Logistics Summit 2012
Next generation supply chain for the emerging Economy

Chennai, June 12, 2012: Major shifts in global business conditions are radically altering input costs and risk. In response, companies must realign their supply chains around new assumptions to meet the multidimensional challenges of today’s marketplace. Supply Chain Management is hence perhaps emerging as one of the fastest growing fields of knowledge in this decade. Against this background, CII- Institute of Logistics organised the 10th Edition of its flagship Event, ―The Logistics Summit 2012‖ with the theme ―Next Generation Supply Chain – Challenges & Opportunities‖ on 12th -13th June 2012 at Le Royal Meridien, Chennai. The conference was inaugurated by Shri. G.K. Vasan Minister of Shipping, Govt. of India.

The two day conference will be spearheaded by Mr. Cyrus Guzder, Chairman, CII Institute of Logistics Advisory Council and Mr. R. Dinesh, Co-Chairman, CII Institute of Logistics Advisory Council.

Speaking at the occasion, Shri. G.K. Vasan Minister of Shipping, Govt. of India. said, ― I am happy to participate in the Logistics Summit 2012 organised by CII. The theme of the conference is apt for today business environment as it will help us look into the future with more positivity. Globalisation has increased trade flow within countries and thereby stiffing the competition which has in-turn increased the demand for efficient logistic management. The current situation in the Indian economy serves as a spring board for the logistic industry to take a giant leap. The current installed logistic infrastructure is inadequate so we either ride the tide or invest further to spur the growth in the logistic industry, Govt has taken many step in this regard like allowing 100% FDI, eliminating CST, and allowing VAT, we have build dedicated rain freight corridors, we now need speedy arguments also from the private sector.

Today, the industrial focus is more towards making logistics activities leaner and greener. Industry is also focusing on reducing and compensating on carbon footprints they leave on the environment. About 70% of domestic cargo movement in India happens through roads. However use of sea routes wherever possible is more cost effective and greener, many corporate, particularly automobile and manufacturing sectors are benefitting from this option. Government of India is also encouraging the cargo movement through waterways and has started initiatives to develop better infrastructure to ensure connectivity to major and high volume ports. Inland water transport wherever possible is also being explored.

Tan Sri Addul Rahman Mamat Director General – GCEL Asia, Fmr. Secretary General- Malaysia Ministry of International Trade & Industry launched the ―Shipment Efficiency Analysis project‖ in the summit in the presence of Shri G.K. Vasan.

Tan Sri Abdul Rahman Mamat, GCEL’s Asia Director General and former Secretary General of Malaysia’s Ministry of International Trade and Industry, commented that ―The innovation of the cargo container 70 years ago was a driving force for economic growth, as it significantly reduced the cost of trade. Today, a country’s economy is based on 4 prime industry i.e finance, commerce, insurance and logistics. Maximising the power of logistic industry will empower all the other 3 prime industry and there deliver a true 21st century digital economy. With an efficient and secure logistic industry we can reduce global trade costs by USD 700 billion and generate up to USD 1.2 trillion in new trade supporting about 100 million jobs.‖

Mr. Cyrus Guzder, Chairman, CII Institute of Logistics Advisory Council said ―It’s important to focus on the key challenges to help industry to leap into the next generation of supply chain. To tackle these challenges CII has taken up a series of initiatives like skill development for logistics sector, WAREX Certification, a certification process on Warehouse performance excellence, SCM Pro, a Certification of Supply Chain Professionals’ – SCM Pro is introduced by CII – Institute of Logistics with an objective to
recognize and endorse the competencies of Supply Chain professionals based on the `body of knowledge’ and also help organization to attract right talent.

Mr. R. Dinesh, Co-Chairman, CII Institute of Logistics Advisory Council said, ―The summit highlights the significant role the logistics sector plays in the current era to support India’s ambition to become one of world’s top three economies by mid century. As economies around the world step back from the financial brink and begin adjusting to a new normal, companies face a different set of supply chain challenges than they did at the height of the downturn—among them are rising pressure from global competition, consumer expectations, and increasingly complex patterns of customer demand. The focus of the next two days will not be on how become more competitive but actually on how we can together enhance our knowledge on the supply chain management and explore opportunities to work together with the government and prepare ourselves for the forthcoming challenges of today’s dynamic business environment.With the support of Government and the combined effort of the entire logistic industry, the summit aims to bring about positive changes that will improve efficiency, resiliency, and sustainability, while allowing for more responsive supply chains with greater flexibility to support growth.‖

Sharing a brief note on the publication, Sumit Datta, partner Mckinsey said, ―Today supply chain is one of the top 3 topics that concern CEOs. Companies are today building supply chain as their differentiator. The publication covers pressing challenges of today’s era like last mile delivery innovation, valotality in global supply, talent scarcity, near shoring and green supply chain. The publication also topics like supply chain supporting the corporate strategy, reducing complexity by smart segmentation, matching demand and supply network, global end-to-end planning, and career opportunities in supply chain.‖

The Two day conference attracted end users and senior business executives from the Manufacturing, Telecom, Retail, FMCG, Pharmaceutical, Railway, Shipping, Ports, Logistics service providers, Freight forwarders, Warehousing & Distribution & other sectors, who indeed described Supply chain management as the last goldmine for achieving competitive advantage over rival organisations. National and International case studies from different industries mainly Auto, Pharma, Iron & Steel, Retail, FMC, etc were also presented.

About CII –Institute of Logistics:

CII Institute of Logistics has been established by the Confederation of Indian Industry as a Center of Excellence in Logistics and Supply Chain and to improve the competitiveness of Indian Industry in this domain. CII's Institute of Logistics (CIL) creates a platform to gain more insight into the emerging trends, industry specific problems of national importance and global best practices in logistics & supply chain management. It enables the industry to cut down the transaction cost, increase efficiency, and enhance profitability and enable to sensitize and bring solutions to macro level issues.

With a relentless aspiration to enhance logistics competitiveness in the industry, CIL provides a complete range of services such as education, training, consultancy, research, events and information services & publication.

 
 
The Hindu - June 13 2012
 
 
The New Indian Express - June 13 2012
 
 
Times of India - June 13 2012
 
 
Deccan Chronicle - June 13 2012
 
 
Business Line - June 13 2012
 
 
Business Standard - June 13 2012
 
 
Financial Express - June 13 2012
 
 
Dina Thanthi - June 13 2012
 
 
Dina Mani - June 13 2012
 
 
Dina Malar - June 13 2012
 
 
Malai Sudar - June 13 2012
 
 
Rajasthan Patrika - June 13 2012
 
 
News Today - June 14 2012
 
 
Business Line- June 14 2012
 
 
Deccanchronicle.com - June13, 2012

Vasan wants infrastructure boost to logistics

Massive investment to build better logistical infrastructure and additional capacity is the need of the hour, said Union shipping minister G.K. Vasan here on Tuesday.

Speaking at the inaugural function of the two-day Logistics Summit 2012 organised by CII, Mr Vasan said India lacks sufficient logistics infrastructure.

“The installed logistics infrastructure is inadequate to handle the impact of increased economic activities in the country. The pressure is mounting,” he said. He added that the logistics infrastructure in the country needs speedy augmentation in terms of both quality and capacity through adequate investment not only from the government but also from the private sector.

The pace at which infrastructure development has happened to the growth in freight traffic has been rather slow, thereby acting as a bottleneck and dragging growth, he said, adding that the country should hasten the pace. He said a well-developed logistics infrastructure with efficient processes will result in significant savings in terms of service levels, transit times, inventory costs, processing time and thus overall logistics costs.

“As per a World Bank survey, we have slipped in our Logistics Performance Index (LPI) and it reflects some weaknesses in our logistic system. Logistics cost in India is high at 13 per cent to 14 per cent of GDP compared to 7 per cent and 8 per cent in developed countries,” he added.

In order to improve LPI, Mr Vasan said the government has brought policy reforms besides investing in building infrastructure across rails, roads, airports, ports, logistic parks, containers, inland container depots, container freight stations, warehouses and cold chains.

He said the shipping ministry has been vigorously implementing the national maritime development programme and in the current 12th plan, it has envisaged to increase port capacity to 2686.66 million metric tonne per annum by 2016-17.

 
The hindu.com - June 13, 2012
 
Revised guidelines soon for use of excess land in major ports

Revised policy guidelines for making use of excess land in major ports will be issued soon, said Union Minister of Shipping G.K. Vasan here on Tuesday.

He told reporters that discussions were on to draft the guidelines. They would be sent to the Union Cabinet for clearance. The guidelines would usher in transparency in the use of land for the development of the port sector.

Delivering the inaugural address at the two-day 10th edition of Logistics Summit 2012 with the theme ‘Next generation supply chain – challenges & opportunities', organised by the CII Institute of Logistics and Global Coalition for Efficient Logistics (GCEL), Mr. Vasan said: “The current installed logistic infrastructure in India is inadequate. So, we either ride the tide or invest further to spur growth in the logistic industry. The Centre has taken many steps and we now need speedy participation from the private sector too.”

The logistics cost in India was as high as at 13 to 14 per cent of the Gross Domestic Product (GDP) compared to seven to eight per cent in developed countries. Hence, one should strive to improve the Logistics Performance Index through systematic intervention to boost growth in infrastructure and sustain high growth of the GDP.

The Centre had worked out an action plan to spur economic growth through the infrastructure sector, he said. The need of the hour was to make massive investments for building better logistic infrastructure and additional handling capacity.

During the current fiscal, the capacity of the ports would be enhanced by 244 tonnes at an estimated cost of Rs.14,500 crore.

Appreciating the industry representatives for their efforts in reducing and compensating carbon footprints, he said that about 70 per cent of the domestic cargo movement in India for the last mile delivery of goods took place through roads. Therefore, one must consider adopting the sea route, which is cost effective and environment friendly.

Tan Sri Addul Rahman Mamat, Director General - GCEL Asia, announced the launch of the Shipment Efficiency Analysis (SEA) project to assess shelf-to-shelf trade practices. The six-to-eight week survey, covering about 350 firms in five different economic zones in India, would be launched in the next 10 days.

R. Dinesh, co-chairman, CII Institute of Logistics Advisory Council, said the companies had been grouped into large, small and medium categories for in-depth analysis.
 
Business-standard.com - June 13, 2012
Economy expected to bounce back and resume higher trajectory

Government has responded to the slide in the growth rate by formulating an action plan to spur the economy which is expected to bounce back and resume high growth trajectory, Shipping Minister G K Vasan said today.

"Lately, sustainability of a high growth rate has been a subject of much discussion, especially in the wake of the 2011-12 GDP growth rate falling to 6.5 per cent, which was the lowest in the last nine years," he said inaugurating the CII's "Logistics Summit" here.

He said, however, that given the global scenario, 6.5 per cent growth rate was still commendable.

"Notwithstanding the current dip in growth rate, the economy is expected to bounce back and resume its high growth trajectory. We need to either ride the tide when the economic growth is high or invest to spur the growth itself. We need to seize this moment," Vasan told the gathering attended by leading industrialists.

The government has responded to this "slide" and an action plan had been worked out to spur economic growth through the infrastructure sector, he said.

Observing that the current situation offered a springboard from which the Indian logistics industry could take a giant leap, he said the installed logistics infrastructure was still inadequate to handle the impact of increased economic activities.

The logistics infrastructure in the country needed speedy augmentation in terms of both quality and capacity through adequate investment not only from the government but also from the private sector.
 
Thehindubusinessline.com - June 13, 2012

India slips to 46th rank in logistics performance index

On improving logistics system: Mr G.K. Vasan, Union Minister of Shipping, releasing a McKinsey report ‘Supply chain evolution: Managing the new normal’, at the inaugural session of Logistics 2012, in Chennai on Tuesday. Looking on are (from left): Mr Sumit Dutta, Partner, Mckinsey; Mr R. Dinesh, Co-Chairman, CII Institute of Logistics Advisory Council; Tan Sri Abdul Rahman Mamat, Director General - GCEL Asia, and Mr Cyrus Guzder, Chairman, CII Institute of Logistics Advisory Council. — Bijoy Ghosh
India's logistics performance index reflects some weaknesses in the logistics system.

In the index, which was prepared by the World Bank, India slipped in ranking, said the Union Shipping Minister, Mr G.K. Vasan.
In 2012, India was ranked 46th compared to 39th five years ago.

“We should strive to improve the LPI through a systematic intervention on key issues,” he said at a seminar.

Logistics cost in India is at 13-14 per cent of the gross domestic product compared to 7-8 per cent in developed countries, he said.

The pace, at which infrastructure development has happened, compared to the growth in freight traffic, has been rather slow. This acts as a bottleneck and drags growth.

“We must hasten the pace,” he told in his inaugural address at Logistics Summit 2012 organised by the CII Institute of Logistics.

Mr Vasan said that the government has allowed 100 per cent foreign direct investment in the logistics sector, has eliminated the CST, introduced value-added tax, improved multi-modal transportation and is aggressively promoting public-private-partnerships (PPP). In the current financial year, 42 projects have been identified for capacity addition in ports.

Of this, 29 projects will be on PPP mode. This will enhance the capacity by 244 million tonnes at an estimated cost of Rs 14,500 crore, he said.

The need of the hour is massive investment to build better logistical infrastructure and additional handling capacity, he said.

The industry is also laying focus in making logistics activities leaner and greener by reducing and compensating the carbon footprint they leave on the environment. This should be encouraged.

About 70 per cent of domestic cargo movement in India for the last mile delivery of goods happens through roads.
This leaves more of a carbon footprint.

“We must consider adopting sea routes, which are cost-effective and environment-friendly. On the same lines, inland-water transport is also a focus area, he said.

 
Economictimes.indiatimes.com - June 13, 2012
 
Economy expected to bounce back and resume higher trajectory: Shipping Minister G K Vasan

Government has responded to the slide in the growth rate by formulating an action plan to spur the economy which is expected to bounce back and resume its high growth trajectory, Shipping Minister G K Vasan said today.

"Lately, sustainability of a high growth rate has been a subject of much discussion, especially in the wake of the 2011-12 GDP growth rate falling to 6.5 per cent, which was the lowest in the last nine years," he said inaugurating the CII's "Logistics Summit" here.

He, however, said that given the global scenario, 6.5 per cent growth rate was still commendable.

"Notwithstanding the current dip in growth rate, the economy is expected to bounce back and resume its high growth trajectory. We need to either ride the tide when the economic growth is high or invest to spur the growth itself. We need to seize this moment", Vasan told the gathering attended by leading industrialists.

The government has responded to this "slide" and an action plan had been worked out to spur economic growth through the infrastructure sector, he said.

Observing that the current situation offered a springboard from which the Indian logistics industry could take a giant leap, he said the installed logistics infrastructure was still inadequate to handle the impact of increased economic activities.

The logistics infrastructure in the country needed speedy augmentation in terms of both quality and capacity through adequate investment not only from the government but also from the private sector.
 
Dnaindia.com - June13, 2012
Economy expected to bounce back and resume higher trajectory

Government has responded to the slide in the growth rate by formulating an action plan to spur the economy which is expected to bounce back and resume its high growth trajectory, Shipping Minister GK Vasan said today.

"Lately, sustainability of a high growth rate has been a subject of much discussion, especially in the wake of the 2011-12 GDP growth rate falling to 6.5%, which was the lowest in the last nine years," he said inaugurating the CII's "Logistics Summit" here.
He, however, said that given the global scenario, 6.5% growth rate was still commendable.

"Notwithstanding the current dip in growth rate, the economy is expected to bounce back and resume its high growth trajectory. We need to either ride the tide when the economic growth is high or invest to spur the growth itself. We need to seize this moment", Vasan told the gathering attended by leading industrialists.

The government has responded to this "slide" and an action plan had been worked out to spur economic growth through the infrastructure sector, he said.

Observing that the current situation offered a springboard from which the Indian logistics industry could take a giant leap, he said the installed logistics infrastructure was still inadequate to handle the impact of increased economic activities.
The logistics infrastructure in the country needed speedy augmentation in terms of both quality and capacity through adequate investment not only from the government but also from the private sector.
 
 
Ibnlive.in.com - June 13,2012
'Economy expected to bounce back and resume higher trajectory'

Government has responded to the slide in the growth rate by formulating an action plan to spur the economy which is expected to bounce back and resume its high growth trajectory, Shipping Minister G K Vasan said today. "Lately, sustainability of a high growth rate has been a subject of much discussion, especially in the wake of the 2011-12 GDP growth rate falling to 6.5 per cent, which was the lowest in the last nine years," he said inaugurating the CII's "Logistics Summit" here. He, however, said that given the global scenario, 6.5 per cent growth rate was still commendable. "Notwithstanding the current dip in growth rate, the economy is expected to bounce back and resume its high growth trajectory. We need to either ride the tide when the economic growth is high or invest to spur the growth itself. We need to seize this moment", Vasan told the gathering attended by leading industrialists. The government has responded to this "slide" and an action plan had been worked out to spur economic growth through the infrastructure sector, he said. Observing that the current situation offered a springboard from which the Indian logistics industry could take a giant leap, he said the installed logistics infrastructure was still inadequate to handle the impact of increased economic activities. The logistics infrastructure in the country needed speedy augmentation in terms of both quality and capacity through adequate investment not only from the government but also from the private sector. PTI MS VS
 
Asianage.com - June 13, 2012
 

Vasan wants infrastructure boost to logistics


Massive investment to build better logistical infrastructure and additional capacity is the need of the hour, said Union shipping minister G.K. Vasan here on Tuesday.

Speaking at the inaugural function of the two-day Logistics Summit 2012 organised by CII, Mr Vasan said India lacks sufficient logistics infrastructure.

“The installed logistics infrastructure is inadequate to handle the impact of increased economic activities in the country. The pressure is mounting,” he said. He added that the logistics infrastructure in the country needs speedy augmentation in terms of both quality and capacity through adequate investment not only from the government but also from the private sector.

The pace at which infrastructure development has happened to the growth in freight traffic has been rather slow, thereby acting as a bottleneck and dragging growth, he said, adding that the country should hasten the pace. He said a well-developed logistics infrastructure with efficient processes will result in significant savings in terms of service levels, transit times, inventory costs, processing time and thus overall logistics costs.

“As per a World Bank survey, we have slipped in our Logistics Performance Index (LPI) and it reflects some weaknesses in our logistic system. Logistics cost in India is high at 13 per cent to 14 per cent of GDP compared to 7 per cent and 8 per cent in developed countries,” he added.

In order to improve LPI, Mr Vasan said the government has brought policy reforms besides investing in building infrastructure across rails, roads, airports, ports, logistic parks, containers, inland container depots, container freight stations, warehouses and cold chains.

He said the shipping ministry has been vigorously implementing the national maritime development programme and in the current 12th plan, it has envisaged to increase port capacity to 2686.66 million metric tonne per annum by 2016-17.

 
 
Interactive Seminar On Logistics Parks – Edition III
“A major shift in Indian Logistics Sector” 10 March 2012 : Mumbai
 
The Asian Age - 13 March 2012
 
 
 
The Economic Times - 13 march 2012
 
 
 
 
Logistics Summit – 2011 , 3rd & 4th November , 2011
Hotel Intercontinental The Lalit – Mumbai

Financial Express:  04.11.2011

 

Economic Times: Online 04.11.2011

 
Times of India: Online 06.11.2011
Business Standard: Online 09.11.2011
 
Manorama Online: 04.11.2011
Reuters: Online 04.11.2011
 
India Infoline: Online 04.11.2011
Yahoo News: Online 09.11.2011
 
Transreporter: Online 09.11.2011
Money control: Online 04.11.2011
 
APN news: online 10.11.2011
Cargo Talk : December 2011
   
 
Conference on Building Warehousing Competitiveness,
Edition IV, 28th & 29th July 2011, Hotel Taj Coromandel, Chennai
   
 
 
 
 
 
Roundtable on Impact of Climate Change on the Coastal Infrastructure Development
March 29th 2011, Hotel Rain Tree, Chennai
 
 
             
FDI declines by 43% in May - The Economic Times [English] - Hyderabad
 
Recession hits India's FDI inflow - Asian Age [English]- New Delhi
 
Land proposal should be there in big projects of warehouse - Business Bhaskar [Hindi] - New Delhi
 
FDI down 43% in May - The Economic Times [Hindi] - New Delhi
             
 
 
 
 
 
FDIs down 43% in May -Praja Shakti [Telugu] -Hyderabad
 
FDI down by 43% -Sakal [Marathi]- Mumbai
 
FDI in May declines by 43% -The Economic Times [Gujarati]- Mumbai
 
FDI down 43% in May - The Economic Times [Hindi] - New Delhi
             
 
 
 
 
 
Relief package for shipping likely - Financial Express - Kolkata
 
Tata Realty, Diesl to invest Rs 2,000 cr for logistics parks - Hindu Business Line - New Delhi
 
Central govt to bailout of Rs 10,000 cr for ship industry - Bharat Mitra - Kolkata
 
Shipping industry may get Rs 10k-cr relief package - The Economic Times - New Delhi
             
 
 
 
 
 
Govt package to shipping Industries - Business Standard - Mumbai
 
Govt mulls Rs 10,000 cr package for shipping ind - The New Indian Express - Bangalore
 
Rs 10,000 cr for shipping sector-
Eenadu - Hyderabad
             
 
 
 
 
Multiplier effect can help logistics flourish: report - Hindu Business Line - New Delhi
 
Simplified taxes will improve logistics sector - Hindu Business Line - Kolkata
 
Simplified taxes will improve logistics sector - Hindu Business Line - Hyderabad
             
 
 
 
 
Releasing the logistics service provided Directory - News Today
 
Time to focus on better infra,smart highways - Financial Express
 
Auto SCM India 2008 - The Hindu
 
Auto SCM 2008 in chennai- Dina Bhomi
             
 
 
 
 
 
Meltdown forces commercial vehicle segment to shed 40-50% of volume - The Hindu
 
CII Auto serve 2008 - Malai Chudar
 
Inventory Build-up hurting auto industry - Hindu Business Line
             
 
 
 
 

“FOCUS ON INTER-MODAL LOGISTICS SOLUTIONS TO ENHANCE PENETRATION OF RURAL MARKETS”

 

Chennai, November 6, 2008: “The inter-modal logistic solution is going to be extremely important for Indian automotive industry, which is aiming to penetrate suburban and rural markets to tap the after market potential and augment the dealership network in the coming years,” said Mr K Venkatraman, Partner, ATKearney.

Addressing the CEO’s Conclave of Auto SCM India 2008, a two-day conference on “Outbound SCM Perspective for Aftermarket and OEM-Competitiveness Through Cost Effective SCM”, organised by CII Institute of Logistics, Confederation of Indian Industry, here today, Mr Venkatraman said that the three important factors that are impacting the supply chain players catering to the Indian automotive industry are: 1) the coming down of the automobile production of traditional OEMs in US and Europe from 91% to 60% in the next eight years 2) the growth projections of ultra low cost cars segment, which is expected to register about 24% growth in the immediate future, and 3) the emergence of China, middle east and India region that is a major economic hub in the next 20-30 yrs by 2020 would account for about 50% of population and 40% of GDP of the world.

He said that the government should improve the single-window clearance system and better its administration to cut down the processes. He suggested that the logistics solution companies can use a basket of non computing products to save on asset cost – for instance, they can cater to FMCG and agriculture industry, when they transport automobile products.

Addressing the Conference, Mr R Dinesh, Chairman, Auto SCM India 2008 and Joint Managing Director, TVS Sons, said that pre planning for ten years down the line is crucial for the development of basic infrastructure. The government agencies should simplify processes and documentations, apart from being proactive and open, to create an efficient supply chain infrastructure.

He said that in European countries, the logistics solution providers deal with a simplified process related to import and export, but in India, there are a large number of documents and multiple agencies to deal with. This adds to a lot of paper work, processes and cost, and inhibits the logistics service providers from becoming the part of the supply chain.

He observed that the manufacturing companies tend to look at logistics service providers largely as physical service providers. “That is the reason why the integration and alignment of common goals between manufacturers and logistics companies have not taken place yet,” he said. Though OEMs proudly proclaim the logistics players as 3PL or 4PL suppliers the partnerships are only in agreement papers but not in mind. “The manufacturing sectors should consider logistics services as in-sourcing, rather than outsourcing. Both the service providers and companies should have a common objective and aim at bringing down the total cost instead of trying to cut down the profits of one other,” he added. He said that there is a great business scope for logistic solution providers who position themselves as knowledge leaders in supply chain to integrate the supply chain elements through alliances, and joint ventures.

Referring to the current slow down in the economy, Mr Dinesh said that irrespective of the market situation, the companies should continue to invest when the markets are down – otherwise the industry would not be ready when the markets are up. “Though investments towards creating new capacity can be pulled back for a short term, industry should continue to invest in bettering the existing infrastructure. He also stressed the importance of the supply chain sector getting industry recognition. The government should give priority in land allotment for logistics companies the way they do for the manufacturing companies.

In his address, Mr Srivats Ram, Managing Director, Wheels India, said that since the automotive industry is highly fragmented, the information move through a number of points and layers result in distortion and inaccuracy. OEMs order for components based on the information they get from market. In many instances, the information is exaggerated and the auto component manufacturers end up with having over stock or zero inventory.  

He said that the turn around time at ports is still a major handicap and it becomes very embarrassing to explain to “our American customers that since there are union negotiations at ports, the goods are lying at terminals for two days”. He said that the reason why Indian infrastructure is always ten years behind time is because “we are not planning for the future when it comes to infrastructure development, while industry pre-plans for production capacity and marketing ten years in advance.”

In his address, Mr Juan Madrid, Commercial Director, Port of Barcelona, said since the Spanish economy is growing fast in Europe, the logistics industry too is growing rapidly.  He said that Spain alone handles over 4 million cars including 3 million cars that are produced in the country and one million cars that are imported. The Port of Barcelona is internationally well recognized by large shipping carriers because of the increase size of its operations. He said that the port is doubling its capacity to handle about 900,000 cars a year and it is focused on creating inter modal connectivity for roads and rails, establishing new rail connections from factory to port and vice versa.

In his address, Mr Vincent DeSaedeleer, Vice President, Port Authority of Zeebrugge, which is one of the largest automotive ports in the world, said that a long term strategy is important for the ports to emerge competitive. There are 23 major ports in Europe, and unless we reinvent and reconsider our strategies it would be impossible to remain competitive,” he said. He said that the country is willing to look at creating “green lanes” with India to minimise the documentation process related to imports and exports.

About CII Institute of Logistics
CII Institute of Logistics has been established by the Confederation of Indian Industry as a Center of Excellence in Logistics and Supply Chain and to improve the competitiveness of Indian Industry in this domain. CII's Institute of Logistics (CIL) creates a platform to gain more insight into the emerging trends, industry specific problems of national importance and global best practices in logistics & supply chain management. It enables the industry to cut down the transaction cost, increase efficiency, and enhance profitability and enable to sensitize and bring solutions to macro level issues.

With a relentless aspiration to enhance logistics competitiveness in the industry, CIL provides a complete range of services such as education, training, consultancy, research, events and information services & publication.


 

“BUSINESS IS NO MORE A STANDALONE ENTITY BUT A TOTAL SUPPLY CHAIN”

 

Chennai, November 7, 2008: “A business is no more recognised as a stand-alone entity but rather a total supply chain. Hence, each business entity needs to co-ordinate and manage the relationships with their partners in a network, committing themselves to a better, closer and more agile relationship with their end customers,” said Mr S Ravichandran, President, TVS Logistics Services Private Limited.

Addressing a session on Outbound Supply Chain Management for OEM Exports at Auto SCM India 2008, a two-day conference organised by the CII Institute of Logistics, Confederation of Indian Industry (CII) here today, Mr Ravichandran said that the need of the hour is joint ownership of inventory and replenishment and a shared process of creation between two or more parties with diverse skills and knowledge. Delivering a unified approach that provides the optimal framework for customer satisfaction is important to meet the supply chain delivery challenges. The industry also needs to produce single demand forecast jointly and a single, shared source of data and simple control processes.

Mr Ravichandran said that the key supply chain delivery challenges include: ensuring reliability, least cost/continuous improvements, inventory reductions, flexibility and problem solving ability, transparency, value-added knowledge, and ‘any-location-coverage’. He said that the stake holders of supply chain include: supplier, consumer, origin logistics service provider, destination logistics service provider representing inland transportation, warehousing and last mile service. And the roles played by the logistics service provider are physical fulfillment, knowledge management and integrator. He added that the physical fulfillment includes asset utilization, infrastructure, warehouse, material handling equipments, storage structure and vehicles etc, apart from manpower. The knowledge management for the logistics service provider would encompass designing and optimizing warehouse, layout, infrastructure, evolving decision tools for logistics plan, plan for every part, for every supplier and inventing unique processes. As an integrator, the logistics solution provider has to provide single window solution and continuously add value to the customers by knowledge management and optimization of assets.

In his Opening Remarks, Mr Sudhir S Rangnekar, Managing Director & Group CEO, Sical Logistics, stressed the need to give more importance to cost control. He said that the time taken for getting a shipment approval at Indian ports, which at present is 3 to 5 days, should be reduced. Similarly, there is a scope to cut down the number of documents to be filled pertaining to imports and exports. He pointed out that on average the cost of shipment processes in India is around US$1200, whereas it is less than US$ 300-350 in China and Singapore. 

He said that the logistics service providers should try to increase their usage of railways and port infrastructure. In India, the domestic logistics via sea, which is called as ‘short sea shipment’ in European countries, is just 8–9% and the domestic cargo movement through railways is just 22%. However, about 80% of the domestic logistics use only roadways. 

In infrastructure developments at Indian ports are behind ten year time. Unlike India, China preplans infrastructure development for 20 to 30 years. There is also a need to review the Acts related to shipping – some of our current acts were passed in 1907. For instance, the Multi Modal Transport of Goods Act was last amended in 1993. Though, we had a lot of industrial developments happening in the last fifteen years, the Acts need to be reviewed. 

In his address Mr BG Menon, Marg Karaikal Port said that out of total export volume of cargo handled by Tamil Nadu ports, over 50% come from the automotive sector. South India is emergeing as a global connecting point. In the last three years, there have been significant developments in the port infrastructure of Tamil Nadu. However to attract automotive players, ports should have facilitate ‘Roll-On Roll-Off’ vessels and exclusive value added services to provide end-end solution.

Marg is creating ports at strategic locations that enjoy proximity to production centres and to sea routes that provide access to global markets. Our focus is to effect time and cost savings, faster transport activities from and to production centres. Karaikal Port is strategically located to help manufacturers from hinterlands and industrial clusters of Tamil Nadu such as Trichy, Salem and Coimbatore to export products to global markets. Karaikal Port will have three berths by March 2009. The unique selling proportions of Karaikal Port are congestion free traffic, hinterland connectivity and good pathways.

Addressing the conference, Mr Jasjit Sethi, CEO, TCI Supply Chain Solutions said that the major bottleneck was lack of industry status. “We do not have a separate ministry for logistics to look into the specific requirements of the ports and to help SCM companies administer processes related to logistics movements across state borders effectively. We also need to create enough road networks,” he said.

He emphasised the need for companies to customise their vehicles and equip them specially taking into the specific needs of products they handle. “Without a customized vehicle, it is not possible to meet Just-in-Time supply chain management,” he said and added that route mapping is essential to meet correct time lines. Apart from that companies should have good internet backbone across various points of access, ERP software and digital back-up facilities with right storage medium as the flow of information is more critical than the flow of materials.

About CII Institute of Logistics
CII Institute of Logistics has been established by the Confederation of Indian Industry as a Center of Excellence in Logistics and Supply Chain and to improve the competitiveness of Indian Industry in this domain. CII's Institute of Logistics (CIL) creates a platform to gain more insight into the emerging trends, industry specific problems of national importance and global best practices in logistics & supply chain management. It enables the industry to cut down the transaction cost, increase efficiency, and enhance profitability and enable to sensitize and bring solutions to macro level issues.

With a relentless aspiration to enhance logistics competitiveness in the industry, CIL provides a complete range of services such as education, training, consultancy, research, events and information services & publication.


 

“SUPPLIERS RELATIONSHIP MANAGEMENT IS CRITICAL FOR SUSTAINABLE SUPPLY CHAIN MANAGEMENT”

Chennai: November 7, 2008: “With the considerations of new parameters like CO2 emissions reduction, reduced energy consumption, better traceability and reduced traffic congestion, the critical areas of Supply Chain Management are: supplier relationship management (SRM), ergonomics in logistics and supply chain, ecological and environmental concerns in Supply Chain and technology exploitation,” Dr Narendran, Dean, Industrial Consultancy and Sponsored Research, Indian Institute of Technology, Chennai.

Addressing Auto SCM India 2008, a two-day conference organised by the CII Institute of Logistics, Confederation of Indian Industry (CII) here today, pointing out the unsustainable aspects of supplier relationship management, he said that in many areas the customer-supplier relationship turns into a "bully-victim" relationship. “While customer practice zero inventory, they insist suppliers to keep a warehouse close to that site and maintain inventory to feed the customer ‘just in time’,” he observed and added that this type of “passing-the-buck” approach down the value chain is not a sustainable business model.

Supplier relationship management (SRM) can be viewed as the systematic management of supplier relationships to optimise the value delivered through those relationships over the course of their life cycles. The goal of SRM is therefore to streamline and make more effective the processes between an enterprise and its suppliers. He insisted that ergonomics in logistics and supply chain is important – “All of us know the extent to which automation has invaded our shop-floor but handling still remains mixed. While there is mechanized handling at the shop-floor to some extent, most of the loading and unloading to the trucks is done manually. There are times when inhuman weights are lifted, high risks are taken and even acrobatics performed,” he remarked.

Dr Narendran lamented that though there is risk of accident at shop floor, practically nothing is being done to the activities that cause slow injuries and render a person unfit for work in a matter of 5 to 6 years. Companies should address such human issues as the price of poor utilization and costs may be the result of workers' compensation claims, employee dissatisfaction and lost work time.

In his address Mr Sumeet Nadkar, Head – Logistics SBU, Kale Consultants said that the logistics industry is on the “run-way” and about to take-off and the time is right for us to realise the importance of IT that can remove internal process efficiencies and help collaboration in the supply chain. He said that the industry needs a working group for IT adoption and standard definition. There is a necessity to get technology adoption through innovative models – software as service model.

He said that the size of the Indian auto logistics industry was Rs 34 billion in 2006-07. In The logistics cost for the automobile industry is around 2-3% of sales, whereas in the case of auto components industry, it is about 3-4% of sales. The reverse logistics is estimated at 0.5 to 1% for both auto and auto components industry.

Mr Nadkar said that developing efficient supply chain is mandatory for sustaining growth of organisations. Efficient supply chain means providing goods and information wherever needed and whenever need in most efficient manner. The supply chain, which has various elements such as shipper, forwarder, carrier, airports, hubs, ports and customs, is as efficient as the weakest link in it. He said that the IT spend of the Indian SCM industry is very less. Though India is worlds IT shop, the IT adoption by the SCM industry is less than 1%, while it should be 3-5%.
 
He said that the external factors that contribute to the inefficiencies in the industry include: industry fragmentation, constrained transport infrastructure, regulatory issues and lack of trained resources. Internal factors that pose challenge for the industry are customer expectations, lack of scalability and accessibility, reduced profit margins and market slow down.

In his address Mr Richard Pawinski, MD, Morley Management Services Limited, England, said that the UK Accident Repair Market registers about 6m insurance funded repairs per annum and £9 billion premium income from motor insurance. There are about 29m vehicles on UK roads, out of which 75% are cars, 4 % two wheelers and 20% commercial vehicles. About £6 billion insurance is spent on accident repairs. He said that the motor insurance market of UK is highly competitive with low margins.

About CII Institute of Logistics
CII Institute of Logistics has been established by the Confederation of Indian Industry as a Center of Excellence in Logistics and Supply Chain and to improve the competitiveness of Indian Industry in this domain. CII's Institute of Logistics (CIL) creates a platform to gain more insight into the emerging trends, industry specific problems of national importance and global best practices in logistics & supply chain management. It enables the industry to cut down the transaction cost, increase efficiency, and enhance profitability and enable to sensitize and bring solutions to macro level issues.

With a relentless aspiration to enhance logistics competitiveness in the industry, CIL provides a complete range of services such as education, training, consultancy, research, events and information services & publication.


 

Source: Shipping Post
Dated: 3 August 2008

 

 

 

CII’s session on Indian Coastal Shipping
Low investment hampers the development of coastal shipping
Exim News Service

The CII Institute of Logistics’ symposium on the “The Indian Coastal Shipping: Opportunities towards Economical Logistics”, held here recently paved the way for opening up new vistas on coastal shipping by discussing the openings prevailing in coastal shipping industry, best practices, issues and challenges and provided an opportunity to share the expertise and knowledge of the players. The session also threw light on the congenial and favourable conditions for the development of coastal shipping as an alternate mode of transport besides highlighting the fact that coastal shipping is an energy efficient, environmental friendly and economical mode of transport in the Indian transport net work.

Delivering the inaugural address, Capt PVK Mohan, Member National Shipping Board revealed that the sector has not progressed well due to the inadequate funding by the Government in coastal shipping. “Investment in the Indian shipping itself is low when compared to rail and road sectors,” Mr Mohan said and added that this is despite the fact that this sector is being discussed in every forum. “Unlike textile, cement and steels sectors, we do not have a strong lobby to take up the issues related to coastal shipping. We are too busy with our own things and concerned about the day-to-day issues. Unless there is a strong representation we will not be able to move further,” he underlined.

In his theme address, Mr Sudhir S Rangnekar, Event Chairman and Managing Director and Group CEO, Sical Logistics stressed on the necessity of developing coastal shipping as an alternative mode on account of its cost benefits. He urged the Centre to take serious steps to augment coastal shipping as it can be considered as a safer mode of transport as well as economical means of logistics.

Mr Rajeev K. Gupta, Joint Secretary, Ministry of Shipping, said despite having a number of reports on coastal shipping the sector has not progressed well. “Come out with innovative ideas to develop the sector. Coastal shipping should not be considered in isolation but be part of the overall infrastructure,” he said.

Poul V Jensen, MD Transcare Logistics (I) Pvt Ltd suggested a separate government representation for logistics as a whole which includes shipping road rail & finance.

Mr. Suresh Joseph, DP World Cochin explained about the Vallarpadam project and said that the International container transshipment terminal will be ready by November 2009.

Apart from this the session also focused on some of the developmental initiatives like infrastructure, berthing facilities at ports, rail network and road connectivity to the hinterland where majority of production and consumption centres are located and multiple handling of cargo where some stretches needed to be covered by road and rail.

Some of the key advantages of coastal shipping over rail and road transport based on certain factors are: It is energy efficient. Fuel consumption for every tonne-kilometre by coastal shipping is approximately 15 per cent of the consumption by road and 54 per cent of that by rail. When compared to other mode of transportation it is very safe for hazardous materials like liquid and inflammable chemicals, which would otherwise unsafe for other people in case they are transported by road. Apart from this coastal shipping has the ability to handle large parcel sizes easily and the cost of carriage of goods from coast to coast works out to be much lower than that by road and rail. Taking in account the external costs arising out of accidents, air pollution, climate change etc., the cost of coastal shipping as a percentage of road and rail transport is much lower.

The prominent coastal shipping routes include movement of south bound cargo from either Pipavav or Mundra in Gujarat to Kochi in Kerala and other ports and back; movement of cargo from Chennai to Chittagong/ Yangon through Haldia /Kolkata; inland and coastal movement of iron ore in and around Goa. Some of the commodities shipped through the coastal mode include bulk cargo like petroleum products, minerals, coal, food grains, cement and containerized cargo including cotton yarn, automobiles, automotive spare parts, steel etc.

The immediate hinterland for the coastal trade comprises of 40 districts of five States on the west and four on the east coast and Pondicherry, Lakshadweep and Andaman and Nicobar group of islands in the Arabian sea and the Bay of Bengal respectively also forms part of the coastal hinterland.

Hence there is an increased focus on development of coastal shipping so that it can provide facilities at comparative costs. In addition, efficient and economical coastal shipping will boost transshipment at Indian ports, thereby enhancing the competitive edge of Indian exports and increasing the port potential to develop as hub ports, leading to increased revenues and opportunities for generating both direct and indirect employment.

Source:
Exim News Service
Dated: 20 August 2008

Source:
Business Standard
Dated: 15 August 2008

Source:
Hindu Business Line
Dated: 14 August 2008

Source:
Deccan Chronicle
Dated: 15 August 2008