Now trend­ing: Col­lab­o­ra­tion in busi­ness

The next wave of prof­its for the food in­dus­try can be driven by col­lab­o­ra­tive sup­ply chains and in­no­va­tion in In­dia’s cold chain, says Raj Sax­ena, Di­rec­tor, En­ter­prise force. He ex­plains how the seg­ment can be ben­e­fi­cial for com­pa­nies.

Cargo Talk - - Interview - HAZEL JAIN

How did col­lab­o­ra­tion in this seg­ment come about?

The cold chain ecosys­tem has started evolv­ing – not as fast as we would want it to though – and we see that shar­ing in the en­ter­prise, or what we call col­lab­o­ra­tion, specif­i­cally for the sup­ply chain, has started. It didn’t start in In­dia. It started a while back in Europe and we are catch­ing up. We do col­lab­o­ra­tive sup­ply chains for In­dian com­pa­nies.

What po­ten­tial do you forsee?

Util­i­sa­tion is the key word here. All of us who want bet­ter ser­vice at bet­ter costs in lo­gis­tics need to help drive that one pa­ram­e­ter of util­i­sa­tion with quality. If we look at any kind of dis­tri­bu­tion, whether se­condary, ter­tiary, or last mile, there is huge po­ten­tial. If quality is para­mount to you and tem­per­a­ture ad­her­ence is im­por­tant, then there is a very small sub­set, but there is a sub­set, where col­lab­o­ra­tion can hap­pen and it can be scaled.

How can this help com­pa­nies?

This not only re­duces costs, but also im­proves the ser­vice by mul­ti­ply­ing the ser­vice lev­els to the tune of de­liv­ery times con­dens­ing, to the tune of quality be­ing mon­i­tored with the help of tech­nol­ogy.

How can col­lab­o­ra­tion lead to lower costs?

With col­lab­o­ra­tion, you will not have to pay more for quality and ser­vice – even­tu­ally. In the in­terim you may have to. But even­tu­ally when you get your sys­tems right, you will pay less and get more. For ex­am­ple, let’s talk about de­liv­ery. The cost of one of my FMCG

`100 cus­tomer was three years ago. In­dus­try costs have been es­ca­lat­ing spe­cially for quality, ser­vices and lo­gis­tics, and the cost

`114 would be to­day as we speak. For this com­pany, the cost has gone down to `88.34,

which is a 26 per cent de­cline year-on-year in ab­so­lute num­bers with no in­fla­tion. This was a rea­son­able num­ber, which

`10 led to crore of sav­ings for this com­pany.

How does this ben­e­fit ware­hous­ing and dis­tri­bu­tion?

Ware­house con­sol­i­da­tion is a one­time thing. But dis­tri­bu­tion re-map­ping is an on­go­ing ac­tiv­ity. If you are a `5000-crore

com­pany, you are go­ing to take some time get­ting it right. As the net­work sta­bilises, col­lab­o­ra­tion is em­bed­ded, or is go­ing to be em­bed­ded in the way we do busi­ness.

What does it take to col­lab­o­rate?

You need a strong data foun­da­tion. We are not talk­ing IoT data alone, we are talk­ing Mas­ter Data. This in­cludes costs, ser­vice, ven­dors, de­liv­ery times, SLAs, etc.

Raj Sax­ena Di­rec­tor En­ter­prise­force

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