The lo­gis­tics of meta­mor­pho­sis

The Lo­gis­tics Sum­mit 2016 or­gan­ised by CII in Mum­bai re­flected on the grad­ual trans­for­ma­tion of the in­dus­try and the mea­sures it needs to adopt to reach its full po­ten­tial.

Cargo Talk - - Report -

Lo­gis­tics con­trib­utes around 13 per cent to GDP. But there is pos­si­bil­ity to in­crease this. It is im­por­tant to see how much we can do im­prove our prof­its. Some of the in­ter­nal chal­lenges are: in­ven­tory, dam­ages and de­lays. The cost of tech­nol­ogy has fallen dra­mat­i­cally now and au­to­ma­tion is the an­swer to a lot of prob­lems. But com­pa­nies need to keep in mind three key fac­tors when adopt­ing it: choice of tech­nol­ogy, its us­age and the ob­jec­tive of the tech­nol­ogy. Com­pa­nies also need to fig­ure how they can en­gage the cus­tomer bet­ter. Ajit Jan­gle Mem­ber, CII Com­mit­tee on Lo­gis­tics & Group COO, Al­lCargo Lo­gis­tics We con­tinue to strug­gle with prob­lems like in­fra­struc­ture but it’s still good to take stock. In 2000, of the top 10 ports in the world, seven were in Europe and North Amer­ica. Now, the top seven are in Asia, es­pe­cially China. At one time, In­dia as­pired to be like the US and Europe but to­day th­ese coun­tries face their own set of chal­lenges like aging in­fra­struc­ture. China, South Korea and Sin­ga­pore are what we should be as­pir­ing to now. For­tu­nately, In­dia is mov­ing very quickly in this di­rec­tion and it is there­fore im­por­tant to take stock. Prahlad Tan­war Di­rec­tor –Trans­port & Lo­gis­tics, KPMG There is a need for mul­ti­ple modes of trans­port be­cause there are a lot of chal­lenges for us­ing a single mode. Costs are not op­ti­mal and there­fore may not pro­vide de­liv­er­ies as per de­sired sched­ule. It also may not pro­vide the right ca­pac­ity nor pro­vide end-to-end con­nec­tiv­ity. The key chal­lenges for this are: there are dif­fer­ent reg­u­la­tory/gov­ern­ing bod­ies for each trans­port mode, there are mul­ti­ple reg­u­la­tory bod­ies even in single trans­port mode, and there is a lack of uni­fied vi­sion and plan­ning of trans­port net­works. The eas­i­est way to do this is to start with pub­lic trans­port and ex­tend it to cargo trans­port. Sri­nath Manda As­so­ciate Di­rec­tor–Au­toma­tive & Trans­porta­tion, Mar­ket­sandMar­kets Cur­rently, around 15,000 km of road con­struc­tion is go­ing on. We

`70,000 have a bud­get of around crore for roads. The am­bi­tious ‘Setu Bharatam’ pro­gramme

`50,000 with an in­vest­ment of crore was flagged off early this year. We will be rolling out elec­tronic toll sys­tems pan-In­dia on se­lected toll plazas. We will also try to in­cen­tivise it by of­fer­ing a 10 per cent dis­count. This sub­sidy will be a bur­den to the min­istry but it will help the end users. At the mo­ment, there are mostly sin­gle­owner trucks ply­ing. Way­side ameni­ties are also on the agenda and we have iden­ti­fied 35 lo­ca­tions. Leena Nan­dan Joint Sec­re­tary, Min­istry of Road Trans­port & High­ways, GoI In­dia has about 7,000 freight for­warders earn­ing rev­enue of `400-450

bil­lion. In­dia needs an in­te­grated lo­gis­tics pol­icy like Ger­many where lo­gis­tics is third-largest in­dus­try in terms of rev­enue. We need qual­i­fied young peo­ple and more skilled peo­ple at the bot­tom of the pyra­mid. You need skills in ware­hous­ing man­age­ment too. You need peo­ple in all ar­eas of the sup­ply chain. Au­to­ma­tion has its lim­i­ta­tions and some­times you need a hu­man in­ter­face. But there is no real end-to-end so­lu­tion; we have to de­pend on some­one else. Pramod Sant VP (Head of Im­port & Ex­port) Ex­port Con­trol & Cus­tom, Siemens The cost of lo­gis­tics in a de­vel­oped coun­try is six to seven per cent while the same in In­dia is about 14 per cent. But how many CFOs of com­pa­nies go into the nuts and bolts? There is a man­date for lo­gis­tics head to cre­ate a sup­ply chain net­work which is fast and fu­ri­ous which means it should be cheap and vis­i­ble and track­able. To en­sure zero risks, the op­er­a­tions re­quire 24x7 be­cause the cus­tomer who is fi­nally the end-user is go­ing to ex­pect the de­liv­ery at any and all times es­pe­cially with the e-com­merce boom. Two in­gre­di­ents are nec­es­sary for trans­for­ma­tion: ab­so­lute trans­parency with your ser­vice provider and spirit of part­ner­ship, in­stead of hav­ing a push-based model have a pull-based model. Vikram Man­sukhani Head – 3PLS, DIESL

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.