Category Archives: Supply Chain

New technologies such as Big Data, telematics systems, and alternate fuel technology can help drive efficiencies in the transportation sector by optimising routes for efficient delivery sequence, maximise asset utilisation, and improve fuel efficiency. According to Shamsher Dewan, Vice President & Sector Head – Corporate Ratings, ICRA, the profit margins of fleet operators are highly volatile as compared to agents and third-party logistics companies. “The profitability margins of fleet operators are especially sensitive to fluctuations in diesel prices and frequent increase in vehicle ownership cost, toll charges, and other overheads. The sharp increase in diesel prices in Q2 and Q3 FY2019 had a significant impact on profitability indicators of fleet operators as freight rates didn’t move in a similar fashion owing to overall surplus capacity in the trucking system. In such an environment, gradual adoption of new technologies can help fleet operators improve their cost structure and bring down some of the fixed costs.”

To provide contract and express logistics services, Future Supply Chain Solutions (FSC) has signed a multi-year agreement with Benetton India. As per the agreement, FSC will manage Benetton India’s supply chain requirements from a large built-to-suit, multi-customer distribution centre in North India. This will cater to its pan India requirements, including reverse logistics. This is in addition to the express logistics services that FSC has been offering to Benetton India for the past few years. Apart from Benetton India, the company has signed multiple new contracts, including those with Voltbek Home Appliances, Haldirams Products, and Crompton Greaves Consumer Electricals in the past one year.

Driving a change for the logistics sector, Future Supply Chain (FSC) Solutions has established an all-women-run distribution centre (DC) ‘Shakti’ in Nimji, Nagpur. The DC is fully equipped with Transportation Management System and Warehouse Management Systems software. FSC introduced a disruptive idea of an all-women distribution centre at Nagpur last year. The inspiration behind the initiative was a woman in-charge of their Bengaluru DC who impacted the entire productivity chain in a positive manner. P V Sheshadri, CEO, FSC Solutions said, “FSC has been providing job prospects in the rural and semi-urban areas with its expanding warehouse footprint. We operationalised an all women DC last year with an objective to create opportunities for the women in Nimji, Nagpur. We look forward to inducting more women in our warehousing facilities and be the flag bearer of this change.” Future Supply Chain has already initiated a step towards gender equality by showing no disparity between the wages earned by men and women.

Tata Motors along with Tata Motors Finance Group has entered a strategic tie-up with Kool-ex Cold Chain to supply 200 fully-built reefer trucks manufactured by Tata Motors. The reefer units used for this deal will be built on the popular Tata LPT 1613 MCV trucks and the Tata LPT 2518 Multi-axle truck. Shyam Mani, Managing Director, Tata Motors Finance Group, says, “As a part of this tie-up, we will not only be providing vehicle financing through Tata Motors Finance (TMFL) but will also provide mezzanine equity financing to the company through Tata Motors Finance Solutions (TMFSL), making this a structured financing deal. We are confident that this complete package will deliver the best for all companies who are a part the deal and will lay a strong foundation for a continued association ahead.”

The Centre for Entrepreneurship Development (CED), a Government of Gujarat organisation and JBS Academy (JBSAPL) have partnered for creating awareness on skill development activities for the budding youth of Dhrangadhra and Ahmedabad focussing on the youth desiring to have employment through skill development in logistics and other employable education sectors and also providing them gainful employment in the sector. With the financial support from CED, the Academy has conducted two Awareness Seminars at Dhrangadhra and Ahmedabad on 26th and 31st December 2018.

Federation of Freight Forwarders’ Associations in India (FFFAI) elected S Ramakrishna as Chairman of FFFAI for the period December 1, 2018 to September 30, 2019, at its eighth Executive Committee meeting. AV Vijayakumar, Chairman Elect, FFFAI and Brihanmumbai Custom Brokers Association congratulated Ramakrishna by presenting him with a bouquet of flowers on behalf of the Executive Committee members.

The Cabinet, chaired by Prime Minister Narendra Modi, has approved the Agriculture Export Policy 2018, aimed to double the income of farmers by 2022. Exports of agricultural products would play a pivotal role in achieving this goal and in order to provide an impetus to them, the Agriculture Export Policy will aim to double agricultural exports and integrate Indian farmers and agricultural products with global value chains. The Cabinet has also approved the proposal for establishment of a monitoring framework at the Centre, with commerce as the nodal department and representation from various ministries, departments, agencies, and representatives of concerned state governments, to oversee the implementation of the new policy.

According to a report titled ‘Supply chains in India: A reality check – Here to where and how’ released by KPMG (India) and Association of Supply Chain Professionals (ASCP), 80 per cent supply chain leaders in India believe customer centricity will be the key theme for supply chain of the future. The report highlights challenges faced by supply chains in India in each of the planning, sourcing, making and delivery stages; impact of key initiatives undertaken to overcome these challenges; the mindset that creates roadblocks in benefit realisation; level of technology adoption and key emerging themes for supply chains of the future. KPMG also shared in the report its perspective on how supply chains can be built effectively for the digital world. Commenting on the future of supply chain, Ravind Mithe, Partner – Management Consulting, Head Operations, KPMG (India), said, “Supply chain function is at a crossroads, where it has to surpass its traditional focus of transactional processing and driving efficiency to a leadership role that can make organisations ready for the digital world. The journey cannot be linear for all organisations; all functions and processes must work in a frictionless manner to realise an enterprise-wide transformation.”

Locus, along with The Worldwide Supply Chain Federation (TWSCF), is hosting the first India chapter of The Supply Chain Meetup in Bengaluru. Named ‘The Bangalore Supply Chain Meetup’, the event is scheduled to be held on November 24, 2018, at The Bohemian House in Richmond Town, and aims to nurture and grow the world’s foremost open, global, multidisciplinary community of people devoted to building the supply chain network of the future. The meetup will be hosted by Nishith Rastogi, CEO & Co-founder at Locus and Brian Aoaeh, The Worldwide Supply Chain Federation’s co-founder. Aoaeh will be present via a Skype call. The Bangalore Supply Chain Meetup will be attended by heads of supply chain and logistics players across key enterprises of e-commerce, consumer goods, 3PL, retail, healthcare, field services, etc.

OceanPro , an intensive 120-day accelerator programme, is offering start-ups an opportunity to partner with Maersk to bring innovative technology solutions to ease the global supply chain for customers. Pioneered in India, OceanPro complements Maersk’s innovation efforts worldwide. Seven external start-ups and one internal start-up have been identified for collaboration to create solutions that serve customers and manage operations better, leveraging Blockchain, Internet of Things, Advance Text Analytics and Artificial Intelligence. “We recognise the immense potential of India’s technology and digital talent and are looking to capitalise on these capabilities to help the logistics industry worldwide, to reinvent itself,” says Søren Skou, CEO, A.P. Moller – Maersk.