A strong base to grow

Cargo Talk - - Industry Speak -

How was FY 2013-14? Any ma­jor de­vel­op­ments?

In the FY 12-13, DIESL com­pleted 10 years of its oper­a­tional jour­ney as a full-fledged 3PL ser­vice-provider. It has es­tab­lished a pan-In­dia ware­hous­ing and dis­tri­bu­tion net­work, in­clud­ing a strong pres­ence in the North-East, and has grown from of­fer­ing a few lo­gis­tics ser­vices to de­vel­op­ing ca­pa­bil­i­ties in of­fer­ing in­te­grated and cus­tomised lo­gis­tics and sup­ply-chain so­lu­tions. In the past two years, the com­pany has also moved into new ar­eas like In-plant Lo­gis­tics, Site Man­age­ment, and Doc­u­ment Man­age­ment. These are ma­jor achieve­ments which have given DIESL a strong fun­da­men­tal base to grow fur­ther in lo­gis­tics sec­tor in In­dia.

Pre­sent mar­ket trends and your ex­pec­ta­tions from FY 2014-15?

Var­i­ous de­vel­op­ments are tak­ing place in the In­dian 3PL sec­tor such as in­vest­ment to­wards IT sys­tems like tailor-made En­ter­prise Re­source Plan­ning (ERP), Ware­house Man­age­ment Sys­tems (WMS), Trans­port Man­age­ment Sys­tems (TMS), track and trace, etc. 3PL com­pa­nies are mov­ing to­wards more mech­a­ni­sa­tion in ware­houses by us­ing hand pal­let trol­leys, fork­lifts, sys­tem­atic rack­ing sys­tems, dock lev­el­ers, etc. Move­ment of goods through con­tain­ers and grow­ing us­age of mul­ti­modal trans­port sys­tem is an­other change which we are wit­ness­ing in trans­porta­tion sec­tor.

Cur­rently, en­ter­prise sec­tor com­pa­nies only out­source small parts of their sup­ply chain to 3PL providers; which does not al­low the lat­ter to add much value to their so­lu­tions. This is not the right way to out­source and then mea­sure the ef­fi­ciency of a lo­gis­tics part­ner. My ex­pec­ta­tions from 2014-15 if that it will see more open and strate­gic col­lab­o­ra­tion be­tween en­ter­prise sec­tor compa- nies and 3PLs which will lead the way for in­no­va­tion, re­li­a­bil­ity, value ad­di­tion, learn­ing and com­pa­nies will truly be able to ben­e­fit from out­sourc­ing from long term as­so­ci­a­tion. Op­por­tu­nity for 3PLs to col­lab­o­rate with var­i­ous third­party en­ti­ties of the cus­tomer such as ven­dors, deal­ers, chan­nel part­ners etc. will also cre­ate more value for the cus­tomers and al­low them to fo­cus on their core busi­ness.

Ex­pec­ta­tions from the new govern­ment?

I hope the new govern­ment en­cour­ages Pub­lic Pri­vate Part­ner­ships which will help to make busi­ness vi­able and pro­vide ad­e­quate re­turns on in­vest­ment to the pri­vate sec­tor. We have been wait­ing for GST for a long time; im­ple­men­ta­tion of GST is per­ti­nent to make the coun­try border­less with re­spect to lo­gis­tics and to en­sure that doc­u­men­ta­tion re­quire­ments are uni­form across the coun­try. Govern­ment should also look at defin­ing ware­hous­ing as an In­fra­struc­ture ac­tiv­ity so that lo­gis­tics park can be built with bet­ter road and rail con­nec­tiv­ity.

Milind Sha­hane, Ex­ec­u­tive Direc­tor& CEO, Drive In­dia En­ter­prise So­lu­tions

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