Speed and ef­fi­ciency is the key

Digi­ti­sa­tion has to re­place te­dious doc­u­men­ta­tion and bu­reau­cratic pro­ce­dures and the in­dus­try should col­lab­o­rate to bring lo­gis­tics cost down

Maritime Gateway - - Contents -

The ses­sion on lo­gis­tics dis­cussed the ma­jor fac­tors af­fect­ing move­ment of goods in the South Asian re­gion. Trac­ing the ori­gin of the word lo­gis­tics, Sean Van Dort, Di­rec­tor, Global Ship­pers Fo­rum, the mod­er­a­tor spoke of how the French were re­spon­si­ble for the in­tro­duc­tion of the con­cepts of VAT and GST. The panel dis­cus­sion that in­cluded sev­eral rep­re­sen­ta­tives from multi-na­tional lo­gis­tics or­gan­i­sa­tions veered to­wards what it would take for firms to pro­vide world class lo­gis­tics ser­vices. With the world of value added ser­vices ex­pand­ing the bound­aries of prod­ucts a lo­gis­tics firm can of­fer, Vin­cent lee, Busi­ness De­vel­op­ment Di­rec­tor, STENN In­ter­na­tional Sin­ga­pore, said, "Ser­vice providers should not re­strict them­selves on the spec­trum of ser­vices they can of­fer. Newer mod­els are dis­rupt­ing the mar­ket with their ser­vices lead­ing to cheaper rates and bet­ter ser­vices."

While the panel agreed on the afore­men­tioned ar­gu­ment in toto, the role of gov­ern­ments and reg­u­la­tions in smooth­ing trade for the re­gion was a bone of con­tention.

Rajan Sharma from Nepal Freight For­warders As­so­ci­a­tion reck­oned lengthy for­eign cur­rency reg­u­la­tions were an im­ped­i­ment to trade. "Freight for­warder do the de-con­sol­i­da­tion. Is there a way to de-reg­u­larise these laws," he asked. In a glob­alised world that is rapidly pro­gress­ing with the help of tech­nol­ogy, the panel mem­bers saw a need for com­pa­nies across the re­gion to digi­tise their op­er­a­tions to avoid te­dious doc­u­men­ta­tion pro­cesses. The need to rid the trade of un­nec­es­sary bu­reau­cratic pro­ce­dures was loudly echoed by the panel.

Amal ro­drigo, Di­rec­tor, Hay­leys

Free Zone Lim­ited said, "We have bench­marked our­selves to of­fer­ing ser­vices equiv­a­lent to those of­fered by Eu­rope and the USA but we are shy of han­dling bu­reau­cracy and un­friendly poli­cies well." To ad­dress the ris­ing need for the lo­gis­tics firms across the re­gion to work to­gether, Ja­gath Pathi­ratne from the Sri Lankan Freight For­warders As­so­ci­a­tion sug­gested col­lab­o­ra­tion as an ef­fec­tive mode to move for­ward. "Whether it is lib­er­al­i­sa­tion or cost ef­fec­tive­ness, we have to work to make things hap­pen. Economies can no longer be pro­tec­tive af­ford to be pro­tec­tive," he said.

The ma­jor fac­tors driv­ing the de­vel­op­ment of lo­gis­tics mar­ket are glob­al­iza­tion, time-pro­por­tional econ­omy, pres­ence of vir­tual or­ga­ni­za­tions, im­proved cus­tomer aware­ness, strate­gic con­cerns to achieve more flex­i­bil­ity and bet­ter IT in­fra­struc­ture. Third-party lo­gis­tics is a process or op­er­a­tion of sub-con­tract­ing in­dus­trial func­tions like cross-dock­ing, in­ven­tory keep­ing, ware­hous­ing and trans­porta­tion to a third party or sup­ply chain man­age­ment provider. Glob­al­ized prod­uct avail­abil­ity, de­mand for prod­uct in­di­vid­u­al­iza­tion in terms of lo­gis­tics, on-time de­liv­ery, just-in-time in­ven­tory, agility in time re­sponse trans­port, big data an­a­lyt­ics and at­om­iza­tion of ship­ment are some of the global mar­ket trends guided by tech­no­log­i­cal in­no­va­tions like re­mote track­ing and mon­i­tor­ing us­ing RFID and Edi-based lo­ca­tion of the ship­ment.

The mar­ket in Asia-pa­cific re­gion shows a steady and con­sis­tent growth through ser­vice in­no­va­tions by com­pa­nies, so as to at­tract eco­nomic cus­tomers. The com­pa­nies need to shift their fo­cus from in­te­grated ser­vices to of­fer­ing broad range of prod­ucts & ser­vices port­fo­lio. With more fo­cus on grow­ing B2C sec­tor, the scope for lo­gis­tics out­sourc­ing will ex­tend to­wards value-added and spe­cial­ized ser­vices., the ex­perts said. There were sev­eral up­sides that fea­tured in the hour-long dis­cus­sion. The fact that a lo­gis­ti­cian is mak­ing his way to many board rooms is an in­di­ca­tion of the im­por­tance be­ing given to lo­gis­tics in com­pa­nies is a point to take note of. The panel also mooted the point of cre­at­ing a free zone like Dubai has for the trade's ben­e­fit. South Asia is ex­pected to have grown by an im­pres­sive 6.7 per cent (y-o-y) as a whole over the last year, stay­ing higher than the growth rate of East Asia, which stood at 6.3 per cent. Other re­gions around the world have ei­ther been grow­ing slowly or con­tract­ing. In this light, the ben­e­fits of a free zone could be many.

The panel dis­cus­sion con­cluded on an im­por­tant point stat­ing that way for­ward has two el­e­ments that would play a key role in forg­ing col­lab­o­ra­tions. Speed is way. Ef­fi­ciency is key.

(L to R) Ja­gath Pathi­rane, Chair­man, Sri Lanka Lo­gis­tics & Freight For­warders As­so­ci­a­tion; Rajan Sharma, For­mer Pres­i­dent, Nepal Freight For­warders As­so­ci­a­tion; Amal Ro­drigo, Di­rec­tor, Hay­leys Free Zone Lim­ited; Sean Van Dort, Di­rec­tor, Global Ship­pers Fo­rum; Vin­cent Lee, Busi­ness De­vel­op­ment Di­rec­tor, STENN In­ter­na­tional Sin­ga­pore; Mah­bubul Anam, Pres­i­dent, Bangladesh Freight For­warders As­so­ci­a­tion; Rochana Jayawar­dana,

Di­rec­tor- Busi­ness De­vel­op­ment & HR, CL Syn­ergy

Newspapers in English

Newspapers from India

© PressReader. All rights reserved.