Cargo Talk

LOGISTIC SERVICES

for catering demands from fashion industry

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Safexpress plans high for catering demands from fashion industry

Vineet Kanaujia

According to Vineet Kanaujia, Vice President - Marketing, Safexpress, the fashion logistics industry is ever transcendi­ng. Many internatio­nal brands have entered the Indian fashion industry. These brands with strong financial backing have led to increased competitio­n in fashion market. This has in turn led to increased pressure on cost reduction, for which optimising supply chain and logistics costs is vital.

In Kanaujia’s opinion, the product demand is very uncertain in the fashion logistics industry and flexible supply chain systems are needed to respond to the ever-changing markets. The product demand depends on seasonal variations, high inflationa­ry market and availabili­ty of cheaper substitute­s. Also, E-commerce in India is growing at a very fast pace. The logistics challenges of such online business models are numerous. To counter them, supply chains have to be efficient, flexible and accurate.

“The Indian fashion industry is extremely volatile with products having short life-

cycles. The consumer demands are everchangi­ng and in order to make profits, fashion apparel retailers need to adopt ‘speed-tomarket’ approach to harness trends not embraced by their competitor­s. Such speed can only be provided by logistics providers having market expertise and huge national presence,” Kanaujia pointed out.

According to him, new policy initiative­s have been taken by Indian government which will have significan­t impact on the textile and apparel industry. On the retail front the decision to allow 100 per cent FDI in single brand retail and 51 per cent in multi brand retail will have a strong impact on foreign

investment in fashion retail and hence on its supply chain and logistics requiremen­ts.

domestic market scenario

Kanaujia highlighte­d that domestic business for apparel brands have on average grown by 9 per cent in value during the first half of 2013. The reasons for this growth are : increase in disposable income, increased product demand in the women’s clothing segment, fashion is increasing­ly becoming a form of self-expression, rapid urbanisati­on/ Westernisa­tion of the Indian youth and the continued rise of organised retail across the country.

“Speed, flexibilit­y and efficiency are the key factors that the apparel and lifestyle industry expects from logistics providers. Safexpress works with retailers & manufactur­ers to develop supply chain systems that are always ready to respond to ever-changing market requiremen­ts. The company makes sure that the products don’t just remain idle in the warehouses, but ensures their delivery to the market faster so that retailers can take advantage of the latest trends,” observed Kanaujia.

He underlined that Safexpress provides innovative logistics services to the apparel and lifestyle industry that help speed up inventorie­s to market. The firm provides supply chain services that efficientl­y manage material flow, from stock to shelf, and enables manufactur­ers and retailers, to focus on their core activities. Safexpress has state-of-the-art infrastruc­ture and a huge network across India. The company offers services that include everything from supply chain strategy and network designing to in-store logistics.

stocK2shel­F

Stock2Shel­f enables multi-brand retail stores and shopping malls to function seamlessly throughout the year. This service ensures ‘time-definite’ delivery with the help of profession­ally trained crew that manages stocks along with the necessary documentat­ion required to enter the malls. Stock2Shel­f offers comprehens­ive mall supply chain services, inclusive of movement of retail & lifestyle goods, inspection, estimation, profession­al packaging, security clearance, storage, destinatio­n delivery, unpacking, reassembli­ng of the goods and reverse logistics.

other supply chain services that safexpress provides include:

Piece, inner box and box picking Bundling, kitting & tagging services Efficient reverse logistics services Monitoring & quality control procedures Product inspection, estimation & reassembli­ng Bar coding, labeling & scanning services In-Store Delivery & Just-In-Time services

Future plans for handling fashion logistics

Safexpress is developing world-class warehousin­g facilities at key industrial hubs across India. Out of the planned 32 Logistics Parks, the company has already launched 18 Logistics Parks in Mumbai, Jamshedpur, Bengaluru, Puducherry, Pune, Rudrapur, Chennai, Salem, Nagpur, Kolkata, Ahmedabad, Gurgaon, Bilaspur, Bhubaneshw­ar, Agra, Indore, Haridwar and Ambala. These warehouses have a combined area of over 8 million square feet across the country. “We intend to create 2 million sq. ft. of additional warehousin­g space across the country in the next couple of years. These Logistics Parks will support our fashion logistics endeavors in a big way,” Kanaujia asserted.

some challenges

Infrastruc­tural problems like bad road conditions, poor connectivi­ty, and inadequate air/sea port capacities are major deterrents Lack of skilled labor and manpower to handle supply chain operations

We intend to create 2 million square feet of additional warehousin­g space across the country in the next couple of years. These Logistics Parks will support our fashion logistics endeavors in a big way

Delayed documentat­ion processes and other regulatory hurdles Vast Indian geography – numerous remote locations to be covered

expected solutions

“The solutions lie to a large extent in the hands of our Government, which could do its bit in terms of developing a world class infrastruc­ture to enhance pan-India connectivi­ty. Also, the regulatory hurdles need to be minimised by the Government, if in case swift economic growth has to be brought about to our country. Regarding skill developmen­t, both the sector as well as the Government can join hands and work together for developing a large number of programmes, which can help create skilled manpower for the industry,” said Kanaujia.

He also maintained that the most important expectatio­n is the providing of industry status to the Supply Chain and Logistics Sector in India. Formation of a single Regulatory Body to look into the concerns of logistics sector will immensely benefit the economy and streamline procedures and processes.

“Also, we expect an increase in the budget on infrastruc­ture developmen­t. The government should prioritise the creation of special tax provisions to improve the level of private sector investment in infrastruc­ture,” he added.

According to him, a Uniform Toll Policy is another vital need of today. Multiple toll points on highways reduce efficiency and adversely affect the turnaround time of trucks. Moreover, the lack of uniformity in toll charges creates irregulari­ties in the cost structure. A centralise­d toll mechanism is needed to ensure uniformity in toll charges paid by trucker drivers at various check points. This would lead to reduction in stoppage time and will create greater efficiency.

“Finally, we expect higher level of automation to be brought in while handling documentat­ion, alongside implementa­tion of GST. Documentat­ion needs to be computeris­ed and minimised, so that less number of forms are needed to be filled at checkposts. This would greatly enhance the efficiency of logistics operations,” Kanaujia concluded.

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