A monthly publication of
Durga Das Publications Pvt. Ltd.
contents
DEPARTMENTS
Airlines News
Cathay Pacific Delhi-Bangkok
non-stop service ..........................................................6
Cover Story Calendar of Events
16
Indian logistics Calendar of International Logistics Events ...............8
industry set to
Logistics Services Publisher : SanJeet
position itself for
long haul PSBediGroup: Platinum sponsor of Editor : Rupali Narasimhan
IELA Congress in London..........................................26
Safexpress calls for strengthening
SCM to cope with recession ....................................30 Sr. Assistant Editor : Ratan Kumar Paul
Assistant Editor : V Ramanujam
New Globe Logistik holds customer
familiarisation event.................................................36
Express Cargo Performance General Manager : Gunjan Sabikhi
10
Logistics Delhi Airport for February 2009 ..............................28 Sr. Manager Advertising : Harshal Ashar
Deccan Express Logistics Mumbai Airport for February 2009 ........................29
Manager Marketing : Rajiv Sharma
set to make its Nagpur
hub a coonecting point
Shipping and Ports Asst. Manager Marketing : Roland Dias
‘Gateway Terminals’ commissions 2 new quay
Marketing Co-ordinator : Geeta Santhanam
cranes at Nhava Sheva..............................................32
Varkha Anshani
Maersk Line’s ME3 service to call at
Pipavav Port...............................................................33
Cover Design : Rajesh Chhetri
COLUMNS Advertisement Designer : Vikas Mandotia
Infrastructure Update Page Layout : Sudhir Mudgal
Logistics ICD Loni completes 2nd year; assures safety
24
Services and security ................................................................31 Production Manager : Anil Kharbanda
Mercurio-Pallia Guest Column
Circulation Manager : Ashok Rana
Logistics to offer Logistics in India gears up to meet
automotive logistics growing demand ......................................................38
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LOGISTICS
SERVICES
Om Logistics gearing up
to tap opportunities in Mumbai region
R ATA N K R . P A U L direct routes to all metro cities, to have become preferred locations for
satisfy about more than 100 clients logistics parks for the logistics
In recent
T he Mumbai hub is now spread
over an about 2 lakh sq ft of area
and a state-of– the-art warehouse
from Mumbai with committed transit
time,” said Singh. He added that at
this warehouse all warehouse
players. These locations are ideal for
logistics parks because of their
excellent por t, rail, and road
with latest operational amenities, management solutions are being connectivity as well as significant
times Om which makes work easier. CARGOTALK provided to the customers. The investment in infrastructure. In the
Logistics spoke to Madhukar Shyam Singh, company holds regular programmes near future eight logistics parks with
regional manager (marketing)-West, an approximate investment of $200
has developed
Om Logistics. million, will be located in 600 acres
its operations in of land around Mumbai. Almost all
Located on Nasik Highway, 7 km logistics players are in the process of
Mumbai region, away from Mankoli Naka, the setting up their warehouses here,
which is one of warehouse has been constructed container freight stations, inland
keeping in mind the present scenario container depots, logistics parks,
the major hubs of of operational activities. “With a distribution centres and other
the company. working capacity of 24x7, this facilities to tap the trade
warehouse connects to other major opportunities fuelled by revolution in
OM warehouses in Pan India, via the retail, ports etc.
to educate its staff so that they the-art integrated logistic facilities with
can understand material handling mechanised handling and intelligent
techniques to reduce the trans - inventory management at selected
shipment time. The company is locations along the dedicated freight
also planning to provide better corridors to reduce the overall
services utilising the advancement logistics cost in the supply chain for
in IT technologies. the customers to meet time-sensitive
freight transportation requirements.
According to Singh, despite the
present slowdown in the market, “These along with other
Indian logistics industry will see huge opportunities have widened the role
growth. “Among the factors of logistics in the coming time. Being
responsible for the rapid growth of a mutli-model solution provider, we
Indian logistics include the growth of are elaborating more to tap these
organised retail industry, commodity oppor tunities with a specialised
markets, growth in manufacturing workforce, a professionally trained
and development of Special team, best IT features which allow
Economic Zones (SEZs),” he said. In 24x7 online tracking and tracing of
his opinion, Mumbai along with shipments, latest operational
Kolkata, Chennai and Hyderabad, amenities,” informed Singh.
Captain G.R.
V ital keys to efficient express
logistics are the use of high-
quality transpor t modes for TD
delivery, cost and value addition. its state-of-the-art express cargo hub
at upcoming Multimodal International
Hub Airport in Nagpur. Lately, the
Gopinath, delivery, effective use of operational company received approval for the
system and people who perform. A structural design for its aircraft
chairman and standard quality, superior express hangar, marking the first step that
managing logistics company will devote more Deccan Express Logistics has taken
attention to capturing these aspects towards creating countrywide
director, Deccan
in its operation. Doing so may require infrastructure to become India’s new
Express significant times to gain experience distribution and delivery system.
Logistics, spoke and expenditures to create such a
system to work. Since modern The hub will spread across a
to CARGOTALK. models of logistics operation are 100-acre campus strategically
about the express also aiming to reduce cost, the located at Nagpur’s B.R. Ambedkar
suppor ting low-cost segments Airpor t. “The express cargo hub
cargo hub. would be the beginning of our
involved in overall performance will
help the service provider to maintain investments in infrastructure,” he
Capt. Gopinath
said, adding, “It will handle majority
of cargo volumes moving on Deccan
Express Logistics network, thereby
Replenishment of express controlling the distribution of
inventory management systems that shipments across the country,”
routinely require operation planners explained Capt. Gopinath.
to do away with unnecessary cost to A former army officer and an
operations is also essential as it award winner in sericulture, Capt.
makes a virtual “black box” supplying Gopinath made his foray into civil
information to the company’s top aviation in 1995 when domestic
management on overall performance aviation was largely monopolised. He
and cost. Such systems, periodically identified the potential of helicopter
improved by operations managers, char ter business and launched
lead to exciting new methods for Deccan Aviation, a dedicated
achieving TD delivery and quality and customer-focused helicopter
improvements that bring new company. Today, the company is
business to the company. Such India’s largest and most reputed
periodical improvements are vital private sector air char ter service
because the customer will look for provider. Capt. Gopinath found the
state-of-the-art distribution systems potential of a billion travellers
at his service provider’s including those from Kolhapur,
management. And, the customer Gwalior and Belgaum. That resulted
is always right. in the creation of Air Deccan, India’s
first low-cost carrier. Air Deccan grew
The cornerstones of these new to fly 350 flights a day to 65
service techniques are already in the destinations from the modest four
flights. In 2008, the airline was taken strategy at the planning stage itself. the country. We are making significant give a lot of importance to customer-
over by Kingfisher Airlines. He is now investments in our technology for centric processes to enhance
focusing on Deccan charters and has “We will be the first express better services. Our technology customers’ experience. We have
entered into the ever-growing cargo logistics company in India to create solutions will enable businesses to managed to narrow down ‘superior
sector and express logistics. a hub-and-spoke distribution model, achieve greater efficiency by offering service’ to a science, wherein
thereby offering unmatched complete supply chain visibility customers will be categorised and
Earlier, in a corporate message, connectivity to more than 85 per cent enabling them to track shipments serviced based on their individual
Capt. Gopinath said that Deccan of India’s GDP. Our state-of-the-art online; 24 hours a day, seven days a needs. We will offer customised
Express Logistics is aiming at express cargo hub will be centrally week, in just a matter of minutes. solutions so that customers can ship
delivering superior customer located at Nagpur and will their documents, parcels and
experience. When asked what will be interconnect the entire country. This “Our employees will be trained commercial consignments without any
the major aspects of superior hassles. All this will help us offer
customer experience, he replied, unmatched services in domestic
“Customer is at the core of our Our five pillars of strength are our
express transportation.”
business. Our five pillars of strength
are our employees, our customers,
employees, our customers, the The Captain has created a core
the community in which we operate community in which we operate, our team with a consolidated experience
our investors and our partners. Of of 100+ years in express and
these, our customers are our raison investors and our partners logistics sector. He is setting up a
d’être. Therefore, we will state-of-the-art hub while focussing
continuously strive through attention on creating a network of
innovation and service to make their will include smaller cities and towns and motivated to go that extra mile spokes in 85 per cent of India’s GDP.
experience wor thwhile. We will set like Hubli, Bhadohi and Amravati, etc. to see to it that our customers When questioned how he estimates
new standards and ensure that we experience a seamless service in the current size and growth during
are the first choice for customers in “We will deliver innovative every interaction with us. The service the coming decade, Capt. Gopinath
express transpor tation. And that’s express logistics solutions and industry is about people and without said, “With a trillion dollar GDP, the
precisely the reason why a world significantly reduce the transit times adequate investment in training and Indian air cargo market is primarily
class offering is ingrained into our between small towns and the rest of service failures are inevitable. We served as a by-product of passenger
fleet and infrastructure. To sustain cornerstone of the country’s to all markets. With this vision, I have Express Logistics will be India’s No.
the growth India has seen in GDP and economic progress. As companies put together a team of professionals 1 air and ground distribution network
high value manufacturing ver ticals and industries attempt to limit who are the best in their respective with widest delivery network in India.
like electronics, automobiles and The core of this network is the state-
pharmaceuticals to name a few, of-the-art express cargo hub we are
it is certain that we will witness a The Nagpur hub would offer modernised creating which is spread across a
growth in air cargo.” 100 acre campus, strategically
cargo handling facilities like direct located at MIHAN (Multimodal
The express industry in India has International Hub Airport at Nagpur),
been growing at a CAGR of 17.2 per docking of our aircraft into air facility; Nagpur, owing to its central position
cent with revenues of US$ 1.06 billion in India. The MOU has already been
in 2006-07. The logistics industry has computerised documentation; access given shape by officials from Deccan
been estimated at 11.8 per cent to 13 Express Logistics and MADC.
per cent of GDP and continues to be to freight forwarders and charter agents;
a critical factor for sustained growth. “We have achieved the first
Over the last decade, the industry has
efficient load build-up for widebodied milestone for the hub by receiving
progressed from being a aircraft with experienced staff approvals for the structural design of
transportation mode for documents aircraft apron. This marks our first
and small packages to a supply chain step towards creating a nationwide
oriented enabler of commerce. The logistics costs and remain domains. Each one of them comes infrastructure to become India’s new
industry has been forecast to grow at competitive, express and logistics with vast experience having worked distribution and delivery system. The
around 20 per cent per annum for the service providers will rise to the with the best and with a greater Nagpur hub will handle majority of
next five years and expected to double challenge,” he added. understanding of customers’ needs. the cargo moving on Deccan Express
in size by 2012. This team is led by Jude Fonseka, Logistics network, thereby controlling
“Deccan Express Logistics aims CEO, Deccan Express Logistics, who the distribution of shipments across
“Infrastructure and economic to achieve this positive change the country. It will also be an
challenges aside, the industry will has decades of experience in the
across the nation where big and express, air cargo and logistics arena international hub connecting the
sustain growth and continue to be the small businesses have similar access major economies of Asia Pacific,
across Asia, Africa and Australia,” he
further said. Middle East and Europe via India,”
he added.
Deccan Express Logistics has
signed a memorandum of “The Nagpur hub would offer
modernised cargo handling facilities
like direct docking of our aircraft
Deccan Express into air facility; computerised
documentation; access to freight
Logistics aims to forwarders and char ter agents;
efficient load build-up for widebodied
achieve this aircraft with experienced staff; 24-
hour acceptance and delivery; cold
positive change storage; and state-of-the-ar t
warehouse and motorised sor t
across the nation systems for containers and
where big and packages,” he informed. The hub is
expected to be ready later this year
small businesses when Deccan Express Logistics goes
live with its operations.
have similar access
to all markets Deccan Express Logistics
n It achieved first milestone for
understanding (MOU) with its express cargo hub at
Maharashtra Airpor t Development Multimodal International Hub
Company Ltd. (MADC) for setting up Airport in Nagpur
a huge express and logistics hub in n It has received approval for
Nagpur in a 100 acre area. structural design for its aircraft
hangar
Explaining what the hub will comprise,
n The hub will spread across
and what will be the salient features 100-acre campus at Nagpur’s
of structures, centres, sor ting, B.R. Ambedkar Airport
warehousing, cargo handling, cargo n The hub will handle majority
transfer, access roads, truck docks, of cargo volumes moving on its
IT, etc., he informed that Deccan network
Indian logistics
industry set to position itself for long haul
V. R A M A N U J A M In India, logistics leaders believe report said only 38 per cent rate the
that “strong companies will come out resilience of their supply chain
While industries
I ndia has gained credibility for
moving ahead with a cautious foot
forward. This movement had always
of this downturn stronger”, meaning
that today’s economic condition is
“only going to give an opportunity to
above average while a troubling
42 per cent say the expansion of
their global logistics and supply
around the been slow but strong with wait-and- position itself stronger and grow on chains has outpaced their ability to
watch attitude. Huge investments the upturn.” This confidence is not manage risks.
world are are made after long hesitation. shor t-term but is a long-term
reeling under Although Indian government’s outlook. When it comes to long-term Businesses appear to be
economic policies are said to be business strategy, India promises increasingly vulnerable to logistics
the vagaries disruptions that can have a
“liberalised”, in practice there has inner strength.
of economic not been a rush for liberalisation. catastrophic impact on business
Even quick-return projects do Over 50 per cent companies with performance. Success in global
recession, domestic and global logistics and economy depends largely on
not move fast on priority basis.
India is The country has never been an supply chains fear major disruptions building successful risk mitigation
fortunate strategies that can turn a
resilient logistics and
for not supply chain into a
slipping into competitive advantage.
a deep crisis.
Most of the logistics
Over 50 per cent companies are more
companies vulnerable as a result of
having created tighter and
with domestic leaner logistics and supply
and global chains, which is a
logistics and requirement for
competitiveness but it also
supply chains exposes a business to an
fear major increasing number of risks.
For instance, insufficient
disruptions monitoring, risk assessment
but sadly, and contingency planning
they are not are leaving companies ill-
prepared when crisis hits.
doing much to One out of every 10
prevent any companies does not
monitor customers at all.
damage nor in their ability to source and transact
early adopter, be it a global trade Around half the remainder looks only
are they policy, economic policy or an business around the world, but at immediate customers.
readying emerging technology. sadly, they are not doing much to Furthermore, in almost half of the
prevent any damage nor are they companies, formal risk management
themselves Speaking about logistics, it is readying themselves to meet the takes place only annually.
to meet the evident that the global logistics challenging times.
challenging industry is not impervious to A significant majority of
tough economic times. But as In a new survey sponsored by a businesses are falling back on
times. CARGOTALK this industry is not ready for popular international express and increased inventory to address
tells you why challenging times and as the entire logistics and supply chain major, 47 resilience problems, which is an
global industry remains hard hit, per cent companies have confirmed expensive and ineffective approach.
it is so. prompting a host of financial that they need to pay more attention Almost half of the companies
institution analysts to downgrade the to risk management compared to 16 surveyed expect to hold additional
stock of global logistics majors have per cent who believe they pay stock and raise inventory. Low-cost
become imperative. adequate attention. The survey country sourcing, sourced by
customers, which has grown preparation for the inevitable long- enough during downturn. The rationalise the change in business
significantly brings its own set of term volatile crude oil prices and is outsourcing of logistics processes processes when moving towards a
challenges to global logistics and detrimental to the entire logistics and was a big star for many customers warehouse-free business model. The
supply chains with more than half of supply chain pipeline. Logistics but the value margin dropped logistics industry, however, is waiting
such service users losing product service providers need to be significantly when fuel prices began for an oppor tunity of a new
quality facing challenges of on-time cognisant of these changes and be to waiver. Many business decisions economic climate which may call for
delivery. Although most of the pro-active to mitigate the ups and that were previously based on volume some revisions to the all-
customers intend to increase low- downs of the global market. In 2009, will now require adequate in-depth warehousing or no-warehousing
cost sourcing, this trend is said to the trends for logistics and analysis to determine if the ideals. Almost all 3PL logistics
be gradually reducing because of international transportation are likely decision is still valid given the providers are under extraordinary
bad experience. to revolve around pro-active current economic environment as well pressures to provide cost savings to
their stressed customers but with
The trend in low-cost sourcing decreasing product volumes and
does not seem to go away, globally. The high 2008 year-end cost levels shifting freight costs.
But customers believe that it will look
different in future. There is a key to will cause the logistics customers to Many logistics companies are
successful sourcing of a reasonable experiencing a shift in their ideals and
quality but low-cost logistics service look at rebalancing, focusing strategic plans. Versatility is clearly
provider understands the issues, one of the most optimal techniques
structuring logistics and supply on strategic network optimisation for managing volatility but just as
chain appropriately, monitoring many of the best-in-class logistics
performance and working with
and multi-echelon inventory processes have led the service
service providers to improve optimisation tools providers to a situation they are
operational efficiency. The multi- currently experiencing. Versatility is
sourcing and near-sourcing are implemented with caution and with
likely to become par t of best strategies and continued cost savings as the long-term projections long-term vision. Some of the Indian
practices in future. is still deeply stressed by the turmoil for turnarounds. logistics companies have realised
of 2008. that there is also a crucial need for
While examining the trends of While there is no denying that a quick solution to resolve current
logistics and supply chain industry in As supply chains tend to begin just-in-time and lean philosophies situation. The companies have also
2009, it is clear that the industry has replanning, some of the key elements transformed the logistics industry realised that the best plan is to have
learned a lesson in 2008. Even that will be up for strategic review are into environments that valued high a plan and not simply a reaction to
though the price of crude oil has inventory and warehousing, logistics quality and simplicity, neither of an immediate issue.
substantially decreased, many and containerisation that can these ideals has helped the industry
industry experts have found the hefty ultimately reduce the overall cost. to cope with the difficulties, including Having the ability and capability
spikes in 2008 to be a lesson for These value chain activities will volatile fuel cost. For example, JIT to pro-actively prepare for increased
both manufacturing industry and become critical points where despite allowed organisations to reduce their operational costs, including cost of
consumer sector. The new business the success of how the process was warehousing space, but it is at the transpor tation which is the major
strategies of manufacturers working before, for most of the expense of increased shipment chunk, along with decreased sales will
need to encompass companies it is not frequencies. The cost of maintaining now allow the total logistics solutions
better effective the warehouse along with the providing companies and 3PL
inventory was typically more than the companies to remain afloat while
cost of the added their ill-prepared competitors will
transpor tation in struggle with their lack of
order to preparation. The best enabler for
success will, therefore, be the plan
and speed the logistics
companies
Mercurio-Pallia Logistics
to offer automotive logistics services
R ATA N K R P A U L turnover in the first year of operation Delhi-South India routes. With an aim
along with GM SPA. “We have already to offer end-to-end link between India
PSBediGroup:
Platinum sponsor of IELA Congress in London
C T B U R E AU Star ting as consultants and opportunities for growing exponentially.
advisers on laws relating to customs Initiatives have already been set in
Associates
world's greatest events. IELA is network of 16 branches, extensive infrastructure
dedicated to enhancing
(IELA) in professionalism in transpor tation and equipment, renowned international
logistics and freight handling
September segments of the exhibition industry. partners and a team of experienced
2008,
“With plans to take leadership in professionals, PSBediGroup proposes to set
PSBediGroup this specialised field through its
embarks unmatched network of 16 branches, the ‘next standards’ in the industry”
extensive infrastructure and
aggressively equipment, renowned international emphasis on project cargo, oversized industry from consultancy, customs
for stronger par tners and a team of equipment, relocation and rigging clearance, international freight
experienced professionals,
presence PSBediGroup proposes
in/out of factories and other related forwarding, warehousing, distribution &
logistics suppor t services. These 3PL to transportation, the company
in the exhibition to set the ‘next include engineering support, ground provides complete end-to-end
and events standards’ in the survey services, administrative
support, equipment support, etc.
vertical by
positioning
itself as the
'new alternative'
in India.
The company
industry,” said Kuldeep Razdan, A knowledge based organisation
is the platinum logistics solutions. Plans are afoot to
national head - exhibitions & events, with over 5,000 man-years of collective enter in the warehousing and
sponsor of PSBediGroup. team experience, the group has in the distribution space through Logistics
the IELA last 33 years serviced some of the Centres,” Bedi said. “We are looking at
The company is amongst the largest national and multinational
Congress, fastest growing in this industry overseas acquisitions in the near future
organisations in the verticals relating to and initiating negotiations to start
vertical due to its accreditation from
which is going largest exhibition organisers and
power, auto, telecom, metals, JV alliances in China and West
infrastructure, defence, projects and
to take place experience of having handled world second-hand machinery. “Our vast
Asia,” he added.
from June class events. “Our team comprises experience in handling very diverse
dynamic, very motivated, experienced range of projects has provided us the
25 to 28, 2009 and customer focussed professionals. PSBedi Group
uniqueness to offer unparalleled
in London. These are exciting times for us as we customised solutions to clients.” n Serviced some of the largest
are not only attracting the best talent said, RS Bedi, CEO, PSBediGroup. national and multinational
from the industry but are also making organisations in the verticals
extensive capex investments at According to Bedi, with India relating to power, auto,
multiple locations for achieving our telecom, metals, infrastructure,
poised to become an economic giant,
defence and projects
goal of being No. 1,” added Razdan. the group is preparing to harness the
Mumbai CSI Airport Export/Import Cargo T onnage Traffic Trends: Apr–Jan. 2008-09 vis
Handled for the month of February, 2009 (Mumbai Airport) à-vis Apr–Jan 2007-08
(including TP Cargo)
ICD Loni
n ICD Loni is the first private
sector ICD to offer reefer
container rail services
n Plug in facility for over 140
paved and offers safety, security and FEUs and 12 reefer power
“The ICD management is leaving hassle-free environment to
packs makes it one of the biggest
no stone unturned to maintain the reefer infrastructures in NCR
customers,” Rawat added.
reputation in this regard. The fresh n ICD Loni has developed over
initiative of providing 15 CCTV 100,000 square metre of
To take care of the customers’
Kapil Rawat paved area for storing empty
cameras on the gates and in the banking needs, Punjab National Bank containers
vicinity of ICD is one of the examples. has opened its branch at ICD Loni.
APRIL - 2009 CARGOTALK 31
SHIPPING &
PORTS
Veteran
“T he event offered a
rare
bringing
oppor tunity,
transparency,
New Globe adds new product
total logistics openness and complete In a separate meeting with this cost cycles in logistics is also very
understanding between New correspondent, Ashwin Didwania, impor tant. Companies are becoming
solutions Globe personnel and their director, New Globe Logistik, said that smarter and looking for new solutions to
provider New clients and vendors,” said the company has manage the crisis better.
Anand Didwania, managing introduced a new Our new product is cost-
Globe Logistik
director, New Globe Group. product for air export effective and New Globe is
India held consol. The highlight offering it without
a customer During an exclusive of the product is that compromising on quality.”
meeting with CARGOTALK at it offers flat rate of
familiarisation his Mumbai headquar ters, Explaining how it
shipments to most
event on Didwania informed that at the of the European will benefit small
consignments too,
February event, an elaborate joint destinations.
interaction with top-level Didwania said the new air
20, 2009. representatives of airlines When questioned consol product would offer
The event and shipping lines fostered about the logic, a flat rate on fixed bi-
Didwania replied, “We weekly services ex-India
brought better understanding and
at New Globe feel the to major destinations
harmony within the group.
together need for new products worldwide. “This rate is
Ashwin Didwania
exporters, “In these difficult times to join our traditional offered due to our bulk
when the world is passing freight and logistics industry to help booking of space with airlines and cost
importers, customers become more competitive in benefit of the same is passed on to
through an unprecedented
airlines and economic crisis, the need for the global market. I feel that the current customers who would otherwise pay
shipping familiarisation and openness slowdown, believed to be damaging the higher rates for lower weight slabs. The
plays an even greater role. world manufacturing sector, is also target market is the lower weight slabs,
representatives New Globe has a legacy of offering an opportunity for companies to which is currently moving at high freight
to help customers being customer-centric. Our change their strategies and processes, rates. We have taken this step with the
become more customer familiarisation event leading to launch new initiatives to help aim of improving costs and
resulted in an excellent sustain competency. Competency in TD competitiveness of shippers of small
competitive in the environment between our delivery of goods and maintaining lower consignments,” he said.
global market. group and our clients as
well as vendors paving the
way for a promising future,” battled by building relationships
said Anuj Didwania, director, and investing in the same instead
New Globe Group. of cutting back on such activities.
New Globe feels that in the long-
Numerous ideas were term, this is the way to succeed
exchanged at the joint in a business characterised
gathering for doing business by strong interpersonal
more effectively. New Globe’s relationships,” he added.
company-vendor-client get-
together was greatly Over 200 members of the
appreciated by all, he added. trade and transport industry
“We will hold similar get- participated in the New
togethers in other locations (L-R): Anuj Didwania & Mahendra Sonsurkar
Globe customer familiarisation
as well,” he informed. time,” said Mahendra Sonsurkar, programme, which turned out to be
“New Globe has taken a director - finance, New Globe. “We at a grand success, giving complete
Anand Didwania conscientious decision to invest in its New Globe believe that the current satisfaction to the host company and
clients and vendors at this critical global economic downturn should be the customers as well.
Logistics in India
gears up to meet growing demand
ANIL KHANNA industry’s capital expenditure is the next 10 years. Blue Dart has
increasing progressively to almost recently inducted a Boeing 757
is slated to grow at a compound its product range and improve sustainable approach to transform Express Pallet: It is a convenient,
annual growth rate (CAGR) of over service quality, thereby offering business, increase customer flexible and economical way to send
16 per cent from 2007-10. This is a customers state-of-the-ar t air satisfaction and continually improve goods internationally. The units come
strong indicator of the potential of and ground express solutions across service quality for customers. in three sizes of 50 kg, 75 kg and
the logistics industry. the country. 100 kg and are designed to
Net Promoter Approach (NPA) : accommodate a variety of products.
Strong growth enablers exist in Some of these products are It is a discipline to help companies
India in the form of infrastructural Economy Select
investments, phased introduction of (ESI): It is a product
value added tax (VAT) and which travels on deferred
development of organised retail and line haul (multimodal or
agri-processing industries. In cheaper linehauls) and
addition, strong foreign direct cost savings are passed
investment (FDI) inflows in on to customers. ESI is a
automotive, capital goods, reliable door-to-door
electronics, retail and telecom will service for not-so-urgent,
lead to increased market yet time-sensitive heavy
opportunities for logistics providers shipments. It combines
in India. economical price based
acceptable deferred time
Factors fuelling growth of bound deliveries.
logistics industry in India
With the collective
Logistics assumes central activity economic benefits of
in growth areas. It is one sector growing per capita
which will be the backbone of the disposable incomes, fast
flourishing trade activity and growing manufacturing
infrastructural development and and organised retailing
receive special attention by the sectors, increasing
government and the private sector in external merchandise
the coming years. trade and infrastructure investments,
designed specifically for industries understand their customers’ specific the logistics sector is set to witness
with time definite requirements and needs and incorporate the needed considerable growth in the next five
Rural logistics is set to
there are others, which cater to changes to ensure customer delight. years. Automotive, pharmaceutical,
contribute a larger share to this with
vertical specific requirements, thus manufacturing, retail and FMCG
rising disposable incomes, changing Blue Dart, in association with
giving the much-required flexibility to sectors are increasingly opting to
lifestyle, focus of government and DHL, has launched the following
the shipper and consignee. outsource its logistics requirements
private sector on rural and products in the last few months:
agricultural related activities. Rural to specialised service providers. The
Blue Dart’s quality initiatives like
logistics has received special Duty & Taxes Paid (DTP): This is key drivers for logistics outsourcing
First Choice and Net Promoter
attention in the past two to three a value-added service that allows are the corporate trends of
Approach (NPA) are aimed at
years. Rural logistics, though an exporter from India to manage focussing on core operations,
strengthening and enhancing Blue
lucrative, has a number of competitive pressure and increasing
challenges, which makes it difficult to global trade.
tap the potential. Development Major logistics functions for Indian Logistics service providers in
of cold chain/warehousing
industries include transportation, India are gearing up to meet
infrastructure also remains at
the growth demand, incorporating
the core of the government’s
warehousing, freight forwarding and value-additions in services and
plan to enable growth of rural
customising its supply chain
areas. Likewise, providing
employment opportunities for rural management of information systems management solutions.
youths and meeting India’s Anil Khanna is the managing
growing food demand, etc. are some Dart’s premier position as the leading his shipping requirements seamlessly. director, Blue Dart Express
of the other challenges. air and ground express distribution For outbound shipments, DHL entity