom techniques, we now have unprecedented real-time control over the entire supply chain system. Unfortunately, the data collected through the monitoring is kept aside and rarely utilised to connect the gap between execution and planning.

Bridging the gap betweenPLANNING and EXECUTION

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32 • SMART LOGISTICS • SEPTEMBER 2012

correctly or there were misclassifications

owing to the errors or noise in data.

Here, there is a need for technology to

be sharper in order to provide a clearer

pattern to the provider. Explaining the

importance of data-mining techniques,

Viswanadham avers, “Once you collect

all the data, they can show you the

way—even in terms of which truck

driver is better to choose, or in terms

of further planning and so on.”

MACHINE LEARNING For machines, learning is all about

performance (unlike the human

learning which is more concerned with

knowledge). But then, learning is a

rather ‘slippery’ concept in logistics.

Here, we define learning, in operational

and performance-oriented terms. But

to decide whether one has actually

learned, there is a need to understand

whether one intended to or whether

there was any purpose involved. This

makes the concept moot when applied

to machines because it is still unclear

if artifacts can behave purposefully.

Thus, learning for machines and their

performance is quite different from

that of humans, as their performance

mainly lies in ‘must dos’, ‘nice-to-have

(can be used later)’ and ‘not dos’.

REMOTE SENSING TECHNIQUESIt is evident that machine learning

is very closely related to data mining

techniques, which are related to remote

sensing techniques in logistics. This

is the root of the whole data analysis,

which, if correct, can lay the right

foundation for database, pattern and

algorithm. The better the sensing

techniques, the lesser will be the gap

between planning and execution. Fibre

network almost throughout the globe

has diminished the significant amount

of time taken to transfer information

from the terminal to the centre, thus

giving decisive time to the centre in

advance. Some of the remote sensing

techniques that have played a major role

in strategic planning include RFID,

3D/2D barcode scanning, optical fibre

transmission and digital imaging speech

recognition, among others.

STRATEGIC PLANNINGStrategic planning starts with the

classic approach of presumption,

because this is the part where a goal is

predefined based on the presumptions

and a predictable path. But, at the same

time, the dynamism of remote sensing

technologies, data mining techniques

and machine learning merge the gap

between planning & its execution.

More variables within the algos lead

to the real-time data to provide more

accurate information for further

strategies. This is where technology

brings in a sense of transparency laying

bare the gap and how it can be merged

otherwise—a concept LSPs are not able

to comprehend. The strategic planning

based on these, keep changing, until

the final delivery. FedEx and a few

other companies have automated their

supply chain based on this mechanism.

Strategy planning management

software can be developed based on

the input, output and process. Strategic

planning sorts out problems such as:

• Unclear underlying strategy

• Too optimistic plans

• Accountability

• Inertia in decision making.

A dynamic strategy planning

establishes appropriate levels of

control and minimises risk, while

optimising company-owned inventory.

Considering that all five fingers are not

the same, i.e., manual skills vary from

person to person, the hierarchy builds

a solid service model followed by clear

rationalised vision. Their actionable

strategies define an execution plan in

the same layer followed by the process

of accountability. Further, each layer is

connected via a feedback control based

on the real-time remote information,

which ensures that the gap is minimised.

KEEP DISTANCE BETWEEN STRATEGIC AND FUNCTIONAL PLANNINGGenerally, LSPs define their functional

planning like improving sales by 25%,

profit margin by 4% and so on, within

their strategy planning. But here

is where they make major mistakes.

Why is it so? A dynamic strategy

planning is more about technology and

about improvement in supply chain

efficiency, while financial plan is a

plan to manage limited resources with

priority and ensure survival. Though

financial planning and monitoring is

important for the survival of strategy

planning, the 10% differences between

them need to be understood, i.e., never

enlist financial goals within strategic

plans. The basic difference is rooted in

placing the emphasis on growth versus

the survival or maintenance—both are

critical and need to be managed.

LIMITATIONSThere are limitations which leave

certain gaps between planning

and execution like engagement in

collaborative strategies does not fall as

per the planning, cost varies directly in

accordance with the market, sudden

changes in consumer taste.

LEADERSHIP OF STRATEGIC PLANNING IS A PROCESSDynamic strategy planning can be

defined as a process that has a number

of projects accompanied with failures

as well. To overcome the manual

mistakes and irregularities, which must

have a place in strategic planning,

Viswanadham suggests, “There are

companies like Penske Logistics in

the US, which, with their rich state-

of-the-art facility, have hundreds of

trucks and other logistics solutions to

bridge the gap, thereby ensuring that

the goods reach on time. In India, they

have Genpact resources for the same.

Although 4PLs have emerged as big

players, in India there is a need to build

on infrastructure and improve logistics

efficiency with soft skills in order to

bridge the gap. After all, infrastructure

alone contributes 25% to logistics

efficiency.”

[email protected]

Execution-driven planning solutions, continued

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SEPTEMBER 2012 • SMART LOGISTICS • 33

MULTI-ENTERPRISE SYSTEMS MULTI-ENTERPRISE SYSTEMS SPECIAL FOCUS SPECIAL FOCUS

PRATEEK SUR

SYSTEMS that provide a

comprehensive and timely view of

processes, solutions, and metrics across

the entire value chain are adequately

termed as multi-enterprise visibility

systems. According to Biju Nair, IT

Director, DHL Supply Chain India,

“The supply chain service industry is

not directly involved in the production

from a manufacturing perspective.

In the service industry, it requires

more of monitoring productivity

with a view to improving the

turnaround of customer inventory.

Thus, new technologies like multi-

visibility systems are vital.” Enterprise

visibility adds a new, progressive and

proactive discipline to any company’s

strategic asset management, sales and

marketing decisions. It comes from

a cohesive understanding

of critical business

intelligence across four

domains—geographic

visibility (facilities,

infrastructure), asset

visibility (things that

move), organisation

visibility (people) and

operation visibility

( in te rac t ion o f

people, things, and

infrastructure).

VENDOR MANAGED INVENTORY Business nowadays is all about

visibility and mutual risk. These two

concerns are at the heart of Vendor

Managed Inventory (VMI) networks,

and related supply chain efficiency

initiatives such as lean & outsourcing.

These multi-enterprise supply chain

strategies have been widely adopted in

industries such as automotive.

There are restrictions on how much

inventory accountability a logistics

player can force onto their partners. At

some point, they become unprofitable

and fall short. When companies adopt

an inefficient VMI strategy, all they do

is press on liability and risk down the

supply chain to suppliers. Talking about

the importance of such IT-related VMI

technologies, Nair says, “Information

delivered or made available ‘on time

every time’ is the key to success for any

business. Various verticals/components

of the entire supply chain, starting from

the origin of demand for a product till

it is delivered to the end customer, have

various stages of supply chain which, in

effect, connect the manufacturer to the

end customer. The freight movement,

warehousing, transportation, invoicing,

etc., are some of the major components.”

“At each stage, various technologies

along with software and hardware are

used to support the supply chain. For

example, systems which track and

enable freight movement & visibility,

infrastructure set ups, transportation

management, demand forecasting,

procurement, finance and business

development systems are some

of the areas where a high level

IT can help. The goal would be

to optimise resources by, strategically

providing cutting-edge solutions to

the finance management, sales,

etc., which would enhance the

efficiency of the entire supply

chain vertical,” Nair adds.

Many companies

view multi-enterprise

strategies such as VMI

as a way to move to a

demand-driven supply

chain, but they do

not always implement

the infrastructure

or processes

The necessity for, and the intricacy with, accomplishing global visibility manifested itself when data started being circulated across the supply chain with the onset of outsourcing. Outsourcing manufacturing operations augments the complexity of the venture and moves the management of critical operations outside boundaries, replacing the conventional single supply chain with a complex supply network encompassing a multitude of cohorts. Achieving all-inclusive visibility is no painless feat when the company is faced with various geographically dispersed sites and partners, each using disparate data systems. In order to streamline all these, an effi cient multi-enterprise visibility system is imperative.

Enabling Visibility of aResponsive supply Chain

SEPTEMBERSEPTEMBER 2012 2012 • • SMART LOGISTICS SMART LOGISTICS • • 3333

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34 • SMART LOGISTICS • SEPTEMBER 2012

necessary to manage inventory in a

multi-tiered, multi-company system.

On the contrary, they continue to use

an old inventory management system

that only offers visibility to internal

inventory echelons. The result of

these one-sided VMI efforts is that

companies get a one-time inventory

write-off, but after that, inventory

savings and efficiencies raise ground.

Wise suppliers would begin to rewire

their business not around their clientele

forecasts, but around their real demand.

Such forecasts continue to be wrong.

Stating on the utility of such

IT-related management systems in

logistics, an industry expert says, “Many

companies are nowadays venturing

into equipment pooling and have a

unique business model that involves

pallets, crates and containers moving

from the company to their customers,

from customers to other customers and

from customers back to the company.”

“As this equipment moves through

the supply chain of the various entities

involved, they remain the sole property

of the company and hence, tracking

all these movements to safeguard the

company’s assets is a core business

function and a big success factor of

this business,” the expert continues.

“IT plays a pivotal role in

tracking these movements through a

combination of ERP solutions, net-

based portals and CRM applications

that are closely integrated to deliver

end-to-end supply chain solutions.

VMI empowers customers to keep

track of the equipment that they use

and pay for, helping them optimise

usage while enabling total control

over cost and equipment adding to

‘customer delight’,” the expert adds.

MULTI-ENTERPRISE SYSTEMSMulti-enterprise global supply chain

execution systems have recently

entered the market and this sharing

system solution takes VMI to a new

level by providing a 3600 view of supply

chain events. These systems give data

not about promises and forecasts, but

about what is genuinely going on in the

supply chain. Companies nowadays are

quick to separate supply chain execution

systems from planning systems such

as ERP, which are not well-suited to

manage global, multi-enterprise supply

chain implementation because their

algorithms are preparation-based.

In the light of this, Nair opines,

“Multi-enterprise applications set

up are an absolute must for smooth

information flow across internal and

external systems. The systems of

customers, suppliers, carriers and 3PLs

need to be integrated with the ERP

system or any relevant or respective

SCM module to bring in strategic

information sharing, on time and

secure business data transfer, etc. The

corporate companies that believe in

consistently making their customers

more profitable should have a long-

term business partnerships secured

through strategic data sharing and

through integration as well.”

In the world of logistics, every

event happens with zero lead time. For

example, when a consumer walks into

a store and the product s/he wants is

not there, s/he goes elsewhere to buy

it. In the world of ‘on-the-spot-trade’,

companies have to get past the notion

of lead time as it is an outdated metric.

People are no longer willing to wait for

what they want. Retailers need to have

the product in the store when shoppers

come to buy it. Companies must be

able to squeeze lead times. They have

to be trained to stage material in

expectancy of authentic demand. Once

a product is in demand, customers are

ready to buy it, companies do not need

to forecast any further. Businesses

cannot plan their way out of a crisis,

they have to execute themselves out of

it and to do so, they need technology

tools that convey real-time, many-to-

many visibility and control, and, at the

same time, are easy to configure.

Elaborating on the same, an industry

expert expounds, “Companies have

their unique business model wherein

equipment that moves through multi-

organisation supply chains, require

close integration and visibility with the

customer systems. Many companies

have employed a two-pronged strategy

to achieve this goal. Companies, like

CHEP, have firstly implemented a

customer facing WEB portal called

‘Portfolio+’ that tightly integrates

their customer operation with the

company’s core ERP. The second step

is in building direct enterprise-level

integration between the customer and

the core systems through the usage of

technology such as EDI.”

“It is the company’s technological

capabilities that logistics players offer as

‘a value-added service’ to customers in

doing business and being their ‘Partner

of Choice’. While companies nowadays

are highly integrated at the customer

level, many are working towards

achieving supplier level integration as

part of their global IT strategy,” he adds.

WRAPPING UPVisibility-empowered supply chain

management can be more flexible

in performing the necessary ‘agility

actions’ such as shipment re-routing

due to demand changes or infrastructure

disruptions, expedited shipping of

late shipment, cross-docking and

distribution centre bypass strategies

and VMI programmes, among others.

Thus, such kinds of systems are required

to ensure the better functioning and

smooth working of supply chains.

[email protected]

Multi-enterprise systems, continued

According to an expert, having a single instance of SAP

ERP worldwide allows the implementation of global best

practices in the local Indian supply chain. All the functions

in India are on SAP since inception and this plays a major

role in operations everyday as companies drive asset control,

cost visibility and good corporate governance.

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SEPTEMBER 2012 • SMART LOGISTICS • 35

REMOTE MONITORING TECHNOLOGIES REMOTE MONITORING TECHNOLOGIES SPECIAL FOCUS SPECIAL FOCUS

PRATEEK SUR

THE internet, world wide web, online

commerce, etc., form the basic elements

of emerging and new-age Remote

Monitoring Technologies (RMT)

that are bound to change the way a

company does business. According

to Devdip Purkayastha, President,

CHEP India, “Many companies have

done pioneering work in the field

of ‘Material Intelligence’ through

the use of tracking technologies like

RFID, barcodes and tags. Automated

warehouses, robotic operations and

enhanced usage of hand-held device

will be the norm for futuristic supply

chains as they gain critical mass. While

there will always be a debate on the cost

versus benefits of such technologies,

with the rise in cost of human capital,

many big players in the supply chain

space will adopt automation through

technology.” Therefore, it is clearly

evident that if companies want to stay

ahead and remain profitable, they must

harness the power of technology to

collaborate with their business partners.

Some of the technologies that could

help companies achieve this include:

RADIO FREQUENCY IDENTIFICATION (RFID)RFID is a type of automatic

identification system, whose purpose

is to enable transmission of data by a

portable device, called a tag, which is

read by an RFID reader and processed

according to the needs of a particular

application. The data transmitted by

the tag may provide identification or

location information, or specifics about

the product tagged (price, colour, date

of purchase, etc.).

According to an industry expert,

“The impact of RFID from a supply

chain perspective includes supply

chain inversion, pressure on inventory,

increased regulation and legislation,

cost control, connectivity and visibility.”

The pressure on inventory is related to

the use of RFID to reduce lead times

of information through faster and

more reliable registration & increased

visibility in the supply chain. RFID has

been used for traceability and visibility

of products. “Retailers are interested

in turning supply chain management

(SCM) into an RFID-dependent

business as long as it is cost efficient,”

the expert adds. In terms of cost cutting,

RFID is used to reduce labour costs.

Other practical applications of RFID

include authentication and shrink

prevention. In terms of authentication,

the use of electronic sealing through

RF tags can warrant the authenticity

and origin of a product.

SOFWARE AGENTSArtificial Intelligence appeared into the

paradigm of software agents with the

purpose area of multi-agent systems.

A software agent is a software system,

which has attributes of intelligence,

autonomy, perception or acting on

behalf of a user. In the light of software-

tracking agents, another industry

expert asserts, “Knowledge is power.

Traceability and trackability of goods in

real-time is vital when products of high

value are out there being transported.

The goods are exposed to all the

elements, be it nature, risk of theft

etc. Real-time tracking immediately

informs you when the situation has

gone wrong so that you can take action

Industry trends like globalisation, outsourcing, customisation, time to market and pricing pressure have compelled enterprises to adopt effi cient and effective supply chain management technologies, practices and policies. Customers’ expectations are also increasing and companies are prone to more and more uncertain environments in the face of increasing competition. To survive, companies have realised that their conventional supply chain integration needs to be expanded beyond their boundaries so as to integrate all stakeholders. The adoption of new-age remote monitoring technology tools is vital for such efforts. In the light of the upcoming changes in the supply chain domain, here’s taking a look at some of the smart tracking solutions.

Smart Tracking Smart Tracking Solutions for SCMSolutions for SCM

REMOTE MONITORING TECHNOLOGIES REMOTE MONITORING TECHNOLOGIES SPECIAL FOCUS SPECIAL FOCUS

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36 • SMART LOGISTICS • SEPTEMBER 2012

right away. In case of a product recall,

the company needs to be able to swiftly

trace the product and investigate where

the contamination/pilferage has taken

place. This is where if you have a

remote sensoring system in place, you

can quickly pinpoint the source and

work on resolution of the issue.”

DECISION SUPPORT SYSTEMS (DSS) DSS, a precise class of computerised

information systems, ropes in business

and organisational decision-making

actions. An accurately designed DSS

is an interactive software-based system

anticipated to help decision makers

amass useful information—from raw

data, documents, personal knowledge,

and business models to identify &

solve problems and make decisions.

According to an industry expert, “DSS

tracks, manages, optimises inventory

and operations. DSS, along with

WMS, is web-based so that multiple

users can access it from different

locations. A few seconds can be the

difference between an order intake and

order lost. It is here that DSS can play

a crucial role.” In SCM, there is always

a likelihood of having disagreements

among parties for a certain decision-

making process. This phenomenon gets

worse when the business environment

becomes more competitive and

turbulent. Accordingly, DSS have been

integrated in various areas like logistics,

inventory management, facility design,

sales analysis, etc.

WEB SERVICESWeb services are application interfaces

accessible via internet standards that

use XML and either employ Simple

Object Access Protocol (SOAP),

Web Services Description Language

(WSDL) or Universal Description

Discovery & Integration (UDDI).

These standards, and the next

generation standards that are being

built on them, are defining the way

forward-thinking enterprises manage

lightweight integration tasks. In the

light of the web services invented,

Purkayastha avers, “CHEP India

has built a low-cost web application,

aptly named ‘eMitra’, meaning friend,

to capture operation data at our

manufacturing locations and service

centres. We have added ‘quality’ as a

second dimension to the quantitative

data that enables high-level decisions

in managing raw material, resources,

finished goods and capital. Also,

Lumber, a critical factor in our pallet

manufacturing operation, has long

procurement cycle times as it is an

imported commodity and is also a

high-cost component in the final

finished pallet. eMitra has helped

reduce our lumber holding, thereby

saving on valuable capital investment

and ensuring better space utilisation.”

“Similarly, our automotive business,

based on crate pooling and technology,

has enabled control availability of the

equipment, helping us to maintain high

customer order fill rates and equipment

turnaround adding substantially to the

bottom line,” Purkayastha adds.

The UDDI protocol is one of the

major building blocks required for

successful web services. UDDI creates

a standard interoperable platform that

enables companies and applications

to quickly, easily & dynamically find

and use web services over the internet.

UDDI also allows operational registries

to be maintained for different purposes

in different contexts. UDDI is a cross-

industry effort driven by major platform

and software providers, as well as

marketplace operators and e-business

leaders.

ELECTRONIC COMMERCEElectronic commerce refers to the wide

range of tools and techniques utilised

to conduct business in a paperless

environment. It includes electronic

data interchange, e-mail, electronic

fund transfers, electronic publishing,

image processing, electronic bulletin

boards, shared databases and

magnetic/optical data capture. It

helps companies automate the process

of moving documents electronically

between suppliers and customers. This

system provides access to customers

all over the world. Some e-commerce

applications include E-tailing,

E-Procurement and E-Auctions.

ELECTRONIC SUPPLY CHAINSElectronic Supply Chains (ESC)

refer to those supply chains that are

electronically facilitated between

or among participating firms. Also

called virtual supply chains, these are

realised in two forms—EDI-based or

internet-based. The ESC links trading

partners to allow them to buy, sell

and move products, services & cash.

Due to the low implementation costs,

the introduction of the internet has

brought about opportunities that allow

firms to transact with other enterprises

electronically. Supply chain initiatives

like Collaborative Planning, Forecasting

and Replenishment (CPFR), Vendor

Managed Inventory (VMI), Efficient

Customer Response (ECR) and Quick

Response (QR) have been increasingly

facilitated in the new e-supply chain

paradigm. Information sharing among

suppliers, manufacturers, distributors

and retailers are greatly improved.

RMT: THE WAY FORWARD?Companies are attempting to find

ways to improve their flexibility

and responsiveness and, in turn,

competitiveness, by changing

their operations strategy, methods

and technologies that include the

implementation of RMT in their SCM

paradigm. Hence, RMT can enhance

the agility of SCM. While the RMT

aspects are not equally spread presently,

the use of RMT in the realm of SCM

may soon become full fledged.

[email protected]

Intelligent software agents • Buyer agents or shopping bots • Monitoring & surveillance agents• Data mining agents

Remote monitoring technologies, continued

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SEPTEMBER 2012 • SMART LOGISTICS • 37

GREEN TECHNOLOGIES GREEN TECHNOLOGIES SPECIAL FOCUS SPECIAL FOCUS

NISHI RATH

THE green nature of a

supply chain is characterised

by its ability to be eco-

friendly in its consumption

of resources, utilise energy-

efficient processes and

produce output that can

be reclaimed, recycled

& reused. The role of

technology in the supply

chain can be viewed from two

different perspectives:

• Hardware: A supply chain can

be made greener by right-sizing IT

infrastructure, re-architecting data

processing & storage operations,

leveraging shared infrastructure and

adopting a life cycle approach and

retiring IT waste. The immediate

impact could be the adoption of

‘cloud’ to encourage multi-tenancy

and RFID systems to reduce

computer hardware.

• Software: By streamlining business

processes and providing transparency,

software can be a strong enabler of a

green supply chain.

Another area of focus is waste

management. Civic bodies are

challenged by the dearth of financial,

technological and human resources

for managing waste generated at the

customer end of the supply chain. Here,

information technology (IT) can be

used to track waste data from product

conception to shipment through waste

disposal. Commenting on the use of

technology in supply chain, Yogesh

Dhingra, Finance Director & COO,

Blue Dart, explains, “In supply chain,

the use of technology will continue to

be a critical success factor. Moreover,

the service provider will have a greater

chance at staying relevant, doing

good business and being profitable in

the current scenario of consolidation

& cutthroat competition. Blue Dart

was the early adopter of such a

breakthrough technology and the

company’s technology solutions have

played a key role in its premium

positioning across the globe as well

as in bringing global standards to

Indian customers.” IT has enabled the

incorporation of efficient processes,

which not only helps in increasing the

bottom line of any organisation; but

also in providing an environmentally

conscious direction, giving logistics

service providers an option to lower

carbon dioxide CO2 emissions and

thereby reduce the carbon footprint.

WIDELY ADOPTED TECHNOLOGIES Technology is deployed in each &

every aspect of a supply chain. And,

like any other business in

today’s world, the supply

chain is highly dependent

on IT. Also, information-

focussed capabilities

have increasingly been

viewed as key performance

factors. Citing the example

of Blue Dart processes,

Dhingra informs, “Speed and

reliability are the key value

drivers at Blue Dart. To ensure

these, the company uses state-of-

the-art technology at all stages of the

distribution chain from collection to

delivery. Time-consuming paperwork

is minimised and consignments can be

tracked with the delivery status.”

Speaking about the most sought-

after software, he adds that the

company has developed solutions that

ensure real-time information on the

consignments. Some of them are:

• SMARTTM: An indigenously

developed technology system that

allows computerised management

of booking and tracking of

consignments.

• COSMAT – IITM: It helps track

shipment from pick up to delivery.

It is the most sophisticated tracking

system in the express industry and

can monitor the precise location of

the shipment at every step.

• ShipDartTM: A software that

interfaces with Blue Dart’s system

and enables users to literally

‘orchestrate’ their shipping moves.

• ImageDartTM: ImageDart is a

software that enables users of Blue

The right application of technology can work wonders in achieving a green supply chain. This, in addition, can positively affect a company’s bottom line. Technology enables more effective planning, execution, coordination and optimum usage of available resources. Here’s taking a look at some of the green tech trends that are doing the rounds in the supply chain.

Wading its way through the supply chain

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38 • SMART LOGISTICS • SEPTEMBER 2012

Dart’s Apex (Air Package Express)

and Surfaceline services download

Proof of Delivery (POD) and

Delivery Challans (DC) online,

from the Blue Dart website.

RFID Radio Frequency Identification

(RFID) supports a green supply chain

by helping increase efficiencies, limit

wastes and reduce carbon footprint.

The technology can also track reusable

containers & other expensive assets,

help accurately track vehicle miles and

has the potential to improve stock

levels & reduce the need for expedited

freight. With this real-time visibility,

companies can access exact information

regarding where a particular returnable

transit items (RTI) has traveled,

who used it last and when it should

be returned. This not only reduces

the cost of purchasing disposable

packaging or replacing lost assets,

it can also improve the company’s

environmental standing by reducing

operational wastes in the supply chain.

RFID technology helps companies

reduce the number of logistics assets

needed to operate the supply chain;

reusing those assets as frequently as

possible and recycling programmes.

By using RFID to track returnable

transit items, companies can increase

asset utilisation and reduce theft, loss

& reliance on redundant supplies.

Additionally, it puts less strain on the

environment by reducing the need

for manufacturing, maintaining and

storing additional assets.

GREEN GPSThis new software reduces energy

consumption in transportation systems.

Green GPS, developed by computer

scientists at the University of Illinois

at Urbana-Champaign, works like

general GPS navigation, except that in

addition to calculating the shortest and

fastest routes, it also projects the most

fuel-efficient route. The technology

runs on cell phones, which links to a

car’s computer using an inexpensive,

off-the-shelf wireless adapter that

works in all cars manufactured since

1996. The car’s onboard diagnostics

system uploads information about

engine performance and fuel efficiency

to the phone, which uses the data to

compute the greenest route.

SPEECH RECOGNITIONThe voice technology for supply chain

operations—especially for hands-free

data entry—is being widely adopted

these days. It helps enhance productivity

by reducing the need for users to look

at the computer display. Following the

larger IT trends of open systems and

interoperability, speech recognition

capability can now be easily embedded

into numerous software packages,

including warehouse management,

picking, inventory, inspection, quality

control & other applications.

ROUTE OPTIMISATION SOFTWARE Optimising route management can

save costs along the entire internal

supply chain of companies that deliver

goods and services to their customers’

locations. Route optimisation

technologies have matured with a

host of software, servers and handheld

field computers or phones available

to coordinate operations. There are

a plethora of devices available to

accommodate route optimisation—

from handheld devices to tablet

PCs—all with touchscreens to capture

signatures. Voice/speech recognition

can also be helpful in some applications.

By cutting on the route, not only does

a company cut down on the cost, but

also on carbon footprints.

RIGHT-SIZING IT INFRASTRUCTURETechnological innovations in energy-

efficient computing and data storage

systems as well as devices by hardware

manufacturers can help to create a

green supply chain. Right-sizing the

IT infrastructure can enable greater

effectiveness with less consumption

of resources. For example, multiple

application and database servers can

be squeezed into a fewer number

of systems, creating a virtual

multi-server scenario while consuming

less resources.

SUPPLY CHAIN: HIGH ON TECHNOLOGY A lean & green supply chain

management combines the efficiency

that lean technologies deliver with

the environmental and cost benefits

of sustainability. The lean sustainable

supply chain illuminates the business

benefits of combining lean & green,

and offers start-to-finish guidance for

redesigning company infrastructure

& technologies to achieve these

benefits. Green initiatives, if properly

managed, can enable organisations to

be responsible corporate citizens and

also deliver higher profitability and

competitive advantage. Elaborating

further, Chheda adds, “Day by

day, there is continual awareness

& consciousness regarding green

initiatives and the use of eco-friendly

methods of doing business. In fact,

carbon credits will be one big thing

to watch out for in the coming years.

If companies are committed to eco-

friendly initiatives, their vendors might

as well have eco-friendly measures.”

By aligning green initiatives with the

strategic objectives of the company and

with the help of the right technology

solutions, companies can reduce waste

and take an innovative approach to

make their supply chain greener.

[email protected]

(With inputs from Cognizant)

Factors Driving Green Supply Chain Management • Rising energy costs• Global concerns about

greenhouse gases• Climate change• Regulations like RoHS, EPA

and others• Technology innovations• Increased public awareness

of environmental issues

Green technologies, continued

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SEPTEMBER 2012 • SMART LOGISTICS • 39

RFID BENEFITS RFID BENEFITS SPECIAL FOCUS SPECIAL FOCUS

OUTSIDE the supply chain, RFID

systems are created to improve an

organisation’s own processes—not

those of a business partner or

an upstream or downstream

distributer. Businesses can

match RFID technology

and its application to meet

specific requirements.

Depending upon the

project goals, common

objectives include saving

time, preventing errors,

ensuring process integrity,

or performing other

specific functions beneficial

to the organisation. Instead

of asking, “What do we need

to do?” to comply with RFID

requirements, users can ask,

“What can RFID do for us?”

RFID provides many benefits for

manufacturers and non-manufacturers

alike. Businesses can use RFID to

automate most processes for identifying

objects, controlling employee access and

recording their location or movements.

The technology often creates value by

automatically recording these activities,

reducing labour costs, and providing

more complete & accurate information

than manual record keeping.

Unattended readers can ensure the

recording of all asset movements, and

can issue alerts if unauthorised material

movement occurs. Here’s taking a look

at the functions and key benefits of

common RFID applications…

ASSET TRACKING HELPS STREAMLINE THE ENTERPRISEEvery organisation needs to manage its

assets, which

can take many forms including

inventory, raw materials, files, product

samples, and even people. Different

RFID technologies are well suited

for tracking and identifying many

types of assets in many environments,

so virtually any organisation can

benefit from RFID asset tracking.

Automated—often unattended—

RFID reading reduces the cycle time

and error rate of the recording process.

Utilising RFID to ensure accurate

record keeping also helps keep assets

available and eliminates the hidden

costs associated with searching for lost

or misplaced items. For example, if

employees spend an average of only

10 minutes a day looking for tools,

equipment, or materials, they spend

the equivalent of one full week each

year on non-value added searching,

as the following calculation

illustrates:

(10 minutes/day x 5 days/

week x 50 weeks/year) =

2,500 minutes/year ÷ 60

minutes/hour = 41.67

hours

To find the labour

cost impact to a business,

multiply this time by the

number of employees

involved in searches,

and then by their average

per hour salary. The

total impact is actually

higher, because employees

cannot utilise missing assets,

which often require premature

replacement. There are other costs

associated with asset management

when manual labour is required to

inventory and record assets, track asset

movements, and enter the information

into information systems. RFID can

eliminate manual labour, plus the time

delays between when workers move

or use assets and when the activity is

recorded.

SOURCE AND ITEM-LEVEL TAGGING ENHANCES VISIBILITYUntil recently, most RFID applications

focussed on pallet and case-level

tracking. With source and product-

level tagging in retail operations, for

example, tracking originates farther

back in the cycle (with the manufacturer

applying product tags) and extends

all the way to the consumer. In this

scenario, RFID tags are affixed directly

Businesses in a wide range of industries are realising signifi cant benefi ts from radio frequency identifi cation (RFID) technologies. The RoI for RFID comes from reducing the time & labour required to track assets and materials, decreased losses & theft, improved maintenance operations, and streamlined effi ciency through better asset availability & utilisation. Here’s demonstrating how companies are unlocking the value of RFID by ‘unchaining’ the technology from strictly supply chain-based projects, to improve overall tracking and control throughout the enterprise.

Offering Unmatched Flexibility,Delivering Fast RoI

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40 • SMART LOGISTICS • SEPTEMBER 2012

RFID Benefits, continued

to a product’s packaging or the actual

product itself.

Consider the following retail

application. As the retailer receives

products, an RFID reader automatically

scans each product into the retailer’s

computer system, which then verifies

the product type and quantity. Scanners

in the store record the product’s

purchase, or if the product leaves the

store without the shopper paying for

it. The enhanced visibility allows a

store chain to reduce stock-outs, boost

the shopper’s buying experience, and

increase sales. Now, the retailer knows

what it is selling, where and when.

In addition, RFID-based Electronic

Article Surveillance (EAS) product-

level tagging can provide the retailer

loss-prevention intelligence regarding

what product left the store and when

the theft took place.

For manufacturers and food service

enterprises, source- and product-

level tagging enables compliance with

initiatives to protect the food & drug

supply and reduce counterfeit drugs.

This also creates an opportunity for

suppliers and retailers alike to reduce

costs by standardising inventory based

on a single technology and simplifying

tagging tasks. Businesses gain cost

containment, operational efficiency,

improved inventory accuracy and

a method to achieve compliance

mandates.

HOW RETURNABLE TRANSPORT HELPS REDUCE OPERATING EXPENSES?Using automatic identification systems

to track pallets, racks, trays, totes and

other returnable transport items (RTI)

within a facility can provide a strong

return on investment by lowering

operating expenses. Many companies

do not have accurate information

about the quantity and location of

their shipping containers because the

assets often remain at other facilities

for extended periods of time. As

a result, businesses purchase more

returnable containers to ensure they

have an adequate supply, creating

excess capacity and locking capital into

fixed assets.

Identifying and tracking returnable

containers provides the information

businesses need to improve returns

and recoveries. To do so, businesses

must permanently identify each asset

with an RFID tag encoded with a

company-specific ID number and/or a

standardised Global Returnable Asset

Identifier (GRAI) code. Departments

can automatically identify and record

every instance of a container exiting

or entering a facility using unattended

RFID portals, forklift-mounted

readers, or handhelds. Workers can use

mobile readers in the field to record

container drop offs and pickups. By

leveraging business database systems,

departments can associate containers

with customer records, providing

detailed visibility and billing data.

OPTIMISE INTERNAL SHIPPING AND RECEIVING PROCESSESEven though shipping and receiving

fall into the supply chain definition,

these tasks can also operate within

the enterprise to track intra-company

transfers and shipment. EPCglobal,

the organisation that developed the

international RFID standards used in

most compliance projects, estimated

the minimum savings of using RFID

in receiving applications to be between

$0.01 and $0.03 per case. The primary

benefits include a reduction in the

time and labour needed to process

goods movements, and the elimination

of data entry errors. Companies can

achieve these benefits by using RFID-

enabled processes to manage receiving

at their own distribution centres that

do not require participation from

customers, suppliers, or other supply

chain participants.

Internal shipment tracking promises

significant value to industries that

require distribution regulations, or in

food & pharmaceutical markets with

strong security and documentation

mandates. The EPC RFID tag

system encodes each individual item

with a product identifier and a unique

serial number, making it possible

to associate specific products with

a lot number and other production

information held in central databases

quickly and easily. As a result,

businesses can automate the receipt

of product and Electronic Proof Of

Delivery (EPOD) processes.

WORK-IN-PROCESS TRACKING IMPROVES PROCESS THROUGHPUTWork-In-Process (WIP) tracking

is a highly adaptable and beneficial

RFID application. Businesses can

use and reuse RFID tags in harsh

industrial conditions, even when

exposed to chemicals, pressure and

extreme temperatures. Scanners

can still read the encoded data even

when tags are covered, stacked or

buried. The versatility RFID provides

enables businesses to identify and track

materials in processes where barcode

and other methods fail. Because

RFID tags are re-writable, encoders

can update the tags at each step

of the production process with a

time-stamped job code for the

performed operation, operator ID,

configuration, quality control grades

and other records.

SIMPLIFY SERVICE AND MAINTENANCE OPERATIONSMaintenance operations typically

use RFID tags on equipment to

serve as remote databases that house

Benefits of RFID technologies • Process Automation: Businesses

from manufacturers to retailers gain unmatched flexibility to adapt RFID to support specific, unique processes.

• Deep Visibility: Management can control project time tables and goals at a finer level of detail.

• Tailored Solutions: The wide variety of tracking tasks means more RFID technology, frequency, standards and product options.

Page 41: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 41

configuration data and service history

information. Re-writable memory

on RFID tags lets technicians access

and update essential information in

remote and challenging environments

where other database or wireless access

is unavailable. Tagging helps ensure

workers accurately identify equipment

and components and confirm that the

correct items are serviced.

Consider the aerospace giant,

Boeing. After testing Zebra®

RFID smart label printer/encoders,

Boeing committed to use RFID

to identify critical parts on its advanced

Dreamliner 787 aircraft in order to

help airlines improve maintenance

operations, save time during

pre-flight inspections, improve

traceability & safety and streamline

record keeping. Smart labels logged

more than 1,500 flight hours and

provided 100% read rates and 100%

data accuracy, providing Boeing with

the confidence to move forward with

RFID tagging.

ACCURATE AND FAST CHECK-IN/CHECK-OUTMany large libraries around the

world rely on RFID to speed

material check-in, check-out, shelf

inventory, and security applications.

Clerks insert low-cost, flexible

smart labels in books. Some RFID

options include transparent tags,

often invisible to patrons. Counter

personnel check dozens of tagged

books in or out in mere seconds

without manually handling and

orienting each item. Libraries can

use tags for theft detection, much

like anti-shoplifting technology used

by retailers. Librarians using portable

computers with RFID readers can

take inventory and find misfiled

materials simply by walking down an

aisle of bookshelves.

The reader can automatically detect

missing materials and alert the operator.

Video rental stores use RFID for

similar applications. Facilities position

readers at the checkout, unattended

return bins, and doorways to record

transactions and detect shoplifted

items automatically. Businesses can

adapt check-in/check-out applications

for tool crib management, evidence

tracking, records management, and

many other operations.

IMPLEMENT PRECISE FILE TRACKINGImagine having to find a misfiled

document in a filing cabinet where

hundreds of forms are packed tightly

into a compact space. A manual

search is like looking for a needle in a

haystack—without any guarantee that

the needle is actually in the haystack.

Designers can build RFID readers

into inboxes and filing cabinets to

automatically record each folder &

document someone files and removes.

For records and archive operations,

readers can automatically check entire

boxes of records in & out in seconds,

saving countless time for manual data

entry. Departments can also use RFID

to automatically associate the files with

the person who signed them out by

reading RFID employee ID badges as

part of the process.

CAPITALISE ON THE VALUE RFID DELIVERSMany RFID applications gain rapid

RoI because users have the flexibility

to choose technology and tailor process

improvement solutions to solve their

specific business problems. Processes

in which manual data recording

creates a bottleneck, is error prone, or

incomplete, are prime candidates for

improvement with RFID. Enterprises

in both the private and public sector

can benefit from RFID technology

throughout a wide variety of

use-cases and environments, while

realising opportunities for improving

efficiency and reducing operational

costs.

Courtesy: Zebra Technologies Corporation

Overview of leading RFID technologies used in enterprise operations• High-frequency (HF) RFID systems operate at 13.56 MHz with a typical maximum

read range of up to 3 feet (1 metre). Common HF RFID applications include item identification and asset management that require a short read range and high data precision. Other applications include file tracking, shelf management, tool crib check-in/checkout and sample identification. 13.56 MHz reader modules are popular for integration into machines used for sorting, dispensing, testing, and industrial process control.

• Ultrahigh-frequency (UHF) RFID systems operate at multiple frequencies, typically between 860 and 960 MHz. EPCglobal Gen 2 is a leading standardised UHF protocol. UHF tags often produce read ranges of 20 feet (6 metre) or more, which is why they are popular for supply chain processes, such as shipping and receiving, container management, and warehouse inventory control. The UHF Class-1 Generation-2 air interface protocol V1.2.0 extends the item-level tagging capabilities of UHF Gen 28. In the new protocol, an indicator shows when there is formatted data in user memory. Furthermore, the addition of permalocking on a block level in user memory now protects previously written data from modifications.

• RTLS technology, developed and standardised at different frequencies, includes 433 MHz and 2.45 GHz systems compatible with 802.11-standard wireless networks, and 5.8 GHz Ultra Wide Band (UWB) technology that offers exceptional location accuracy. RTLS is a long-range technology used to track the location of assets in distribution centres and large factory complexes, cargo containers in yards, medical equipment through the various floors & wards in hospitals, and even employees. RTLS is one of the fastest-growing segments of the RFID industry, in part because there are many well-documented business improvement results for RTLS asset management systems.

Page 42: Smart Logistics - September 2012

42 • SMART LOGISTICS • SEPTEMBER 2012

RETAILRETAIL MULTI-STORE & MULTI-LOCATION MANAGEMENTMULTI-STORE & MULTI-LOCATION MANAGEMENT

TECH solutions for a multi-stores

retailer can be easily borrowed if the

algos have been clearly defined. There

are certain factors such as population

of the particular location, logistics

availability, goods consumption and

so on, which contribute as shaping

factors while drawing the algo. There

have been various indices to get the

complete market potential of the

selected locations. The best known

indices include Buying Power Index

(BPI), Premium-priced Product Index

(PPP), Index of Retail Saturation

(IRS)—which is roughly the ratio of

total retail expenditure to total square

footage of retail establishments in an

area. These indices collectively present

the descriptive measures and right

demographic model that help retailers

identify their corresponding market.

The trade analysis identifies the

most fluctuating parameters, thereby

indicating the strength and weakness

of these locations.

TECHNOLOGY SOLUTIONS Multi-stores firms are handled by

making one of the stores function as

the headquarters from where all the

decisive functions like purchase orders

for any of the stores, recruitments, etc.,

are managed.

HEADQUARTER-BASED SUPPLY CHAIN SOFTWAREThere are web-based software

solutions that offer a consolidated and

centralised way of managing a chain of

stores. The solution provides real-time

business status at the headquarters

from every Point Of Sale (POS).

Sitting in the office one can monitor

sales & inventory positions of all the

stores. One such example would be

RayMedi supply chain management,

which helps in consolidating the data

from various branches into one system,

providing an integrated analysis of

sales, inventory and purchase.

SUPRITA ANUPAM

The burgeoning retail segment is among the few sectors, where a fi rm can bounce back with feedback solutions The burgeoning retail segment is among the few sectors, where a fi rm can bounce back with feedback solutions at any time to bring the business back on the track. Multi-stores at multi-locations are booming these days. This is at any time to bring the business back on the track. Multi-stores at multi-locations are booming these days. This is

because multi-store retailing comes along with certain benefi ts such as multi-location and central control. Further, because multi-store retailing comes along with certain benefi ts such as multi-location and central control. Further, the technology brings software solutions to these fi rms, which makes them function as one unit.the technology brings software solutions to these fi rms, which makes them function as one unit.

Tech Edge for Tech Edge for RETAILING BRILLIANCERETAILING BRILLIANCE

Merging with e-commerce technology solutions, the multi-store retail supply management

is rapidly growing and is keen to change the face further

with cloud storage and FDI in the multi-brand retail sector.

With IT companies already in the business, a planned

development can be hoped at least in this sector.

Page 43: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 43

LumenSoft Candela retail

management system provides

One Step Data Transfer

from shops and warehouses.

It offers easy set up and

flexible system configuration,

flexible products & product

code definition, complete

barcode-enabled software and

invoice generation and Point

of Sale (POS). Additionally,

daily accounts closing and

cash reconciliation, product

search facility at shop POS

product pricing and discount

management, inventory

and purchase management,

automated stock refilling at retail outlets

and other facilities are also some of its

features. NextlevelObjects’ solution

relies on Lynux, Apache, Mysql, PHP

(LAMP) architecture, which has been

integrated with jQuery and with Yahoo

user interface library allowing retailers

to add new interesting widgets to their

shopping carts.

SECURITY AND MOBILITY FOR CLOUD STORAGECloud computing and storage has

added new wings to the multi-store

supply management. Though much of

its real capabilities are yet to be seen,

it will have to keep multi-tenancy

guaranteeing strict isolation among

separate departments and customers.

To boost the idea of a secure multi-

tenancy, NetApp introduced NetApp®

MultiStore® solution that allows one

to create isolated logical partitions

on a single storage system with cull

authenticity and security.

According to Roger Weeks,

Technical Marketing Engineer and

Paul Feresten, Sr Product Marketing

Manager, NetApp, “MultiStore is

the leading solution for secure multi-

tenancy in storage environments.

Its robustness has been proven in

both laboratory tests and customer

environments over years of deployment.

MultiStore works on all NetApp

storage platforms, offers higher security

and is the only solution that integrates

non-disruptive data migration.”

REVERSE LOGISTICS SOLUTIONS IN MULTI-STORE MANAGEMENTReverse logistics is usually carried out

by the headquarters and is about the

defective product claims that need to

be replaced immediately to keep the

business relationship longer.

Various IT giants like Infosys

and Accenture provide reverse

logistics solutions in multi-

stores. The solution must have

the ability to handle customer

complaints, their approval and

tracking as basic features. The

reverse logistics management

must be integrated with

e-Commerce/online channel,

enterprise systems and

workflow management.

GROWING AT A FAST PACEMerging with e-commerce

technology solutions, the

multi-store retail supply

management is rapidly growing and

is keen to change the face further

with cloud storage and FDI in the

multi-brand retail sector. With IT

companies already in the business, a

planned development can be hoped at

least in this sector.

[email protected]

Figure 2: NetApp MultiStore divides a single storage system into multiple secure partitions called vFiler™ units. Individual vFiler units can be assigned to separate ‘tenants’, which can be individual applications, departments within a company, or outside users.Courtesy: NetApp

Figure 1: RayMedi Supply Chain Management (SCM) Solution Architecture.Courtesy: Gofrugal

Page 44: Smart Logistics - September 2012

44 • SMART LOGISTICS • SEPTEMBER 2012

SECTOR WATCHSECTOR WATCH RAIL LOGISTICSRAIL LOGISTICS

ENERGY-WISE, transportation by

water is the most efficient, followed

by rail, road and lastly, air. The rolling

resistance of a steel wheel over a steel

rail gives Railways a comparatively

greater advantage over road. For

instance, a 4,000 hp diesel locomotive

will haul a 45-covered wagon train

with a 3,000-tonne payload that would

otherwise need 200 trucks of 15 tonne

capacity powered by a 150 hp diesel

engine each, totalling 30,000 hp—a

ratio of 1:7.5! It also provides seamless

transport across state boundaries,

thereby avoiding the problems of

innumerable octroi posts and other

man-made hurdles.

A road vehicle, however, is

inescapable for the last mile

connectivity it provides. It is also more

suitable for the transportation of small

goods, enables plant-to-godown or

home-to-home delivery and seldom

has to return empty. Rail wagons, on

the other hand, have to mostly return

empty, especially when carrying coal to

a thermal plant, unless a load is readily

available at/near the unloading point.

RAILWAYS: A 24x7 ACTIVITYUnlike the defence services, Railways

is a 24x7 activity with no holidays. It

is constantly at war, moving millions

of tonnes of freight and passengers.

It has no less than 270,000 wagons of

various shapes and sizes—the largest

type being Open BOXN mainly for

carrying coal. These comprise nearly

50% of the rail freight, viz., iron

ore, limestone, and sometimes, even

bagged commodities such as cement,

food grains and fertilisers, among

others (whenever covered wagons are

not readily available).

Special Bottom Discharge WagonsOver the years, special bottom

discharge wagons have been developed

for carrying coal, iron ore, cement

and alumina, among others. And the

mechanisation of bulk loading through

silos have, so far, been limited to coal,

cement, alumina, etc. With the loading

party having to set up these facilities,

the role of Railways has always been

limited to being a mere transporter.

Special flat wagonsSpecial flat wagons are available

to carry steel coils, flats and rolled

sections, among others. CONCOR,

a subsidiary of Indian Railways, has

provided the much-needed capability

for carrying small goods, particularly

high-value white goods and export-

import cargo in a safe and fast manner

in ISO containers. Specially designed

double-decker car carriers transport

Maruti cars from Gurgaon to various

destinations all over India.

A LOT MORE NEEDS TO BE DONE… Despite all these efforts, the Indian

logistics industry has barely scratched

the surface of the vast potential of

productivity gains lying untapped. In

the highly competitive world of the

US logistics market, special types

of wagons—mostly owned by either

a shipper or a leasing company that

would then hire it out to various

users—occupy a dominant place. Each

type of wagon is developed to carry

a particular commodity that may use

various labour-saving devices, viz.

• For packages or crates: There are

covered wagons with large sliding

Rail transport is no rocket science, yet the system needs to be highly reliable, safe and provide carriage of goods at the lowest possible unit cost. It must not only yield economies of scale, but must also substantially reduce manpower costs, which have become a source of concern over the last decade or so for the logistics players in India!

Time to encash on the Rail advantage

Steel coil wagons

Unlike the defence services, Railways is a 24x7 activity with no holidays. It is constantly at

war, moving millions of tonnes of freight and passengers.

Page 45: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 45

doors or swinging roof for loading/

unloading with cranes and forklifts.

• For solids such as coal, limestone,

iron ore: There are open wagons

and covered for granular material

such fertilisers, food grains, cement,

alumina, etc., with track side silos

for loading and bottom discharge

facility, air-assisted or simple

gravity-aided, and a set of pipelines

or conveyor belts for bulk unloading

& storage at the destination.

• For fluids such as oils and acids: There

are tankers with special rubber

lining, high-pressure vessels for

ammonia, LPG, etc., and connected

pumps and storage tanks.

• For cars and trucks: There are special

double-decker wagons with high-

level platforms at both ends to

ensure fast, yet safe, loading and

unloading.

• For heavy steel plates, rolled bars,

sections, etc.: There are flat wagons

for ease in loading/unloading with

cranes.

THE WAY FORWARD The possibilities are unlimited

and involve large-scale financial

investments, which, so far, Railways

has made. However, logistics players

have been slow to venture into the

given uncertainties of the business

environment and Railways’ frequently

changing policies & freight tariffs.

Moreover, adequate volumes would be

needed for even a small fleet of special

types of wagons to make any economic

sense.

Nonetheless, given the Railway’s

scarce financial resources and the

Planning Commission increasingly

opting for the Public Private

Partnership (PPP) route, the time is

ripe for logistics players to take the

initiative for owning their own wagon

fleet for special types of consignments,

which could yield large-scale

productivity gains. In the process, they

could claim substantial discounts that

Railways offers for such Own Your

Wagon (OYW) schemes.

RC Acharya, Former Member, Railway Board

E-mail: [email protected]

Wagons specially designed for cars

October 2010

Vol. 01 | Issue 06 | OCTOBER 2010 Rs 100/-

Our search for authentic and informative articles…

solicits original, well-written, application-oriented, unpublished articles that reflect your valuable experience and expertise in the logistics industry.

You can send us articles, case studies and industry updates. The length of the articles should not exceed 2000 words.

The article should preferably reach us in soft copy (either E-mail or CD). The text should be in MS Word Format and the images in 300 DPI resolution and JPG format.

The final decision regarding the selection and publication of the articles shall rest solely with .

So, join our endeavour to provide relevant and useful content to our readers… rush your articles, write-ups to

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Page 46: Smart Logistics - September 2012

46 • SMART LOGISTICS • SEPTEMBER 2012

SHIPPING SHIPPING OCEAN FREIGHT OCEAN FREIGHT

DURING the last decade, world

merchandise freight exports nearly

tripled in value from US$5.4 trillion

to US$16 trillion, and ocean freight

remained the most common mode of

transportation used for shipping these

exports. Despite the current downturn

in the global economy, international

trade (and consequently, ocean

transport) is expected to continue to

expand. Meanwhile, the growing trend

of global sourcing has increased the

role of ocean transport in the supply

chains of most companies. In such a

scenario, it is of prudent importance

to critically scrutinise cost elements

of ocean freight that will not only

reduce the ambiguities associated with

operating in the global market, but will

also streamline the entire supply chain.

OCEAN FREIGHT LANESThe key cost drivers of ocean

freight are steamship costs, broker

commissions, duties and tariffs, vessel

& port maintenance costs and labour

costs, among others. Steamship lines

manage their costs by realigning routes

and service frequencies to better match

supply with demand; investing in

enhanced technologies and acquiring

more efficient ships. Based on these

dynamics, freight forwarders negotiate

rates with steamship lines and provide

these rates to shippers along with

the additional fees for the above-

mentioned components. Shippers,

however, do not necessarily negotiate

for fixed rates. These negotiations

depend on the nature of the lane;

whether there could be a commitment

to volume or not.

Most shippers have two broad types of

lanes, viz:

Regular lanes: These are high volume,

predictable routes for which shippers

can negotiate a fixed all-inclusive rate

with a volume commitment. This

rate covers the shipment rate with an

index-based fuel surcharge (FSC) as

well as handling and management fees.

Irregular lanes: These are spot quoted

and shippers get prompt quotes when

the need arises. For irregular or low

volume lanes, shippers expect market

conditions to drive the true spot price.

According to a recent survey conducted

across leading freight forwarders in

North America, about 60% of all

shipment (exports and imports) occur

on a spot quote basis with no pre-

negotiated shipment and handling

fees. In these instances, the shipper

relies completely on the quote received

on the instance and has no control

on the pricing components. But this

need not be the case, as the following

sections illustrate.

ENSURING COMPETITIVE RATES ON SPOT QUOTESSpot quote lanes refer to irregular or

low-volume lanes managed on a per

instance basis and bring numerous

challenges from a purchasing point of

view. The per instance basis makes it

difficult to track spend; hence, lack

of this data brings limited visibility

to cost breakdown, spend evaluation,

eventually to reporting. Without

such information and no volume

commitment, shippers have no room

for negotiations for fixed rates, making

them vulnerable for any changes in the

industry.Furthermore, invoices include

several handling and management fees,

which make it complicated to control

the actual rate paid for a shipment.

Those fees, on an average, make up

about 30% of the entire ocean freight

The movement of ocean freight between nations is driven by a complex supply chain and involves many participants, including shippers, commercial for-hire carriers, third-party logistics providers and consignees. The complexity of this value chain combined with onerous regulatory requirements has led many shippers to increasingly utilise freight forwarders as a one-stop shop for end-to-end services. While this approach reduces operational complexity for shippers, the benefi ts come at a premium and include a complex pricing structure. A detailed understanding of these cost elements can help shippers identify signifi cant cost savings.

Unlocking Valuein Hidden Cost Drivers

Page 47: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 47

cost and are either service fees or third-

party costs, which are then passed on

to the shippers directly or marked up

in order to make profit. Given that

handling and management fees are not

the only components of ocean freight

spend, gaining control over the full

‘spot quote’ spend depends on how

well the shipment fees (base shipment

fee and fuel surcharge) are managed.

Creating a competitive environment

among a reasonable number of

freight forwarders, by carrying out

the next steps will definitely give the

shipper control over non-contracted

spot quote rates.

KEY STEPS TO UNLOCK THE HIDDEN VALUEBy following the step-by-step

procedure mentioned below, one can

unlock the hidden value associated

with ocean freight:

• The initial step is forming a

complete spend profile.

- In case you do not have full

visibility to data, getting quotes

from multiple freight forwarders

on specific lanes is an effective

way.

- Get as much detailed breakdown

as possible. This will help

you identify all handling and

management fees in the industry.

• Compile all handling and

management fees and clarify with

the freight forwarders whether

these are service or third-party fees.

Freight forwarder companies have

been charging customers so many

different handling and management

fees that even they lose track of how

the fees are generated. Getting the

list from multiple freight forwarders

will help clear the discrepancies.

• Generate your market benchmark

with due diligence.

- Cherry picking the lowest rates

from each freight forwarder’s list

sounds ideal from a purchaser’s

point of view. However, due to

the different cost structures they

will encounter, freight forwarders

will allocate the associated cost

invariably among different fees.

- Make sure you are fair with

your market basket and do not

hurt the freight forwarder by

slashing their total handling and

management fees. They may

compensate for the difference

by charging a high ocean freight

base rate, which is the 70% of

entire spot quote business.

• Shortlist an optimal number of

freight forwarders as your preferred

freight forwarder list. It is crucial to

let the shortlisted freight forwarder

know that they are not the only

player in this business; that you

will be getting spot rates (ocean

freight base rate) from other freight

forwarders as well. This will help

ensure your competitive spot quote,

where upfront negotiations are not

possible.

• Have direct negotiations with

shortlisted freight forwarders.

- Let the freight forwarder know

you have done your homework

and you know the market well.

Provide target rates based on

your market benchmark and ask

for fixed rates for the service

fees, and at cost fees for the

third-party fees.

- Agree on proof of documentation

on third-party fees in order to

avoid any mark ups.

• Sign service agreements with

preferred freight forwarders with

specific rate cards and have KPIs

set on the agreements, such as:

- Adherence to negotiated rates

for selected fixed fees

- Supporting invoices for the

third-party fees

- Response time of maximum 24

hours on quotes

- Reporting capabilities.

TAKE AN INFORMED DECISIONIt is undeniable that ocean

transportation will continue to be a

significant part and freight forwarders

to be a strong player of the world and

the US supply chain models. Moreover,

fluctuating market conditions suggest

that both freight forwarders and

shippers will be getting more reluctant

to sign year-long flat rate agreements

for ocean freight services, indicating

a rise in spot quote business with

unsteady rates.

However, there is a good

opportunity for shippers to save even

on spot quote business. By fixing

management and handling fees on

the spot quotes, hard savings will be

realised immediately and by creating

a competitive environment between

preferred freight forwarders, low rates

will be guaranteed for shipment.

Courtesy: GEP (Global eProcure)

Figure 1: Ocean Freight Lanes

Page 48: Smart Logistics - September 2012

48 • SMART LOGISTICS • SEPTEMBER 2012

STRATEGY STRATEGY MULTIMODAL TRANSPORTATIONMULTIMODAL TRANSPORTATION

THE Indian logistics industry is

treading on the growth path and is

slated to experience a consistent yearly

growth of around 10% over the next

10 years. There are several factors

preventing the expansion of the industry,

the most critical of all is the lack of

a multimodal transportation system.

Multimodal transportation refers to the

movement of cargo from

the point of origin to the

desired location by using

two or more modes of

transportation.

MODES OF TRANSPORTATION Currently, road is a

major driver of trade and

economic development.

Road transport accounts

for 60% of freight

movement in India.

The state and national

highways are highly

congested and create delays at toll

plazas and slows the speed of vehicles.

The country’s national highways

constitute only 1.67% of the total road

network, but carry 40% of the road

traffic. National and state highways

constitute less than 6% of the total road

network, but they account for almost

80% of the road traffic. Further, in

case of the automotive sector, railways

contribute 5% to auto movement as

compared to 30–60% in developed

countries. With such a scenario in the

background, introducing a multimodal

transport system will come as a huge

boon towards the faster movement of

goods in the country.

Commenting on the importance of

multimodal transportation

in the country, Srinath

Manda , Program

Manager – Transportation

and Logistics, Frost &

Sullivan, South Asia,

Middle East and North

Africa, says that in the

current scenario, with

the increasing volume of

goods and cargos, there is

a need to find alternative

modes of transport to

ensure fast, safe, smooth

and timely transfer of

cargo from the point of

With the increasing volumes of cargos, the current dependence on a single mode of transport is not sustainable. Establishing multimodal transport system in the country by effi ciently utilising all the modes of transport is the need of the hour. This will not only balance the traffi c evenly through all the modes of transportation, but will also ensure safe and timely movement of the ever-increasing cargo volumes. This will help India channelise all its modes of transport and decongest the most used transportation routes.

Harnessing thePower Of Last Mile

Connectivity

ARINDAM GHOSH

Source: Frost and Sullivan

Page 49: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 49

origin to the final destination. “Mixing

all the modes of transport optimally

for ensuring safe and timely movement

of goods is critical today,” he adds.

Voicing his opinions, Prem

Kumar Verma, CEO, Tata Motors

Distribution Co, says, “Multimodal

transportation is vital for the growth

of collaborative logistics.” If all the

transportation processes are effectively

connected and coordinated along

with a flexible link to a warehouse

through rail, road and sea network,

it will be critical for achieving high

levels of efficiency and productivity in

supply chain processes. Traditionally,

transport policies in India have focussed

on individual modes of transport such

as rail, ships, highways, goods carrier,

etc. “Besides being safe, efficient and

flexible, it will be environment friendly

and cost effective. It will also be able

to meet the needs of a large spectrum

of industries,” Verma adds.

OPPORTUNITY AREAS IN INDIAThere are many opportunity areas

where the concept of multimodal

transportation can optimally utilised.

Some of these include:

The manufacturing hubs in India located

deep in the hinterland far from seaports:

Some of the manufacturing hubs are

located far from the seaports. In order

to ensure timely door-to-door delivery,

multimodal transport is critical.

India’s international trade growing

annually at 10–12% with the rapid rise in

containerisation of goods: Today, India is

one of the fastest-growing economies

in the globe and is registering a high

economic growth rate every year.

Thanks to the rising trade, the growth

pattern will remain the same for the

next few years. This, in turn, will play

a critical role in the establishment of a

multimodal transport system.

The Dedicated Freight Corridors, to

be operational by 2015, are expected to

catapult rail transportation to greater

heights: The government has taken

proactive steps towards improving the

infrastructure in the country. With

DFCs to become functional by 2015,

it opens many opportunities for the

growth of a multimodal transport

mechanism in India.

15 million TEUs of annual multimodal

logistics forecasted by 2015: This is an

important factor, which will drive the

growth of multimodal transportation

in India in the years to come. With the

rising levels of cargos to be handled

during transportation in the future,

developing a multimodal transport

system will come as a boon towards

managing additional cargos effectively.

Rising end user preference for a single

service provider to manage end-to-end

supply chain solutions: The increasing

preference to opt for a single service

provider by the user companies will

fuel the drive for multimodal transport

system in India.

Industries: Currently, in India, the core

sectors of the economy such as cement,

steel, iron ore, food grains, coal,

etc., are using multimodal transport

system. Going forward, industries like

automobile, electronics, IT hardware,

etc., can harness the potential of

multimodal transportation if the

concept is promoted strongly.

INITIATIVES TAKEN Multimodal transportation of goods

has become a standard practice in

international trade. With an aim to

promote multimodal transport in the

country, the government has taken a

few measures, such as:

Multimodal Transportation of Goods

Act, 1993: The main objective of the

Act is to reduce interruption in the

movement of goods from the point

of origin to the final destination and

to liberalise control and simplify the

procedures and facilitate the flow of

cargos. However, the industry is of the

view that the Act needs to be updated

or revised on an urgent basis because

of its limitation—it only deals with

shipping and freight forwarding.

Association of Multimodal Transport

Operators of India (AMTOI): The

Association of Multimodal Transport

Operators of India (AMTOI) was

formed with an aim to organise

multimodal transport operators

at the national level and improve

the quality of their services. The

members of the body are multimodal

transport operators registered with

the Directorate General of Shipping,

Mumbai, under the Multimodal

Transportation of Goods Act, 1993.

According to Sanjay Sahay, Head

– SCM, EWAC Alloys, Larsen

& Toubro, a multimodal transport

system could initially be applied in a

few industries and then be expanded to

other industries in the country.

NEED OF THE HOUR Soon better logistics services will

be the key differentiating factor for

companies to be sustainable and create

a niche for themselves in the market.

It is here that a well-developed

multimodal transportation system

is going to play a key role. To this,

V Anand, GM – Sales Logistics,

Hyundai Motor India, adds, “Creating

proper and modern infrastructure will

boost the establishment of multimodal

transport system in the country.”

Multimodal transportation between

road and rail can be witnessed in the

next few years because Railways have

shown interest in being a part of the

multimodal transport system for the

automotive sector. Given the progress

the Indian economy is registering,

multimodal transportation will soon

play a key role in sustaining the

country’s performance.

Major challenges in utilising multimodal transport include: Insuffi cient network coverage Improper connectivity Poor rail access to ports Lack of in-transit storage facilities Frequency of services is lower Budgets for multi-modal services

are low

ROADBLOCKS AHEAD

Page 50: Smart Logistics - September 2012

50 • SMART LOGISTICS • SEPTEMBER 2012

WAREHOUSING & DC WAREHOUSING & DC PHYSICALITY PHYSICALITY

PHYSICALITY is the magnitude

and arrangement of any company’s

warehouse. Apart from physicality,

the products’ dimensions, packaging

requirements, material handling

equipment used in the production line

and other such factors also help create a

sturdy and healthy physical warehouse.

What makes this physicality more

interesting is the fact that every

company will have a different attribute

altogether which would make the

warehouse stand apart from other

warehouses. At times, even within the

same organisation, it has been noticed

that one facility’s layout is completely

different from that of the other.

MAXIMISING RoI: AN UPHILL TASK? While the physicality helps a warehouse

optimise its potential to the fullest,

if any company longs to get better

returns on their WMS investment,

the company should make sure that

it has the capacity and capabilities,

which will help it optimise its physical

warehouse. Commenting on the same,

Chris Goldsmith, Director – Product

Strategy, HighJump Software, says,

“If you want to get a good return on

your WMS investment, make sure it

has the functions that will help you

optimise your physical warehouse.”

If the company does not follow suit,

then they may not get the RoI they need

in order to stay profitable. According

to Asim Behera, GM (India), Swisslog,

“Technology is a Capital Expenditure

(CapEX) investment, where you get

the most when you use it the most.

From a client’s perspective, WMS

implementation is often a new business

process for a company and its staff. A

WMS has many features and options.

Therefore. it is very important that

when you invest in it, you discuss your

business model and requirements and

get the service provider to tailor WMS

to your specific needs. One should also

ensure that the staff and users are well

trained and are comfortable using it.”

“Many people face a steep uphill

challenge to embrace a new procedure

or business process and this is where

leadership needs to step up to make

the transition a smooth process to

ensure success,” he adds.

Some important guidelines for

effectively addressing the physical

warehouse in order to maximise the

company’s investment include:

Do More Than Buy A Vertical-specific SolutionSome companies opine that a number

of WMS vendors sell vertical-

specific applications that deal with a

physical warehouse. Having a business

application with vertical templates

is a great place to start physical

warehousing and many logistics

players have made great advances in

this area using the same. However,

even within a vertical industry, there

are potential physical differences

between warehouses. For instance, “At

Swisslog,” Behera informs, “We always

strive to be a partner to the client

rather than a mere vendor. We have a

While keeping in mind the vast R&D money that many vendors have spent into building more sophisticated and robust Warehouse Management Systems (WMS), companies nowadays have every right to expect more value from the solutions they sell. Although today’s WMS offer a variety of enhanced features and functions; there is still one prime variable that, if excluded, will leave the company searching for the RoI expected. That measuring variable is physicality. Physicality would help a company understand and identify the intricacies of their warehousing facility and thereby help them to reorganise or manage the warehouse effectively and effi ciently.

Ensuring Quick Returns on Investment

PRATEEK SUR

Page 51: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 51

unique WMS offering for clients who

are new to this technology adoption

called the iWMS.”

Every company’s WMS should

be able to help it address different

needs. Take, for instance, the physical

requirements of a soft-drink distributor

and a beer manufacturer. Do they have

the same needs? In some instances,

they do. However, a beer manufacturer

might have heavy kegs to transport,

while a soft-drink distributor could have

boxes of syrup that need to be shipped.

The finest storage of these products

(chilled versus ambient) and haulage

of them is, most likely, different.

Moreover, even if it is the same range of

products, the different warehouse sizes

could dictate different types of racking

and equipment. In such a scenario, it

is important that the company’s WMS

caters to such requirements.

Look For End User Configuration ToolsCompanies should make sure that their

facility is capable of updating itself

with the latest business applications as

and when warehouse changes occur. If,

with every new product launch or new

warehouse opening, the logistics player

has to go back to the vendor or system

integrator for system changes, it will

become expensive and very hard to

predict ongoing costs, thereby affecting

the RoI on WMS. With advancements

coming up in technology and other

aspects, warehouses should make sure

that they are up-to-date with such

advancements. In an ideal world, a

company’s WMS vendor will provide

tools and itineraries that allow one

to make the changes as the physical

warehouse evolves. After that point,

the company can choose if it wants to

make the changes itself, or if it wants

to seek the vendor’s assistance. This

approach will give the company a lot

more control over its own destiny and

the ability to make smart choices that

maximise RoI.

Service Oriented Architecture ApplicationsOne of the most necessary elements

to look for in software applications

is the Service Oriented Architecture

(SOA). SOA is used often with

respect to IT managers. While many

presently deployed applications are not

designed in this fashion, it is definitely

something to look for when deploying

new applications. SOA allows the

company’s WMS to exchange data with

other business software programmes

while participating in business

processes. If the application has SOA,

it will also allow for quick alteration or

patternisation in case the requirements

change in the warehouse. For example,

if a company, which ideally sells to

retailers, wants to change its strategy

to now ship directly to consumers,

it will require to shift the company’s

transportation requirements. By using

an SOA application, rather than

loading the new rate structures for

UPS, the software application can

make a web service call to UPS and

receive the correct rate. Rather than

going through a process to update

those rates as UPS does every year,

the web service brings back the current

rate, minimising ongoing support and

maintenance of the system.

3PLs: ADAPTING TO THE CHANGING NEEDS It is important that 3PLs take

into consideration the above

recommendations as this would

immensely help them in their day-

to-day logistics activities. Moreover,

outsourcing of supply chain tasks is on

the rise and most 3PLs are looking for

extra services to provide to customers.

In fact, many 3PL players have started

providing dedicated facilities to clients,

which they later transform into public

facilities for several clients under one

roof.

Each 3PL client will have different

physical requirements, for example,

labelling for retail clients, expiration

date/recall tracking for food &

beverage companies and serial number

tracking for high-tech distributors.

If a 3PL cannot easily handle these

differences, the ongoing system

support will become exigent. When

a packaged application cannot handle

the warehouse’s physical requirements,

expensive system modification

becomes obligatory. This leads to

pricey safeguarding and upgrades over

time to the point where the system

is no longer extensible and your RoI

is discontented. Companies should

purchase supply chain solutions that

permit logistics players to effortlessly

change business processes to deal with

the physical realities of their warehouse.

As Behera sums it up, “The more end

users feel comfortable with the WMS

and the more they use it, the better

and quicker will be the RoI.”

[email protected]

Warehouse management systems (WMS) combine desktop & mobile computers, various software modules and peripheral interfaces to completely manage a warehouse or yard. WMS are able to locate inventory, allow for confi gurable management parameters and coordinate the shipping & receiving of inventory. For large warehouse operations with multiple buildings, stockyards or even product-specifi c issues such as shelf-life considerations, a comprehensive WMS solution providing complex modules is vital. The benefi ts of implementing a WMS include increased accuracy, enhanced productivity and substantial cost savings for a rapid return on investment. In addition, a WMS typically reduces inventory quantities overall, and the costs associated with labour, especially when used in concert with associated data collection systems and picking systems. WMS also gives you the ability to add automation tools that can signifi cantly improve the productivity of your warehouse workers.

NEED FOR A WMS

Page 52: Smart Logistics - September 2012

52 • SMART LOGISTICS • SEPTEMBER 2012

AUTOMATION TRENDSAUTOMATION TRENDS OOneneSCM DEMAND COLLABORATORSCM DEMAND COLLABORATOR

BASING any of the planning, ordering,

shipping, or payment processes on

methods that produce longer lead

times and are prone to human error—

such as spreadsheets, email, phone, or

fax—without real-time data, results in

inefficiencies in time, cost and quality.

The resulting back-and-forth, volatile

inventory process along the supply

chain from consumer to manufacturer

is known as ‘the Bullwhip Effect’.

Enter OneSCM® Demand

Collaborator, an automated, ERP-

agnostic solution that gives all

companies in the supply chain the

ability to view planned orders and enter

commitments based on real-time data.

The Demand Collaborator monitors

the ability of suppliers to meet buyer

demand, and alerts buyers when

there is a problem pertaining to order

fulfillment. This provides enormous

savings in labour, time and operations,

especially in environments that involve

long lead times or large quantities of

parts with sporadic demand. Demand

Collaborator is not a replacement for

your planning engine. It is an extension

to planning systems that integrates

with existing ERP data, as well as other

OneSCM tools, to maximise efficiency

in the supply chain by making the

best use of the data available in your

planning systems.

THE BULLWHIP EFFECTThe term ‘Bullwhip Effect’ is used

to describe the observable pattern in

supply chain networks of increasing

inventory swings in response to

unanticipated changes in demand. The

Bullwhip Effect is prevalent especially

in environments using processes that

decrease responsiveness to demand, and

involve forecasting based on previous

(or expected) demand rather than real-

time data. Here’s how it happens…

Each organisation in the supply chain

network experiences greater variation

in demand. Therefore, it is logical that

processes based on human reasoning

assume the need for increased orders

of stock, i.e., when customer demands

increase due to factors such as seasonal

popularity, product cost reduction

due to sales, or increased advertising,

participants along the supply chain

increase orders. When this trend stops

or reverses, orders fall or stop, but

inventory levels do not immediately

adjust to this change. This creates the

aforementioned effect of increasing

variations along the supply chain. The

simulation of this effect in Figure 1

illustrates the ‘bullwhip’ appearance of

this phenomenon.

Inefficient processes often lead to

a variety of fulfillment issues, such as:

• Missed schedules due to late

shipment or long lead times

• High inventory/scrap/rework due

to excess purchases, fulfillment

mistakes and early shipment

• Schedules that are wrong, delayed,

or not published

• High procurement costs

• High invoicing and accounts

payable (AP) costs

• Invoice matching discrepancies

• Material shortages.

All of these present opportunities

for companies to reduce costs in

labour & inventory and increase profit

margins by streamlining the process—

including lead time—for delivering

products to customers. The cost &

time to manufacture each part can be

significantly reduced, and problems

such as shortages, excess inventory,

The process of planning and ordering parts to meet production schedules based on customer demand can be time consuming, complex and error prone for many companies. However, with the right tools in place to automate this process and deliver real-time data, response time to demand can be dramatically improved so that orders match the current demand, and inventory shortages and overages are sharply reduced. With OneSCM, manufacturers can view current demand from the MRP and adjust order fulfi llment accordingly, tightening inventory margins and delivery schedules as well as decreasing time, labour and supply costs.

Mitigating the Mitigating the BULLWHIP EFFECTBULLWHIP EFFECT

Figure 1: The Bullwhip Effect

Page 53: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 53

invoice discrepancies & delays can be

significantly mitigated.

OneSCM® DEMAND COLLABORATOROneSCM Demand Collaborator

mitigates the ‘Bullwhip Effect’ by

automating processes to:

• Accelerate problem identification &

solutions via automated notifications,

significantly reducing delays

and human errors in schedules,

commitments and inventory.

OneSCM Demand Collaborator

manages by exception, automatically

notifying appropriate users only

when an issue needs to be addressed

• Align and communicate workflow

and approval processes to ensure

that all organisations in the supply

chain are in collaboration

• Communicate lead time changes,

thereby eliminating delays and

errors in schedules & commitments

• Extend resource planning capability

for collaboration with suppliers,

especially with forecasting demand,

viewing supplier commitments, and

sending notes and attachments

• Create purchase order releases that

are visible to companies and their

suppliers and are based on real-time

inventory and demand data.

Figure 2 illustrates the OneSCM

Demand Collaboration process,

which is compatible with any MRP

system platform and multiple data

collection systems. In essence,

Demand Collaborator is the ‘missing

link’ needed to maximise the potential

of your robust MRP system. It adds

the automation needed to seamlessly

communicate forecast data with

suppliers so they can use that data

to fulfill demand, as well as alert you

immediately when there is a problem.

Figure 3 provides an illustration

of the dramatic improvement in

results that can occur when a demand

collaboration solution is implemented

to work with your planning system.

The Bullwhip Effect dampening is

approaching zero, since lead times

are based on real-time demand data,

and communication with suppliers is

optimised at all points throughout the

supply chain.

As demand increases, ordering and

stock responds in a proactive manner

based on accurate feedback from

your planning and data systems and

suppliers. This results in stock levels

that closely match order quantity, which

is synchronised with actual demand.

GEARING UP FOR TOMORROW TODAYYou have invested significant time and

money into your robust planning engine,

so why not maximise its potential?

If you are not able to view real-time

demand and forecast data from your

suppliers and seamlessly update your

system based on this data, no planning

system can solve the problems created

by reactive planning with yesterday’s

information. OneSCM Demand

Collaborator provides a proactive

solution to the pitfalls of the Bullwhip

Effect, by integrating with your

suppliers’ data to automatically generate

purchase order releases based on real-

time customer demand and supplier

inventory. Demand Collaborator utilises

the following features to accomplish

this functionality:

• Configurable, automated and easy

communication channels

• Web-based architecture and

easy-to-use interface, facilitating

collaboration and greater adoption

from system users.

With automation and timely,

effective communication, planners

& suppliers can respond easily and

quickly to changes in demand forecast

in real time. This, in turn, dramatically

reduces the occurrence of oversupply

and shortages to mitigate the Bullwhip

Effect.

Young Chul Kim, Director – US Product

Management, TAKE Supply Chain, a

division of TAKE Solutions.

Email: [email protected]

Figure 2: OneSCM Demand Collaboration Process

Figure 3: Mitigating the Bullwhip Effect with Demand Collaboration

Page 54: Smart Logistics - September 2012

54 • SMART LOGISTICS • SEPTEMBER 2012

Supply chain is said to be more about management where there is little room for technology. But then choosing the best from the available technologies is management. In the case of services, technology is demand-driven and hence, diverse. The three technologies pace layers that most companies look for in a supply chain are—systems of record, i.e., ERP, systems of differentiation, i.e., multi-echelon inventory optimisation and systems of innovation, i.e., cost-to-serve analysis. For logistics service providers, the goals are diversifi ed. The diversifi cation in service can only be achieved by selecting the right fi t technology. Here are some tips that can ensure right technology selection and its implementation for supply chain excellence...

SUPRITA ANUPAM

[email protected]

ESTABLISH A DEMAND DRIVEN VALUE NETWORKTo connect with all kinds of customers, it is wise to use the fragmented approach towards the service as this will ensure presence on the different levels of the Demand Driven Value Network (DDVN). For eg, companies providing only lower-cost services will be on the lower level of DDVN and to be on the lower level, the provider has to rely on better ERP solutions, planning and execution. To capture the next level, integrated planning architecture with best-of-breed software as systems of differentiation has to be adopted. Choosing such technology solutions will give the provider a competitive edge.

DO NOT WORK FOR TECHNOLOGY; LET TECHNOLOGY WORK FOR YOUDo not invest time and manpower to work for the new technology. Instead, try to improve the tech environment already applied—this can prove to be ‘live’ R&D for supply chain providers. This, in turn, will create tech improvement space within the organisation as well as among its customers. The available technology will then serve better and, in the case of newer adaption, the environment will be ready to automatically adapt to it.

FOCUS ON COMPANY-OWNED INVENTORIES-ENABLED TECHNOLOGIESRecession has made all supply chain customers look for cheaper services and solutions. In such a scenario, it is always better to look for technologies that can be easily availed by company-owned inventories. This, in turn, will help save a lot of money for both sides keeping the customers intact—even though they may not be best in class in quality; they might stand best among alternatives.

MINIMISE RISKS BY ENHANCING TECHNOLOGY CONTROL ON VARIOUS LEVELSLack of appropriate technology is assumed to be the cause of failure, but it would not be right to discount the fact that lack of appropriate control and monitoring could also result in it. In such a scenario, it would be wise to develop various levels of controls to minimise the risk of failures rather than relying solely on technology application.

DEVELOP ‘GREEN’ SENSE WITH RESPONSIBILITYLogistics is the ‘hot seat’ of pollution. While adopting the right technology can help minimise pollution levels, it is not a cost-effective solution. Hence, while selecting the right technology, besides the pace layers, system of record, system of differentiation and system of innovation—fourth angle ‘system of green’ perspectives—must be considered; thereby accepting the social responsibility by showing ‘green sense’ as the reason behind the decisions.

CONNECT THE PACE LAYERS WITH THE BEST AVAILABLE WORKFLOWThe pace layers, viz., systems of innovation and systems of differentiation, can be connected either by service-oriented architecture or by Master Data Management (MDM). Service-oriented architecture workflows can help connect elements together within the process. MDM, on the other hand, can help separate the data from the process logic in order to manage different application areas. The selection between the two workflows should be made depending on the priority, which is to be decided based on the customers’ requirement.

EXAMINE TECHNOLOGY FROM A DYNAMIC FRAMEWORKWhile selecting the right technology for each pace layer, a dynamic framework must be considered. For a system of records, the technology may survive beyond 10 years, while in the case of a system of differentiation, it is around five years. But in the case of systems of innovation, the technology survives from 6 months–2/3 years. Further, the support technologies also vary. Hence, the technology must be counted as per these considerations.

ways to identify the best-fitways to identify the best-fitTIPS & TRICKS TIPS & TRICKS TECHNOLOGY SELECTION TECHNOLOGY SELECTION

Page 55: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 55

TENDERS TENDERS

Latest Popular Tenders brought to you by www.tendersinfo.com

Org: Organisation’s Name, TRN: Tendersinfo Ref No, Desc: Description, DSLD: Doc Sale Last Date, BOD: Bid Opening Date, Loc: Location, BT: Bidding Type.

INFORMATION COURTESY: TENDERSINFO.COM

1, Arch Gold, Next to MTNL Exchange, Poisar, SV Road, Kandivali (W), Mumbai - 400067, Maharashtra, India

Tel: +91-22-28666134 • Fax: +91-22-28013817 • Email: [email protected]

PALLET TRUCK

Org : Ordnance Factory Board

TRN : 11188987

Desc : Supply of forklift truck

BOD : September 10, 2012

Loc : India

BT : Domestic competitive bidding

CRANE

Org : Border Roads Organisation

TRN : 12145599

Desc : Supply of crane (10 Nos)

BOD : September 11, 2012

Loc : India

BT : Domestic competitive bidding

CHAIN

Org : Integral Coach Factory

TRN : 12168594

Desc : Supply of chain sling assembly

BOD : September 11, 2012

Loc : India

BT : Domestic competitive bidding

CRANE

Org : National Aluminium Company Limited

TRN : 12152592

Desc : Supply of EOT Crane

BOD : September 12, 2012

Loc : India

BT : Domestic competitive bidding

CARGO SERVICE

Org : Bharat Sanchar Nigam Limited

TRN : 12162785

Desc : Transportation of diesel, including loading and unloading in Sitapur

BOD : September 21, 2012

Loc : India

BT : Domestic competitive bidding

SCISSOR LIFT

Org : Western Railway

TRN : 12113179

Desc : Provision of lift

BOD : September 21, 2012

Loc : India

BT : Domestic competitive bidding

GANTRY CRANE

Org : South Eastern Railway

TRN : 12168775

Desc : Supply of gantry crane (jib crane)

BOD : September 07, 2012

Loc : India

BT : Domestic competitive bidding

PROJECT 1

SETTING UP OF FACTORY WORKS

Org : TIL Limited

Project Type : ConstructionProject News : Setting up a crane and reach stacker factory project

Loc : India

Project Cost : `600 crore

Implementation Stage : Ongoing

Contact : 517, Barrackpore, Trunk Road, Kolkata, West Bengal 700058

Tel : 033 – 25531352.

PROJECT 2

TORNAGALLU TRUCK TERMINAL PROJECT

Org : Bellary Urban Development Authority

Project Type : Construction

Project News : Tornagallu Truck Terminal Project

Loc : India

Project Cost : `29 crore

Implementation Stage : Ongoing

Contact : Bellary Urban Development Authority (BUDA) Bellary, Karnataka.

Page 56: Smart Logistics - September 2012

56 • SMART LOGISTICS • SEPTEMBER 2012

EVENT PREVIEWEVENT PREVIEW ENGINEERING EXPO AHMEDABAD 2012ENGINEERING EXPO AHMEDABAD 2012

PRASENJIT CHAKRABORTY AND AVANI JAIN

GUJARAT has witnessed winds of

change in the recent past. Today, the

state offers the developing nations a

model for economic progress. Despite

slump in the world economy, its

significant contribution to the Indian

economy has made the country visible

in a competitive market.

The industry in Gujarat has

evolved new models of development.

Commenting on the merits of doing

business in Gujarat, Bijal Shah,

Director, Sharad Industrial Products

Pvt Ltd (authorised distributor of

SKF Group), states, “The industry

has really changed in Gujarat and

the focus has changed from the

typical ‘product sell’ to ‘saleable

products’ manufacturing. Even global

competition has not deterred the

growth of the manufacturing sector;

rather it has only risen.”

Sharing similar sentiments,

Snehal Mehta, Director – Marketing,

Energy Mission Machineries (India)

Pvt Ltd, observes, “In the last few

years, the manufacturing industry in

Gujarat has developed immensely.

Today, the brands from Gujarat are

regarded as trusted names across India

and abroad. The overall atmosphere of

Gujarat has inspired entrepreneurs to

start new ventures.”

FLOURISHING MARKETGujarat’s core competence can be

attributed to factors like political

stability, industrial peace in labour

relations, policy-driven reforms,

uninterrupted power supply, adequate

infrastructure, transparency in

governance and clear land acquisition

rules. Besides, the industry-friendly

government policies, availability of

skilled manpower and large network

of sea ports provide added advantages

to the state. All these have enabled it

to emerge as an investment-friendly

state and also helped in changing the

landscape of manufacturing.

In the words of Nilesh Shukla,

Sr VP, Vadodara Chambers of

Commerce & Industry (VCCI), “The

manufacturing sector has witnessed

unprecedented growth in the last

decade. The industry has been able

to make the best use of initiatives of

the various chambers of commerce &

industry that have contributed towards

spreading awareness regarding the

incentives that the government offers.”

Ahmedabad has emerged as

a preferred destination for many

companies. The reasons are many.

Mehta says, “The supportive

government policies, availability of

adequate infrastructure and overall

development of support industries are

some of the reasons for the continuing

prosperity of Ahmedabad. Besides,

Ahmedabad is conveniently located

on the industrial corridor, which has

attracted many big players to invest in

and around the city.”

According to SJ Gijare, GM

– Handling Equipment Division,

CTR Manufacturing Industries Ltd,

“Gujarat has always been a base for

the SME sector, with most people

preferring to have their own businesses.

However, in the past 6–7 years,

Gujarat has been making rapid strides on the industrial front. It achieved sound economic growth in last few years and the quantum of investment has increased manifold. Today, the state has gained recognition for its manufacturing prowess. This backdrop provides ample opportunities to leverage trade benefi ts and develop a rewarding business platform. Providing precisely this is Engineering Expo Ahmedabad, organised by Network 18 Publishing. Slated to be held during October 5–8, 2012, it will present the manufacturing community a plethora of products and act as a nodal point to generate fruitful business leads.

Brimming with BRIGHT PROSPECTS

AHMEDABADOctober 5-8, 2012Gujarat University Exhibition Hall

180+ exhibitors

11,789+ visitors

15,000+ products displayed

`74 crore business generated

4,312 sq m exhibition area

87,000 kg machinery moved

20 cities participated.

Glimpses of 2011 Edition

225+ participants

15,000+ business visitors expected

Business transactions worth `80 crore expected

15,000+ products on displaySpread over an area of more

than 4,312 sq mShowcasing more than 30 diverse industry categories

Supported by major industry associations like National

Small Industries Corporation, Rajkot, Engineering Association,

Vadodara, Chambers of Commerce & Industry, etc.

Highlights of 2012 Edition

Page 57: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 57

several large Indian companies and

overseas corporations have set up their

manufacturing facilities in different

regions of Gujarat. Ahmedabad, as

a major industrial region, obviously

becomes a preferred destination for

any player, and more so, to showcase

one’s strengths in products & services

in a popular exhibition.”

With the growth of the

manufacturing sector in Gujarat,

there is huge potential to gain trade

benefits and develop a rewarding

business platform. Providing precisely

this is Engineering Expo Ahmedabad,

which is to be held from October

5–8, 2012. It will provide a fillip to

the manufacturing community by

displaying products that will help

enhance production efficiency and

will also act as an ideal platform to

generate fruitful business leads.

ENTERPRISING ENGINEERING EXPO For over a decade, Engineering

Expo Ahmedabad has been serving

as a platform to foster business and

trade. “We have been participating

in the exhibition since its beginning.

It has given us a proper platform to

build our brand name by displaying

and demonstrating our products and

offering good exposure to buyers,”

says Mehta. Sharing a similar view,

Gijare adds, “Since 2007, we have

been participating in several editions

of Engineering Expo – Pune,

Ahmedabad, Aurangabad, Chennai,

Rudrapur and Indore. This is because

they are well organised and the people

associated with it are professional.”

FOSTERING BUSINESS TIES The Expo has emerged as a perfect

platform for companies to showcase

their products and services, interact

with potential buyers, generate

new business leads and forge new

partnerships.

Over the years, the exhibition has

gained strength in terms of adding

new companies and expanding product

varieties. “I have been regularly

attending this exhibition for the past

three years. Engineering Expo has

always helped me meet prospective

clients for my business. With time,

it has grown bigger. Every year, it

adds new companies to its portfolio

– an indicator of growth. This also

inspires visitors, like us, to be a part of

it every year,” says Abhinav Srivastava,

Technical & Marketing Consultant,

Asteam Consultants. The Expo will

help exhibitors to reach their target

audience. Kalpesh Shah, Manager –

Sales, AC Tech Control Systems Pvt

Ltd, says, “The main benefit of the

event is that we get an opportunity to

meet our customers face to face. We

manufacture automation equipment

and have a good market presence in

Gujarat. We have participated before

and generated good business. We

expect the same this year as well.”

Commenting on the Expo,

Sandeep Khosla, CEO, Network 18

Publishing, says, “After 10 successful

years of service to the industry,

Engineering Expo today has established

itself as India’s largest multi-location

trade show on manufacturing. The

Expo is a preferred destination for

SMEs as well as manufacturing &

engineering organisations to further

their growth and that of the industry

at large. For the 2012–13 season, we

have eight editions spread across an

equal number of locations of a rising

India. Keeping our esteemed exhibitors

and valued customers in mind, we have

made elaborate provisions to offer a

never-before experience. These, we

reckon, will add substantial traction to

the industrial growth of the nation.”

A PLATFORM FOR INNOVATIONNew product launches is another

highlight of this Expo. Gijare explains,

“We plan to introduce Articulated

Boom Lift Aerial Platform;

Electric Puller of 1.5 T capacity;

Counterbalance Electric Stacker and

Electric Reach Stacker.”

Sharad Industrial Products Pvt

Ltd plans to display products that

are in demand globally. “We plan to

showcase a certain range of products,

which are in focus globally, at SKF,”

says B Shah.

Pankaj Pandya, Manager - Purchase,

Metso Minerals (India) Pvt Ltd, who

visited the Expo last year, opines,

“Engineering Expo provides a common

networking platform for leaders in the

industry to showcase their products.

This has helped potential customers to

take better business decisions. I usually

visit exhibitions such as this with the

objective of finding new potential

suppliers.”

Engineering Expo Ahmedabad

is an excellent example of starting

humbly and achieving an enviable

feat over the years. The 2011 Edition

witnessed overwhelming response from

the industry with over 180+ exhibitors.

It generated business worth about `74

crore. No wonder, the 2012 Edition

is expected to spin magic with 225+

exhibitors and 15,000 visitors.

[email protected]

[email protected]

Panel Discussion: Aims at providing a roadmap to infuse growth in the region

Institutional Buyer Involvement Plan: To attract delegations from large corporate and major institutions

Improvised Visitor Profi ling: Profi le, scan, fi lter and bring in visitors as per exhibitors’ requirements

Providing Business Networking Support: To exhibitors by leveraging Network18 Publishing’s industry connect

Credit-rating Facilities: For the benefi t of exhibitors

Providing Complete Travel Solutions: For exhibitors

Offering Logistics Services: To ensure smooth cargo handling, custom clearing, etc.

NEW ATTRACTIONS IN THIS EDITION

Page 58: Smart Logistics - September 2012

EVENT REPORT EVENT REPORT SUPPLY CHAIN TRANSFORMATIONS 2012 SUPPLY CHAIN TRANSFORMATIONS 2012

58 • SMART LOGISTICS • SEPTEMBER 2012

Deriving at logistics’ possibilities & opportunitiesCollaboration, skilled labour and multimodal transportation were the central themes of the recently organised annual logistics strategy workshop, ‘Supply Chain Transformations 2012’. Organised by Frost & Sullivan with Smart Logistics as the media partner, the workshop focussed on developing certain guidelines after a critical evaluation from the industry that could play a constructive role in creating an expansion-friendly environment for the Indian logistics industry.

TODAY, logistics & supply chain is

one of the fastest growing industries

in India and is expected to witness

a consistent yearly growth of around

10% over the next 10 years. However,

there are some major challenges

that are preventing its expansion

and development. Highlighting

these issues was the annual logistics

strategy workshop, ‘Supply Chain

Transformations 2012’ held during

August 22–24, 2012, in Gurgaon.

At the workshop, leading experts

presented and discussed practical

approaches on how to successfully

tackle critical challenges in order to

transform logistics and supply chain

operations across target industries.

COLLABORATIVE LOGISTICSDefining collaborative logistics, VG

Ramakrishnan, VP (South Asia and

MENA) — Transportation and

Logistics Practice, Frost & Sullivan,

said, “Collaborative Logistics is the

partnership or cooperation between

two or more parties to achieve

optimisation of costs, processes and

resources.”

Pointing out a major concern

towards collaboration, Prem

Kumar Verma, CEO, Tata Motors

Distribution Co Ltd, said, “We do not

collaborate because of trust deficiency.

This is posing as a great hurdle in the

path to progress. Trust is critical for

collaboration or on any agreement

signed.” Further highlighting a success

story in collaborative logistics in India,

he said, “With an aim to optimise

and improve efficiency through

collaboration, in 2009–10, major

OEMs in India like Maruti, Toyota,

Ford, M&M and Tata Motors joined

hands; SIAM was the ‘glue or the

common factor’ that brought these

companies together. In terms of the

results, there was huge improvement

in productivity and efficiency. For

instance, the average daily running—

in transit—improved by 20–30% and

the turnaround time was improved

by 30–45%.” He added, “The gains

remained only for a short period. We

faced problems, but it also turned out

to be a huge learning exercise for us.”

SKILLED LABOUROne of the primary challenges

faced by companies is the scarcity

of skilled labour. Ramakrishnan

said that according to 76% of the

respondents, skill and expertise

level of labour handling logistics

needs immediate attention. To this,

Srinath Manda, Program Manager –

Transportation and Logistics, Frost

and Sullivan, South Asia, Middle

East and North Africa, added that

as per 77% of the respondents, the

automotive industry has the highest

challenge of acquiring skilled labour,

followed by retail & FMCG.

ENLIGHTENING PANEL DISCUSSION The workshop also conducted a panel

discussion based on the challenges

faced by industries on skill and human

resources in logistics. The panel

comprised of Gauri Gupta, Lead –

Strategy and Program Development,

National Skill Development

Corporation; Dr PK Goel, Secretary

General, Chartered Institute of

Logistics and Transport, India;

Ramesh Doraiswami, VP – Regional

Supply Chain, Johnson & Johnson;

Kalpesh Pathak, AVP – Corporate

SCM, Fiat India Automobiles; and

Vineet Kanaujia, VP – Marketing,

Safexpress. Anand Rangachary, MD &

Partner, Frost and Sullivan, South

Asia, Middle East and North Africa

moderated the panel.

MULTIMODAL TRANSPORTATIONThe final day of the workshop was

dedicated to multimodal transportation.

The day began with presentations

by Esha Ghosh, Research Analyst –

Transportation and Logistics, Frost

and Sullivan, South Asia, Middle East

and North Africa and Jasjit Sethi,

CEO, TCI, on the importance of

multimodal transportation in India

and the global practices followed to

achieve multimodal transportation.

HARBOURING SUCCESS Frost and Sullivan’s ‘Supply Chain

Transformation 2012’ turned out to

be a huge success. The workshop

was successful in bringing together

some of the best thinkers, visionaries

and thought leaders across key

industry sectors such as logistics &

shipping, automotive, electronics

and communications equipment,

engineering, pharmaceuticals, retail, and

FMCG, apart from academicians &

representatives from the government.

[email protected]

ARINDAM GHOSH

The top concerns for non-collaborators in the logistics

industry include the inability to attain cost advantage;

non-suitability of services & systems and lack of confi dence

on LSPs’ abilities.

Page 59: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 59

TRADE SHOW TRACKER TRADE SHOW TRACKER EVENT LIST EVENT LIST

ABROAD

9-11 OCTOBER 2012 METRORAIL ASIA 2012Focus: Latest Developments in Global Rail and InfrastructureWhere: Hyatt Regency, Mumbai, IndiaTel: 65 6222 8550Fax: 65 6226 3264E-mail: [email protected]

15-17 OCTOBER 2012 CHINA (SHENZHEN) INTERNATIONAL LOGISTICS AND TRANSPORTATION FAIR 2012Focus: Logistics Service ProvidersWhere: Shenzhen Convention & Exhibition Center, Shenzhen, ChinaTel: +86 755 8358 1250Fax: +86 755 8358 1307E-mail: [email protected]

16-19 OCTOBER 2012 SCM LOGISTICS WORLD 2012Focus: Logistics & SCMWhere: SingaporeTel: +65 6322 2313Fax: +65 6223 3554E-mail: [email protected]

NATIONAL

ABROAD

21-24 NOVEMBER CeMAT INDIA 2012 Focus: Trends And Technologies In Material Handling, Storage And LogisticsWhere: India Expo Centre, Greater Noida, India Tel: +91 22 40050681/82Fax: +91 22 40050683E-mail: [email protected]

20-21 NOVEMBERLOGIPHARMA ASIAFocus: Pharma Supply ChainWhere: SingaporeTel: + 65 6408 9205Fax: + 65 6822 7370E-mail: [email protected]

20- 21 NOVEMBER 20128TH TRANS MIDDLE EAST 2012Focus: Transportation and LogisticsWhere: Gulf International Convention and Exhibition Centre, BahrainTel: +973 17 713000Fax: +973 17 712088

NATIONAL

ABROAD

7-9 DECEMBER 2012INDIA WAREHOUSING AND LOGISTICS SHOWFocus: Logistics & TransportationWhere: Auto Cluster Exhibition Centre, Pune, IndiaTel: +91 120 4273921/43341111/4273921Fax: +91 11 46520734

7-10 DECEMBER 2012INDIA LOGISTICS SHOWFocus: Railway, Shipping & AviationWhere: India Expo Centre, Greater Noida, IndiaTel: 022 27812093Fax : 022 27812578 E-mail: [email protected]

5-8 DECEMBER 2012INDUSTRIAL AUTOMATION & LOGISTICS INDONESIAFocus: Automation & Logistics Where: Jakarta, IndonesiaTel: 60 3 8023 5352 Fax: 60 3 8023 3963

NATIONAL

AHMEDABAD October 5-8, 2012

PUNE November 2-5, 2012

CHENNAI November 22-25, 2012

LUDHIANA December 21-24, 2012

Tel: 022-30034651 • E-mail: [email protected] • Web: www.engg-expo.com

INDORE January 11-14, 2013

AURANGABAD February 1-4, 2013

RUDRAPUR February 23-26, 2013

HYDERABAD May 31-June 3, 2013

Page 60: Smart Logistics - September 2012
Page 61: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 61

PRODUCT UPDATE PRODUCT UPDATE

This section gives information about products, equipment and services available in the market. If you know what you want. . .refer to Product Index on Page 64 to find it quickly

� BARCODE PRINTER

E-Class Mark III “Professional Plus”

Barcode Printer off ers features found

in industrial printers but at a desktop

printer size and price. It is the best solution

for grade label and receipt printing. Th e Pro+

off ers a locking media cabinet and suffi cient

internal media capacity to hold a 7.2-inch roll of media or stack

of fan-folded media. It is also equipped with fast print speed,

real-time clock, audible alerts and large display.

Datamax-O’Neil

California, USA

Tel: 949-458-0500

Fax: 949-458-0708

Web: www.datamax-oneil.com

SUBSCRIPTION

OFFEROFFERBusiness Categories (Please tick one or more)� FMCG � Retail � Pharma � Automobile � Machinery � Logistics� Textile � Agro � Product � Bank � Technology � Electronics � Engineering� Chemical � Construction � Others (Please specify) __________________________________________

Business Department Functional (Please specify at least one)� Production � Logistics � Marketing � IT � Finance� Sales � Administration � Tools & Equipments � Purchase & Material Handling

Others (Please specify)______________________________________________________________________

Number of employees in your firm/company ______________________Number of offices across India ____________

If Student (Please specify at least one) � Graduate � PG

SUBSCRIPTION DEPARTMENT:INFOMEDIA 18 LTD.: ‘A’ Wing, 2nd Floor, Ruby House, J.K. Sawant Marg, Dadar (W), Mumbai 400028.Call: 022-3003 4631/33; Fax: 022-3003 4499; Email: [email protected]

For exclusive offers log on tohttp://eshop.infomedia18.in

Magazine Subscription Made Simple

Vol. 02 | Issue 06 | SEPTEMBER 2011 ` 100/-

� GOLIATH CRANES

The single girder and double girder Goliath cranes

conform to IS:807-1976, IS:3177-1977, IS:3938-1983

and IS:4137-1963 wherever applicable. Th ese cranes are

manufactured up to 50 ton capacity and for 40 m span.

Grabbing cranes are designed to suit indoor or outdoor location

and can also be supplied with

grab buckets, electromagnets.

Goliath cranes are designed to

run on forged steel wheels

running on L-type housing on

anti-friction roller bearings.

Th ese cranes are suitable for

control from fl oor, by means of

pendant controller or from the driver’s cabin by means of master

controller or through radio remote control.

Elmech Engineers

Mumbai, Maharashtra

Tel: 022-2352 1798/2710

Email: [email protected]

Web: www.elmechengineers.com

� EOT CRANES

The rational structure of the crane is of box construction

adequately designed and reinforced by stiff ening ribs. It

is connected with bridge trolley, which is moved by

motors, coupled up with speed reducers. Th e crab carriage is in

the steel section. It comprises of special crane duty motor,

Page 62: Smart Logistics - September 2012

62 • SMART LOGISTICS • SEPTEMBER 2012

Product update, continued

Enclosed Cheque/DD No. ______________ of `799/- for 1 year (12 Issues) `1999/- for 3 years (36 Issues) favoring Infomedia18 Ltd payabel of Mumbai.

Dated: ____ / ____ / _______ Bank: _________________________________ Branch:__________________ City:____________

Credit card: Master Card Visa Card American Express Card

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Terms & Conditions: Your subscription will start from the next available issue. No cancellation will be entertained after commencement of the subscription. Infomedia18 reserves the right to extend, cancel or discontinue the offer though Infomedia 18 will take utmost care to dispatch the copies safely, Infomedia 18 does not take the responsibility of any postal delays and damaged copies dispatched. For more information contact Infomedia 18 subscription department.

Disclimer: “The Company is proposing, subject to market conditions and other considerations, an offer of its equity shares on rights basis and has filed a Draft Letter of Offer with the Securities and Exchange Board of India (“SEBI”). The Draft Letter of Offer is available on the website of SEBI at www.sebi.gov.in and the website of the Lead Manager at www.icicisecurities.com.Investors should note that investment in equity shares involves a high degree of risk and are requested to refer to the section titled “Risk Factors” of the Draft Letter of Offer for details of the same.”

http://eshop.infomedia18.in

connected to speed

reducers and is

coupled to a

grooved steel drum.

Electromagnetic

brakes are used to

control the smooth

lifting of weight.

AC drive is also provided (on demand) for smooth operation of

long travel. Th e hook is equipped with a forged steel forked

revolving hook. Wire rope is of 6 x 37 construction.

Friends Engineering Works

Udaipur, Rajasthan

Tel: 91-294-2492200, 91-294-2494379

Mob: 09829042424

Email: [email protected]

Web: www.friendseng.com

� LIFT GOLIATH CRANE

This unique special type goliath crane has with 12 tonne

lifting capacity. It has a 180 m lift with 20 m span that

includes a hoisting speed of 25 m/min. Th e crane can be

used for lifting and shifting of blusted muck through bucket

with openable gate at the bottom. It can be used for

transportation of steel ribs for shaft up to 180 m deep. It can

also perform all activities from ground level to 180 m deep

shaft, including transferring of loader/ JCB/ BOBcat for

loading of muck in the bucket.

Century Crane Engineers (P) Ltd

Faridabad, Haryana

Tel: +91-0129-4048863

Email: [email protected]

Web: www.centurycranes.com

� ALUMINIUM CRANE SYSTEM

These XA aluminium light

crane system applies the

strength and low weight

of aluminium to every light

material which needs to be lifted.

Handling low loads is of up to 2

metric tonne across a wide variety

of rail types, it is a robust, cost-

effi cient solution. An anodised

aluminium surface ensures the

long-term durability of the

system purchase. Th e modular

design, requiring no welding or

Page 63: Smart Logistics - September 2012

SEPTEMBER 2012 • SMART LOGISTICS • 63

The information published in this section is as per the details furnished by the respective manufacturer/distributor. In any case, it does not represent the views of

Looking For A Specific Product?Searching and sourcing products were never so easy.

Just type SL (space) Product Name and send it to 51818eg. SL Forklift and send it to 51818

painting, greatly reduces downtime during installation,

expansion, or upgrade.

Konecranes India Pvt Ltd

Pune, Maharashtra

Tel: +91-020-40047470

Email: [email protected]

Web: www.konecranes.com

� PALLET TRUCK

The model AGHL-100

high-lift pallet truck is

specially designed for

raising pallets to medium heights

up to 800 mm. Th is pallet truck is

used for stacking 2 to 3 pallets.

Pallet used in the hydraulic hand

high lift trolleys is used in various

types of work in plant and

maintenance shops. Technical

specifi cations include capacity of

1,000 kg, minimum height of 90

mm, overall width of 560 mm,

fork width measuring 152 mm,

fork length of 1,220 mm, and raised height of 800 mm.

Agromec

Meerut, Uttar Pradesh

Tel: +91-0121-2440660, 91-121-3098766

Mob: 09313159058

Email: [email protected]

Web: www.agromecindia.net

� HYDRAULIC PALLET TRUCK

Tiger hydraulic pallet

truck is of high quality

engineering and heavy-

duty construction. It is an

economical solution for handling

heavy loads. Th e frame is made

of heavy duty formed steel, jig

welded and forks of double

fl anged pressed steel which gives

maximum strength. Ram and pump plunger of the hydraulic

cylinder is grounded to high precision and hard chrome plated

which reduces wear and resists from corrosion. Special safety

valves are provided for smooth lowering of load and a dual

overload safety valve is provided to protect the truck from

damage due to overloading.

Ferro Foundries Pvt Ltd

Mysore, Karnataka

Tel: +91-821-2402376,+91-0821-3048000

Mob: 09845120878

Email: [email protected]

Web: www.ferrotiger.com

Page 64: Smart Logistics - September 2012

PRODUCT & ADVERTISERS’ INDEX

64 • SMART LOGISTICS • SEPTEMBER 2012

COC = Cover-on-Cover, FIC = Front Inside Cover, BIC = Back Inside Cover, BC = Back Cover

Our consistent advertisers

To know more about the products & advertisements featured in this magazine, write to us at [email protected] or call us on 022-3003 4640, and we will send your inquiries to the companies directly to help you source better.

Products Pg No Products Pg No

Pg No Advertiser Tel. No. E-Mail Website

Looking For A Specific Product?Searching and sourcing products were never so easy.

Just type SL (space) Product Name

and send it to 51818eg. SL Forklift and send it to 51818

DENDE

Aluminium crane system ...........................................................62

Auto FLC ................................................................................... 4

Barcode Printer ..........................................................................61

Cold form C & Z purlins ........................................................... 8

EOT cranes ................................................................................61

Event: 6th express ....................................................................... 6

Factory automation ....................................................................17

Fleet management services..................................................... BIC

Foldable plastic crates ................................................................. 4

Folding large container (FLC) .................................................... 4

Gantry automation .....................................................................17

Goliath cranes ............................................................................61

Heavy industrial steel builings .................................................... 8

Hr sections & heavy structures ..................................................11

Hydraulic pallet truck ................................................................63

Lift goliath crane .......................................................................62

Logistics & supply chain conclave .............................................. 6

Logistics services ..................................................................7, BC

Multi level car parks ................................................................... 8

Pallet truck .................................................................................63

Pallets .....................................................................................4, 63

Poly carbonate sheets .................................................................. 8

Pre - engineered steel buildings .................................................11

Pre - stressed concraete electric poles ........................................11

Pre - stressed concrete railway sleepers ......................................11

Pre engineered steel builings ....................................................... 8

Pre fab shelters ............................................................................ 8

Residential steel houses ............................................................... 8

Robotic automation & floor automation ...................................17

Roof vent ..................................................................................... 8

Roofing & cladding sheets .......................................................... 8

Self supported steel roofing systesms .........................................11

Structural floor decking sheets .................................................... 8

USS univent ................................................................................ 8

Vehicle tracking services ........................................................ BIC

BIC Alpha Analytics Services Pvt Ltd +91-20-25897063 [email protected] www.alpha-analytics.com

4 Chep India Pvt Ltd +91- 022 67839400 [email protected] www.chep.com

19 Eng Expo +91-9819552270 [email protected] www.engg-expo.com

60 Eng Expo Hyderabad +91-9819552270 [email protected] www.engg-expo.com

FIC Future Suppy Chain Solutions Ltd [email protected] www.futuresupplychains.com

17 Gudel India Pvt Ltd +91-20-25459531/32 [email protected] www.gudelindia.com

6 Kamikaze B2B Media +91- 9969428590 [email protected] www.elscconclave.com

11 Proflex Systems +91-9099002244 [email protected] www.mbproflex.com

7,BC Safexpress Private Limited +91-1800-113-113 [email protected] www.safexpress.com

63 Sintex Industries Ltd +91-2764-353500 [email protected] www.sintex-plastics.com

8 United Steel & Structurals Pvt. Ltd +91-44-42321801 [email protected] www.unitedstructurals.com

3 VRL Logistics Ltd +91-836-2237511 [email protected] www.vrllogistics.com

Page 65: Smart Logistics - September 2012

Second Fold Here

First Fold Here

Second Fold Here

First Fold HereFirst Fold Here

Third Fold HereGLUE

Use this form for free additional Information on advertisements published in this issue. We will send your inquiries to the advertisers and ask them to send you the details or contact you directly.

HOW TO USE THIS FORM: • Please tick against the box of advertiser(s) you are interested in: • Mention specific product/service you

need, against the advertiser’s name • Complete all the details on this form. • Tear the form & mail it to us. (It is a prepaid mail)Tel.: +91-22-3003 4640 • Fax: +91-22-3003 4499

E-mail: [email protected]

��

�PRODUCT INQUIRY FORM

ADVERTISERS’ INQUIRY FORM

Alpha Analytics Services Pvt Ltd

Chep India Pvt Ltd

Eng Expo

Eng Expo Hyderabad

Future Suppy Chain Solutions Ltd

Gudel India Pvt Ltd

Kamikaze B2B Media

Proflex Systems

Safexpress Private Limited

Sintex Industries Ltd

United Steel & Structurals Pvt. Ltd

VRL Logistics Ltd

Aluminium crane system

Auto FLC

Barcode Printer

Cold form C & Z purlins

EOT cranes

Event: 6th express

Factory automation

Fleet management services

Foldable plastic crates

Folding large container (FLC)

Gantry automation

Goliath cranes

Heavy industrial steel builings

Hr sections & heavy structures

Hydraulic pallet truck

Lift goliath crane

Logistics & supply chain conclave

Logistics services

Multi level car parks

Pallet truck

Pallets

Poly carbonate sheets

Pre - engineered steel buildings

Pre - stressed concraete electric poles

Pre - stressed concrete railway sleepers

Pre engineered steel builings

Pre fab shelters

Residential steel houses

Robotic automation & floor automation

Roof vent

Roofing & cladding sheets

Self supported steel roofing systesms

Structural floor decking sheets

USS univent

Vehicle tracking services

Page 66: Smart Logistics - September 2012

Please complete the following & get a quick effective response from suppliers: 1. Your company’s business function is (�one only)

� Wholesalers � Manufacturer � Distributor � Agent � Other, please specify ______________

2. Your role in your company’s buying process can best be described as:

� I buy � I identify potential suppliers � I approve purchases� I negotiate contracts � I select suppliers.

3. Your line of business

4. Specific product requirement

Name:

Designation:

Company Name:

Address:

City: Pin:

Tel: Fax:

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RNI NO. MAHENG / 2010 / 34343 Postal Registration No. G / NMD / 124 / 2011 - 13Posted at P.C Stg. Offi ce, GPO, Mumbai 400 001. Date of Mailing: 5th & 6th of Every month issue. Date of Publication: 2nd of every month