Category Archives: Supply Chain

Prime Minister Narendra Modi launched the much-awaited National Logistics Policy (NLP) in the national capital on September 17 which, he said, was an important step towards the ‘making of a developed India,’ while adding that the policy has come with a ‘new energy for every sector.’ In his address, PM Modi said, “In the Amrit Kaal, the country has taken an important step towards the making of a developed India. The echo of ‘Make in India’ and ‘India becoming self-reliant’ is everywhere. India is setting big export targets and is also fulfilling them. India is emerging as a manufacturing hub. In such a situation, the National Logistics Policy has brought new energy for all sectors.” The NLP also aims at enhancing competitiveness and seamless movement of goods. At the grand event, Modi also focused on setting up Multimodal Logistics Parks (MMLPs), developing infrastructure and enhancing multimodal connectivity. “The government, both at centre and state, would prepare a master plan for logistics that will cover projects planned by different ministries to ensure multi-modality, optimal modal mix and addressing first and last mile connectivity. The policy also makes way for a framework to set up Multi-modal Logistics Parks (MMLPs), which will be adopted by states and central ministries. This aims at seamless integration of various modes of transport. A framework will also be put in place for accelerated development of warehousing, which will address key aspects, such as standards, benchmarking and rating, and adoption of technology enabled solutions.”

DHL Supply Chain (DHL) announced a EUR 500 million investment in India over the next five years. DHL will own and operate wholly owned large multi-client sites in India because of this transaction, adding twelve million square feet of warehouse space to the Group’s existing portfolio, says official press release. The expanded warehouse capacity is intended to better serve rising industries such as e-commerce, retail, consumer, life sciences, technology, engineering, and manufacturing, and automotive. “Majority of investment will go towards construction of large warehouses and logistics centers. In India, we will have a multiple customers facility, which means we can deploy people across multiple customers or bring in economies of scale,” said Vikas Anand, MD, DHL Supply Chain India.

Bengaluru-based Vahak, a transport platform enabled by AI, has expanded its operations and user base in Punjab. This digital community enables direct connections between all logistics players, fostering India’s largest ecosystem of transport SMEs and lorry owners. Speaking about this growth since the pandemic, Karan Shaha, CEO, and Co-founder at Vahak said, “Using the Vahak app, Punjab truckers were able to function even during the pandemic, making critical supplies available. Now, they are witnessing up to 25-26 days of inter and intrastate runs as compared to 15-17 days earlier. This has resulted in consistent growth in our user base over the last year with load postings showing a 100 percent increase and lorry posting going up by over 40 percent. We are seeing the highest demand coming in for containers, trucks, and LCVs.”

Reliance Industries Limited (RIL) has invested Rs 30,000 crore (around USD 3.76 billion) in its retail business and added 2,500 stores, taking the total store count to 15,196 in FY22. Besides, Reliance Retail added 11.1 million square feet of warehousing space during the year, nearly doubling the warehousing space to 22.7 million square feet, Reliance Industries Ltd (RIL) said in the annual report for FY22. “Reliance Retail has built capabilities through organic growth, acquisitions, and strategic partnerships with investments near Rs 30,000 crore in FY 2021-22. Reliance Retail added over 2,500 new stores and 11.1 million sq ft of warehousing space during the year,” said official statement from RIL. In FY22, on an average, Reliance Retail added seven stores per day.

The Delhi Mumbai Industrial Corridor Development Corporation (DMICDC) and NEC have collaborated to provide logistics visualization services that would help to streamline India’s complex logistics supply chains and reduce logistics costs. An official statement said, “India’s rapid economic growth has been causing trouble for the country’s aging logistics infrastructure. Transporting goods around the country takes a long time and there are frequent delays. It is difficult to know exactly where shipments are at any given moment. Wishing to avoid the risk of running out of stock, consignors in the manufacturing industry have tended to overstock their inventories. The added costs of navigating complex logistics supply routes and overstocking have created barriers to attracting foreign investment and enhancing international competitiveness.” Piyush Sinha, CEO of DMICDC Logistics Data Services (DLDS), a joint venture company between DMICDC and NEC also stated, “The logistics cost is probably 13 to 14 per cent of total GDP. This must reduce to 7 to 8 per cent to make our exports more competitive.”

DB Schenker is all set to commence a warehouse facility in Badli, Haryana. “We are glad to inform that our upcoming facility in Badli, Haryana is almost ready to use with full compliance. The facility spans a total area of over 6,00,000 sq. feet and is close to the Kundli-Manesar-Palwal (KMP) expressway within NCR,” stated a company’s statement.

According to the leading global freight forwarding company DHL, with new container vessels being delivered and demand from shippers softening, port congestion is expected to ease next year but not enough to restore global supply-chain flows to where they were before Covid. “It’s going to ease in 2023, but it’s not going to go back to 2019,” said Tim Scharwath, Freight Chief Executive Officer, DHL Global Forwarding in a statement. “I don’t think we’re going to go back to this overcapacity situation where rates were very low. Infrastructure, especially in the US, isn’t going to get better overnight, because infrastructure developments take a long time,” he added.

Elixia Tech Solutions recorded a business growth of 175 per cent in Maharashtra in 2021-2022. This apart, Elixia has also clocked a 2.2x increase in its customer base in the said region in FY 2021-2022. Sanket Sheth, Founder and MD said, “Maharashtra Government has made large investments towards improving the state’s fragmented logistics sector. It has resulted in the state emerging as a hub for supply chain operations. Elixia has responded enthusiastically to the moves by leveraging them with our tech-based services. We have taken full advantage and registered robust business growth.” Seth added that “technological intervention will boost and strengthen the state and India’s logistics segment”.

To deliver faster transit times and better service in mainland Penang, Perlis, and Kedah, DHL Express Malaysia has officially opened its new Prai Service Centre in Batu Kawan, Penang, on 17 May 2022. The new facility, which is five times the size of its previous location, occupies almost 2,400 sq. mts. of warehousing and office space. It is equipped with a solar panel system and energy-efficient infrastructure to cut the release of greenhouse gases by 26.9 per cent. Julian Neo, MD, DHL Express Malaysia, and Brunei said, “The boom in online shopping, social media, and express shipping led to record increases in our international inbound and outbound volumes. The positive trajectory is likely to endure as these trends prove their staying power and air cargo availability gradually returns to normalcy.”

To improve supply chain performance, CMA CGM has launched an industry first early container return incentive programme at the FMS terminal in Los Angeles and at its return locations in Dallas, Chicago, Memphis, and Kansas City. The 60-day incentive programme started on 16 May 2022 will continue until July 15 2022. “It will assist in putting back 43,000 dry containers into circulation within four days of pick-up. Clients are expected to receive a $300 credit per dry container returned to eligible locations during calendar days one to four. Followed by a calculation of incentive credits, which will be carried out on a weekly basis with a credit memo issued every 14 days to each applicable importer,” said a company release. Ed Aldridge, President, CMA CGM and APL North America, said, “We are committed to doing everything to increase the fluidity and velocity of America’s supply chain. Our new programme will result in an incentive credit for our importers, improve equipment availability for our exporters and expedite the flow of goods into and out of America’s heartland.”