www.itln.

in | Vol 2 Issue 2 | July - Aug 2011

UPS:

Manoeuvring intricacies of supply chain

Mark khaMbatta area Manager Md / India Sub-Continent, UPS

ChAirmAns messAGe

From Chairmans Desk

IT a key factor influencing logistics operations

NFORMATION technology is increasingly becoming a key factor that highly influences the logistics operations and service providers. In a wide online survey conducted by Softlink, a leader in software service and software products offerings to logistics industry in India, says that ERP solutions are gaining wide acceptance as companies realise their potency to deliver greater benefits and higher efficiency. Majorty of companies are bullish about their investment outlay in information technology and, according to Softlink, are planning to increase their investments in the current year. Softlink also found out that there was an increase of 41 per cent of investments of individual companies in IT, which is marked significant. And, most of the logistics service providers in India are planning their higher investment in IT in 2011. Improving operational efficiency, improving customer service and improving data quality are the motivating factors for adoption of IT. This is the age when both information and delivery products must move with greater speed, at lower cost, and with improved service. Successful supply chain management and logistics can often mean the difference between surviving and thriving in todays market place. Improving the supply chain yields readily apparent benefits in terms of lower costs and improved delivery. In this era of agile supply chains, a handful of software service providers innovate and deliver real-time solutions in cargo transportation, warehousing and distribution segments of the supply chain with competitive advantage and comprehensive IT solutions. Transport and logistics practice is led by industry experts with strong domain expertise which helps to create a value chain across business spectrum by addressing all the challenges and requirements spanning through air and surface (sea/ truck) transport. The key focus is to provide software solutions to 3PL / 4PL players offering end-to-end freight forwarding services with seamless integration to warehousing system. Ocean/sea transportation faces challenges like delayed shipments, inadequate communication across partners in business and inefficient

document management. The advancement of information systems, shipment portals and visibility systems are helping the players meet most of these challenges. Rail as a mode of transport is gaining market share steadily across the world and according to leading researchers this robust growth will continue for the foreseeable future. This is due to many factors, primarily because of increased airline fares, which is again due to unpredictable fluctuation in prices of aviation fuel, challenging economic situation and growing concern for environment and safety. The focus of rail operating companies is on attracting customers through innovative pricing/business models and retaining them through improved internal IT/business processes which ensures customer satisfaction and loyalty. It is imperative that the railways core IT systems are state-of-the-art, adaptable and fast enough to meet the dynamic market needs. Going a step further, leaders often offer niche solution to improvise and add value to their clientele by taking necessary steps to advance their tools and introduce innovation. In this issue, you will read more on such leaders. Happy reading!

K. C. JENA
National Chairman, CILT India Former Chairman, UIC Former Chairman, Indian Railway Board

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Contents

VOL 2 | ISSUE 2 | JULY - AUG 2011

CILT INDIA NATIONAL COUNCIL

NATIONAL CHAIRMAN Mr. K.C. Jena VICE CHAIRMAN Capt. J.S. Gill Lt. Genl. D.V. Kalra Mr. Sanjiv Garg SECRETARY GENERAL Dr. P Goel .K TREASURER Mr. Vinod K. Asthana NATIONAL COUNCIL MEMBERS Mrs. Veni Mathur Mr. Mukul Jain Mr. S.P Singha . Mr. Vinod Kumar Chowdhry Prof. Dr. Vinay Maitri Mr. Umesh Chand Goyal Mr. Suresh Bansal Mr. R.K. Patra

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EDITORIAL ADVISORY BOARD KC Jena Sanjeev Garg RK Patra PUBLISHER Priyo Patra EDITOR V. Ramanujam editor@itln.in SPECIAL CORRESPONDENT Namrata More namrata.m@itln.in MARKETING Adnan Abdulally adnan.a@itln.in CHIEF DESIGNER Shanmugam Pillai Printed by INCON PAPER Published by PRIyO PATRA on behalf of STAT MEDIA GROUP . Printed at , 320, A-1, Shah Nahar Industrial Estate, Lower Parel, Mumbai - 400 013, India and published at A-401, Kukreja Plaza, Sector 11, CBD Belapur, Navi Mumbai-400614.(INDIA). Editor: V. RAMANUJAM

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Links India to Europe direct: TNTs B767 launch... GUEST COLUMN: Information technology in logistics... UPS: Manoeuvring intricacies of supply chain... CEVA sets up new SC company, launches SMART Solution Transport Logistic 2011, drew over 51,000 global visitors IT, a value-add or a key tool? Damco unveils app for all major mobile platforms JNPT Commemorates 22nd Anniversary Gati Q3 income up 21 pc, heading towards Rs.13,000 mn Softlink delivers robust system..... Increasing count to 419 stores..... Safexpress inaugurates ultra-modern Agra logistics park Adds three 100T payload B747-400BCFs Four Soft signs Logistics Dynamic Corpn

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Links India to Europe direct:

TNTs B767 launch is part of expansion of its leadership position

V. RAMANUJAM FROM DELHI ODAys launch marks a significant expansion of TNTs capability, said Abhik Mitra, Managing Director, TNT India. Addressing a crowded press meet in Delhi on June 8 to announce the launch of TNTs direct air link of India to Europe, Abhik Mitra said that rain, shine or ice, TNT delivers as promised. He added, Over the years, TNT has proved its efficiency and capability in time-critical, time-definite delivery system. And, now TNT will fly five times a week between

India and Europe, thus enhancing its transport and delivery expertise. With unmatched network of air-road combo service, and with one-window customer service, TNT rules the Indian market with constant, significant rise in market share. Briefing on the new IndiaEurope link, Mitra said, TNT India has been recording yearon-year growth of more than 20 per cent in India. The addition of a dedicated TNT freighter from India will enable our customers to become even more competi-

tive due to faster factory-tomarket lead times and improved efficiency. With the frequency of our service, it will now take just one day for shipments to reach Europe from New Delhi. TNTs dedicated B767 freighter service between India and Europe, the countrys largest trade partner, will run five times a week between New Delhi and TNTs European air hub in Belgium, with a stopover in Dubai on the way back to India. The new service will enable TNT Express customers to enjoy faster

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transit times, as well as improved control and visibility over shipments moving between India and Europe, Mitra said. Speaking about tonnage, Mitra said that the new B767 freighter service of TNT has a weekly capacity of 210 tonnes and reflects TNTs commitment to improving connectivity between India and Europe. Mitra said that shipments depart from New Delhi at the end of each work day and arrive in Europe before the start of the next working day. The return flight allows TNT to collect and uplift shipments from Europe on the same day. The introduction of TNTs dedicated freighter provides additional express capacity between India and Europe. Pointing out the significance of the launch, Mitra said, The B767 will operate five times a week from New Delhi to TNTs European hub in chael Drake, Regional Managing Director, TNT Express Asia Pacific, said, We are very excited about Indias growth story. We are unmatched leader in Europe. Europe is a major trade partner of India. In this country, TNT enjoys a strong foothold. Todays launch of dedicated B767 service between India and Europe is another important milestone in the growth story of TNT India. The new service will further enhance the service capability of TNT India. The introduction of the India-Europe service is part of TNTs plan to expand its leadership position on AsiaEurope routes. TNT now operates flights to Europe from five strategic locations in Asia: New Delhi, Chongqing, Hong Kong, Shanghai and Singapore. Pierre Vaesen, Ambassador of Belgium, was chief guest at the launch event. He said that in

The new service will enable TNT Express customers to enjoy faster transit times, as well as improved control and visibility over shipments moving between India and Europe.
AbhIk MITrA Managing Director, TNT India

At Delhi press meet: Jeroen roodenburg, Abhik Mitra, Michael Drake and Pierre Vaesen

Liege, providing Indian businesses a more frequent connection to Europe and improved factory-to-market lead times. The timings of the connection mean that shipments will depart New Delhi at the end of the day, and arrive in Europe before the start of the next working day. Once in Europe, passage of cargo is ensured by TNTs extensive, integrated air and European road network that covers more than 43 countries, Mitra added. Addressing the press, Mi-

2009 Indias trade with Europe crossed 69bn. A forthcoming agreement between India and Europe will give a major boost to India-Europe trade. TNTs launch of direct service between India and Europe will play a key role in this bilateral trade boost. One of worlds largest express delivery companies, TNT Express moves 4.7 million parcels, documents, and pieces of freight every week to more than 200 countries. The global express

and logistics major operates air and road transportation networks in India, Europe, China, South America, the Asia-Pacific and the Middle East. The company employs 83,000 people and runs a fleet of about 30,000 road vehicles and 50 aircraft. It has more than 2,600 depots and sorting centres. TNT Express made 7.053bn in revenue in 2010. Headquartered in Bangalore, TNT Express India has over 2,000 professionals in this country. The India domestic network has three gateways in Mumbai, New Delhi and Chennai, besides seven road hubs and 176 depots. TNT India has more than 1,000 vehicles on its extensive domestic road network which reaches 200 locations and more than 13,700 countrywide pin-codes. TNT also operates three customer care centres that operate 24x7. TNT established its own operations in 1994. With its acquisition of Speedage, a leading local road express company, in 2006, TNT became the first global express distribution company to enter the Indian market with a direct subsidiary. Also, TNT was the first to offer integrated international and domestic services through its tight-knit air and road network.

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GUest CoLUmn

Information technology in logistics is no longer a choice, but an absolute necessity

AMIT MAHESHWARI AMIT MAHESHWARI NFORMATION technology has pervaded every aspect of business today and has become an integral part of it. However, unlike other industries, the logistics sector has failed to take full advantage of IT for their accelerated growth. Even today, a number of logistics companies run their various logistics activities in independent silos, using multiple legacy solutions that are operated locally. They fail to realise that to run a truly customerdriven logistics, they need to adopt a single enterprise-wide system of record for planning, executing, and sharing information across their operations. In fact, it is impossible for a company to gain a true picture of operations across the different parts of the logistics environment using outdated systems. The process of gathering and interpreting data takes valuable time and affords no window of opportunity to resolve issues as they arise. Without this information many a time it becomes too late to perform any action to resolve an issue. Technology solutions were limited in the past and often forced companies to select different solutions. However, with the advent of ERP and cloud computing, technology solutions can now provide an integrated picture across international, inbound, and outbound logistics. Integration of Information within an organisation is a powerful enabler for reduced costs, increased productivity; and improved customer service. Flexibility is an important consideration whenever information systems are being considered. Logistics systems must be capable

of adapting to meet changing demands quickly and cost-effectively. SoftlinkS logi-SyS makeS an intelligent choice Recent times have seen an increase in awareness among logistics companies on the adoption of IT. According to the latest survey conducted by Softlink on IT in logistics, 98 per cent of the respondents have said that an ERP solution will be beneficial for their organisation. There is clearly a demand for quality IT solution in the market. This has largely been fulfilled by Softlinks Logi-Sys, a comprehensive ERP solution, which has gained wide acclaim. It is the only trusted and market validated ERP solution available today. Logi-Sys is an integrated ERP solution that is also modular, offering the flexibility of plug-and-play modules. The enhanced level of flexibility offered by Logi-Sys enables organisations to modify and enhance their system with the ever changing needs of their business. Logi-Sys helps streamline operations and business processes, build efficiencies and enable accelerated growth. It automates the processes with a view to enhance the efficiency in routine operations. LogiSys is available under both Cloud and License models, benefiting both small and large companies. The software is currently being used by many large and small logistics companies. Logi-Sys integrates the various functions and operations of a logistics company and ensures the systematic and seamless flow of information from

one operation to another. Data can be carried from warehousing to transportation, transportation to Customs clearing and freight forwarding and so on. This helps in avoiding costly errors and duplication of work. Since the various systems will be using a unified data repository, there is a complete internal visibility. With the realtime information available at its finger tips, the management can control the operations with ease. With integration of the operations, the service provider no longer needs to worry about proceeding with the next stage as the information about the completion of the previous stage is available. Alerts can also be generated on exceptions and non-completion of specific tasks, thus ensuring that the work is not delayed Great opportunities await the logistics sector and to capitalise on them it is necessary for companies to rethink their business strategy. Information technology is no longer a choice but an absolute necessity and can be ignored only at their own peril. They need to make an intelligent choice in selecting the right technology partner who can deliver solutions that are adaptable and flexible to meet their growing needs. IT can provide multi-pronged control, transparency and efficiency over complex logistics operations giving organisation the necessary tools to accelerate profitable business growth.

(The author AMIT MAhEShWArI is CEO & MD, Softlink.)

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V. RAMANUJAM

B Manoeuvring
UPS:

intricacies of supply chain

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USINESSES globally need to develop capabilities to address key issues relating to supply chain management. Physical improvements alone are usually not enough to reap the bountiful returns of the fully reinvented supply chain solutions offered to customers. The primary issue here is getting product from the vendor to the shelf to fulfil consumer demand. This issue can be addressed by putting proper flow supply chain management in place that is sure to optimise the business distribution network to enable merchandise flow. It is vital simultaneously to upgrade the overall quality of solutions and systems that must mesh with radically improved supply chain management. The quality and systems must increase the productivity of service providers customers. The customer will see factors such as reduction of time, lowering of customers inventory and evaluating supply chain operations through a new standard of excellence.

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MArk khAMbATTA

Superior companies will devote attention to capturing the vital keys of such efficiency in operations. UPS is one of most perfect supply chain operators of the future. Over the years, UPS has achieved effective supply chain management systems and an array of service objectives, supporting rapid fulfilment of customer requirements. A successful supply chain demands capabilities and expertise in a variety of disciplines, combined with traditional logistics processes such as distribution and transportation. Organisations reengineering their supply chain strategise each segment, giving ample consideration to technology, and achieve greater integration through operational excellence. UPS falls first in this

line. UPSs optimised distribution network takes care of product assortments, order practices, replenishment methods, replenishment quantities, increase in imports, and new store formats that requires stores operating at much lower inventory levels than those existing. Managing resources, centralising services and processes, and accounting for all produced goods, UPS enables businesses maintain supply chain management through enterprise resource planning (ERP). Its sophisticated software database system integrates all the data and daily processes of an organisation. This networked support system allows every department to store, retrieve and share information in real-time. Rated No.1 in an inbound logistics annual Top 10 3PL Excellence Awards survey, UPS provides supply chain solutions only after understanding the fast changing expectations of global businesses. For that matter, in the past businesses were production-driven, geared to marketing and producing for the masses. Today, businesses are moving towards integrating mass customisation and one-to-one marketing. UPS offer of ERP harnesses existing information, perceived customer values and even market-oriented strategies, in a single virtual network. UPS supply chain is managed efficiently to this high quality by MARK KHAMBATTA, Area Manager MD / India Sub-Continent, UPS.

Excerpts of Khambattas exclusive interview with this correspondent: ITLN: UPS is a leader in express, logistics and supply chain solutions. In providing logistics services, how is UPS manoeuvring the intricacies of global trade with minimum effort of customers? MARK KHAMBATTA: UPS offers services to Indian and overseas customers in multi mode from air, ocean and express to heavy freight and logistics; in any size and any weight including the express courier services. We service India through five airports: Mumbai, Chennai, New Delhi, Bangalore and Cochin, with brokerage operations in 12 cities - Ahmedabad, Bangalore, Chennai, Hyderabad, Jaipur, Kolkata, Ludhiana, Moradabad, Mumbai, New Delhi, Pune and Tirupur. Over the past several years, we have also invested heavily in building our air freight services and acquired capabilities and expertise, integrated global networks, and implemented new performance standards and technology to increase overall operational capacity, which in turn has ensured a smoother flow of packages from the place of origin to the final destination. As always, our attempt has been to ensure that we provide our customers with unparalleled global service standards for their shipments. In addition, the Shenzhen Asia Pacific hub which was opened last year has also enabled us to strengthen

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our entire intra-Asia network. We now operate more than 5,000 flights to and from this hub. The key Indian cities of New Delhi, Mumbai and Bangalore have seen reduced time-in-transit to destinations like Australia, China, Hong Kong, Korea, Singapore and Vietnam. ITLN: Globally UPS is investing over US 1 billion per annum in technology aiming at value adds to customers. How do your IT systems help customers gain cost and service advantages? KHAMBATTA: Over the past two decades, UPS has invested US$1 billion annually in technology. We see the use of technology as an opportunity to improve the service we provide to our customers. Aside from economical transportation costs, UPS also provides innovative technology to help cut costs for our customers. Some examples here: UPS Paperless Invoice; UPS Developer Kit; UPS Quantum View Manage (QVM); UPS Billing Data and UPS Billing Analysis Tool. At UPS, technology is very important to us since it powers virtually every service we offer and every operation we perform. Our technology initiatives are driven by our customers needs. ITLN: Under supply chain, UPS provides the whole spectrum of services. Cross docking is a segment that is said to be critical. How your professionals are qualified or experienced to manage this? KHAMBATTA: UPS offers a comprehensive contract logistics service across the entire supply chain from distribution of finished goods to service parts logistics and cross-docking is just one of many logistics capabilities UPS offers to our customers. In everything we do UPS ensures that our logistics personnel are fullyequipped to stay ahead in the game and be the best in class. Our implementation team leverages on the best breed of tools to manage projects and its implementation processes exceeds all expectations. In Asia Pacific, UPS warehouses are located across 20 countries with over 260 facility locations. With the combination of UPS-owned and leased facilities to accommodate the needs of businesses. ITLN: Under supply chain, you have accommodated healthcare, high-tech, retail and direct-to-consumer. What else do you plan to add to this profile? KHAMBATTA: UPS does not speculate on future growth plans including product and service offerings. However, UPS will continue to invest for the future and grow our business to better serve our customers. ITLN: With an experience close to three decades in supply chain solutions, you are holding a superb respectability in the industry. Share your views with our readers on how supply chain solutions help customers improve their warehouse inventory and reduce labourintensive procedures. KHAMBATTA: UPS has built its reputation on its efficient and reliable transportation services. The logistics capabilities we have developed over the last few years have positioned UPS to do far more for businesses than ever before. est and fastest growing markets in the supply chain business. Many companies have now realised the importance of developing and implementing a comprehensive supply chain strategy. The need to focus on integrating and improving their end-to-end process which include concentrating on planning, sourcing, manufacturing, and distribution processes is now gaining recognition. Companies have begun assessing the needs of their supply chain and developing contingencies. Given the mixed economic signals we are seeing these days, businesses need to invest in their supply chain to gain efficiencies and enhance their resilience in an increasingly risk-filled environment. This will help balance their operational objectives and minimise risks. According to a research paper by Deloitte, designing an India supply chain catering to over a billion people, spread across several hundred cities and more than half a million villages is a formidable task in itself. Considering the regional variations, complex tax structure, infrastructure obstacles, rising customer expectations and the uncertainties involved, the use of scientific methods may seem infeasible. Hence, the need of the hour is a scientific approach enabled by technology which will be the only way to tackle a challenge of such magnitude. The multi-layered and complex Indian tax structure with regional tax incentives may lead to supply chain decisions. Though the complexities of the India supply chain may appear overwhelming, understanding and mastering them is a critical success factor for an organisation attempting to serve customers in India. An efficient India supply chain design in turn will help better position companies in what is becoming an increasingly competitive marketplace. Spearheaded by Mark Khambatta, UPS India operates supply chain best with a blend of high-tech automation and a team of professionals, and therefore the best supply chain master plans of the company are based on the most logical match of time-tested characteristics making high quality and fail-safe accuracy techniques critical to superior supply chain. Gen-next awaits next level of UPSs efficiency.

We have helped customers of all sizes all over the world discover the power of logistics, not only in the area of inventory management but also in product repairs and returns, order fulfilment, warehouse design, international trade consulting, financial services even online printing and other retail services. These kinds of value-added solutions, which we refer to collectively as logistics, give companies a competitive advantage by helping them save money, become more efficient, improve customer experience, expand into new global markets and operate in more sustainable ways. ITLN: In your analysis, how do you foresee the growth trend of supply chain business in this country? KHAMBATTA: In todays global economy, businesses have started operating a leaner, more efficient supply chains that are designed to meet commitments to customers. The supply chain concept however is still nascent in India despite it being one of the larg-

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CEVA sets up new SC company, launches SMART Solution

V. RAMANUJAM EVA Logistics, one of the worlds leading supply chain companies, has created a new organisation, Supply Chain Solutions, and launched its latest SMART Solution, SMART End to End. CEVAs Supply Chain Solutions is set up in response to the changing and evolving needs of large, global customers, said Samar Nath, MD - India, South Asia, Ceva Freight (India) Private Limited, CEVAs Indian arm. He added, As they have shifted to sourcing, manufacturing and distributing products on a global basis the complexity of managing their supply chains have increased, while high performance and total optimal cost remain key criteria. The Supply Chain Solutions team, of around 185 employees, will use the experience and expertise that already exists within CEVA to consolidate different structures, organisations and resources to further strengthen its global team and upgrade its End to End Solutions, a key part of the CEVA story, to drive strategic advantage for its customers throughout their supply chains. Towards supporting this, CEVA has also launched a new SMART Solution: End to End. Nath said, This solution is a standardised, consistent and configurable process that delivers value at every stage, and when coupled with CEVAs commitment to operational excellence it provides rigorous management of global supply chains for both finished goods and production and spare parts. Under this new solution, CEVA will manage everything from components and inbound logistics, through to moving the finished product and can average significant year-onyear savings of 5 per cent to 15 per cent through productivity improvement programs. CEVAs SMART solutions are a set of established and proven processes which help identify common areas where customers are able to standardise their core processes of supply chain solutions. According to him, several leading customers in a variety of sectors are already using this new solution to their benefit, including General Motors (GM). SMART End to End is being used to manage their global inbound and out-

Samar Nath, MD - India, South Asia Ceva Freight (India) Private Limited

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From l r: Karl Ulrich Garnadt - Vorstandsvorsitzender Lufthansa Cargo / Chairman of the Executive Board Lufthansa Cargo; David Lara - Vice President Global Airfreight Procurement, CEVA; Bruno Sidler - Chief Operating Officer, CEVA; Dr. Andreas Otto - Vorstand Produkt und Vertrieb Lufthansa Cargo /Board Member Product and Sales Lufthansa Cargo.

bound flows of materials across multiple different locations across the world and is delivering significant, continuous improvements in the efficiency of their supply chain. Designed to address increasing supply chain complexity, SMART End to End provides solutions to manage global sourcing strategies, inventory supply and demand, total logistics spend, complete supply chain visibility and supplier performance management, Nath said. CEVAs integrated global network will form the foundations of the solution, exploiting the already established Control Tower network in key, strategic locations across the world. Jan Martin Witbreuk, CEVAs, EVP Supply Chain Solutions, said, We are extremely excited about the launch of this new organisation and to bring another SMART Solution to the market for the benefit of our customers. The Supply Chain Solutions team is focused on the complete integration of our customers supply chains to drive maximum flexibility and cost efficiency through the very best practices. The rich engineering and design expertise we have established provides an extremely robust foundation for this solution, integrating services and execution at origin and destination, giving us and our customers a distinct competitive advantage in the market. With global headquarters in Hoofddorp, The Netherlands, CEVA Logistics, one of the worlds leading supply chain companies, designs and implements industry leading solutions for large and medium-size national and multinational companies. Around 50,000 employees are dedicated to

delivering effective and robust supply chain solutions across a variety of sectors and CEVA applies its operational expertise to provide best-in-class services across its integrated network, with a presence in over 170 countries, including India. For the year ending December 31, 2010, the group reported revenues of 6.8bn. WinS Planet aWard of excellence Lufthansa Cargo recognised CEVA as its most successful major customer in 2010 with most prestigious award in airfreight industry. CEVA Logistics is awarded the 2010 Planet of Excellence award by Lufthansa Cargo. The award, presented during Lufthansa Cargos Global Partner Council on the Greek island of Santorini on June 17, recognises CEVAs outstanding performance and tonnage growth over the past year. The award was presented to Bruno Sidler and David Lara, Vice President Global Airfreight Procurement of CEVA by Karl Ulrich Garnadt and Dr. Otto of Lufthansa Cargo. In recent years, the Lufthansa Cargo Global Partnership Program has become an important platform for sustainable growth. Lufthansa Cargo now generates about 50 per cent of its revenue with its 12 global partners, who besides CEVA include Agility, DHL Global Forwarding, DSV, Expeditors, Hellmann, Kuehne+Nagel, Nippon Express, Panalpina, DB Schenker, UPS and UTi. The Global Partner Council is the annual top-level meeting between senior executives of the worlds leading forwarding companies and top-level managers at Lufthansa Cargo.

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eVents ALBUm

Transport Logistic 2011, drew over 51,000 global visitors

RANSPORT LOGISTIC 2011, the worlds largest trade fair for logistics, mobility, IT and supply chain management took place from May 10 to 13, 2011 in Munich, Germany. Over 51,000 trade visitors from 134 countries attended the fair. Parent publishing group STAT Media participated in the event as a media partner with its team of 6 staffers. Indian Transport & Logistics News was one of the publications from India represented by its editor.

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IT, a value-add or a key tool?

NAMRATA MORE HE role of information technology (IT) has come a long way taking the global cargo transportation and logistics industry to new highs. With international trade taking new routes and globalisation taking new shapes, more and more number of logistics providers in India are adopting IT solutions to gain competitive edge. Rise in confidence and dependence on IT enables companies to push their presence up and expand their network in the world and thus help them expand their business beyond geographical boundaries. it in SuPPly chain and WarehouSing Efficiency in supply chain management is packed with constant flow of products and information, thus driving the need for visibility and control. A thorough visibility that is termed today a glass pipeline visibility. When contacted by this correspondent, Vineet Agarwal, Executive Director, Transport Corportion of India (TCI), a leader in

multi-faceted total logistics solutions, said, The use of Global Positing System (GPS), RFID, scanning and web-based solutions are aiding logistics firms to improve their productivity. RFID devices monitors and tracks customers shipment in real time. Besides, holograms and 2D barcodes, laser authentication and molecular markers which is used widely in pharma logistics, BPR (Business Process Re-engineering) provides a powerful link between the entire value chain extending from the customers to the suppliers. Warehousing segment, an important link in distribution logistics chain, has also evolved over the years to offer customised value-added services. With the vibrant economy, warehousing is slated to be more adaptive, more flexible, customer-focused and will continue to be a key driver to provide a single window logistics solutions. Keeping this in mind, a number of warehousing companies in India are now looking at warehouse automation. Warehouse automation is an upcoming technology in India. However, implementation of

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warehousing. Commenting on TCIs experience in adopting IT solutions, Vineet Agarwal says, At TCI, it is our constant endeavor to understand customer needs and deliver accordingly. A customer-centric delivery model has been deployed which encourages adoption of new services and technology to ensure customer satisfaction and loyalty. At TCI, we have a technology-enabled warehousing system which helps ensure better management of assets. We have integrated processes through the supply chain to share valuable information including demand signals, forecasts, inventory, transportation, potential collaboration to all our stakeholders. TCI has also integrated in- house Enterprise Resource Planning (ERP) along with customers ERP for better service deliverables and tracking of service level agreements. its matchleSS role in air freight Segment With its own specific delivery performance and qualities, air cargo plays a significant role in the logistics industry. More than cutting costs, a lot of airlines are now opting for IT solutions to provide efficient services to their customers. With new developments taking place quickly in IT, customers are now becoming more demanding and net savvy, expecting pro-active customer service and regular updates. Technology provides a major role by collecting seamless information at every point and gives feedback to the customers as it progresses. A robust track-ntrace, a strong repository of Customs requirement, a seamless technology enabled Customs clearance process are definitely helping in revolutionising the air freight sector in India, says Sanjeev Kathuria, Country-Sales and Marketing Director, TNT, a multinational leader in express and logistics, and a pioneer in road-air combo delivery model. Interestingly, TNTs adoption of

Vineet Agarwal, Executive Director, TCI

Sanjiv kathuria, Country-Sales and Marketing Director, TNT

this technology is limited to the large players. Warehouse automation requires considerable investment in the beginning, while the benefits are only realised after a while, informs Shirish Gariba, CIO, Drive India Enterprise Solutions Limited (DIESL). A TATA group company, DIESL is a leading provider of end-to-end logistics solutions, with over 176 warehouses connecting over 90 per cent of Indian cities.

information technology ranges of solutions from a simple tracking to automated shipping solution. Kathuria says, TNT provides a full range of internet, PC based and mobile services that make shipping easier and more efficient. With TNTs track-n-trace system customers can have the latest update on their shipments via SMS, over email or and on their PDA/ phones, etc. TNT has rolled out solutions for such needs which enable a direct communication with the customers ERP to generate shipment label, paper works, manifest, etc. road Still fragmented, but it helPS PuSh quality Despite its significant role in last-mile delivery system, trucking industry in India still remains very fragmented, unorganised and not positioned to leverage the fresh opportunities. In such a scenario, distinctive use of IT tools are extending the lead to the betterment of the trucking industry in India. Dileepa. B.M., CEO - Bonded Trucking, Shreeji Transport Services P Ltd., says, In India IT revolution on transport industry has developed at lot. Today, most of the transport companies are having their own software solutions to operate. We, at Shreeji, also have our own software by name Complete Solutions. Technology is developed to a level that truckers can now track the positions of their vehicles through internet. Also through our technology, truck

Shirish Gariba, CIO, DIESL

However, SME players, still seem to sanguine about developing centrally automated warehouses. Kabra points out another key trend in warehousing: Order picking is another area in warehouse automation that is expected to gain momentum in the near future automated order picking system will employ minimal human labour, and will be more flexible, sensitive and will be more modular. Consequently, conveyorised picking systems will have a more significant role in future

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informAtion teChnoLoGY
and/or standardisation. Krishnan Venkatram, Head of Marketing and New Business Initiatives, Four Soft, focusing on visibility as a key parameter, says, It is currently very difficult for various stakeholders to keep track of the various stages of their logistics operations current location of their shipments, whether important stages of the shipping process (e.g., Customs, octroi clearance) have been completed and so on. IT solutions should take this very important parameter into account. Among other factors, multiple language interfaces and tax compliance are equally important. IT solutions should make it easy for the various players in the industry to take various State and Central government tax issues into account. They should also be able to readily accommodate the shift to Goods and Service Tax (GST) that is expected to become effective in the relatively near future without having to make wholesale changes to the solutions. The trend of logistics companies adopting IT solutions is surely here to stay. Amit Maheshwari, CEO & MD, Softlink, says, With the rapid and dynamic growth in the logistics sector more and more companies are getting into IT solutions targeted at this market. Having a strong foothold in aviation industry, Softlinks solutions are gathering momentum and the companys client base is fast expanding. Quality, customer service and cost-effective technology solutions are in the forefront of Softlinks software services. However, it is also to be noted that it is difficult to design software solutions without a great deal of domain expertise. Maheshwari adds, Only a company having technology, domain and product building expertise and qualified team of professionals can be successful in delivering quality solution for the logistics market. Initially, more than delivering solutions, creating awareness of the advantage of IT is also a challenge. Initially, our challenge was

Dileepa b.M., CEO - bonded Trucking, Shreeji Transport Services P Ltd.

Amit Maheshwari, CEO & MD, Softlink

maintenance can be obtained. Maintaining manual records of each and every truck is difficult for a trucking company. To overcome similar challenges, Dileepa says, If we have software, an automatic email or SMS can be sent as reminder about the insurance expiry date, or RTO fitness certificate expiry date, or drivers licence expiring dates, or the trucks servicing dates, etc. it leadS to Smooth Sail As economy sees a rapid growth in India, the country needs a systematic IT backbone to handle the increasing seaborne business. The documentation process is also extremely complex and in the bid to enhance faster and more efficient cargo movement, Hrushikesh Joshi, Group CIO, All Cargo, says, The sea freight industry is document intensive and information technology can make a big difference by driving e-initiatives to seamlessly integrate B2B partners. This will not only enhance business productivity but also improve timeliness of information. key role of it ProviderS Certain efficiency parameters are taken into consideration while designing IT solutions for the Indian logistics industry. Logistics companies, their customers and various other intermediate parties in the logistics chain operate on different IT platforms, thus fuelling a need for unifying these platforms through integration

in creating awareness about IT by educating people on its manifold benefits. Softlink has set the standard with solutions that scale-up the value chain and deliver endto-end solutions to the clients, says Maheshwari. However, Venkatram feels, logistics providers are wary of making large investments in solutions that will require frequent modification. Solution providers need to address this by providing these solutions as a service and being flexible enough to make necessary modifications as required rapidly. Users of IT solutions in logistics companies should be able to do so from remote locations where they may not have access to IT infrastructure. IT solutions should be designed to both transmit and receive critical data over mobile devices - especially phones. It was over three decades now that India witnessed the dawn of information technology in service industry. Experts believe that IT is to stay and will continue to become an integral part of every companys service offerings. Setting up sophisticated technologies like online tracking, being IT-intensive and focusing on strategic development is the need of the industry and has to be employed to service customers better. Investment on IT is now part of every companys annual budget, as they have realised that today the key tool called IT has occupied a seat determining their volume of their future business.

18 | JULY - AUG 2011 | www.itln.in

TRAFFIC HANDLED AT MAJOR PORTS

(DURING APRIL TO JUNE, 2011* VIS-A-VIS APRIL TO JUNE, 2010)
(*) TENTATIVE (IN 000 TONNES)

aPril to SePtember PortS 2011*

1 KOLKATA Kolkata Dock System Haldia Dock Complex TOTAL: KOLKATA PARADIP VISAKHAPATNAM ENNORE CHENNAI TUTICORIN COCHIN NEW MANGALORE MORMUGAO MUMBAI JNPT KANDLA TOTAL 3139 8737 11876 14637 18642 3099 15097 7007 4397 8532 12102 13587 16439 21143 146558 2933 7574 10507 13627 15722 2262 15561 5937 4482 8139 12845 14228 16064 19907 139281 2

traffic 2010
3

% variation againSt Prev. year traffic

4 7.02 15.36 13.03 7.41 18.57 37.00 -2.98 18.02 -1.90 4.83 -5.78 -4.51 2.33 6.21 5.22

EvENTS CALENDAR
21- 22nd Sept, 2011 9th INTERMODAL AFRICA, Morrocco Casablanca 21st-22nd Sept, 2011 5th ExPRESS LOgISTICS & SUPPLy CHAIN CONCLAvE, Taj Lands End-Mumbai 29 Sept - 1st Oct., 2011 INMEx INDIA 2011, Bombay Exhibition Centre, Mumbai 17-19th Oct, 2011 2nd SAUDI TRANSTEC- DAMMAM, Saudi Arabia 18th - 21 Oct, 2011 7th SCM LOgISTICS WORLD 2011 Bombay Exhibition Centre, Mumbai 26th - 27th Oct, 2011 7th TRANS MIDDLE EAST, Abu Dhabi UAE 24th -25th Nov., 2011 6th THAI PORTS & SHIPPINg 2011, Bankok, Thailand 01 - 03 FEB, 2012 AIR CARgO INDIA, Bombay Exhibition Centre, Mumbai 20 - 22 FEB, 2013 AIR CARgO AFRICA, Johannesburg, South Africa

ACAAI CONvENTION

38th ACAAI ANNUAL CONVENTION: The ACAAI Convention will be held this year in Ista Hotel, MBM Farms, G.T. Road, Amritsar, from November 3 to 6, 2011
www.itln.in | JULY - AUG 2011 | 19

informAtion teChnoLoGY

Damco unveils app for all major mobile platforms

ITLN BUREAU

AMCO, one of the worlds leading providers of freight forwarding and supply chain management solutions, announced that it has released an app for all of the major mobile platforms: iPhone/iPad, Android and BlackBerry. The new app is aimed at providing customers a fast and simple way to get an overview on the status of the logistic services being delivered to them by Damco. Damco is the first logistics service provider in the industry to offer its customers apps on all important mobile platforms and the launch is part of an overall effort to prepare for a future where more business processes will need to be efficiently supported on smartphones and tablets, said Mark Scotland, Chief Information Officer, Damco. Scotland added, The proliferation of mobile devices is making it economical and scalable to reach customers with apps. During recent years tremendous advances have been made, not only in the capabilities of the devices, but also in their ease of use. As a result, the screens and functionality of the devices are more than sufficient to give customers mobile access to the applications they access via Damcos standard platforms today, Scotland clarified. According to market data made public by IT research company Gartner, as many as 428

million mobile communication devices were sold in Q1 2011, which represent a 19 per cent increase year-on-year. Smartphones continues to outpace the rest of the market and accounted for 23.6 per cent of overall sales in Q1 2011, an increase of 85 per cent yearon-year, according to Gartner. Even entry-level smartphones will be capable of running business apps over the next years, especially in developing countries. We need to meet customers on these platforms and not only focus on targeting the conventional stationary PC, which is what the logistics industry has done traditionally, says Scotland. firSt SteP of a larger journey The tracking app Damco has made available for iPhone/iPad, Android and BlackBerry will make it possible to track shipments quickly using a device that is available at all times instead of being tied down by a normal PC. In industries where secure and constant delivery of goods are essential, apparel and retail for example, this flexibility is valuable. Initially, Damcos apps will offer tracking of ocean freight shipments, and the plan is to expand the functionality with airfreight tracking and provide mobile access to a number of the key customer facing applications that are currently accessed by cus-

tomers using myDamco, a portal on www.damco.com where customers can fulfil all of their booking, reporting, tracking and document handling requirements in one easy-to-manage location. In addition to launching mobile apps, Damco has also launched a number of widgets, which are small stand-alone applications that can be executed within a webpage when customers access their applications on myDamco. The widgets allow users to create individual content and have constant access to them throughout their workday, explained Scotland. In todays work environment getting information is rarely a problem. However, structuring the flood of information into a relevant view to create insight and be able to make critical on-time decisions is a major issue. The widgets represent a simple to use solution to this because Damco customers can easily design their own cockpit or dashboard with the exact online information they need to do their job efficiently. It is easily done with a simple drag and drop functionality similar to iGoogle and other successful web content providers, said Scotland. Damco is one of the worlds leading third party logistics providers specialising in customised freight forwarding and supply chain solutions, offering a broad range of services to customers all over the world.

20 | JULY - AUG 2011 | www.itln.in

shiPPinG

jnPt commemorates 22nd anniversary

Shri L. Radhakrishnan, IAS, Chairman,JNPT(3rd from left), flanked by Shri Vijay Chhibber,IAS, Addl. Secretary, Min. of Shipping( 4th from left), Dr. Satish B. Agnihotri, IAS, Director General of Shipping, Govt. of India (5th from left) and Shri N.N.Kumar,IRS, Dy Chairman,JNPT( 7th from left) along with top awardees. ITLN BUREAU
awaharlal Nehru Port, the largest container handling port of India, celebrated its 22nd anniversary on 1st June, 2011 in Mumbai at Hotel Taj Palace. JNPT honoured the top performers at the Port by awarding them trophies . Shri L. Radhakrishnan, IAS Chairman, Jawaharlal Nehru Port Trust thanked the Ports Customers and the Exim community for their continuous support and promised the best of services to the trade. Highlighting the Ports performance, Shri. Radhakrishnan outlined how capacity would increase by 0.8, 0.8,2.4 and 2.4 million TEUs annually from the next year, taking capacity to 10.5 million TEUs p.a. . He announced the all time record performance achieved in TEUs handled, capacity utilization in tonnage of solid and liquid cargo in 2010-11. A special issue of the publication brought out by M/s Daily Shipping Times on J N Port was released by the Chairman to the Dy. Chairman Shri N.N. Kumar. Shri S. K. Kaul, Chief Manager(Admn.) & Secy. welcomed the gathering. The Chairman thanked the business associates, partners, customers, all employee and the trade for the record, JNPT handled the largest solid cargo any ports in India The function was attended by Senior IAS,IPS,IRS Officers, Trade Community, Stake Holders and JNPT officials.

beSt PerformerS of the year- 2010-11

1) Highest container traffic handled by a Shipping Line at JN Port during the year 2010-11: M/s. MAERSK LINE608,033 TEUs. (2009-10: 669,124 TEUs by M/s. MAERSK LINE). Highest Container traffic handled by a Shipping Line at JNPCT during the year 2010-11: M/s. MEDITERRANEAN SHIPPING CO.S.A.-136,602 TEUs. (2009-10: 86,488 TEUs by M/s. Simatech Shipping & Forwarding LLC.). Highest import delivery of containers to a CFS from JNPCT during year 201011: M/s. HIND TERMINALS PVT. Ltd, 51,681 TEUs. (2009-10: 52,728 TEUs by M/s. HIND TERMINALS PVT.). Maximum throughput handled at Shallow Draught Berth by a Consignee during year 2010-11: M/s.UltraTech Cement Ltd. 0.86 million tonnes. (2009-10: 1.01 million tonnes M/sUltratech Cement Ltd.-0.86 million tonnes). 5) Maximum containers handled at Shallow Draught Berth by a Shipping Line during year 2010-11: M/s. Samsara Shipping Pvt. Ltd., 20,637 TEUs (200910: 12,493 TEUs by Pacific International Lines). Maximum liquid cargo brought to JNPT by a consignee during year 2010-11: M/s. Oil & Natural Gas Corporation Ltd (ONGC), 2.62 million tonnes.(2009-10: 3.43 million Tonnes by M/s. Oil & Natural Gas Corporation Ltd (ONGC) Maximum liquid cargo handled by a Vessel Agent during year 2010-11: M/s. J. M. Baxi & Co. - 3.04 million tonnes.(2009-10: 2.94 million tonnes by M/s. J. M. Baxi & Co.). A special felicitation for handling ICD traffic of 0.82 million TEUs at JNP during the year 2010-11: M/s. Container Corporation of India Ltd (CONCOR) (2009-10: 0.92 million TEUs by CONCOR) 9) A special felicitation for handling 1.54 million TEUs of container traffic during year 2010-11 : M/s.Nhava Sheva International Container Terminal (NSICT) Ltd. (2009-10: 1.53 million TEUs by NSICT) 10) A special felicitation for handling 1.86 million TEus of container traffic during year 2010-11: M/s. Gateway Terminals (India) Pvt. Ltd. (GTIPL).(2009-10: 1.75 million TEUs by GTIPL) 11) A special felicitation for handling liquid bulk cargo of 6.66 million tonnes during year 2010-11: M/s. Bharat Petroleum Corporation Ltd (BPCL). (2009-10: 6.50 million Tonnes by BPCL) 12) A special felicitation to a person for support, guidance and contributions for the JNPT Shri Krishna B. Kotak, J.M.Baxi & Co.

2)

6)

3)

7)

4)

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22 | JULY - AUG 2011 | www.itln.in

sUPPLY ChAin

Gati Q3 income up 21 pc, heading towards Rs.13,000 mn

V. RAMANUJAM

Mahendra Agarwal, Founder-CEO, Gati Limited

ATI LIMITED posted a total income of Rs. 2,288 million in the third quarter as compared to a total income of Rs.1,894 million for the corresponding quarter of the previous year, thereby registering a growth of 21 per cent in revenue. EBITDA grew by 23 per cent at Rs. 250 million as compared to Rs. 203 million in the corresponding quarter of the previous year. The consolidated revenues of the Hyderabad-headquartered express distribution and supply chain solutions major registered a significant growth of 32.3 per cent from Rs. 6,929 million to Rs. 9,164 million for the nine months ended March 31, 2011, over the corresponding period last year. Giving details of divisional performance of Gati, Mahendra Agarwal, Founder and CEO, said that the companys Express Distribution & Supply Chain Division has shown a robust growth in revenue of 23 per cent to Rs.2,025 million compared to a revenue Rs.1,643 million and a 34 per cent growth in EBITDA to Rs. 213 million as compared to Rs.159 million for the corresponding quarter in the previous year. The impressive growth in EBITDA is as result of operational efficiency arising out of several measures

including route rationalization and better vendor management, Agarwal said. The performance for the nine months ended March 31, 2011, too recorded an impressive growth of 26 per cent from Rs.4,764 million to Rs. 6,015 million. Agarwal said, The Coast-to-Coast (shipping) division has registered a revenue growth of 5.4 per cent to Rs 264 million for the third quarter as compared to Rs. 251 million in the corresponding quarter in the previous year. However, EBITDA has decreased marginally because of increase in operational costs. Briefing on the companys business highlights, Agarwal said that Gati strengthened the e-commerce service offerings; setting up of temperature-controlled warehouses in the main metros of Delhi, Bangalore and Mumbai; launched a new parcel train service from Erode-ChennaiKalyan-Vapi and back from Vapi-KalyanChennai to Erode. Currently, we operate 29 millennium parcel cargo express trains across the country every month. Agarwal added that Gati has not only been an industry leader for over two decades now but has pioneered express distribution services in India. We continuously rise up the value chain by bringing to market products and services that

are tailored to the needs of the customer. We are focusing on total logistic solutions to customers and have strengthened our service offering in Supply Chain Solutions, Cold Chain Solutions and Express Distribution. We are expecting to close the financial year 2011 with consolidated revenue of Rs.13,000 million. A pioneer and a now the leader in express distribution and supply chain solutions in India, Gati started as a cargo management company in 1989, Gati Limited has grown into an organisation with more than 3,500 employees and a consolidated annual turnover of Rs 7,447million covering 622 out of 626 districts in India. Gati has over 4,000 vehicles on the road not including their fleet of refrigerated vehicles, container shipping vessels and world class warehousing facilities across India. Gati has a strong market presence in the Asia Pacific region and SAARC countries. Today, Gati has offices in Singapore, China, Malaysia, Thailand, Hong Kong, Bangkok, Kuala Lumpur, Mauritius and Dubai apart from SAARC countries that concentrate on India- centric distribution solutions.

www.itln.in | JULY - AUG 2011 | 23

informAtion teChnoLoGY

Softlink delivers robust system ...........

New globe deploys Softlinks Logi-Sys

V. RAMANUJAM OFTLINK announced that New Globe Logistics, one of Indias leading logistics service providers, is deploying the next-generation Logi-Sys from Softlink. As part of its IT upgradation to consolidate the companys leadership and competitive positioning, the organisation implemented the unified logistics management software which includes all aspects of logistics like freight forwarding, Customs clearance, transportation, warehousing, financial accounting and sales and services across its operations. With its industry-leading logistics integration solution, Softlink is delivering a robust logistics system to help streamline the operations of New Globe Logistik. The solution being deployed is Softlinks end-to-end logistics management software which will be used by New Globe Logistik across facilities and branches. Headquartered in Mumbai, New Globe Logistik is a premier ISO 9001 certified logistics company involved in air and ocean freight forwarding, Customs clearance and allied logistic services. The company has been delivering timely performance by continuously improving the effectiveness of the quality management system and being responsive to clients needs. When contacted by INDIAN TrANSPOrT & LOGISTICS NEWS, Anand Didwania, MD, New Globe Logistik, said in his comments, New Globe Logistik has complex operations that include air and ocean forwarding, warehousing, transportation, Customs clearing, consolidation services and other allied logistics services. Using Softlinks Logi-Sys, we will be better equipped than ever to deliver quality service to our clients.

Amit Maheshwari, CEO & MD, Softlink

24 | JULY - AUG 2011 | www.itln.in

informAtion teChnoLoGY
New Globe Logistik is leveraging the software to further its commitment to the delivery of high-calibre service drawing from Logi-Syss advanced capabilities. The solution will help the organisation take action on business intelligence, including the ability to gauge process effectiveness, uncover trends and opportunities, identify the root causes of bottlenecks, and provide an ongoing focus on development, said Amit Maheshwari, CEO & MD, Softlink. Speaking to INDIAN TrANPOrT & LOGISTICS NEWS, Maheshwari said, In addition to Logi-Syss strengths in streamlining, integrating and automating manual planning processes, New Globe Logistik will benefit from the softwares monitoring and assessment tools that deliver real time information. This will provide the company an automated, intra-day management capability, to meet service levels. Asked for his comments on todays logistics operation and link it to software solutions, Maheshwari said, Today, the logistics operations are process-intensive areas in which the completion of one-step hinges upon the completion of another. In this environment, planning and timely execution can play a key role in an organisations ability to meet deadlines. Were pleased an industry leader such as New Globe Logistik is reaping the benefits from deployment of Logi-Sys in its logistics operations to provide an automated, streamlined solution that can help increase throughput with fewer resources and less cost. Established in 1992, Softlinks technology offerings are blended with the sole aim of simplifying operations of organisations in the logistics industry worldwide through highly specialised software products and solutions. In a short span, through its costeffective, advanced software solutions, Softlink has grown to be a leading product company which exclusively provides software solutions across the logistics sector to freight forwarders, Custom brokers and 3PL companies along with exporters and importers. Softlink has wide presence in every major city in India, including Bangalore, Chennai, Hyderabad, Kolkata, Delhi and Mumbai. Softlinks products are used by more than 60,000 users in over 3,000 organisations. DHL Express, TNT India, FedEx, Videocon, Times of India, The Future Group, ABG Shipyard, Onida, Parle Products, Moser Baer India, AFL Dachser, Nippon Express, DB Schenker, Kuehne + Nagel, and Agility are a few among large number of multinational and Indian clientele that Softlink services today. Key PSUs and government departments like Air India, Indian Oil Corporation, Dredging Corporation of India, and Embarkation HQ benefit from Softlinks products. New Globe Logistik is a premier ISO 9001 certified logistics company involved in air and ocean freight forwarding, Customs clearance and allied logistic services. New Globe has offices across India, Nepal and Bangladesh and is backed by a worldwide network of partners. Since its establishment in 1950, New Globe Logistik has grown into a leading international logistics service provider under the visionary guidance of Anand Didwania, and today is one of the top companies in the logistics scene in India.

Anand Didwania, MD, New Globe

www.itln.in | JULY - AUG 2011 | 25

eXPress

ANIL KHANNA, MD, Blue Dart Express Limited, inaugurates one of 4 new ONE RETAIL stores

Increasing count to 419 stores .....................

Blue Dart opens 4 new stores across Mumbai

V. RAMANUJAM LUE Dart inaugurated 4 new Blue Dart - DHL ONE RETAIL stores across Mumbai (Mahim, Bandra Kurla Complex, Goregaon) and Navi Mumbai (Airoli), thus taking the count to 419 ONE RETAIL stores across India. The ONE RETAIL initiative by Blue Dart and DHL leverages the leadership position enjoyed by both the brands. Briefing on ONE RETAIL, Anil Khanna, Managing Director, Blue Dart Express Limited, told INDIAN TRANSPORT & LOGISTICS NEWS, It offers customers the freedom to avail of domestic as well as international products in both Blue Dart and DHL outlets. Both Blue Dart and DHL are well established brands, with strong brand recall and loyalty. They draw on each others strengths through collaboration and sharing of knowledge and best practices that make it a formidable unified team in the eyes of the customer. The ONE RETAIL store is yet another initiative where the customers stand to gain from Blue Darts domestic network and DHLs global reach. Khanna added that Blue Dart and DHL have always focused on customer requirements and have constantly innovated to ensure customer delight. Our customers trust and loyalty have driven us to design distinctive and

customised services like the ONE RETAIL. We have a strong team and an extremely well thought-out strategic focus till 2015. As part of this strategy, Blue Dart and DHL have formed an X-BU (cross Business Units) initiative that aims to collaborate and simplify customers lives. This also includes increasing the count of ONE RETAIL stores to 1000 across India by 2015. In recent times, Blue Dart, the South Asias premier courier, and integrated express package distribution major, has opened ONE RETAIL stores in the North (Mohali, Panchkula, Lucknow Gomti, Mohan Cooperative) and South (Perambur, Vadapalani, Madinaguda, LB Nagar, Tolichowki, Banashankari, Saibaba Colony, Thampanoor, Quilon, Vytilla, yelahanka). Blue Dart offers secure and reliable delivery of consignments to over 26,830 locations in India. As part of the DHL Group (DHL Express, DHL Global Forwarding & DHL Supply Chain), Blue Dart accesses the largest and most comprehensive express and logistics network worldwide, covering over 220 countries and offers an entire spectrum of distribution services including air express, freight forwarding supply chain solutions and customs clearance. Khanna observed that the Blue Dart team drives market leadership

through its motivated people force, dedicated air and ground capacity, cutting-edge technology, wide range of innovative, vertical specific products and value-added services to deliver unmatched standards of service quality to its customers. Blue Darts market leadership is further validated by numerous awards and recognitions from customers for exhibiting reliability, superior brand experience and sustainability. Some of these include Superbrand; Most Trusted Brand Gold Award (6 years in a row); Most Trusted Brand Gold Award (6 years in a row); one of Indias Best Companies to Work For 2010 (in a study by leading economic daily); Great Place to Work Institute, India; Best under a Billion companies in Asia; Dun & Bradstreet top 500 companies of India; Brand Leadership Awards, at the Asia Brand Congress and World Brand Congress; Best Service Provider of the year, Organization with Innovative HR Practices 2009-10; Best Employer Award on Employee Retention at the Global HR Excellence Awards; and, World HRD Congress Meet 2010 and 22nd CFBP Jamnalal Bajaj Fair Business Practices Award 2010 in the category of Service Enterprises (Medium) to name a few.

26 | JULY - AUG 2011 | www.itln.in

infrAstrUCtUre

Safexpress inaugurates ultra-modern Agra logistics park

ITLN BUREAU afexpress, Indias largest Supply Chain and Logistics company, commissioned ultra-modern logistics park in Agra. Inaugurating the massive 2,00,000-SQF facility in Agra on May 9, Safexpress said that the newly developed logistics park will enable the 3PL major to provide its clients with cutting-edge state-ofthe-art transshipment and 3PL services. Speaking at the launch ceremony, Vineet Kanaujia, General Manager Marketing, Safexpress, said, GST (Goods and Services Tax) will come into effect by next year. This will lead to companies adopting new business models as well as supply chain models in order to save costs. Companies which have traditionally been operating with 30 to 35 depots may start operating with 4 DCs (Distribution Centers) and companies which have been

operating with 4 DCs may start operating with one centralized DC. Warehousing will no more get driven by taxation, but by business needs. Asked him to brief on the GST on the wave of which that Safexpress rides high, Kanaujia said that presently, in order to save on Central Sales Tax (CST), the manufacturers need to maintain numerous warehouses at multiple locations to show the movement of goods from one company warehouse to another. However, with the phasing out of CST and implementation of GST, the manufacturers will be able to maintain few centralised Distribution Centers. They would readily outsource their warehousing requirements to 3PL service providers like Safexpress, as it would be more viable for them. This will not only help the manufacturers to save costs, but they will also be able to focus on

28 | JULY - AUG 2011 | www.itln.in

infrAstrUCtUre

Our logistics park in Agra will be operational 24x7, 365 days in a year to provide time-definite deliveries. Due to our non-stop operations, we will be providing the fastest transit time of 1.8 days for deliveries all across India from Agra Vineet kanaujia, General Manager Marketing, Safexpress

their core businesses better. With implementation of GST, the demand for ultra-modern Warehouses is bound to grow exponentially in coming years, Kanaujia said. Speaking on the industry, Kanaujia said that at the moment, the Indian supply chain and logistics industry is at an inflexion point. With GST getting implemented soon, the industry is all set to grow very swiftly. A major portion of this growth will come from Warehousing. Keeping this in mind and being the market leader of our industry, we have taken the ownership of driving a Warehousing Revolution in India. We are investing Rs. 600 crore to develop 32 world-class logistics parks at certain strategic locations across the country. Safexpress logistics parks will revolutionise the way supply chain functions in India today, he added. Asked him to elaborate, Kanaujia said, As part of our warehousing initiative, in the last two years, we have already established state-of-the-art logistics parks at key industrial hubs like Gurgaon, Mumbai, Kolkata, Chennai, Bengaluru, Nagpur, Ahmedabad, Pune and many more. In creating the ultra-modern facility at Agra, we have invested Rs. 30 crore. Located strategically on Agra-Delhi National Highway 2, the new logistics park will fulfill the warehousing requirements of companies located in and around Agra. Speaking on the choice of Agra as a location for developing this ultra-modern Logistics Park, he said, Agra is fast emerging as one of the vital industrial hubs in the country. Industries like Leather, Automotive and Apparel are performing extremely well in this belt. Rapid industrialisation, coupled with low operational costs and well-connected roadways, has transformed Agra into one of the most strategic locations in the country for

supply chain and logistics services. Asked about the USP of the logistics park in Agra, Kanaujia added, Our logistics park in Agra will be operational 24x7, 365 days in a year to provide time-definite deliveries. Due to our non-stop operations, we will be providing the fastest transit time of 1.8 days for deliveries all across India from Agra. He added, In order to have safe and smooth movement of goods within this logistics park, we have installed high-tech equipment for ensuring that the goods are handled very carefully. Customised plastic pallets of premium quality would be used to ensure that the goods are handled absolutely safely. The dedicated bays and docks at our logistics park in Agra would provide an uninterrupted and unidirectional flow of inbound and outbound goods. Kanaujia observed that Safexpress has already developed a warehousing capacity of over 6 million square feet across the country. Our ultra-modern logistics parks created across top industrial centres of the country will provide companies with a world-class outsourcing option. This will in turn help the enterprises in augmenting their supply chain efficiencies, which would eventually bring down their costs. In the GST environment, this will be even more pertinent as companies would look to adopt new business models as well as supply chain models in order to sustain themselves. This would lead to an exponential growth in our industry in general and warehousing in particular. Kanaujia believes that GST will be biggest game changer Indian economy has seen so far. GST will definitely propel supply chain and logistics very swiftly towards becoming a sunrise industry in the near future.

www.itln.in | JULY - AUG 2011 | 29

eXPress

adds three 100t payload b747-400bCFs................

DHL invests 100mn in AP air network enhancement

ITLN NEWS BUREAU

ONTINUING investment in Asia Pacific and demonstrating its commitment and growth potential, DHL, the worlds leading logistics company, announced on June 23 an investment of 100 million euros with three Boeing 747-400 Converted Freighters (BCFs) added to its Asia air network. Operated by Air Hong Kong, a joint venture between Cathay Pacific and DHL, the three B747400 BCFs with a payload of 100 tonnes each will service three high capacity routes six days a week: Tokyo-Hong Kong, Singapore-Hong Kong, ShanghaiHong Kong. Currently, two A300-600 General Freighters (GFs) each with a 45-tonne payload, ply direct routes between Tokyo-Hong Kong and Shanghai-Hong Kong. By September this year, these two A300-600GFs will be redeployed to service five weekly services between Beijing-Hong Kong and Manila-Hong Kong, replacing two 24-tonne B727200Fs aircraft which will be retired, according to DHL Express.

The 100 million euro investment in three B747-400 BCFs, the biggest freighter aircraft in service, increases our capacity, connectivity and service reliability, said Jerry Hsu, CEO Asia Pacific, DHL Express, who was recently appointed. Hsu added, It is a significant step up for DHLs Asia air network, one we are confident of because we have a clear, market-driven approach to our business. Hsu observed, By being close to DHL customers, understanding what they need, recognising the opportunities and being prepared to make strategic investments, that is how we will continue to grow our market share and deliver best-in-class services for our industry. continuing the inveStment in aSia Pacific The investment in the air network comes on the back of the companys recent announcement of an additional daily intercontinental route from Hong Kong to Cincinnati, as a direct response to increasing demands for services from South China

and Hong Kong to North America. Through this, customers will enjoy a later pickup time out of Hong Kong and the Pearl River Delta, and overnight service to North America. DHL is also on track to open its US$ 175 million (120 million euros) North Asia Hub in early 2012. Situated at the Shanghai Pudong International Airport, the 57,000 sqm hub will be built on a total land area of 88,000 sqm, equipped with leading-edge automated sorting systems. In May this year, the company also launched a new global marketing campaign highlighting DHLs international expertise and capabilities to meet the express shipping needs of all industries. We continue to see significant potential in Asia Pacific. We have been operating in the region for over 40 years, having pioneered the international express industry across many cities. With significant infrastructural assets and our continued investment, we constantly raise the bar to become the provider of choice to our customers, said Mr. Hsu.

www.itln.in | JULY - AUG 2011 | 31

informAtion teChnoLoGY

Four Soft signs

ITLN BUREAU

Logistics Dynamic Corpn

N a significant development in information technology segment of industry, Four Soft has signed a new deal with Mexican-based Logistics Dynamic Corporation (LDC). As per agreement signed, Four Soft will offer its freight management application 4S eTrans and visibility system 4S Visilog on Software-as-aService model. Speaking to INDIAN TrANSPOrT & LOGISTICS NEWS from his headquarters, Krishna Rallabhandi, Vice President and Managing Director - America, Four Soft, said, We are pleased to be selected by LDC as their integrated software solutions provider. We have been successfully offering our suite of advanced and integrated solutions on SaaS model this year. To a question on the current IT challenges, Rallabhandi replied, We are rightly positioned to address the challenges faced by international forwarding companies. We believe Four Softs Global control tower application 4S Visilog will help LDC enhance collaboration between customers, agents and carriers, minimize transaction costs, shrink delivery schedules and improve visibility and monitoring of goods throughout the entire supply chain, while 4S eTrans enhances the productivity of their operations. four Soft SolutionS enhance Service levelS: ldc When contacted for his comments, Gabriel Quintana, CEO, Logistics Dynamic Corporation, said, After a comprehensive evaluation study, we have chosen Four Soft as our prime IT vendor. Four Softs freight management system 4S eTrans and its global visibil-

ity application 4S Visilog which are offered to us on SaaS model not only has the right mix of functionalities but also the technical expertise that suited our business operations. Asked what is his opinion on For Soft and its technology offerings, Quintana said, We strongly believe that Four Softs solutions are designed to help organisations like us, for whom timely delivery is a key service component. This will in turn reduce operational costs thereby enhancing service levels to our Global Customers. global leader in SoftWare SolutionS offeringS Four Soft is a public-listed and CMMI level 5-certified company which provides innovative software solutions, IT consultancy and BPO services exclusively for the logistics and supply chain management market place. The IT solutions provider is the market

leader in the transportation and logistics segment with a large international client base including the majority of the top logistics and transportation companies in the world. With regional offices strategically located worldwide, it supports large number of topranked customers including DHL, DB Schenker, UTI and Geodis Wilson. A global leader offering software solutions for logistics and transportation industry, Four Soft offers a full suite of web-native products across the logistics supply chain. This includes 4S eTrans for freight forwarding and logistics, 4S eLog for extended warehouse management, 4S Visilog and 4S VisiLog plus for track-and- trace, visibility and supply chain management, 4S eCustoms for Customs brokerage, 4S iShipping for shipping line execution, 4S eConnect for business-to-business connectivity and 4S Infotips for informed decision making.

32 | JULY - AUG 2011 | www.itln.in