Friday, 22 May 2015

Growth drivers for Indian logistics industry –

Several initiatives undertaken by the Government of India as well as increased IT penetration have boosted the Indian logistics segment, which is set to grow manifold in the coming years

The Indian logistics sector, which was pegged at US$75.19 billion in 2009, has greatly evolved with enhancement and improvisation of logistics services. In the past, logistics was limited to movement of goods through rail, road and waterways from restricted number of cities and ports. Presently, logistics services are not only restricted to the movement of goods but have expanded to include warehousing, storage, packaging, disposal, tracking, supply chain management and much more.

The industry has grown rapidly since the past 10 years and various drivers have contributed to the rapid growth of the sector. Major drivers of this robust growth are initiatives undertaken by the government, increased usage of IT, improved service offerings and organised nature of retail and manufacturing sectors, among others.

Role of government

The Government of India (GoI) has played a significant role in providing the right impetus to this sector by implementing various laws and taxes. Some of the measures undertaken by the government include:

·         Increase in private participation of rail freight
·         Setting up of special economic zones (SEZs) resulting in increased trade
·         Privatisation of inland container depot (ICD) for sea freight
·         Airport expansion with dedicated cargo terminals
·         Improved road infrastructure with better connectivity
·         Foreign direct investments (FDI) in the commercial vehicle segment leading to usage of better quality vehicles
·         Revision of import duty for fast moving consumer goods (FMCG)
·         Bilateral agreements to promote export-import (EXIM) trade

Thursday, 21 May 2015

The Advantages of Supply Chain Management Systems....

Effective supply chains give businesses a competitive advantage in the marketplace
and help mitigate risks associated with acquiring raw materials and delivering products or services. By implementing supply chain management systems, businesses are able reduce waste, overhead costs and shipping delays in a scientific way. The benefits of this systematic approach impacts areas ranging from product quality to order turn-around times.
Quality Assurance
Many manufacturers in the U.S. have relocated their operations to countries such as China, India and Russia in an effort to cut production costs. This has caused experienced domestic personnel to opt for other job assignments. As a result, product quality within the supply chain has become a pressing issue. Defects and rework attributable to poor systems are raising the costs of doing business. One of the advantages of supply chain management is that it incorporates quality techniques, such as quality management systems, to improve operations.
Inventory Buffers
In almost every type of business, there is variability in customer spending. This requires companies to manage their inventories in a way that minimizes holding costs while providing enough flexibility to meet customer demands. If inventory levels fall too low, businesses may have to pay overtime to produce products or lose out on revenue by making customers wait or shop somewhere else. Supply chain management systems typically include inventory buffer levels that are pre-determined with careful analysis of historical trends.

Saturday, 16 May 2015

Logistics companies looking for funds to build scale & GST - ready .......

An  expected roll out of Goods and Service Tax (GST) is pushing privately held logistics companies to look for funds from private equity firms, strategic investors and public listing in order to finance massive expansion in warehouses and fleet.The Logistics sector will see a slew of deals in the next one year as international and domestic investors scout for targets, while companies look to unlock value .

Friday, 8 May 2015

What is Unique About Trucking ?......



Mobility, particularly of commercial cargo, is crucial ,as well as critical for socio-economic development of the country.


Way Back in early fifties, when Government adopted planned development , as policy , to take the country forward, railways , having vast network across the nation , carried over 70% of the total cargo moved by surface transport. Moving goods by road, despite being convenient speedy, economical and door to door, accounted for 20 % share only. Trucking, by all means, is legitimate basic infrastructural service and the people carrying on this as a "profession" are no different than others.Entrepreneurs in trucking, like most other professionals, are self - employed and unlike most of other professionals, truckers provide employment for additional nine skilled / unskilled persons per vehicle.

All automobiles ,for the sake of their identity,are required to be registered with their local Authority against specified payment periodically .                                                           
Trucks are no exception .But because the trucks are used for commercial purposes, these need to obtain a Permit against unexplained justification . Till a few years ago, this permit had to be taken from each State. In the beginning only, none other than the Mahatma Gandhi as well wondered as to why in a free country people should need permit for visiting different States. 
Admittedly, Trucking is like back - bone of country 's economy .

Thursday, 7 May 2015

Supply chain Management ......


Supply Chain Management (SCM) is the management of the flow of goods and services.
It includes the movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption.
 Interconnected or interlinked networks, channels and node businesses are involved in the provision of products and services required by end customers in a supply chain.
Supply chain management has been defined as the "design, planning, execution, control, and monitoring of supply chain activities with the objective of creating net value, building a competitive infrastructure, leveraging worldwide logistics, synchronizing supply with demand and measuring performance globally.

SCM draws heavily from the areas of operations management, logistics, procurement, and information technology, and strives for an integrated approach.

Wednesday, 6 May 2015

Auto and Logistics jobs to grow by 2020 in India......





The boom In the auto industry will also make way for growth in the logistics sector as it runs on tight inventory scheduling ...



  • There will be a significant rise in demand in the auto component sector, both at the domestic and international levels.
  • The Indian Car market has grown by 30 times moving from 10 Lakhs to 3 million in the past few years.
  • Owing to huge export expansion and international business coming to India in bulk, demand for talent will grow across the value chain.
  • After the Indian Designing capability is globally recognized, there will be opportunities coming up for design engineers, Research and Development professionals. 
  • The boom in the auto industry will also make way for growth in the logistics sector as it runs on tight inventory scheduling.
  • The popular functions will be logistics exports ,supply chain management and inventory management.

Logistics and Warehouse Industry : A Promising Future ......


The "Make in India" campaign ,devised by Prime Minister , Narendra Modi' s Government ,has definitely boosted the overall sentiment of the manufacturing sector .One such sector is the logistics and warehousing industry .
It is the backbone of the economy, providing the efficient, cost effective flow of goods on which other commercial and manufacturing sectors depend.

The Logistic industry In India is the interplay of infrastructure ,technology ,trade regulations ,research and development, trained manpower ,better facilities and new types of service providers. 
 The Logistics and Warehousing industry is evolving rapidly and is shaping up to become one of the key pillars of the economy 

Logistics the way Forward - Challenges



The Logistics Sector in India has today become a key performance indicator of  the economy .
One of the primary reasons for it is that, years of high growth in the Indian economy has resulted in a significant rise in the volume of freight traffic moved .
This large volume of traffic has opened up new growth opportunities in all facets of  Logistics including  
Transportation ,
 Warehousing 
 Freight forwarding 
 Express cargo 
 Delivery 
 Container Services etc...
According to the World Bank's Logistics performance Index India is ranked 39th place among 150 countries of the World .
Size of Logistics Industry is various estimates put the total market size of the logistics sector in our country to be between USD 95 - 130 billion.
Logistics Sector is important to Economic growth of the country.    

Tuesday, 5 May 2015

Importance Of Logistics in Business ....





Business logistics means having the right product in the right quantity at the right time at the right place for the right price in the right condition to the right customer".
Business logistics incorporates all industry sectors and its aim is to manage the fruition of project life cyclessupply chains, and resultant efficiency.
The term "business logistics" has evolved since the 1960s  due to the increasing complexity of supplying business with materials and shipping out products in an increasingly globalized supply chain, leading to a call for professionals called "supply chain logisticians".
In business, logistics may have either an internal focus (inbound logistics) or an external focus (outbound logistics), covering the flow and storage of materials from point of origin to point of consumption. 
The main functions of a qualified logistician includes :-  
  1. Inventory management, 
  2. purchasing
  3. transportation
  4. warehousing
  5. consultation  and the organizing and planning of these activities. Logisticians combine a professional knowledge of each of these functions to coordinate resources in an organization.

There are two fundamentally different forms of logistics:
one optimizes a steady flow of material through a network oftransport links and storage nodes, while the other coordinates a sequence of resources to carry out some project(ex:restructuring a warehouse).

Monday, 4 May 2015

Bus services disrupted in Punjab, Haryana due to transportation strike...

State roadway and private buses remained off the road in the region. In Chandigarh also, the buses remained off the road. Roadways employees were protesting in front of bus depots against central government against the proposed road safety bill, reports said.







Bus services remained paralysed on Thursday in Punjab, Haryana and Chandigarh with the state transport employees joining the nationwide strike against the proposed Road Transport and Safety Bill, 2015.
State roadway and private buses remained off the road in the region. In Chandigarh also, the buses remained off the road. Roadways employees were protesting in front of bus depots against central government against the proposed road safety bill, reports said.
Security arrangements around various bus stands and depots have been intensified with deployment of additional security personnel in the region.
The day-long strike has been called jointly by road transport organisations -- representing both public and private sector workers -- which are affiliated to central trade unions including All India Trade Union Congress (AITUC), Centre of Indian Trade Unions (CITU) and BMS. Various union leaders said that the introduction of the bill would demolish the whole transport infrastructure in the country. Report from Bhiwani and Amritsar said that there was a complete strike by the roadways employees in the districts.

 Auto Rickshaws from the regions have also joined the strike.

Decades changed thus our transportation became more luxurious....


A Century Of Transport - Introduction & Early Developments

Before 1860 practically all road transport was horse-drawn and powered machines to ride upon were unknown. By 1900 the internal combustion engine was with us but horse power remained the usual means of haulage. On a horse-drawn tramcar, the horses were detached at the terminus from one end of the tram and walked to the other end for the return journey. The superiority of smooth rails will be appreciated when compared to road surfaces prevailing at the time!

Steam, however, was better if a lot of power was required, as in the haulage industry. Steam traction engines could haul incredible loads, over seven wagons if required. Their typical speed of 4 mph was satisfactory for the poor roads of the time. Moreover they had a long life of 20 years or more and an abundant supply of cheap coal to power them. Such road trains became illegal in the 1930s when they became restricted to only three trailers within a given length but, by then, the dominance of steam for heavy haulage had already been severely dented.

Passengers in 1900 would travel by horse bus or, on busier routes where demand repaid the cost of laying rails in the highway, by tramcar. Steam or horse haulage for tramcars was again commonplace - other methods employed included cables laid under the road or accumulator batteries. The incoming method, however, was electricity, usually by overhead wire - what a transformation it must have been when your local tramway changed from sooty steam to electricity!

The electric tramcar was, by the standards of its time, a smooth means of transport and capable of long life. As in many other towns and cities, Birmingham Corporation took over the private tramways as their leases expired and, where necessary, electrified them. Nearly all tramcars were double-deckers and the earlier ones had open tops and ends but many were partly or completely updated to resemble the later all-enclosed tramcars.

'The horse is here to stay, but the automobile is only a novelty, a fad'
- a bank president advises against investing in Ford in 1903.

Until the tramcar, the poorer working classes did not use public transport much. In towns people lived near to their employment or walked. Country folk went by carriers' carts on market days but otherwise didn't get about much. The development of country bus services and 'char-a-banc' coaches would release rural people from the narrow view they had of the world.

The Birmingham & Midland Motor Omnibus Co. Ltd., better known as Midland Red, first introduced motor buses in 1904 but found them unreliable and, despite its official title, reverted to horses! Midland Red reintroduced motor buses in 1912 and began its mighty expansion serving towns and villages throughout the Midlands to become the largest bus company outside London.

The expansion of electric tramways and the development of motor buses in the first few years of the 20th century meant that, by the outbreak of the First World War in 1914, the horse bus had almost gone. Regarded as the first mechanised war, when it was over civilian transport underwent a petrol-engined revolution. Vast quantities of reconditioned ex-services trucks were available at low prices and experienced ex-servicemen could drive and maintain them. Many haulage, coach and country bus companies date from this time.
Coaches were particularly primitive and were known as 'char-a-banc' coaches. This was a literal use of French which translates as wagons with benches. Each row of seats had a door on the nearside, earlier ones had doors on both sides. A folding hood provided cover in inclement weather - nevertheless they must have been a hardy lot in those days!

In the 1920s the engine was moved alongside the driver to release additional space for passengers or goods. However the decade would see bus and large lorry chassis design begin to part company. Lower chassis frame height for buses would ease entry into the vehicle and, on double-deckers, allow top covers. Another development was pneumatic tyres which improved the quality of ride whilst the driver additionally benefited from an enclosed cab.

Early Transportation in the Pioneer Valley





Early Transportation in the Pioneer Valley


Early history of public transport...

Historic Transportation

Early history of public transport

This page outlines the early history of public transport in Victoria.

Trains

Steam and diesel trains

The gold rush of the 1850s heralded the growth of Melbourne both as a port and as an economy. Transport became an important issue for the young colony and soon after, Australia's first locomotive-powered railway line was built in Melbourne.
Just three years Victoria was established, the first steam railway was officially opened on 12 September 1854. The service ran from Flinders Street to Sandridge (now Port Melbourne).
A series of other, primarily passenger, routes were also soon opened taking travellers to St Kilda (1857), North Brighton (1859), Hawthorn (1861) and Essendon (1860).
The gold rush was also responsible for creating major regional centres at Ballarat and Bendigo. The colonial government took over from the private companies to quickly build regional rail lines. The railway reached Sunbury in 1859, Bendigo in 1862 and Echuca in 1864. A line between Geelong and Ballarat was also completed in 1862. The privately built and operated line between Geelong and Newport, that had opened in 1857, was taken over by the colonial government in 1860.
Between 1854 and 1919, steam locomotives dominated. The shrill whistle of an approaching steam engine marked a new chapter in the evolution of a country town or city suburb.
Rail transport also saw the development of engineering and building expertise as the need to manufacture locomotives rather than depend on imports grew. These skills helped to strengthen Victoria's reputation as the manufacturing centre of Australia.

Electric trains

The electrification of the Melbourne train network began in 1913. The First World War delayed the project but at the start of 1916, electrical apparatus in suburban rolling stock was installed and it was announced drivers, guards and shunters would be trained to handle electric trains.
On 6 October 1916, electric trains made trial runs from Newmarket Station to Flemington Racecourse. Due to the First World War, little happened until another trial was conducted from Flinders Street to Essendon on 28 May 1919. Limited electric train services began after this trial.
By the end of 1919, electric trains were running on the St Kilda and Port Melbourne lines, followed by the Williamstown and Fawkner lines in 1920. Progressively, North Fitzroy, Reservoir, Heidelberg and other suburban lines were converted to electricity.
Today, our electrified suburban train network is an extensive system by world standards.

Trams

Horse and cable trams

For the first four decades of tramway operation, seven horse tram routes operated in Melbourne. They were run by a number of different organisations. Horse trams had a smoother ride than horse-drawn omnibuses and were able to carry larger loads, but they left a trail or manure and urine in their wake.
On 11 November 1885, the Richmond line opened, the first of Melbourne's cable tram network. The councils of Melbourne and 10 surrounding municipalities built a system of cable-hauled tramways between 1885 and 1891.
The scale of Melbourne's cable tramway network was inspiring, even by international standards. With 46 miles of double track serving 17 radiating routes from the centre of the city to neighbouring suburbs, it probably surpassed many of the vast American networks, even that of Chicago, which laid claim to being the world's largest tram network.
The cable tram network stopped running in 1940. Apart from a few relics in the hands of private collectors, little evidence of the network's existence survives.

Electric trams

The first electric tram to run in Australia was demonstrated during the Centennial International Exhibition in 1888. From 1889 until 1896, this pioneer vehicle and a second car ran a regular tramway service between Box Hill Station and Doncaster.
Electric trams returned in 1906, with the opening of the Victorian Railways line from St Kilda to Brighton. The North Melbourne Electric Tramway and Lighting Company opened routes from Flemington Bridge to Essendon and the Maribyrnong River.
In the early 1900s, several municipalities formed trusts and built electric tramways in their areas. The Prahran and Malvern Tramways Trust opened lines in 1910, followed by the Hawthorn Tramways Trust and the Melbourne Brunswick and Coburg Tramways Trust in 1916.
Construction of the Footscray Tramways Trust and the Fitzroy, Northcote and Preston Tramways Trust lines were well under way when, in 1920, the Victorian Government set up the Melbourne and Metropolitan Tramways Board (M&MTB) to consolidate the various tramway operations.
The Melbourne and Metropolitan Tramways Board converted the old cable system between 1924 and 1940. Hundreds of new, large, electric trams were built to replace the fleets of small cars previously operated by the municipal tramway trusts.

Buses

For 150 years, horse-drawn and automotive bus services have been an important feature of Victoria's transport. The flexibility of buses has allowed them to meet Victoria's changing transport needs and expanding population.
Small horse-drawn omnibuses and cabs, which were mostly individually owned, were the first form of public transport in Melbourne and operated until the late 1860s.
In 1869 the first fleet-type operation started. The Melbourne Omnibus Company operated 11 horse-drawn buses from the city via Bourke Street to Fitzroy's Birmingham Hotel, at the corner of Smith and Johnston Streets. The service and the price of tickets were popular with travellers. Soon the buses were running to Richmond, Carlton and North Melbourne.
Suburban development encouraged the company to expand its network and, by 1881, its fleet consisted of 158 horse buses, each carrying 12-14 seated passengers, operating within a three-mile radius of the city. Some services extending as far as Moonee Ponds, Prahran and Brunswick.

Flinders Street Station

The railway-building spree of the 1880s had left Melbourne with a comprehensive railway network. The heart of this network was a functional station which developed ad hoc from 1854. This original station was gradually replaced or absorbed into the new station.
Melbourne's new central station, Flinders Street Station, was the result of decades of planning and years of building work. It was also a symbol of Melbourne's importance as a city.
In 1899, a worldwide public competition was held to design a new station facade. There were 17 entries. The first prize was awarded in 1900 to JW Fawcett and HPC Ashworth, two Victorian Railways officials.

Construction

Work on the foundations, using picks shovels and wheelbarrows, started in 1901. The design of the main building was altered in 1904 to include a basement and fourth floor.
In 1905, a Ballarat builder won the £93,478 contract to build the station building. The Weekly Times would report progress on a weekly basis publishing an updated photograph each edition.
By 1906, the Swanston Street dome was being built. In 1908, the Argus reported there were 150 men working on the building.
A dispute with the construction contractor saw the Victorian Railways take over construction in 1908. The station, including platform canopies, was essentially completed by January 1910.
Flinders Street Station is registered under the Victorian Heritage Act. It is also listed by the National Trust.

Southern Cross Station

Southern Cross Station was originally called Batman's Hill Railway Station and then commonly known as Spencer Street Station until the last decade.
Passenger services from the station began in 1859. When the first train departed the station for Williamstown, a public holiday was declared so the public could watch.
Batman's Hill was part of boundary of the terminus developed in the 1850s for the railway companies. When the area was taken over by the government in 1856, it became the Melbourne terminus of the (new) Victorian Railways. The area adjacent to the new station was opened up to a range of industrial developments.

The years of expansion

The 1880s were an important decade in the development of railways in Australia.
The decade saw the colonies of Victoria, Queensland, New South Wales and South Australia were linked by regular services. Spencer Street Station was the hub of Victoria's links to the other colonies.
In the 1890s, a viaduct was completed to link Spencer Street and Flinders Street stations. Only goods trains used it for the first three years but passengers began moving between the two stations at the end of 1894. The viaduct between Spencer Street and Flinders Street stations was duplicated in 1915.

Impacts Of GST on Logistics Industry In India ........

  • GST impact on Logistics Industry

The impact of G S T (Goods and Service Tax) on the overall operations in their sectors. GST is just a tipping point from what we see in the market as other governmental interventions .
We started discussing on the impact in Logistics industry. The impact or rather the opportunity is huge for both them and their customers to completely relook at their supply chain. This essentially means a significant opportunity for Logistics companies in India to revise their infrastructure to deliver as well as reverse logistics for spares and replacements.
 Just looking at the stats in terms of volumes that need to be managed signifies the huge potential for both Logistics companies and their customers as well to tap new markets.It is no surprise the industry is quite upbeat about it. The opportunity to reduce costs by realigning supply chain is immense.

  •  Benefits Of G .S. T  
 The current tax structure is quite complex - there are central level taxes in form of excise, customs duty and CST, and then there are varying state level taxes in form of VAT and other levies like Octroi, state level cess etc. 
The problem is that, state level taxes are applicable on top of central taxes. Which means the manufacturer/supplier is paying taxes on taxes. Only way to avoid this multi tax scenario is to create a stock transfer between inventory stocking points within states!
Hence, most industries - like manufacturing/third party logistics players - generally have warehouses/offices in each state to reduce tax burden of Central Service Tax(CST).  Thus, planning is more driven by logic of saving taxes, rather than achieving operational efficiency.

Any large LSP, manufacturer or CPG player hence maintains warehouses in all the states of operations. With 33 states in India, that accounts to 25-40 small warehouses (depending of regions and scale of operations) instead of 6-8 large warehouses which would be needed for geography of this size. For some manufacturers/CPG corporate with countrywide operations, we have seen the number of warehouses as high as 55-60. Adding to this inefficiency is the fragmented structure in Indian Logistics industry which results in extreme competition.
With such cost structures, and margins less than 5% on turnover of few millions, implementation of ERP/technology at multiple warehouses is costly affair. Hence, most small to medium businesses in this space have stayed away from technology implementations that can result in long term profits. In any case, with smaller warehouses, the automation will not yield great benefits; hence most of the warehouses are semi automated or completely manual. Labour in India is still quite cheap, and considering SLAs are not that strict - the efficiencies are generally compromised. You cannot really fault them, can you? After all, the competition is so intense, that the purse strings are already very tight.
This impact of inefficiency and cost burden is passed to end consumer, either in terms of quality/SLAs or/and in terms of cost.
With GST coming in, the key advantage will be re-aligning/merger of the smaller warehouses to most productive and logical locations - without having a tax burden to think of, which when automated will give excellent cost benefits.
With government all geared up to release the GST regime, the businesses also need to plan accordingly. They will need to take a fresh look at their supply chain to cater to existing geography and should also look at the new business areas that this impending legislation is due to bring. With so much focus on existing operations, it will be almost difficult for the management of these businesses to plan for revamping. Hence, best way would be to look at external experts to provide the guidance. What they may also want to look at is outsource to LSP who have planned for post GST regime. It is quite obvious that LSPs, who can adapt the changes due to GST will be at higher advantage to others.
All in all, the post GST regime should provide exciting times for logistics - and particularly so for 3PL/Warehousing industries. 

Hyderabad doctors face logistics hurdle.......



HYDERABAD: The group of Nepal educated doctors from Telangana and Andhra Pradesh who were planning to go to the earthquake-hit areas to provide medical relief are forced to be on standby due to logistical problems.

"We cannot go on our own without the involvement of the government agencies or else we will get stuck there without proper guidance. Our members are holding talks with politicians to arrange logistical help for our group," said Dr Veluri Vishwanath Reddy, managing director of city-based Tulasi Hospital.

A 1998 batch student of College of Medical Sciences (CMS), Bharatpur, Nepal, Dr Vishwanath, a consultant orthopaedician, added that Nepali doctors settled in the US and Australia have already started pooling in funds.

The doctors led by Dr K Satyanarayana Reddy, a former student of CMS, and consultant orthopaedician, Neelima Hospital, Erragadda, is holding talks with health authorities to help them land in Nepal. "We are expecting some kind of assurance from Telangana government to ensure that our team can provide its services to the Nepali victims without having to worry about accommodation, transportation or basic needs," said Dr Satyanarayana Reddy, adding that around seven doctors are all packed to move any time.

Speaking to TOI, Dr K Vinayak K Pampati, director of CMS, Nepal, welcomed old students of their college to help Nepal at this time of crisis. "We are ready to coordinate with Indian embassy in Kathmandu and Nepal government authorities," he said.