log.india november 2011

INDIA

FUEL BLUES: Logistics costs have spiralled with the recent fuel price hikes...08ALL IN NUMBERS: Why data visibility is key to warehouse management...14

Bhagwan Das, Director, Customer Delivery Operations, Alcatel-Lucent, reveals his company’s supply chain strategy. Page 24

DIFFERENT STROKES

INDIA

OLD ORDER: How auto cos manage service logistics for phased-out models...08THE FOREIGN HAND: How FDI in Retail would change India’s logistics...25

Jayakumar Krishnaswamy, AkzoNobel’s SCM head, is managing a 24x7 supply-chain. Here’s how he plans to accomplish it.

6

COLOR OF INNOVATION

INDIA

TElEcom logisTics 20Movement of telecom network equipment opens a window of opportunity

NEglEcTEd waTErways 44India is ignoring inland waterways at its own peril

low adopTioN 24Why WMS still does not have enough takers in India

amit mukherjee, Vice-president (iT and supply chain) and group cio at rpg, has deployed exemplary supply-chain strategies at spencer‘s retail >> page 34

Method In Motion

October 2010 | Vol. 4 – No.2

IndIa’s LeadIng LOgIstIcs MagazIne

` 100

www.logisticsweek.com

PRO-LIFE SCM: Amid all the din around green logistics, some practical wisdom...30

GET SET, GO 38The true story of supply-chain education in India.

October 2011 Vol. 5 — No.2 `100

Education

Special

Pg.38

SILVER LINING: The specialty chemicals industry is manna for transporters...16

TOMORROW, TODAY 34How demand forecasting is being honed by experts.

November 2011 Vol. 5 — No.3 `100

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5INDIA| November 2011 | www.logisticsweek.com

Tim Cook is no small fry. The new CEO of Apple who replaced the late Steve Jobs is considered to have excellent logistics chops.

Cook is also brilliant at negotiation, a trait that separates any good logistics manager from the rest. Steve Jobs once admitted to Walter Isaacson, the author of Steve Jobs’ recently published biography, that “I am a good negotiator, but he (Tim Cook) is probably better than me because he is a cool customer.”

What gives Cook’s negotiating skills an edge is his obsessive penchant for results. Company insiders say he is demanding and unemotional when driving down processes. According to a Fortune Magazine report written a few years ago, Cook, at one of his meetings with key Apple executives convened to assess a problem in Asia, told the group, “This is really bad. Someone should be in China driving this.” Half an hour into the meet, Cook looked at a key operations executive and said, in a matter-of-fact tone, “Why are you still here?”

The executive got up immediately, drove to the San Francisco international airport, and without a change of clothes, bought a one-way ticket to China.

Cook was apparently brought into the company from Compaq in 1998 to help straighten Apple’s then inefficient manufacturing, and supply-chain operations. He is said to be the man behind Apple’s decision to close the company’s factories and warehouses across the world and outsource the work to contract manufacturers. In one stroke, this decision helped bring down Apple’s inventory from months to days.

“You manage inventory,” he has said famously, “like you are in the dairy business. If it gets past its freshness date, you have a problem.”

All these traits make him a great logistician, but to fit into his new role of Chief Executive, he may have to work on an attribute essential for the task. Steve Jobs, talking to Isaacson about the great values that Tim brought to the company, added a note of reservation: “but Tim is not a product person, per se.”

Right there is some food for thought for all the logistics heads who aspire to take up a bigger role in their organization.

Man Versus MachineNetworking meets on the sidelines of industry events always promise to throw up interesting nuggets of conversation. During a tea break at a recent automotive logistics conference organized by LOG.India, I caught up with a few LSPs and SCM heads of auto companies and the discussion soon veered to a topic that’s the hot favorite at such occasions: India vs China.

An Indian CEO of an integrated LSP giant contended that it’s a chalk-and-cheese comparison. That India lags China by eons in infrastructure, is a foregone conclusion. Even at the operational level at manufacturing facilities and DCs, for instance, the difference is stark. “Look at the poor state of automation at the

best of warehouses in India,” he said. Sorters and pickers running around to check and jot down individual stock points are a common sight even at the most sophisticated warehouses. A leading transporter, who ferries luxury cars, lamented how his company cannot transport cars on trucks that are open on the sides (an international norm that makes loading/unloading quick and easy). “Log patthar phekte hain gaadiyon pe (people on the streets pelt the cars),” he rued.

While that speaks volumes about the huge class difference that exists in our country, the first issue of the near absence of true automation (storage automation in this case) at Indian warehouses, we discussed, pointed at many basic problems here.

One, we decided, was the low level of volume our warehouses deal with. While GST may address that issue, the other factor is more indefinite: incredibly cheap labor. Prima facie, that looks like a good thing, but it is not when measured against the loss of time and productivity incurred in using manual labor over automation. Plus, using cheap labor as a business tool is not only unimaginative, it is exploitative in the long run.

Apparently, that issue could also be solved in the near future. A recent FICCI report has noted how NREGA is raising the labor charges for businesses in India. That, coupled with proposed labor reforms—which should ideally make incidents like the recent workers’ strike at Maruti’s Manesar plant a thing of the past—should push companies to adopt technologies and switch from labor to automation.

The third problem is the generally stoic nature of customers in India by international standards. Unless the local companies feel the heat from customers and a frenzied market, they will not adopt automation that will meet the standards of those like my LSP friend at the event.

And that too, does not look too far away.

Aanand [email protected]

www.twitter.com/logisisticsweek www.facebook.com/logisticsweek

Aanand PandeyEditor

Apple And Oranges

6 INDIA| November 2011 | www.logisticsweek.com

CONTENTS

INDUSTRY EVENTLOG.India organized an event, 'Automotive Logistics: Realizing the Indian Dream' at theLe Meridian hotel, Chennai.

COLUMNThe Indian chemical industry spends a substantial chunk of its revenue on transportation.

8

12

16

24

ANALYSISTrouble In The Middle Supply-chain departments of user companies are grappling with the increase in transportation costs, mainly due to the rise in prices of diesel.

24

COVER STORYUniquely DifferentAlcatel-Lucent, the second largest telecom gear manufacturing company in the world, offers vastly different supply chain solutions.

14

12

COLUMNCollation of data is vital for any organization when it plans its road map for the future.

14

16


NOVEMBER 2011

62

66

46

EVENTSSome forthcoming events coming up in November.

ADVERTISERS INDEXBloomberg UTV. .................................................60-61

BLR Logistiks (I) Ltd ................................................ 37

CEMAT INDIA .......................................................... 22

CII Institute of Logistics ........................................... 20

Exide Industries Ltd ................................................ IBC

Food & Food ............................................................ 10

Gandhi Automation .................................................... 9

Greenearth Translogistics Pvt Ltd ............................ 21

Indelox Services Pvt Ltd .......................................... 39

Indiawarehouse Show. ............................................ 59

Indospace ................................................................ 23

Iscm ........................................................................ 57

Man Force Trucks Pvt Ltd .........................................19

Narayan Shipping & Logistics .................................... 3

Om Logistics ........................................................... 41

Safexpress .............................................................. 33

Sevenseas Global Express Logistics Pvt Ltd ........... 45

Shree Rajlaxmi Logistics Ltd ....................................17

Superskies ...............................................................11

Swisslog India .........................................................BC

Vijay Logistics ........................................................... 4

VRL Logistics ......................................................... IFC

INDIA

OLD ORDER: How auto cos manage service logistics for phased-out models...08

THE FOREIGN HAND: How FDI in Retail would change India’s logistics...25

Jayakumar Krishnaswamy, AkzoNobel’s SCM head, is managing a 24x7 supply-chain. Here’s how he plans to accomplish it.

Page 16

COLOR OF INNOVATION

INDIA





Method In Motion



` 100


PRO-LIFE SCM: Amid all the din around green logistics, some practical wisdom...30

GET SET, GO 38The true story of supply-chain education in India.

October 2011 Vol. 5 — No.2 `100

Education Special Pg.38

OCTOBER 2011

SPECIAL SUPPLEMENTA New Fleet In this special, we list a number of commercial vehicle models from a select few automobile companies that are blazing a new trail.

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Books, Journals, Blogs, Technology, C-Profile, and Solutions - a look at what's new in and for the supply chain industry.

PANORAMA

34 FEATUREForecast and DemandConsumer durables companies implement various demand forecasting methods – some common, some unique. The economic growth of the Indian middle class and rising demand for consumer durables makes demand forecasting an increasingly challenging job.

8

< news AnALYsIs

INDIA| November 2011 | www.logisticsweek.com

Trouble In The MiddleSupply-chain departments of user companies are grappling with the increase in transportation costs, mainly due to the rise in prices of diesel. Jayashree Mendes looks at their way of dealing with the problem.

Most of the retail apparel chains are looking at Bangladesh as the cost of

production is much less there. This is making Bangladesh an attractive destination for apparel makers.”

— A sakthivel, President of Tirupur exporters

Association

on major retail giants looking at Bangladesh to cut costs to Economic

Times.

TRAIN OF THOUGHT

Over the years the shrinkage rate is coming down as we are getting better at managing our supply-chain logistics and moving towards hyper retail.”

— Mohit Kampani, Chief Operations &

Merchandising, spencer’s Retail Ltd

to Mint on India’s high shrink rate due to loss of stock due to shoplifting by

customers, or theft.

The need of the hour is to focus on improving the quality and value of the output, reducing the cost of raw material for the processors, while improving the farmers’ income levels.”

—Rana Kapoor, CeO and MD, Yes Bank

in an exclusive interview to Hindu Business Line on

Key Challenges of Food Processing Industry.

There are some structural freight issue with Indian Railways….we would like to pass on the freight advantages.”

— Capt. sandeep Mehta, CeO, MPseZ

on container freight rate hikes by Indian Railways and introduction of Mundra

Port SEZ’s first double-stack container train between Mundra Port and Patli

inland container depot, in an interview to Business Line.

Four months after the gov-ernment increased the price of diesel by `3 per

liter, supply-chain managers at user companies are still com-ing to terms with the increase in transportation costs. But most of them seem clear that for now any increase in rates will have to be absorbed by the company.

P A Patil, Supply Chain and Business Development, Lupin, says that companies do fac-tor in a fi ve percent increase in fuel costs when they sign yearly agreement with service provid-ers. “It is important to take fuel costs into consideration as they account for 33 percent of the freight costs,” he adds.

The increase in diesel pric-es is not a new phenomenon.

From 2005-10, the price of die-sel has risen by about 26 per-cent. This year, in a bid to allay protests, the government re-duced excise duty on diesel to `2 and abolished the customs duty on petrol and diesel.

Explaining how a sudden increase in fuel prices can hit transportation, Devesh Shankar, GM & Head (Logistics and Sup-ply Chain) at Xerox India says, “When we sign contracts with LSPs, the clause of who will bear the onus of increased transpor-tation cost in case of rise in fuel prices is thrashed out thorough-ly. More often than not, relations between companies and service providers can go sour if one side has to bear the brunt.”

Companies are careful to

scrutinize every clause, espe-cially one that makes a mention of the increase in fuel prices. Mr. Shankar adds, “More so, because in the last two years, there have been regular increases in fuel prices and this has shot up trans-portation costs by 8-18 percent. A few years ago, prices of fuel would be hiked by 6-7 percent.”

Hitting The BrakesFor companies that rely on road transportation, the recent increase in the price of diesel

is creating a situation where both, the company as well as the service provider, are unwill-ing to take the blow. So it is not uncommon for companies to call in their service providers and work out a middle path that would benefi t both parties. The more generous ones prefer to go with the signed agreement, instead of drawing up a new one. The Sr. Manager (Stores and Logistics) of VE Commer-cial Vehicles, Rajendra Baheti says, “We have refrained from

The criticality of the goods that companies transport also determines how companies work out deals with transporters.


< news

passing on the hikes to our LSPs. The good news for us is that volumes have gone up and we have increased the volume of business to our transporters.”

The criticality of the goods that companies transport also determines how companies work out deals with transporters. For instance, pharma companies supply life-saving products and need to ensure prompt supply. An industry source close to a large pharma group says, “We have an escalation arrangement and use that mechanism. Immaterial of a fuel price hike or a transporta-tion strike, we cannot afford to look at each factor in isolation.”

Those that do not have an es-calation agreement are forced to stick to the commitment. Ac-cording to MM Chaphekar, GM (Commercial & Logistics) Endur-ance Group, a manufacturer of

auto components, “Each time there is a hike in fuel price, our transporters have asked us to compensate them. Since we supply to OEMs (original equip-ment manufacturers), we cannot afford delays. According to the SLAs we have signed, there is a clause that states that a price hike of more than 10 percent will call for reconsideration in rates.”

Mr. Chaphekar adds that most OEMs are unwilling to pay more if there are any price hikes during the period of the con-tract. He adds, “It’s only when we start a new project with the OEMs can we ask for higher rates. Since we have established relations with our transporters, they have been kind enough to absorb the increase in prices.”

But this is not the case with companies that use air trans-portation who are usually the

worse affected. For instance, Seco Tools uses road and air across the country and inter-nationally. Amul Shinde, Dep-uty GM (Supply Chain) at Seco Tools, says, “We transport about 80 percent of goods by air. Now we are looking at alternatives such as sea route.”

Sea route also implies main-taining a higher inventory, as the turnaround time is longer. The company is now looking at increasing the lead times for high priced raw materials and prefers using speed post in Eu-rope, and the local courier in India when the products are not priority. It considers itself lucky that it gets its transport cost re-imbursed in the USA.

For the future, Seco is plan-ning to be more selective in identifying the high cost items and ship it in advance, so that it

does not incur any extra cost. Mr. Shinde adds, “We have now be-gun moving out business to re-gional players that assure quick delivery at a lower price.”

Companies are also working out ways so as not to pass on the price burden to consumers. Mr. Shankar says, “For a company that does not manufacture in the country and only distrib-utes (like Xerox), we only have to consider the cost of employ-ees and transportation. The major component of the logis-tics cost for us is warehousing and operational costs. With the competition being stiff, we cannot afford to increase costs to customers. It has to be planned.”

Xerox has formed long-term warehouse rental deals. More than that, it sorts it out in a verbal agreement with LSPs.


Log.india held an auto event called ‘automotive Logistics: Realising the indian dream’

on october 7, 2011, at Le Meridian Hotel, Chennai. Brief, but incisive presentations, on various aspects of the auto industry were presented by well-known figures of the industry. The presentations ranged from top-ics like ‘Creating new paradigms in auto logistics’ to ‘intermodal ef-ficiency in distribution.’ The pres-entations were also followed by panel discussions which expertly discussed various aspects of the in-dustry.

12

Date: October 7, 2011Event: Automotive Logistics: Realising the Indian dreamOrganizer: Hamburg MediaVenue: Le Meridian, Chennai

< EVENT

Prabhakar Mahadevan-Regional Director–India-Goldratt Group, making a presentation on 'TOC guided supply chains—a brief overview'.

Seeking New Heights

Prem Verma, CEO, TML Distribution Company, fielding questions from Aanand Pandey, Editor, LOG.India.

Suneel Aiyer, Associate Director, PricewaterhouseCoopers, speak-ing on 'Capacity planning while keeping up with growth.'

13INDIA| November 2011 | www.logisticsweek.com 13

Ravi Begur-Head IT, Mahindra Logistics, gives a presentation on 'Use of technology for out-bound logistics.'

Asim Behera, General Manager, Swisslog India, speaks on 'Best practices in automotive SCM-A case study.'

(r-l): R Sankaran, Head Logistics, TVS Motors, Pankaj Chandak, Assistant Vice-President (Parts & Services) Fiat India Automobiles Ltd, Kamal Chand, Director, Continental Parts, V.Vasudevan, DGM-SCL Logistics, Ashok Leyland, Ninad Watkar, Logistics Planning, Škoda Auto India , C.S. Raghavan, Sr. Vice President-Materials, Fenner India.

(r-l) : Sharad Sharma, Asst. Vice President, Business Development, TCI XPS, Anand Venkateshwaran, General Manager (Sales Logistics), Hyundai Motor, India, Dilraj Singh Gan-dhi, Principal Consultant, PricewaterhouseCoopers, Nihar Parida, COO, Uniworld Logistics, G Suresh, AGM, Volkswagen India.

C.S. Raghavan, Sr. Vice President-Materials, Fen-ner India, gives the open-ing remarks.

Prem Verma, CEO, TML Distribu-tion Company, presents a paper on 'Intermodal efficiency in distribution.'


< COLUMN

14

IWhat can’t be measured can’t be fi xed is the mantra that will save a warehouse manager’s day.

IN THE BEGINNING of my career, I visited a warehouse where one receiving associate was responsible for identifying around 150+ SKUs by merely looking at them. No, there were no SKU tags on the product. His responsibility was to identify the 150+ SKUs and do the receiving on the fl oor. I thought the associate had to be a gen-ius. It was much later after vast experience that I wondered how accurate could this guy possibly have been? I also started wondering that even if the associate was 100 percent accurate all the time, what would happen if he missed work or quit? Could you possibly teach someone to iden-tify 150 SKUs by visual inspection overnight? Even more so, why would a company place so much trust on one associate’s visual abilities? Thus began my tryst with a reality that was going to add much agony to my consultant life.

I often joke about how data is a bad word in our country. There is a certain reluctance today in sharing data even with fi rms that would like to help you. The 3PL—company face-off is one such notable example.

What Is Data?Data includes everything across the spectrum,

ranging from line-by-line transactions inside your facility (or outside if you talk about sup-ply chain as a whole), to your key performance indicators by day or tracking all your trans-actions by timestamps that happen in your Distribution Centre (DC). Examples of what might construe as data:nOrder histories by line itemnTimestamp information of deliveriesnInventory location and countn% demand picked for the day nUnits picked by employees per daynShipping accuracy nAccident free days

But why collect data? Firstly, as Peter Drucker said, “If you can’t measure it, you can’t improve it”. Having data means having visibility of all your assets or liabilities, knowing where you are the strongest and the weakest. Secondly, having data empowers you to plan better for the future. For example, if you look at the whole year, you could know the seasonality in a year. You could start picking up the Divali peaks and see how early you need to be ready for it. You could see which day has the lowest activity and plan your employees’ weekly day off around that day.

22 INDIA| December 2010 | www.logisticsweek.com

< Column

22

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W

From Logistics To Supply Chain

Padmini Pagadala General Manager, TPG Consulting, Mumbai

The idea of logistics has expanded over the years to become the interesting, all-encompassing entity - supply chain - that it is today. Padmini Pagadala explores the two terms.

What’s in a name one may ask? We may shrug off the discussion, but not so the ex-perts in our industry. Recently, i was at a cocktail party with some international veter-ans from our industry, and they started talk-ing about what the right word was to refer to the industry we work in. they discussed the subject with so much vigor and argued back and forth, that i thought it would be valu-able to recount their conversation. More than that, it’s important because i think it shows how the field has evolved.

What’s interesting for me as a relative new-comer to this field is that we haven’t always been called supply chain professionals. according to these “veterans,” our profession has really changed its name three times over in the last 50 years or so. it wasn’t until the beginning of the new millennium that our recent name change to supply chain professionals took place.

Why did the change take place? as we in india follow the supply chain evolution path that the West has mapped, it’s worthy to con-sider each step and whether or not that step was really necessary or relevant. the biggest mistake we can make is copying for the sake of copying. it strikes me that sometimes even the logistics terms used might not transfer as well as the practices.

The BeginningMost of you would be familiar with the Coun-cil of supply Chain Management Professionals (CsCMP). the CsCMP is the world’s pre-eminent organization of supply chain professionals . there are thriving chapters of the organization in Mumbai and Delhi. But, what most readers may not be familiar with is that in the very begin-ning in 1963, when the founders came together to set it up, that’s not what they called it.

PADMINI PAGADALA General Manager, TPG Consulting, Mumbai

The Power Of Data

< COLUMN


Systems Are Need of the HourOver five percent of our GDP comes from information technology. We sell our technology to Wall Street and yet in our backyards, we don’t take our medicine that seri-ously. The most important leap that our warehouses and even supply chains, for that matter, need to take is in the direction towards systems. Businesses, irrespective of the scale of their volumes, must invest in software that keeps track of their transactions. A lot of places today still resort to writing things down and letting the data entry operator key in the information at a later date. While there is nothing fundamentally wrong with this, (assuming it does, in fact, get done ), why do things later if it can be done more easily right away? It is simple today to start using RF terminals with basic software.

Buying from a Warehouse Management System (WMS) giant might be an expensive affair if you are a small enter-prise, but here is good news. There are lots of small players in the market who can customise software specifically for your needs. Your challenge would be to write the specifica-tions of what you need to capture and how you would like your associates to interact with them (Hand-held Radio Frequency terminal, Touch-based Monitor, etc.).

The risk of buying from a small software vendor can be alleviated by supervising the quality of the program, to making sure the programmers understand the supply chain aspect. There are places today that have bought soft-ware, but cannot go ‘live’ because of the breakdown of one feature or the other. If you have a warehouse running out of a garage, it is still better to keep track on an excel sheet rather than on a piece of paper. Capturing data electroni-cally could help you analyse trends and save you a lot of time in finding the history of a certain order number if it needs to be looked up.

Client Is KingHowever, if you have a big business, you must definitely consider buying reputed software. The WMS biggies such as Manhattan or an Infor are very interested in making a huge presence here and if you are a big com-pany, perhaps it is time for you to call them.

Depending on a standard ERP based WMS may not be the best answer. For example, a lot of warehouses today do not understand the concept of replenishment. That is, stor-ing the reserve in a pallet location and bringing forward a portion of the same to a ‘Forward Pick Area’ where they may picked more efficiently as units. Often, this is not done be-cause the system they have does not support this. Remem-ber as a client, you are the king. You need to ask for what is required to make your business operate more efficiently.

Most warehouses I have visited do not print the pick lo-cations on the pick list. It is up to the picker to find the SKU

15

in the warehouse. In order to work around this, firms stock product families together so that it becomes easy to find an SKU in the general area. This leads to at least two problems. The picker spends time in looking for the SKU; that time could be saved if the location was printed on the pick list. Secondly, family groupings result in the A movers and the C movers of the product family being stored at the same con-venience. In other words, there are several facilities that do not follow best practices because their systems do not allow them to do so. Is it time to change?

Variety Of Software As I have pointed out in many columns, a WMS is not panacea. There is a list of other software that you could need in your warehouse that would add great value inside your facility. Some of them may include the following:nLabour management software (Like Enteq or ProRep)nTime and attendance softwarenSlotting Software (A software that can tell you where to

place each SKU based on the SKU’s selling volumes, like Optricity)

nLoad Diagramming SoftwarenWMS Interfaces

In conclusion, I want to say that capturing data isn’t everything. As Malcolm Gladwell points out in his pop-ular book “Blink” that in chess, you see all your oppo-nent’s pieces and yet you may lose the game. Capturing data is just a tiny step towards the cusp of management – be it people or a business. What you do with the data might be a giant leap for your organization.

25%

20%20%

15%15%

10%8%

12%14%

15%16%

5%

0%Sunday Monday Tuesday Wednesday Thursday Friday Saturday

The data shows that this facility has the least activity on Tuesdays

The author can be reached at [email protected].

16 INDIA| November 2011 | www.logisticsweek.com16

TThe IndIan chemIcal industry is one of the key components of the nation’s economy, con-tributing around three percent to the country’s GdP. The industry was worth approximately $39 billion in 2010, and is considered to be the 12th largest in the world and the third largest in asia in terms of volume.

The Indian chemicals industry has gradually evolved into an innovative industry with back-ward and forward linkages to various other sec-tors. chemicals are extensively used for various industrial applications such as textiles, pharma-ceuticals and other downstream industries.

Fragmented IndustryIn 2010, the Indian chemical industry was highly fragmented with more than 5,000 companies, comprising both small and large-scale participants, with very low export levels and a major focus on the domestic mar-ket. The domestic market is dominated by the organized sector, comprising around 75 per-cent of the market, with Indian companies holding a major share as compared to mncs. The unorganized sector exists only in a few segments of the chemical industry. It consti-

tuted not more than 15 percent of the entire domestic market.

Transportation Practices The chemical industry spends approximately seven percent of its revenue on logistics activi-ties, which was valued at around $2.73 billion in 2010. Transportation accounts for almost half of the logistics spend of the industry. The chemicals industry also spends a significant share on warehousing owing to the extensive storage activities required for consumer goods such as paints, cosmetics, etc. The chemical industry is characterized by a significant level of exports, due to which the freight forwarding market also corners a significant share of the overall logistics market revenues.

The chemical industry requires careful trans-portation and handling for various products that are explosive. Such products need to be handled with special care and require specific equipment while loading and unloading in transportation. They may also need to be packed and labeled with appropriate labels which note that they are danger-ous or hazardous, to enable careful handling dur-ing transportation or storage of these products.

The Indian chemical industry offers bright prospects for growth in transportation. Srinath Manda reports.

< column

The Right Chemistry

18

< column

INDIA| November 2011 | www.logisticsweek.com 18

Some chemicals may also require temperature-con-trolled transportation and storage. This proves to be a major challenge to chemical companies and chemical transportation companies, as they need to own or acquire specialized vehicles, equipment, and other infrastructure for fulfi lling transportation and logistics needs. This is to ensure compliance with the stipulated environment, safe-ty, and other legal regulations involved with such danger-ous chemicals or materials.

chemical products are transported within the domestic market predominantly by road (in exclusive chemical tank-ers and sometimes in containers). Rail is the second mode for transport of chemicals. companies that have industrial activities in coastal regions prefer to ship their products in bulk from ports to regional markets along the coast, thus saving time and cost. In recent times, chemicals have also been transported through underground pipelines based on geographical proximity or the urgency of the shipment. The air mode is used for high value specialty chemicals, and only in case of urgent deliveries.

The most preferred mode for international transporta-tion of chemical products overseas is by sea, due to the availability of bulk containerized shipping facilities and cold chain facilities required for certain products during transportation. air freight is used for certain high value chemicals, such as fi ne and specialty chemicals, which can be transported by air using service providers offering very economical rates.

Bright Prospects The chemical industry transportation market in India was about $1.36 billion in 2010, representing approximately 49 percent of industry’s total logistics spend. The market is expected to witness a compound annual growth rate (caGR) of about seven percent between 2010 and 2015 and reach about $1.90 billion by 2015.

a demand surge is expected in the chemical products market during the next fi ve years, especially in specialty and knowledge chemicals. To cater to this increase in consumer and industrial demand, many chemical com-panies are planning to expand their facilities especially in SeZs, to take advantage of favorable duty exemptions and other excise duty regulations. The Indian government has also relaxed a few regulations on import and export and other FdI policies, which are anticipated to boost ex-port opportunities substantially. For industry there exists a strong global opportunity for the export of a few prod-ucts such as dyes, pharmaceuticals, agrochemicals, etc., which are expected to aid industry’s export activities.

The current transportation activities in the industry are likely to change with the increased adoption of multi-modal transportation by participants to transport chemi-cal products to regional markets. expected developments

Key Products of the Indian Chemical Industry Basic chemicals – Petrochemicals, fertilizers,

resins, and plastics Specialty chemicals – Catalysts, industrial gases,

paints, dyes, and plastic additives Knowledge chemicals – Pharma chemicals,

cosmetics chemicals, and agrochemicals

Key Consumer Segments Served by the Indian Chemical Industry Industrial applications – For textile, rubber, and

so on Agricultural segment – For dyes, fertilizers, and

pesticides Normal consumers – Paints, for household

products, cosmetics, and others

FIGURE 1: Indian Chemicals Industry RevenueSegmentation by Product

25%

60%

Basic ChemicalsSpecialty ChemicalsKnowledge Chemicals

Source : Frost and Sullivan

15%

FIGURE 4: Indian Chemicals Industry's DomesticTransportation Market Breakup by Mode ofTransport, 2010

79% Road

13%

2%4.5%

1.5%

Road Rail Air Coastal & Inland Waterways Pipelines

Source : Frost and Sullivan

Indian Chemicals Industry Revenue (Segmentation by Product)

Chemicals Industry’s Domestic Transportation (2010)

Figure 1

Figure 2

Source: Frost & Sullivan


20

< column


in rail, road, and sea networks will enhance and improve their connectivity.

Rail, coastal and inland waterways, pipelines, and air modes together are expected to constitute a minor share (three-four percent) to the road segment between 2010 and 2015. however, road will still continue to be the larg-

est mode of transportation for the chemical industry. The upcoming dedicated Freight corridors of the Indian rail-ways, dedicated air cargo services, growth of private ports in the country and growth of pipeline networks are likely to cause this shift.

The Indian chemical industry has bright growth pros-pects owing to strong demand in the domestic market, as well as the export markets, from consumption industries such as pharmaceuticals, agrochemicals, and specialty chemicals, resulting in increasing volumes of chemicals transportation and freight forwarding. While road trans-portation will continue to be the dominant mode of do-mestic transportation, other modes are expected to con-tribute substantially over the years.

however, in the international transportation segment, the sea mode is expected to remain dominant and unaffect-ed. Thus the growth opportunities for companies involved in chemical transportation services are immense. howev-er, they need to acquire capabilities to fulfi ll the specialized needs of this industry, including suitable vehicles, han-dling equipment, storage facilities, and above all, skilled professionals to cater to the industry’s specifi c needs.

Confederation of Indian IndustryInstitute of Logistics

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Loss of Customer

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0

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FIGURE 5: Revenue Forecasts for ChemicalsTransportation Market in India, 2010-2015

2010 2015Year

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Revenue Forecasts for Chemicals

Figure 3


Transportation Market in India 2010-2015

Srinath Manda, Program Manager, Transportation and Logistics Practice, South Asia, Middle East and North Africa, Frost & Sullivan. Frost & Sullivan writes columns for LOG.India every quarter.

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Mission Replenish

December 2010 Vol. 4 — No.4 `100

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Method In Motion



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And the man in the thick of the action is Rakesh

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Consumer Products Ltd. (GCPL) >>

WHAT‘S IN A NAME What is the right term? Is it logistics? Or is it supply chain?

INDIA

MEETING OF TITANS 16CSCMP’s 2010 conference at San Diego was bigger and richer than ever

MARITIME‘S ALBATROSS 38Policy and infra issues that are hurting India’s maritime growth

MORE FOR LESS 34Four levers that can help improve transport efficiency

Prem K Verma, CEO, TML Distribution Company Limited, a Tata Motors subsidiary, discusses supply-chain in depth and offers innovative strategies >>

Page 22

Outside The Box

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< cover story

As a corporate which is almost at the cusp of success, Alcatel-Lucent follows an interesting mode of demand planning customized to fulfi ll its customers’ needs. Pamela Cheema reports.

The offi ce is cloaked in silence. Alcatel-Lucent, the second largest telecom gear

manufacturing company in the world, is housed in quiet premises in Andheri, Mumbai, where peace pervades—a stark contrast with the heat, dust and cacophony of the rest of this suburb. Mr Bhagwan Das, Director, Customer Delivery operations, has an equally calm and reassuring manner as he picks his way through the intricacies, and often perilous shoals, of supply chain operations.

As a company Alcatel-Lucent, which also includes its highly re-spected and path-breaking division, Bell Labs, has a hugely impressive track record; over the years it has ac-quired seven Nobel Prizes, the latest being in 2009 for the development of the Charge Coupled Device, a system of technology that transforms pat-terns of light into digital informa-tion and is the basis of many forms

of modern imaging! The other six Nobel prizes were awarded in a time span from 1937 to 1998, for inven-tions ranging from the immensely popular transistor to esoteric theo-ries of physics.

All the Nobel prizes have been awarded in the spheres of semi-conductor and telecommunication inventions, with Bell Labs having a couple of thousand patent rights to its credit.

Uniquely Different

headquarters: Paris, France annual Revenues: approx. Euro

16 billion R&D Budget: Euro 2.5 billion active Patents held: 27,900 Patents awarded in 2010: 2,400 nobel Prizes won: 7

alcatel Lucent Fast Facts


Photo: Vikram Barwal

Bhagwan Das, Director, Customer Delivery Operations, alcatel-Lucent.


< cover story

Pioneering telecom tech-nologyAlcatel-Lucent has had a presence in India since 1982 and has operations in 130 countries across the globe. It is headquartered in Paris and de-spite hints of a double-dip recession in Europe and the US, attained en-couraging revenues of Euros 16 bil-lion in 2010. Globally, the company has more than 77,000 employees, with its workforce in India exceed-ing 10,000. The company, which is

a pioneer in telecom technology, offers a deeply specialised prod-uct range which includes telecom products in 4G, 3G and 2G technol-ogy, optics transmission products and laying submarine cables on the ocean bed. It offers a complex portfolio of services which includes engineering services, operating its Global Network Operations Cen-tres (GNOC), project management and operation and maintenance of telecom networks.

Alcatel-Lucent’s largest warehouse is at Marley, near Paris.


The corporate has structured its supply chain operations carefully, after systematically carving its glo-bal operations into three specific areas, firstly, North America, sec-ondly, Europe, the Middle East and Africa and thirdly, the Asia-Pacific regions. “Our factories are located in different parts of the world,” says Mr Bhagwan Das. “We have facto-ries in Mexico, Canada, the US and China and some centres are in India too. Depending on the product pro-

tions.’ “The primary reason really was customer focus, because we wanted to give the flavor of a cus-tomized supply chain to our indi-vidual customers,” smiles Mr Bhag-wan Das. Besides, he underscores that his company is not the usual FMCG corporate with common re-tail products. Alcatel-Lucent manu-factures technologically superior products customized for each of its clients, with a supply chain that be-fits and is suited to each client.

The hi-tech products manufac-tured by Alcatel-Lucent are site-specific or customer specific, tai-lored to suit the requirements of each of its clients. Customers have sharply different needs—some cus-tomers would like to receive their shipments on a DDP(delivered duty paid) basis, that is, they want Alca-tel-Lucent to import the equipment into the country, be responsible for customs clearances and delivery to the site. Other clients would prefer shipments on a CIP (cost insur-ance paid) basis, where equipment is imported into the country and transportation, warehousing and other essential logistics necessities are handled by the customer itself. “Therefore we just labeled our sup-ply chain operations as ‘customer delivery operations’, “explains Mr Das, “because we wanted to cus-tomize it and give extra focus to customer needs.”

Uniquely separateSince the corporate is uniquely dif-ferent from retail companies with their diverse consumer products manufactured solely for the mar-ket—“We are not box sellers, we are

file that is required by the customer, we place the order on the SAP of the respective factories. From there it is shipped to the distribution centre in each of these three regions and then on to the customer location.”

A Different supply chainIn a departure from the practice fol-lowed by other corporations, Alca-tel-Lucent has intriguingly chosen to rename its supply chain opera-tions as ‘customer delivery opera-


< cover story

not in the business of selling prod-ucts,” reiterates Mr Das. “Rather we are solution providers”—Alca-tel-Lucent diligently follows the demand planning and forecasting model of supply chain which caters exclusively to the needs and prefer-ences of its customers.

These supply chain strate-gies have been necessitated by the

unique characteristics of its work. If a customer requires Alcatel-Lucent to provide its complete telecommunication network, the company must study carefully the customer’s requirements, the site, the rooms in which equipment has to be installed, the length of cable which must be used to connect to its switching centre, check whether the site is located on say, the first floor or the top of the building, etc.

“In short, I need to have a com-plete topology of the site and other network,” emphasizes Mr Das, drumming his fingers on his desk, “only then can I design my equip-ment suited to that requirement. After every such advanced engage-ment with a customer, that en-gagement translates into advanced engineering and manufacturing ac-tivities and only then can we supply equipment to our client. Therefore, we have the forecast mechanism which will give what we call ‘heads up’ (advance information) to our factory.”

The company has a limited portfolio of national corporates with vast telecom networks as its customers. Small enterprises or domestic consumers do not form a part of its exclusive customer base.“The total number of our cus-tomers, even if you stretch it, is not more than eight or ten,” says Mr Das, warming up to his subject. “Our customers are large organiza-tions in telecommunications, our services are not meant for small or medium customers or even direct customers. We have customers like Bharti, Reliance, BSNL (the west-ern circle is with us) and Vodafone. Even the government of India when it needs end-to-end solutions turns to us for its needs.”

extensive customer en-gagementAlcatel-Lucent’s demand plan-ning and forecasting methods are

Inventory stocked at the Bangalore warehouse.

29

stitched together with extensive in-formation and engagement with the customer. The pre-sales and techni-cal teams engage with the customer before the sales team and apprise the customer of various products and their cutting-edge technology, which will enhance the value of the customer’s product. “Once this has been done, we pass on the baton to the sales team which has to engage with the customer on the commer-cial front,” says Mr Das energetical-ly, while elaborating the process. “The commercial front is closed by the sales team and then it comes to delivery where my supply chain team gets involved.”

The supply chain methods or the customer delivery operations of Alcatel-Lucent contrast sharply with those of other companies, as plans for assembling or even manu-facturing acquire critical mass even before the commercial order has been signed. Explains Mr Das: “ The fi rst stage is consolidating the requirement of the customer by the initial teams. Once that has been

done and the sales team is negoti-ating the order, even if there is 50 percent chance of success, we will say that the plan is ready. Once we increase the forecast to 70 percent, we can say that we are in a position to procure the components. Even if a particular customer does not give us the order, we can use the compo-nents for some other customer as these components are commonly used. The moment the forecast is 90 percent , we say that the customer is convinced and we can go ahead with manufacturing. We call this advance ordering.”

timely order Fulfi llmentAlcatel-Lucent considers advance ordering an indispensable and cru-cial part of its supply chain proc-esses, without which timely order fulfi llment will remain a mirage. “If we don’t plan in advance, we cannot meet the demand of the cus-tomer in time,” elaborates Mr Das carefully. “ In telecommunications the product life cycle i.e the entire process from component buying to

INDIA| October 2011 | www.logisticsweek.com

Alcatel-Lucent is 2nd largest telecom gear manufacturer

Alcatel-Lucent is No. 1 in CDMA, op-tics and submarine Cables

Alcatel-Lucent is among top 3 in man-aged Services space

Alcatel-Lucent is present in more than 130 countries

Alcatel-Lucent has around 77K + resources globally & 10K + in India

Alcatel-Lucent’s Bell Labs - a back bone for R&D

Alcatel-Lucent India has R&D labs in Chennai, Bangalore,Gurgaon and Noida.

What we are

Alcatel-Lucent’s Marley warehouse is spread out over around 15 lakh sq.ft.


< cover story

manufacturing and delivery, if you don’t plan in advance, takes four-five months, whereas the customer wants delivery in four-six weeks. So how should we bridge this gap? This can be done only through ad-vance ordering or planning which thus plays a very critical role.”

Thus Alcatel-Lucent’s supply chain strategies act as a differen-tiator and set it apart from other companies. It’s supply chain kicks

into action even before the cus-tomer places the order; the com-pany starts procuring, assembling and manufacturing before it has an order in hand just by gauging the readiness of the customer to place its trust and eventually its order, with the company.

Does an order ever fall through? Mr Das shrugs. “It rarely happens. But if it does, it happens due to certain factors on the customer’s side—sometimes the customer may go bankrupt. So even if there is a valid contract and delivery has been made, he may not be able to pay. We then retrieve our equipment and with some modifications, deploy it elsewhere.” The corporate is pre-pared to endure and suffer some loss, confident in the knowledge that 70 percent-80 percent of its equipment can be reused in anoth-er telecommunications company which employs similar material.

Free From complexitiesAlcatel-Lucent’s supply chain or cus-tomer delivery operations is bare-boned and free from complexities. ‘Intelligence’ or information from the customer is given to the com-ponent suppliers or vendors who supply material to the factories. The factories build the equipment; once the equipment has been constructed the customer is contacted seeking his approval about the date of deliv-ery. The approval of the delivery date triggers off delivery of equipment. Documents are prepared and the equipment is packed and shipped. Depending on the timeline, the company chooses to ship the equip-ment by sea or air.

On arrival in the country of ex-port, once the equipment has been cleared by the customs, it is dis-patched to the regional warehouse. From the regional warehouse the equipment is conveyed to the specif-ic site, where it is often installed for the customer. For Indian custom-ers, most equipment is outsourced from abroad. Alcatel-Lucent manu-factures 60 percent-70 percent of its optics equipment in India, in keep-ing with the policy requirements of the Department of Telecommuni-cations, which emphasizes that a large tranche of equipment must be manufactured in the country. The company has a trim team of 70 sup-ply chain professionals.

Alcatel-Lucent has R&D labo-ratories in Chennai, Bangalore, Gurgaon and Noida. But the sup-ply chain processes of these labo-ratories are kept firmly apart from those of the company. “The reason is that these centres are located in software technology parks where equipment is imported without any customs duty,” notes Mr Das. “ While the government allows us to import without levying any du-ties, they place restrictions on us in terms of documentation. So we cannot move the equipment outside

Alcatel-Lucent’s supply chain or customer delivery operations is bare-boned and free from complexities.

The warehouse management processes are significantly broadbased and include every aspect.


the parks and exploit it for commer-cial purposes.”

Lean customer Delivery solutionIn 2010 Alcatel-Lucent decided, in the face of robust competition, to make their processes more strin-gent for a more impeccable supply chain. This was a global initiative to eliminate the ineffi ciencies and inadequacies in the system. The new initiative, termed the ‘Lean custom-er delivery solution’ (LCD), seeks to improve timelines and quality. “The Last Mile delivery is very important for our customers,” says Mr Das ex-pansively. “For example, I conducted a study and discovered that even if my equipment was ready in the ware-house abroad, it still took 10 or 12 days to put it on the plane. We sat to-gether and simplifi ed the process of documentation and brought it down to six or seven days. But now we feel that it should be brought down still further to three or four days!”

Often, there are unanticipated delays between inventory which has been ordered by the customer and its installation. The customer may have ordered, for example, 3000 base sta-tions, but he may be unable to accept the delivery, either because the site is not yet ready for installation or he has not yet received the requisite permissions from the concerned au-thorities for installation. Due to the continuous engagement of Alcatel-Lucent’s project teams with the cus-tomer, the corporate learns whether the site is ready, the customer has given his consent for installation, if power is available, etc.

In this babel of clashing ideas, it is only the continuous engagement with and the constant intelligence received from the customer that enables completion of the project. “Through ‘ready for installation’ or what we call RFI technology, my organization gets continuous feed-back,” explains an animated Mr

Das, now explaining his corporate’s strategies in free fl ow. “We get to know when the site will be ready or likely to be ready, how much time transportation will take, the amount of advance planning that is required to achieve a particular timeline at a particular site, etc. But very often if there is a time lag of one or two months, the customer asks us to hold the inventory at the port of export itself.”

tracking the orderOnce an order has been placed, Al-catel-Lucent systematically tracks the order through the various stag-es it passes before it is delivered to the customer. This is done through a multi-pronged effort to ensure swift, effi cient and seamless de-livery to the customer. When the customer gives a ‘hard order’, i.e a signed order, it is converted into a ‘logistics’ order to enable the fac-tory to understand the customer’s requirements. The commercial bill of material is broken up into a lo-gistics bill of material which is then fed into the SAP of the concerned

Anticipate Anticipate, prepare and plan supply chain

End to End Supply Chain

Identify and procure for projects and end use

Operations and support orders

Fulfi ll order, logistics, warehousing

Customer support, revenue support

Source

Make Ready

Deliver

Support

What We Do

factory.Each order is monitored by a

dedicated team which scrutinizes movement end-to-end. There are two methods used to track the or-der, fi rstly, through SAP which con-veys the exact location of the order and secondly, it is done manually by creating an Excel sheet where the team notes the movement of the order every week and provides the customer with a weekly update of the status of the goods.

Says Mr Das: “The order man-ager of each team can see the com-plete material required on SAP as well as Excel, the quantity, the timeline in terms of delivery, the payment and other requirements of the factory. In fact, the factory may


< cover story

already be at some level of manu-facturing based on the demand forecast. Thus, we have adopted a multi-pronged strategy to ensure that what we commit, we deliver. In our company we say that we must ‘Deliver on commit’, that is, deliver what you have committed.”

Supply chain strategies differ with companies. Some corporates and departments of the government of India request end-to-end solu-tions, while others prefer that the equipment is handed over to their freight forwarders who provide the logistics solutions. Despite the

hardscrabble world of competition, Alcatel-Lucent prefers to be flexible and bend its policies and strategies to suit individual customers, leav-ing them free to explore diverse av-enues for their customer delivery operations. If required, the company designs the customer delivery opera-tions and the warehouse processes as well for its customers.

Warehouse Management ProcessesAlcatel-Lucent has five large and three medium sized warehouses in the country. They are located in Gujarat, Madhya Pradesh, Chattis-

garh, Nagpur and Pune. It’s largest warehouse is at Marley, near Paris, spread out over around 15 lakh sq. ft, with a complement of approxi-mately 100 workers. The manage-ment of the warehouse has been outsourced to a company called Daher. The Indian warehouses are also managed by logistics service providers (LSPs), but the warehouse management processes are provid-ed by the company.

The warehouse management processes are significantly broad-based and include every aspect of the customer’s requirement in terms of management, account-ing and documentation. The ware-houses have to be handled with consummate skill as the inventory ultimately belongs to the customer. The processes on which the ware-houses are run are carefully de-signed within the parameters of the contract signed with the customer.

“The warehouse processes are carefully devised keeping in mind how the equipment has to be stacked,” elaborates Mr Das. “We also have to maintain the equip-ment, see how the documenta-tion has to be carried out and be very particular about receiving, accounting and issuance of equip-ment. When we issue equipment, auditing has to be done.” Telecom equipment is sensitive and mainte-nance can never be botched. Bat-teries are required to maintain the network and since they have a shelf life, they have to be recharged every six months. For equipment which needs to be recharged, vendors have to be engaged to ensure that the batteries are recharged and their shelf life is continuous and stable.

The warehouses are managed in this impeccable manner by Alcatel-Lucent’s LSPs who are equally fas-tidious about maintaining records, both incoming and outgoing. “Cus-tomers check the inventory at the end, therefore record keeping is

Alcatel-Lucent believes deeply in green logistics. the company has made several forays into environmental sustainability; it has attempted to have paperless offices globally by encouraging the storage of records electronically.

very crucial,” smiles Mr Das.Alcatel-Lucent has three main

LSPs who between them have ap-portioned most of the corporate’s work globally. Most of the project warehouses in India are man-aged by Kuehne+Nagel, while DB Schenker and Panalpina handle the company’s freight from Europe and China. DHL is responsible for express freight for the company, with Kuehne+Nagel again being the mainstay for freight handling of the corporate in North America.

Vidyashri Veloo, Senior Man-ager, Schenker India, notes that her company has had a four-year long association with Alcatel-Lucent. “We made a deep study of their logistics requirements and customers and then established comprehensive standard operating procedures,” says Ms Veloo. “ These clearly listed the required proc-esses and service level agreements. We have also trained our customer service personnel in every metro to handle their shipments carefully.”

Jatin Patel, Senior Manager, Kuehne+Nagel, agrees that “Alca-tel-Lucent has a different kind of supply chain due to the require-ments of the telecom industry.” However, he emphasizes that his company handles their complex re-quirements with ease due to their vast experience.

Alcatel-Lucent believes deeply in green logistics. The company has made several forays into envi-ronmental sustainability; it has at-tempted to have paperless offices globally by encouraging the stor-age of records electronically. The corporate has tried to enforce Last Mile Delivery in CNG trucks where possible. It uses battery operated forklifts in its warehouses and in an interesting initiative, endeavours to reuse packing boxes.

Silently, but swiftly and innova-tively, the corporate appears to be fast-forwarding its way to success.


< feature< feature

With increasing availability of disposable cash, the demand for consumer durables is on the rise. In order to keep up with the demand, various companies are doing their demand forecasting differently, writes Pritha Dey.

Balancing Act

The general sight at any electronics consumer durables goods store : A

whole wall full of LCDs and LEDs from various companies, music systems, refrigerators, microwave ovens, washing machines, air-conditioners, water heaters—all of various shapes, sizes and specifications (and not to forget the price tags and the status symbols that the products have become)…

innumerable products to choose from.

Why talk about something we all know?

Well, as potential buyers, we do not generally invest time in thinking who decides how many commodi-ties to manufacture, or how it reaches the store. But little do we know that a lot of effort goes into making things fall into place. That is where demand forecasting comes in – the activity of

estimating the quantity of a product or service that consumers will purchase.

A Corporate Catalyst India, De-cember 2010, Report on Consumer Durables Industry in India states: “India’s consumer market is riding the crest of the country’s economic boom. Driven by a young population with access to disposable income and easy finance options, the con-sumer market has been throwing up staggering figures. The Indian


The following is an analysis of two methods of such forecasts.

LG IndiaK. K. Kaul, Head-SCM, LG Electron-ics India, says, “In LG, we have a net-work of 47 branch sites for which we follow a consensus-based planning process. We first collect the Bottom Up forecast through the use of GDM system (Global Demand Manage-ment), then we have Top Down tar-gets finalised at the corporate level as per corporate strategy and also the Statistical forecast which looks at past sales trends and sales targets to be achieved.”LG finally merges both Bottom Up and Top Down to arrive at a consensus plan.

Through this process LG col-lects the Bottom Up forecast from 47 branches at SKU level for M+2(current month plus next two months) through the GDM system. This Bottom Up forecast is free and unbiased, based on actual demand in the branch, or pricing that prevails in the region, or competition movement, etc.

The Bottom Up forecast is then downloaded at the corporate office and analyzed by studying the actual availability of material, manufac-turing capacity constraints, past sales trends, etc. The demand plan-ning team at the corporate has the past sales trends of SKUs of various branches through which they gen-erate an ideal statistical forecast of SKU level.

“We also have our Top Down tar-gets finalized by our corporate sales team. Merging these three, we final-ize a Consensus Forecast,” explains Mr. Kaul. “The Consensus making process is a rigorous process done with all 47 Branches through a Voice Conference call where we have de-tailed discussions.” The points of discussion are:n Category Killer Modelsn Constraints models on availability n Growth over last yearnPricing and Schemes

After the consensus forecast is finalized, these numbers are pre-sented to top management for final review and discussion. With these inputs, the plan is further ration-alized and finalised. The finalised plan is then uploaded in the system.

SHARP IndiaHarvind Mohan, Senior Executive-Material Planning, SHARP India, explains the different demand fore-casting methods implemented by his company. Mr. Mohan says, “The first method of forecasting is the Historical Review. If a company has introduced similar new products into similar markets in the past, these his-tories can often be good predictors of future outcomes.”If a company has no such history, then histories of similar new products introduced by competitors or other companies can serve as historical guidelines to help derive a new product sales forecast.

A second method of forecasting new products is the Test Market. The new product is developed and intro-duced into one or more test markets.

durables market, with a market size of US $ 27.38 billion in 2008-09, has grown by 7.1 percent over 2009-10.”

India is one of the major global markets of consumer durables at present and along with changing, rather increasing demands, demand forecasting has also changed. As the Indian middle class is now awash in considerable disposable wealth, different companies have adopted diverse methods to forecast the de-mands for their products to cater to their customers.

the MethodsNirmal N R, a post graduate student at Indian School of Business, Hy-derabad, who is presently writing a paper on supply chain and ware-housing says, “There are different methods of forecasting demand in industry. In many cases, the meth-ods used are hybrids of theoretical methods or in other words, there are adjustments made to the predicted demand according to judgement.”

Nirmal explains that the most popular method is to aggregate the demand numbers bottom up, start-ing with regional offices and con-solidating at headquarters. He adds, “But these are often times based on unaided judgements which don’t take into account the effects of a change in pricing, advertising or design.” But, explains Nirmal, employees in regional offices can be prejudiced while forecasting itself makes the forecast prone to biases. “At the same time, studies show that some of the other judgment-based approaches, like the Delphi method, have led to improved accuracy in demand fore-casting,” he elaborates. The Delphi method takes into account the fore-casts of five to twenty experts who are diverse in their knowledge for their forecasts and their reasons for them.

Case StudiesDemand forecasting is done in dif-ferent ways by different companies.

In LG, we have a network of 47 branch sites for which we follow a consensus-based planning process.

— K K KaulHead -SCM,

LG Electronics, India


< feature

missing from the simulation during this “before” measurement. Then the consumer is exposed to the new prod-uct concept. Later, the consumer sees the same simulated display (except that now it contains the new product) and is asked to make the same choic-es or purchase decisions as before.

Quantitative forecasting MethodsNirmal says, “Quantitative methods depend on available data and statis-tical analysis and extrapolation to forecast demand. Software packages can identify the cyclical nature of the industry and smoothen out the fluc-tuations.”The Quantitative forecasting meth-ods according to Mr. Kaul are:n Time Series Methodsn Moving Averagesn Correlation & Regression Analysisn Extrapolation

Mr. Mohan says, “Time series methods and reasoning are the main methods. Time-series analysis basi-cally relies on historical data and at-tempts to project historical patterns into the future.“

Long-Term And Short-Term De-mand Forecasting

Demand forecasting is generally done at two levels – long-term and short-term.

Long-term forecasting is usually done at a yearly business plan level, in which the business plan of an en-tire year is finalized by looking at the market size, growth, market share

Actual store sales and market shares are tracked. Often this sales track-ing is supplemented by survey-based tracking of consumer awareness, trial, usage, and repeat purchase patterns.

“Before And After Retail Simula-tion is the third method,” says Mr. Mohan. A sample of target audience consumers is presented with simula-tions showing the in-store retail en-vironment. The consumer is asked to choose or “purchase” brands as they normally would. The new product is

gain, profit and loss, sales revenue etc. Thereafter, the sales numbers are finalised.

“In long-term forecasting we also discuss planning for manufacturing strategy, line capacity enhancement, and diversification and technological upgradation. Location wise strategy (Noida / Pune / EMS),” says Mr. Kaul.

Mr. Mohan is of the opinion that “In Long-term, the supply of all the factors of production, with the possible exception of finance, is variable. The purpose is to provide a basis of broad directional planning and not just operational planning.”

Short-term forecasting, Mr. Kaul explains, is usually done for four months at a time. This includes:n Scheduling and planning of

production to avoid excess and shortage scenarios

nProper management of invento-ries both manufactured and CBU (complete built-up units)

n Formulating a sales strategy“The sales strategy has to be for-

mulated keeping in mind the pric-ing, changing patterns of demand, and competition analysis,” adds Mr. Kaul. “In short-term the supply of all factors of production is fixed. The purpose is to aid optimum utiliza-tion of a given supply of various fac-tors of production to initiate correc-tive action in the next time period.”

essential ChangesAfter demand forecasting is done, some changes may be required in

An Industry OverviewProduct Category 2007 - 08 over 2005-06 2008-09 over 2009-10

Percentage Growth Driver Percentage Growth Driver

Air-conditioners 20-22 Decreasing prices, changing lifestyle 30-40 Reduction in prices

Refrigerators 5-8 High demand for frost-free segment together with reduction in prices

24 Low penetration level in the coun-try and increase in demand from rural and semi-urban areas

Color televisions 5-8 Increasing disposable income and declining prices

30-40 Reduction in prices of LCD, LED

Washing machines 8-10 Reduction in prices of fully automatic machines

30 New models launched and reduc-tion in prices

Source: Corporate Catalyst India

Time series methods and reasoning are the main methods. Time-series analysis basically relies on historical data and attempts to project historical patterns into the future

— Harvind MohanSenior Executive-Material

Planning, SHARP India


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in anticipation of a shortage.”Sathiyanarayanan Karthikeyan,

Regional Logistics Co-ordinator, West, Whirlpool India, agrees with Mr. Kaul as he says, “A situation wherein too much inventory is pro-duced and remains on the shelf is worse.” Mr. Mohan differs with Mr. Kaul slightly as he says, “Both situa-tions are bad. If too much is produced and can’t move, it results in blockage of capital. In the latter case, manufac-turers lose market share as a conse-quence because a customer has lots of choices in the market to choose from.”

In agreement with Mr. Mohan, Nirmal says, “Both conditions are bad and it may be difficult to choose one over the other. Specifically in the consumer durables industry where the shelf life is not so high and the obso-lescence lower, a high inventory in the system means more money blocked in working capital and a shortfall in supply would result in lost sales and reputation.” The difference between the two, according to Nirmal, would be that the former is easier to quantify while the latter is difficult to quantify.

Industry Best Practices “Collaborative planning, forecast-ing and replenishment (CPRF) is an industry best practice which compa-nies are working on, but this needs systems infrastructure and integra-tion at customer level.” informs Mr. Kaul. It is a business practice that combines the intelligence of multi-ple trading partners in planning and fulfillment of customer demands.

Seasonal effectsDuring the festive season, there is of-ten a spike in sales. Mr. Kaul says, “Yes, there is special focus on seasons and festivities which drive sales. Special fo-cus is given to festival planning.” Nir-mal agrees and remarks that “Specifi-cally the consumer durables industry in India is quite seasonal with almost 30 percent of the consumption happen-ing during the festive season.”

Industry Best PracticesLG SHARP

Planning and scheduling production and avail-ability of finished goods

Customer service management

Budgeting of costs and sales revenue Procurement

Controlling inventories Product development and commercialization

Making policies for short-term and long-term investments

Manufacturing flow management/support

Helps in target setting and target achievements Physical distribution

Outsourcing/partnerships

Performance measurement

Warehousing

Sou

rce:

LG

and

Sha

rp

the supply chain in order to support the changes in demand. As Mr. Kaul puts it, the changes required are:n Rule based operationn A supply planning strategy based

on availability norms.n A good operational set-up to sup-

port logistics for effective distri-bution planning

n Logistics and warehousing strategy.n Regular review and KPI manage-

ment system

Consequences Of Inaccu-rate forecastsInaccuracy can never produce good results. Demand forecasting is also no different. Nirmal points out, “One of the important things to be noted about demand forecasting is that it will not be 100 percent accurate. The effort is always to improve the accuracy of the forecast to the possible level.” An inac-curate demand can either result in a shortage of goods or an excess inven-tory being present in the supply chain. More than the one-time effect of such an inaccurate demand, this also cre-ates behavioral differences in the par-ticipants of the supply chain resulting in a bull whip effect.

As Mr. Kaul puts it, “Inaccurate demand will lead to high accumu-lation of inventories, shortages or excess of material and finally de-creased CSL (Customer satisfaction level). All these will ultimately lead to customer dissatisfaction.” But ac-curate demand forecasting when not

backed by right resource planning on the distribution and logistics front, will lead to increased logistics costs which will be uncalled for.

“Inaccurate demand will lead to in-creased IBT (inter-branch transfers), which will again add to logistics costs and may also damage the products by courier movement, particularly if the numbers are small,” Mr. Kaul eluci-dates. Inaccurate demand will affect any business as a whole. Therefore, accurate and timely demand plans are a vital component of a manufacturing supply chain.

“Inaccurate demand forecasts typ-ically will result in supply imbalances when it comes to meeting customer demand. Forecast accuracy at the SKU level is critical for proper allocation of resources.” adds Mr. Mohan.

abundance Vs unavailabilityIn Mr. Kaul’s opinion, “A situation wherein too much inventory is pro-duced and remains on the shelf is worse as inventory will get stuck and lead to losses.”Such a situation will lead to further losses as the shelf in-ventory has to be liquidated by giving additional schemes or price drops.

Mr. Kaul adds, “Although the sec-ond situation should be avoided as a shortage will lead to customer dis-satisfaction due to unavailability of products, but compared to the first situation, it is good as the system will have lean inventory. Also, in such a situation all available goods get sold


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Mr. Kaul explains that the LG fore-casting team generally forms a special task team to focus on certain specific festivals and do weekly review to check whether production, supply chain and sales activities are on track or not. In case any issue is highlighted, it is im-mediately addressed and resolved. He explains further, “We conduct sales and operational planning meetings on every Tuesday and issues, if any, are presented before the senior manage-ment body. During festive occasions and specific seasons, major numbers are driven by certain specific branches in specific regions.”

Like in the case of Onam, which is a major festival in Kerala, LG starts its demand forecasting two months prior to the festival and planning is done ac-cordingly. Material to be supplied is strategically produced and supplied

through ships to optimize costs and stored in warehouses, so that mate-rial is always available to address sudden peaks in demand. Also, there is certain material which is strategi-cally stored at central locations so that it can cater to other branches in the south of the country as well.

“As far as festivities are con-cerned, apart from Onam, Durga Puja for the eastern region, Ganesha Utsav for the western region, and, Diwali for all India are the major buying sea-sons,” adds Mr. Kaul. Mr Karthikeyan points out that sales fluctuate due to the onset of different seasons as well. “Usually in consumer durable products, the demand can be fore-cast according to the season as per consumer requirement. For example, in winter the sales for washing ma-chines will be very high, and in sum-

mer the demand for fridges and air-conditioners will top sales charts.”

Foreign Investment up to 100 percent is possible in the Indian consumer electronics sector to set up units exclusively for exports. All imports are duty free now and hence manufacturing products and export-ing them have become much easier. The WTO regime which came into force in 2005 allows zero customs duty on imports of all telecom equip-ment. In fact, electronics was one of the first sectors in India to face com-plete customs tariff elimination. All these policies and initiatives have helped industry grow. Backed by the higher living standards of the mod-ern Indian middle class, demand for consumer durables is on the rise, making demand forecasting quite a challenging job.

“IWLS Would Be A More Focused Show For The Western Region”

What are the new additions to this year’s IWLS? The main reason for bringing this edition to Ahmedabad is to focus on the robust growth in the Western region. We have introduced India Cold Storage Show for the first time. The dairy, agriculture and seafood in-dustry is dominant in western India and this show would offer the latest technology and equipment for the foolproof storage of these perishable produce. Also, in synergy with the latest initiative of Gujarat govern-ment in promoting the use of renewable energy, we have concentrated on the application of this alternate energy in logistics sector.

The Union Budget has brought cold storage under infrastructure. What is the growth you expect to see in the next five years? The timing of our cold storage show is perfect, if we look at the focus of central government on this sector. India has just started on this sector and there is a huge potential to grow the businesses. Our cold storages are still very conventional and need desperate make over to be prepared for the demand to come. We also need new modern cold storage fa-cilities especially for the multinationals coming into the user industry including dairy, processed food, pharmaceutical, agriculture and allied industries. I see next five years as the turning point for the cold storage sector with a growth rate of over 18% for at least next three years.

With logistics parks becoming popular, the demand for material handling is expected to have a commensurate increase. How are vendors gearing up to meet this demand?

The material handling sector has seen a tremendous growth in last 2-3 years with several international giants entering the Indian market. Suppliers are investing in more sophisticated equipment.

What are the benefits that visitors to the show can expect this year?IWLS would be a more focused show for the western region. We are not only targeting the host state of Gujarat but the entire central and western India. Visitors can expect a wide range of products and solu-tions from warehouse fabrication to warehouse management systems, materials handling to automation, AIDC solutions to storage systems, data loggers to PUF panels, anything and everything to do with ware-housing and cold storage industry.

Although LSPs are sprucing up warehousing facilities, user compa-nies continue to grumble about delayed experience. What do you think is lacking?I think it would be partial to blame LSPs for not meeting the dead-lines always. We have got several internationally renowned service providers and even Indian companies are adopting same processes. There are many factors influencing the delay that are not in control of LSPs. The major loss of time is during transportation and this would be a lot better once we have GST in place. This would eradi-cate the existing state border taxes and time loss at each barrier. At the same time, LSPs should gear up for adapting the GST from the day it gets notified.

Anuj Mathur, Director-Exhibition, Manch Communications Pvt. Ltd. speaks of his plans for the India Warehousing & Logistics Show to be held in Gujarat this month.

Imprint Feature

The Customer and their Requirements

Coca-Cola Amatil (CCA) has been located in Northmead for more than 30 years and over this time, has experienced high levels of continuous growth. The Northmead plant manufactures 60 million unit cases of soft drinks per year, producing product in cans at 2,000 per minute and PET bottles at 600 per minute.

As CCA outgrew its on-site warehousing facilities, stock was stored in multiple off-site locations which created numerous problems such as high levels of stock write-offs, site congestion and other health and safety risks.

CCA required a new system to completely modernise their warehousing in Northmead and consolidate storage onto a single site. The new facility needed to address chain of responsibility requirements for transport and ensure accurate and timely replenishment to their other operations. The solution also needed to enable CCA to achieve world best practice levels of customer service, operational costs and stock accuracy. It needed to provide a safe working environment and facilitate their strategic growth platform whilst also meeting FIFO, quality and delivery requirements.

CoCa-Cola amatil, australiacase study

award winning solution for coca-cola amatil.

“The quality of solution offered by Swisslog outstripped their competitors and reflected their knowledge of CCA’s business needs.“

Derek O‘Donnell, National Logistics & Planning Manager - Supply Chain, Coca-Cola Amatil

LOGIstIcs dataHigh Bay Warehouse

Length 127 mHeight 32 mWidth 92 mFootprint 11,680 m2Quantity of Steel 3,000 tonnes Capacity 55,432 pallets

Material Handling system

Infeed Production 240 pallets / hrInfeed External 60 pallets / hrConveyor More than 1.5km Monorail Capacity 740 pallets / hrMonorail Trolley Speed 7.2 km / hrAutomated Cranes 13 @ 28m tall

The Solution

Swisslog worked in collaboration with CCA to assess the feasibility of different distribution options applicable to their New South Wales (NSW) operations, before designing the materials handling solution.

Once the business requirements were determined and the design levels forecast and set, efforts shifted to designing the best material handling solution. Swisslog produced a design which focused on innovative methods of combining and evolving proven technology to the site limitations and also on optimising the entire facility to provide the most cost effective solution.

Key design elements are:

storage systemsGiven CCA‘s high pallet storage requirement and their limited availability of on-site space, Swisslog‘s solution maximised vertical height using a crane fed automated storage and retrieval system (ASRS). This allowed a 32m tall High Bay which can store the equivalent of 158 million cans! The racking design was optimised to minimise both building and material handling costs. A clad rack design was chosen to achieve these benefits whereby the racking itself forms part of the construction of the building. Clad rack also enabled a quicker imple-mentation schedule versus a more tradi-tional design where a free standing rack is built inside a conventional building.

transportation HubA monorail linking the receiving, storage and staging operations allows pallets to be quickly and easily transported from any source to any destination within the system. During the design phases the transportation and handling strategies were optimised to enable the monorail to transport 740 pallets every hour. A pallet is delivered to a destination by the monorail every 5 seconds.

staging systemsDue to CCA‘s high system throughputs, it was essential to ensure the system provided adequate staging to enable a continual flow of pallets to the docks. The staging areas provide operational flexibility during peak and non peak periods and were designed to enable the

staging and Loading

6 Fully Automated Truck Loading Docks500 m of Pallet Flow LanesTotal Staging Capacity: 824 pallets, 30 trucksTotal Outfeed: 540 pallets / hr

COCA COLA AMATIL / February 20102

Coca-Cola Amatil is the principal Coca-Cola licensee in Australia and independently manufactures its own soft drinks and mineral waters. It bottles and distributes Coca-Cola soft drinks and other beverages in several countries.

www.ccamatil.com www.coca-cola.com

loading of a trailer whilst the system automatically stages the next load.In order to achieve the targeted truck turn around times, automated loading was considered vital given the technology‘s fast response times. Between the 6 docks over 15 trailers can be loaded every hour, which is one 22 pallet trailer every 4 minutes.

The Benefits

In addition to effectively enabling significant growth, Swisslog‘s solution provided CCA with the ability to consolidate its NSW warehousing operations, improve its efficiency and incorporate its environmental initiatives. Also, despite its 24 hours a day, 7 days a week operation, the High Bay requires

custOMeR data

Products

As well as Coke and its various derivatives, Coca-Cola Amatil produces a number of other soft drinks, including Mount Franklin, Deep Spring natural mineral waters, Neverfail Water, Grinders Coffee, GV Fresh and GV To Go juices, Fanta, Lift lemon drinks, Pump bottled

water, Powerade sports drink, Sprite lemo-nade, and the Kirks range of lower-cost soft drinks including Kirks creaming soda.

Location

Coca-Cola Amatil employs more than 16,000 people in five countries across the Asia-Pacific.

very few staff. There are just 26 people employed directly in the High Bay by CCA.

Most importantly CCA’s customers have benefited from the completion of the Northmead High Bay in a number of ways including very high inventory accuracy and on time delivery.

The state-of-the-art warehouse is now the largest of its kind in the southern hemisphere and has one of the highest throughput handling systems in the world. The Northmead warehouse was recognised by the Logistics Association of Australia in 2009 when it was awarded with a Smart Award for Excellence in Supply Chain Innovation. It also scooped a prestigious Mercury award in 2009 for its Technology Application.

swisslog’s sCope of supply> all materials handling equipment for the facility, including controls software.> warehouse design.> engineering and system planning.> overall project management.> Continuous customer support.> lifetime partnership.

COCA COLA AMATIL / February 2010 3


EichErEicher, one of the leading players in the Indian automobile industry, promises to serve its customers better by providing value at lower total cost of ownership. Its unit manufactures and markets commercial

vehicles with Gross Vehicle Weight (GVW) ranging from five tons to 40 tons. Its trucks are ideally suited for a wide range of segments like steel, cement, containerized goods, bulkers/bullets, wooden logs, automobiles and odd dimension cargo, parcels and courier, white goods, FMCG, POL tankers, captive goods, and food grains.

Trucks, Anyone?< SpEcial SupplEmEnt

The logistics sector has grown over the years, with road being more favored over other modes of transportation. Since the growth in total freight in India, the share of commercial vehicles has also amplified in the market. In this special issue, we carry profiles of commercial vehicles from the stables of a few of India’s major brands competing in the market.

Model eicher 40.40

Wheelbase (mm) 3485

Overall Length (mm) 5925

Minimum Turning Radius (m) 6.77 (for tractor alone)

Gross Combination Weight (kgs) 40200

Engine Type Cummins 6BTAA BS II

Max. Power 180 HP @ 2500 rpm

Max. Torque 66K gm @ 1300-1700 rpm.

Bore x Stroke (mm) 102x120

Clutch Single dry plate, Spring loaded Pull type, with clutch booster

Gear Box 6 speed synchromesh gear box of 80 kgm capacity

Rear Axle MERITOR RS-160, Banjo type fully floating, single reduction hypoid gear

Front Axle Heavy duty forged “I” beam reversed elliot type

Steering Hydraulic Power Assisted, Re-circulating Ball & Nut Type(Ratio-20.2:1)

Suspension Semi elliptical laminated leaf springs, Hydraulic double acting telescopic shock absorbers in front only

Brakes Service Brake : Dual Circuit, Full air,‘S’ cam

Parking Brake :Spring brakesacting at rear wheels LH/RH actuated, pneumatic controlled on the rear axle

Wheels & Tyres 10.00 x 20 – 16 PR

Fuel Tank (litres) 370

Gradeability 18%

Max. Speed 70kmph

Electricals 24V(2x12V), 120Ah

Cabin Ergonomically designed, spacious, comfortable & safe cabin.

Trailer 3 Axle Semi Trailer

Price Approx. `17.56 lakhs (ex -Thane)

eicher 40.40


Model eicher 35.31

Wheelbase (mm) 4700

Cargobody Deck Length,

mm (Ft)

7333 (24”)


Minimum Turning Radius (m) 10.35

Ground Clearance (mm) 252

Gross Vehicle Weight (kgs) 31000

Payload (kgs) 22010

Engine Type 6 cylinder, water cooled,turbo-charged intercooled DI

diesel engine - BS II


Max. Torque 56 Kgm @ 1400-1600 rpm

Bore x Stroke (mm) 100 x 105

Clutch Single dry plate hydraulic assisted spring loaded Pull type


Trailing Axle Tag Axle linked with drive axle through Bell Crank mechanism

Heavy duty fully floating banjo type

Front Axle Heavy duty forged “I” beam reversed elliot type

Steering Hydraulic Power Assisted with twin steered axle, Re-circulating Ball & Nut Type(Ratio-22.2:1)

Frame ‘C’ Channel ladder type- 285x76x6

Suspension Semi-elliptical laminated leat springs,with bell crank mechanism in rear, Hydraulic double acting

telescopic shock absorbers in front only

Brakes Service Brake : Dual Circuit, Full air,‘S’ cam with Auto Slack Adjuster.

Parking Brake :Spring brakesacting at rear wheels LH/RH actuated, pneumatic controlled on the rear axle



Gradeability 18%

Max. Speed 78 Kmph

Electricals 12V, 120 Ah

Cabin Ergonomically designed, spacious, comfortable, safe and tiltable cabin

Available options Cowl with chasis, Cab with Chasis and Built-up

Price Approx. `19.86 lakhs (ex -Thane)

eicher 35.31


< SpEcial SupplEmEnt

Model eicher Terra 16 hdr

Wheelbase (mm) 3485

Tipper Body Volume 8.5 CuM





Engine Type 6 cylinder, water cooled,turbo-charged intercooled DI diesel engine - BS II


Max. Torque 41 Kgm @ 1440 rpm

Bore x Stroke (mm) 100x105

Clutch Single Dry Plate , Diaphragm type

Gear Box ET60S5 ( Eicher 6M5H)

Rear Axle Heavy duty fully floating banjo type

Front Axle Forged “I” beam, reverse elliot type


Frame All steel ladder with bolted cross members-230x76x6

Suspension Semi elliptical laminated leaf springs, Hydraulic double acting telescopic shock absorbers in front only

Brakes Full Air Brake,Divided line, with Auto Slack Adjuster

Parking Brake : Spring brake actuated, pneumatic controlled on the rear axle



Gradeability 22.50%

Max. Speed 89 Kmph


Cabin Ergonomically designed, spacious, comfortable & safe cabin.

Tipping Kit Wipro

Tipping Angle 49°

Tipping kit option Under body and front end

Price Approx. `13 lakhs (ex -Thane)

eicher Terra 16


INDIA| November 2011 | www.logisticsweek.com48


< fEaturE

Model eicher 15.16

Wheelbase (mm) 4300

Cargobody Deck Length, mm (Ft) 5450(18")





Payload (kgs) 10300

Max. Torque 41 Kgm @ 1400 rpm

Bore x Stroke (mm) 100 x 105

Clutch Single plate Dry Type


Rear Axle Heavy duty fully floating banjo type

Front Axle Forged "I" beam, reverse elliot type


Frame ‘C’ Channel ladder type- 230x76x6

Suspension Semi elliptical laminated leaf springs, Hydraulic double acting telescopic shock absorbers in

front only

Brakes Service Brake : Full Air Brake, divided

Parking Brake : Spring brake actuated, pneumatic controlled on the rear axle



Gradeability 22%

Max. Speed 84 Kmph


Cabin Ergonomically designed, spacious, comfortable, safe and tiltable cabin

Price Approx. `12-13 lakhs (ex -Thane)


eicher 15.16

49

mahindra naviStarMahindra & Mahindra entered into a joint venture with Navistar Inc USA, in 2005 to design a range of light and heavy commercial vehicles well-suited to Indian terrain. They promise to ‘outperform’ the average performance of the Indian trucking industry with superior technology; efficient ergonomic product design along with extensive research that will induce fewer maintenance hassles and higher fuel-economy. Mahindra Navistar can be the game changer providing high performance solutions for every commercial vehicle segment right from 3.5 ton GVW to 49 ton GVW.

MAHINDRA NAVISTAR

Model MN 31 Model MN 31

GVW 31000 kg GVW 31000 kg

Engine MaxxForce 7.2 litre, TCIC BS III Rated Payload 20500 kg (with high side deck)

Transmission 6 Forward Synchromesh, 1 Reverse Engine MaxxForce 7.2 litre, TCIC BS III

Max. Power 151 KW @ 2200 RPM Transmission 6 Forward Synchromesh, 1 Reverse

Max. Geared Speed 85 kmph Max. Power 157 kw [210 hp] @ 2200 RPM

Max. Torque 920 nm @ 1250 RPM Max. Geared Speed 79.6 kmph

Gradeability 23% Gradeability 22.50%

Chassis Frame Ladder type. Uniform C-Section Chassis Frame Ladder type. Uniform C-Section

Steering Tilt and Telescopic Power Steering with

Twin Steer Axle

Steering Tilt and Telescopic Power Steering with

Twin Steer Axle

Brakes Full Air S-Cam, 10 Bar System Brakes Full Air S-Cam, 10 Bar System

Fuel Tank 417 litres (250, 350 litres-optional) Fuel Tank 417 litres (250, 350 litres-optional)

Wheels and Tyres Radial - 10R x 20 - 16 PR Wheels and Tyres 10 x 20 - 16 PR (Optional: Radial)

Systems Voltage 24 V [2x 12 V] Systems Voltage 24 V [ 2 x 12 V]

Wheel Base/ Load

Body Length Inside

6100 mm/ 7135 mm [24 ft] Wheel Base/ Load Body

Length Inside

6100 mm/ 7135 mm [24 ft]

Load Body Options Cabin & Chassis, High Side, Fixed Side Cabin Single Sleeper, Double Sleeper, Cowl

Cabin Single Sleeper, Double Sleeper Cabin Tilting Manually Operated Hydraulic Assisted

Cabin Tilting Manually Operated Hydraulic Assisted Vehicle Tracking System GPS Optional

Vehicle Tracking

System

Factory Fitted Air Conditioning Optional

Air Conditioning Optional

ABS Optional

Price Approx. `20.24 lakhs (Aurangabad)

MN 31



MAHINDRA NAVISTAR

Model MN 25 Model MN 25

GVW 25000 kg GVW 25000 kg

Rated Payload 16000 kg Engine MaxxForce 7.2 litre, TCIC BS III

Engine MaxxForce 7.2 litre, TCIC BS III Transmission 6 Forward Synchromesh, 1 Reverse

Transmission 6 Forward Synchromesh, 1 Reverse Max. Power 151 KW [ 202 HP] @ 2200 RPM

Max. Power 151 KW [ 210 HP] @ 2200 RPM Max. Geared Speed 85 kmph

Max. Speed 85 kmph Gradeability 29%

Gradeability 29% Chassis Frame Ladder type. Uniform C-Section

Chassis Frame Ladder type. Uniform C-Section Steering Tilt and telescopic power steering with

twin steer axle

Steering Tilt and telescopic power steering Brakes Full Air S-Cam, 10 Bar System

Brakes Full Air S-Cam, 10 Bar System Fuel Tank 417 litres (250, 350 litres-optional)

Fuel Tank 417 litres (250, 350 litres-optional) Wheels and Tyres Radial 10RX20 - 16 PR

Wheels and Tyres 10 x 20 - 16 PR Cross Ply [Radial: Optional] Systems Voltage 24 V [2 x 12 V]

Systems Voltage 24 V [2 x 12 V] Wheel Base/ Load Body

Length Inside

6100 mm/ 7135 mm [ 24 ft]

Wheel Base/ Load

Body Length Inside

5350 mm/ 7315 mm [24 ft]; 5000mm/6705

mm [ 22 ft]

Load Body Options Cabin and chassis, High Side, Fixed Side

Load Body Width

[Inside]

2375 mm [7 ft. 9 in] Cabin Single Sleeper, Double Sleeper

Load Body Options Cabin and chassis, High Side, Fixed Side Cabin Tilting Manually Operated Hydraulic Assisted

Cabin Single Sleeper, Double Sleeper Vehicle Tracking System Factory Fitted

Cabin Tilting Manually Operated Hydraulic Assisted Air Conditioning Optional

Vehicle Tracking

System

Factory Fitted ABS Optional

Air Conditioning Optional

ABS Optional

Price Approx. ` 16.63 lakhs (Aurangabad)

MN 25MN 31


man forcE India’s Force Motors experience combined with German Company MAN’s high-end technology has brought out an array of contemporary commercial vehicles on Indian roads suited to the Indian market. Force Motors has played a pioneering role in the development of light commercial vehicle transport in India, with iconic vehicle brands like the Tempo, Traveller, Matador etc. The range of products manufactured by MAN Force includes mining and construction tippers, haulage tractors and multi axle trucks, from 16 ton GVW to 49 ton GCW.

Model MaN cla 25.220 6x4 Box Body Tipper Model MaN cla 25.220 6x2 chassis with cabin

Engine MAN D-0836, 6.9 Litres, 6 Cyl., In-Line DI Diesel TCIC


Max. Power 220 HP (162 kW) @ 2400 r/min Max. Power 220 HP (162 kW) @ 2400 r/min

Max Torque 800 Nm @ 1200-1800 rpm Max. Torque 800 Nm @ 1200-1800 rpmEmission Compliance Bharat Stage III Emission Compliance Bharat Stage III

ClutchSingle, Dry Plate - Pull type, Power assisted, Asbestos free clutch, 430 mm Dia.

Clutch Single, Dry Plate - Pull type, Power assisted, Asbestos free clutch, 395 mm Dia.

Gearbox (Licence ZF) 9S 1110-Over Drive Gearbox (Licence ZF)

6S 850-Over Drive

Front Axle Heavy Duty Cranked forged I-Beam type Front Axle Heavy Duty Cranked forged I-Beam type

Rear Axle "MAN H9 & HD9 13120 Planetary with hub reduction"

Rear Axle Hypoid Axles

Steering Power steering ZF-8043, Telescopic & Adjustable


Brakes S-Cam, Dual circuit, Air Actuated Drum Brakes with MAN patented EVB Brakes S-Cam, Dual circuit, Air Actuated Drum

Brakes with MAN patented EVB

Wheels & Tyres 7.5"x20" / 11.00"x20" Wheels & Tyres 7.5"x20" / 10.00"x20"

Cabin "MAN Day Cabin (AC Optional) Hydraulic Cab Tilt with tilt angle of 60 degrees"

Cabin"MAN High Roof Sleeper Cabin (AC Optional) Hydraulic Cab Tilt with tilt angle of 60 degrees"

Tipper Body 16 cu.m Standard Box Body Tipper

Price On Request Price On Request

MAN FORCE

MaN cla 25.220 6X4



MAN FORCE

Model MaN cla 49.280 6x4 Tractor head Model MaN cla 40.220 4x2 Tractor head

EngineMAN D-0836, 6.9 Litres, 6 Cyl., In-Line DI Diesel TCIC

EngineMAN D-0836, 6.9 Litres, 6 Cyl., In-Line DI Diesel TCIC


Max. Torque 1100 Nm @ 1300-1700 rpm Max. Torque 800 Nm @ 1200-1800 rpm

Emission Compliance Bharat Stage IIIEmission Compliance

Bharat Stage III

ClutchSingle, Dry Plate - Pull type, Power assisted, Asbestos free clutch, 430 mm Dia.


Gearbox (Licence ZF) 9S 1110-Over Drive Gearbox (Licence ZF) 9S 1110-Direct Drive

Front Axle Heavy Duty Cranked forged I-Beam type Front Axle Heavy Duty Cranked forged I-Beam type

Rear AxleMAN H9 & HD9 13120 Planetary with hub reduction


SteeringPower steering ZF-8043, Telescopic & Adjustable

SteeringPower steering ZF-8043, Telescopic & Adjustable

BrakesS-Cam, Dual circuit, Air Actuated Drum Brakes with MAN patented EVB & ABS

BrakesS-Cam, Dual circuit, Air Actuated Drum Brakes with MAN patented EVB

Wheels & Tyres7.5”x20” / 11.00”x20” Cross Ply (11R20 Optional)

Wheels & Tyres 7.5”x20” / 10.00”x20”

CabinMAN High Roof Sleeper Cabin (AC Optional) Hydraulic Cab Tilt with tilt angle of 60 degrees

Cabin

MAN High Roof Sleeper Cabin (AC Optional) Hydraulic Cab Tilt with tilt angle of 60 degrees

Price On Request

MaN cla 49.280 6X4


Model MaN cla 16.220 4X2 BoX BodY TiPPer


Max. Power 220 HP (162 kW) @ 2400 r/min

Max Torque 800 Nm @ 1200-1800 rpm

Emission Compliance Bharat Stage III


Gearbox (Licence ZF) 6S 850-Over Drive

Front Axle Heavy Duty Cranked forged I-Beam type

Rear Axle MAN H9 13120 Planetary with hub reduction


Brakes S-Cam, Dual circuit, Air Actuated Drum Brakes with MAN patented EVB

Wheels & Tyres 7.5”x20” / 11.00”x20”

Cabin MAN Day Cabin (AC Optional)Hydraulic Cab Tilt with tilt angle of 60 degrees

Tipper Body 10/12 cu.m Standard Box Body Tipper

PriceOn Request

Model MaN cla 31.220 8X2 chassis WiTh caBiN


Max. Power 220 HP (162 kW) @ 2400 r/min

Max. Torque 800 Nm @ 1200-1800 rpm

Emission Compliance Bharat Stage III

Clutch Single, Dry Plate - Pull type, Power as-sisted, Asbestos free clutch, 430 mm Dia.

Gearbox (Licence ZF) 9S 1110- Direct Drive





Wheels & Tyres 7.5”x20” / 10.00”x20”

Cabin MAN High Roof Sleeper Cabin (AC Optional)Hydraulic Cab Tilt with tilt angle of 60 degrees

PriceOn Request


MaN cla 16.220 4X2


Model MaN cla 31.280 8X4 BoX BodY TiPPer

Model MaN cla 31.280 8X4 rocK BodY MiN-iNG TiPPer




Max Torque 1100 Nm @ 1300-1700 rpm Max Torque 1100 Nm @ 1300-1700 rpm

Emission Compliance Bharat Stage III Emission Compliance Bharat Stage III


Clutch Single, Dry Plate - Pull type, Power as-sisted, Asbestos free clutch, 430 mm Dia.

Gearbox (Licence ZF) 9S 1110-Over Drive Gearbox (Licence ZF) 9S 1110-Over Drive


Front Axle Heavy Duty Straight forged I-Beam type

Intermediate Axle Heavy Duty Cranked forged I-Beam type

Intermediate Axle Heavy Duty Straight forged I-Beam type

Rear Axle MAN H9 & HD9 13120 Planetary with hub reduction

Rear Axle MAN H9 & HD9 13120 Planetary with hub reduction





Wheels & Tyres 7.5”x20” / 11.00”x20” Wheels & Tyres 7.5”x20” / 11.00”x20” Mining Pattern

Cabin MAN Day Cabin with ACHydraulic Cab Tilt with tilt angle of 60 degrees

Cabin MAN Day Cabin with ACHydraulic Cab Tilt with tilt angle of 60 degrees

Tipper Body 18 cu.m Standard Box Body Tipper Tipper Body 18 cu.m Rock Body Tipper

Price On Request Price On Request

MaN cla 31.280 8X4INDIA| November 2011 | www.logisticsweek.com 55

tata motorS Tata Motors is probably India’s oldest and largest manufacturer of medium and heavy commercial vehicles. In 2005, they unveiled Tata Ace, a micro truck to transport sub-one ton goods across the country. Tata Ace has ameliorated the experience for small cargo vehicle owners and the demand since its production has only grown with over five lakh Aces being recorded on the road in 2010. In May 2009, Tata Motors ushered in a new era in the Indian automobile industry, keeping with its pioneering tradition, by unveiling a new range of world standard trucks called Prima. The CV is indigenously designed to set new standards for power, speed, and carrying capacity in the Indian trucking industry.

ParaMeTers TaTa PriMa 4928.s TaTa PriMa 4028.s

ENGINE Model Cummins 6 ISBe 270 30 Cummins 6 ISBe 270 30

Type Water-cooled, Direct Injection, Turbo-charged, After-cooled Diesel Engine

Water-cooled, Direct Injection, Turbocharged, After-cooled Diesel Engine

Volume 6700 cc 6700 cc

Power 267 HP @ 2500 rpm 267 HP @ 2500 rpm

Torque 970 Nm @ 1200 - 1700 rpm 970 Nm @ 1200 - 1700 rpm

CLUTCH Type Single Plate Dry Friction, Booster-as-sisted, Organic

Single Plate Dry Friction, Booster-assisted, Organic

Dia 430 mm dia 430 mm dia

GEAR BOX Model ZF 9S 1110 TD ZF 9S 1110 T0

Type 9 F - Synchromesh;1 R - Constantmesh 9 F - Synchromesh;1 R - Constantmesh

AXLE Model TATA RA - 210 HR-T TATA RA - 210 HR

Type Planetary Hub Reduction, Fully Floating Axle Shafts

Planetary Hub Reduction, Fully Floating Axle Shafts

Ratio 6.492 Option 1 - 6.724, Option 2 - 6.492, Capacity - 16 Tonnes

S U S P E N -SION

Front Parabolic Leaf Spring Parabolic Leaf Spring

Rear Bogie Suspension Rear - Semi elliptic Multi Leaf Spring

TYRES Rims 8.00 X 20 8.00 X 20

Tyres 11.00 X 20 - 16 PR 11.00 X 20 - 16 PR

Type Radial with Tube Radial with Tube

FUEL TANK 625 litres - Standard (365 litres + 260 litres) & 370 litres (Optional)

625 litres - Standard (365 litres + 260 litres) & 370 litres (Optional)

E L E C T R I -CALS

24 V 24 V

CABIN Cabin Sleeper Cabin, Four Point Suspension, Hydraulic Tilting Adjustable Steering Wheel

Sleeper Cabin, Four Point Suspension, Hydraulic Tilt-ing Adjustable Steering Wheel

PERFORM-ANCE

Max. Speed 77 kmph 99 kmph

Max. Gradeability 26.2% with Crawler Gear 23.4% with Crawler Gear

Min. Turning Circle dia in mm

14220 mm 12900 mm

AC Standard Standard

WEIGHT GCW in kgs 49000 40200

ULW 9720 with Cabin 7280 with Cabin

D I M E N -SIONS

Wheelbase 3890 mm 3460 mm

Overall Length in mm 6968 mm 6133 mm

Price NA NA



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ENGINE Engine Type 611 cc- Single Cylinder water cooled diesel engine

Maximum Output 11hp @ 3000 rpm

Maximum Torque 31nm @ 1600-1800 rpm

CLUTCH AND TRANSMISSION

Clutch Single Plate, Dry Friction, Diaphragm Type

Gearbox Trans Axle, 4Forward (Synchromesh) + 1 reverse (constant) gears

STEERING Wheel Steering, Mechanical Rack and Pinion Type

SUSPENSION Front Independent MacPherson Strut

Rear Coil Spring with semi-trailing arm

Shock Absorbers Hydraulic double acting shock absorbers (front and rear)

BRAKES Front and Rear Hydraulically operated drum brakes

TYRES 12” Radial

DIMENSIONS Length 3020 mm

Width 1480 mm

Height 1770 mm

Wheelbase 1650 mm

Load Body 1685mm x 1480mm x 400mm

Turning Radius 3500 mm (3.5m)

WEIGHTS Kerb Weight 685 kg

Max. GVW 1285 kg

PERFORMANCE Gradeability 22%

Top Speed 50 kmph

SEATING Driver + 1

FUEL TANK 10 litres

Price Approx. `1.90 lakhs (Ex-Thane)

PRIMA

Power and performanceto boost your business

For more information, please visit our website: www.prima.tatamotors.com. You can also contact our Sales Office: 26th Floor, Centre 1, World Trade Centre,

Cuffe Parade, Mumbai 400 005. Tel: (022) 6656 1800; Fax: (022) 6636 0408 / 0409.

CAUTION: Accessories shown in the picture or elsewhere do not constitute standard fitment. The specifications are merely indicative. Due to continuous product

improvements, these specifications are liable to change without notice.

Customer Assistance centre at:Toll-free 1800-225370 / 022-6792 7474 / 75 / 76

At your service In India, Tata Motors has a Nation-wide Servicing Network that enables you to

conveniently access the nearest service partners, Tata Motors channel partners

or Tata Motors branches, wherever you are. The network consists of:

• 600 workshops • 98 parts distributors • 9000 retailers.

The Tata Motors Toll-free Customer Care assists you on any of the Company's

products. You can call 24x7 at 1800-22-5370 or +91 22 6792 7474/75/76.

The Company's Executive will be glad to answer your queries and provide you with

the latest information.

Attractive Annual Maintenance Contract includes repair

services, overall maintenance, genuine spares and

breakdown services for the vehicle.

www.prima.tatamotors.com

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& PRESENT HIGH PERFORMANCE MANUFACTURINGINDIA’S NEXT OPPORTUNITY

(L to R) Rohtash Mal, ED & CEO, Agri Machinery Group, Escorts, Ashok Taneja, MD & CEO, Shriram Pistons, Ritchie Rice, Senior, ENO Operations, Nokia, Mini Menon, Executive Editor, Bloomberg UTV, Dr. V. Krishnamurthy, Chairman, National Manufacturing Competitiveness Council (NMCC) India, Richard Bergmann, Senior Partner, Supply Chain Operations, Accenture, Sanjay Dawar, Lead, Management Consulting, Accenture, India, S. Gopal, Chief Executive, Larsen & Turbo - Komatsu Ltd.

High Performance Manufacturing: Report Launch

Accenture’s High Performance Business Manufacturing FrameworkThe Accenture research study aimed to discover how—given a certain set of macro constraints— some manufacturers in India are overcom-ing firm-level challenges in order to continue to outperform their peers and sustain high performance. Drawing insights from a survey of 100 respondents including business leaders, policy makers and academics and Accenture’s propri-etary High Performance Business Research (which has examined more than 8000 companies globally), Accenture has developed a propri-etary ‘High Performance Business Manufacturing Framework’. This framework provides manufacturers with insight into the three essential building blocks that are critical to become high performance manufac-turers in India:

Market positioning: For a manufac-turer, the journey to high performance begins with a very clear articulation of

the core differentiation strategy. Manufactur-ers should therefore focus on investing in strategic priorities supporting their core differentiation strategy. Accenture research suggests that high performing manufacturers in India focus on investing in strategic priorities (such as, launching new products, raising productivity, scaling capacity, entering new consumer markets) supporting their core differentiation strategy.

Distinctive capabilities: Accenture has identified four distinctive capabilities manufacturers need to build to effectively deploy their core differentiation strategy:1. A smart shop floor, which allows compa-nies to integrate lessons from past opera-tions to balance technology and labour and to consistently deliver productivity improve-ments. 2. Market-driven innovation infrastruc-ture that helps companies build an agile and cost-efficient innovation engine capable of responding to shifting customer demands. 3. Data-based decision making, which

raises the level of service and productivity in the supply chain by making optimal use of information. 4. Responsive relationships that reduce supply chain risk and help companies scale while maintaining quality.

Performance culture: In order to support and exploit the distinctive capabilities that can lead to high performance in manufacturing, companies must also have the right culture – a culture of high performance. The four actions that can nurture such a culture: 1. Build manufacturing’s brand image in India within and outside the traditional boundaries of the firm. 2. Invest in a best-in-class operating environment that gives workers the incentive to offer their best on the shop floor and be loyal to the firm. 3. Use sustainability to build competitive-ness, by using lessons from sustainability initiatives to strengthen core differentiation. 4. Develop leaders across the organization with the right skill sets at all levels.

The success of Chinese and American manufacturers show there is a close link between high performance and a manufacturer’s ability to make the most of the unique strengths of its local environ-ment. Indian manufactures too, have their own set of strengths, which they need to further leverage with the motive of making the country a global manufacturing hub. “I feel there is a lot Indian firms can do themselves and collaboratively in an eco-system of the industry to ensure further growth,” said Sanjay Dawar, Lead, Management Consulting, Accenture, India. In India, the unique character of three key business levers—business technologies and processes, labour and talent, and partner networks—provide manufacturers with the opportunity to distinguish themselves from competition both at home and abroad. As Ritchie Rice, Senior, ENO Operations, Nokia said, “The skill set of the (Indian) labour force such as engineers, middle-management are readily available. We were able to ramp up here 5 years ago, virtually with no influence from our sister sites.” Agreeing with Rice, Richard Bergmann, Senior Partner, Supply Chain Operations, Accenture said, “The popula-tion and resources India has is extraordi-nary, considering the collaboration, the coexistence, and the level of importance education in India has had for years.” Moving forward, manufacturers can improve competitiveness by drawing on India’s world-class service sector for cutting-edge technologies to improve performance management and enhance service levels across their value chain.

Advantage India

Industry leaders, policy makers, and experts from the manufacturing domain discuss Accenture’s "High performance Manufacturing" report, in a panel discussion moderated and televised by Bloomberg UTV. Since the early 1990s, the Indian economy has progressively liberalized and integrated within the global economy. However, in recent times, tthe impact of the downturn, rising wages in many manufacturing hubs, growing resilience within the Indian domestic consumer market, an increasingly diversified consumer base have forced manufacturing firms to re-look at the new realities and the potential of India's competitive environment. In a bid to identify the strategic priorities, key challenges and action agenda of manufacturers in India over the next five years, Accen-ture commissioned a survey and embarked on conducting rigorous discussions with senior business

executives, policymakers and academics.

Current ScenarioIndia remains caught in a manufacturing performance paradox. In 2010, India became the ninth largest manufacturer in the world. However, the contribution of manufacturing to country’s GDP continues to remain very low in comparison to China and South Korea. For example, from 2001-2010,

agriculture, industry and services have on an average respectively accounted for around 20%, 27% and 53% of India’s GDP. Compare that with China where the average numbers are 12%, 46% and 42%, in the same order. These numbers make it evident that the non-agricultural composition of China’s GDP is far more balanced than that of India. Dr. V. Krishnamurthy, Chairman, NMCC, India, suggested, “For a balanced

GDP, the contribution from manufacturing and services should be 40% each, while that from agriculture should stand at 20%.” However in India, considering the growth of the services peaking in the range of 9-11%, and agricultural productivity not showing sustained improvement, over the last decade, it is manufacturing that will have to shoulder additional responsibility of helping India sustain a high growth trajectory. The ChallengesCurrently, there are numerous challenges that daunt the Indian manufacturing industry, due to which, businesses in the manufactur-ing space prefer importing and trading goods rather than manufacturing them. As Dr. Krishnamurthy points out “Dependence on manufactured goods through imports is increasing, and we are developing a trade culture rather than a manufacturing culture.” Apart from investments, the key challenges cited by Accenture’s report are poor infrastructure, corruption, and lack of policy coordination. As Ashok Taneja, MD & CEO, Shriram Pistons highlighted, “There are several factors which are not allowing the manufacturing sector to grow at the rate at which it could and ought to. The most important is infrastructure deficit, where, I would place the availability and quality of power at the forefront.” Apart from these issues there are other serious problems the industry faces regularly as Taneja added, “The education system is somehow disconnected with the needs of the industry. So while we have large numbers of engineers coming from institu-tions every year, they need to go through an extended training program before they are useful to the industry.” Moreover, manufacturing compa-nies are often unable to attract and retain the best talent due to stiff competition from the service industries. This trend of talent scarcity has its repercussions on other aspects as well, such as scalability. “There is a huge demand, but the ability to scale-up is a big challenge, due to shortage of talent in the manufacturing sector,” said S. Gopal, Chief Executive, Larsen & Turbo - Komatsu Ltd.

The OpportunitiesDespite weaknesses, 98% survey respond-ents saw India as an increasingly attractive destination for manufacturing. They pointed at several reasons for this high level of

optimism. Chief among them: proximity to the expanding domestic consumer market and access to high-end skilled talent, such as engineers and managers. However, it is the demand that makes manufacturing in India lucrative. “As demand actually grows the manufacturing does catch up and is catching up with it,” remarked Rohtash Mal, ED & CEO, Agri Machinery Group, Escorts.

The SolutionsTo hone their performance across the value chain, it is time Indian manufacturers adopt a studied and systematic approach. Accenture offers one such approach through its propri-etary ‘High Performance Business Manufac-turing Framework’. (See box below) Additionally, there is lot India can learn from the German manufacturing sector’s growth story during the last decade and China’s “SunShine Project.” As in India, family-owned SMEs make up the backbone of German manufac-turing. In recent years, these enterprises-with active support from large industries (their customers) and government—have turned manufacturing into an art form, and have found unique ways to cut labour costs. The result of such strategies is evident. Germany has emerged as the most competitive industrial economy within EU, with a GDP growth of 3.6% during 2010, and unemployment declined in spite of the global economic crisis. Dr. Krishnamurthy said, “Innova-tions takes place in the SMEs, who provide the components to larger industries. There has to be greater emphasis in terms of nurturing the SMEs.” On harnessing and creating a talent pool, there are some interesting lessons to be learnt from China’s SunShine Project, which productively integrated surplus agricultural labour into its manufac-turing sector. In India to address the issue of talent scarcity, Taneja suggested that instead of poaching talent, companies should ideally create surplus talent. While, L&T’s Gopal citied an example of his company, which offers its employees training, retraining, fast track and refresh courses to retain them.

Going ForwardThe mammoth investments being made by the private sector and financial institutions in creating manufacturing capacities clearly

exhibit that there is too much at stake to risk failure. The ability of large manufacturers to drive growth among India’s SME manufacturers by achieving high perform-ance will determine India’s ability to fully realize its inclusive growth agenda.


< pAnoRAMA

Written by a leading expert, this is a guide to planning for retail development for

urban planners, urban designers and archi-tects. It includes an overview of history of re-tail design, a look at retail and merchandising trends, and principles for current retail devel-opments.

Principles of Urban Retail Planning and Development will:

*Provide insight and techniques necessary for historic downtowns and new urban com-munities to compete with modern suburban shopping centers.

*Promote sustainable community building and development by making it more profi table for the shopping center industry to invest in

Based on an international symposium ad-dressing a key issue in global develop-

ment, this reference includes both the latest methodologies for and practical examples of effective management of trans-boundary wa-ter resources. Its multidisciplinary approach combines hydrology and environmental sci-ence with economic and political approaches, in line with new UNESCO and EU recommen-dations, which have been formulated and im-plemented with the active involvement of all three editors.

By providing a theoretical framework as

six sigma Quality Improvement with Minitab, 2nd editionBy G. Robin HendersonPublisher: WileyPrice: `5,445

principles of urban Retail planning and developmentBy Robert Gibbs Publisher: WileyPrice: `3,957

transboundary Water Resources Man-agement: A Multidisciplinary ApproachBy Jacques Ganoulis (Editor), Alice Aureli (Editor), Jean Fried (Editor) Publisher: Wiley Price: `8,167

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historic cities or to develop walkable urban communities.

8Includes case studies of recent good ex-amples of retail development

weighted moving average (EWMA); Multivari-ate control charts; Acceptance sampling by attributes and variables; Tests of association using the chi-square distribution; Logistic re-gression; and Taguchi experimental designs.

well as abundant case studies from southern Europe, Africa, Asia and South America, this handbook provides hydrologists, geologists, engineers and decision-makers with all the knowledge they need for their daily work.

Quality ImprovementThis book aims to enable readers to un-

derstand and implement, via the widely used statistical software package Minitab (Release 16), statistical methods fundamental to the Six Sigma approach to the continuous improvement of products, processes and serv-ices.

The second edition includes the following new material: Pareto charts and Cause-and-Ef-fect diagrams; Time-weighted control charts cumulative sum (CUSUM) and exponentially

Retail Planning

Saying It With Water


ResouRce centeR Journals, Case Studies, Research Reports

Heat Sealing ProcessBy Bosch Packaging Technology

Validating the heat sealing process is thus critical both to comply with regulatory oversight and to be confident in the overall quality of the final product. Though there is some ambiguity in the industry as to the exact definition of validation, it is clear that all components of the sealing proc-ess that influence package integrity must be monitored, measured, and controlled. Moreover, equipment must perform the heat sealing function in a repeatable, in-variable manner such that final product quality is consistent with predetermined standards. Typically, process control vali-dation for heat sealing has dealt with three specific variables: dwell time, temperature, and sealing pressure.

This white paper reviews the relevant regulatory standard for medical heat seal-ing and discusses some of the important

considerations that should go into imple-menting an effective validation process.

Relevant Regulatory Standard: It speci-fies the validation requirements for the forming, sealing, and assembly process for the packaging of terminally sterilized medical devices. As laid out in the stand-ard, the objective of seal process validation is to document the sequence of events in which the process is established to produce effective seals that maintain sterility to the point of use and do so in a repeatable, reli-able way.

Given the demands of the validation process, there are some important design features that are optimal for validation that should be considered when specify-ing a piece of heat sealing equipment. As a general principle, equipment that includes instrumentation with maximum access, control and input from the critical process parameter areas (time, temperature, and pressure) will better facilitate validation.

Pressure readings, in the case of a con-tinuous band sealer, are more accurate if pressure is delivered through air solenoids which can be calibrated and pneumatically controlled to provide consistent sealing pressure. This is in contrast to spring-based pressure which is difficult to measure accu-rately and not calibrated externally.

Furthermore, each component in the sealing process needs to apply controlled pressure. Compression wheels and cool-ing bars are equally important to the over-all sealing success of a band sealer and therefore must also be subject to process control.

Any component of a sealing process can be made valid. Process steps that can have negative effects on seal quality should re-ceive heavy scrutiny and be incorporated into the validation process. A few salient examples include wrinkle detection, band breakage, and label application.

Search Tags: heat sealing, band sealer

Bruce Richardson Asks: Are We Ready for social supply chains? Blogger: Jason BuschPerhaps the best-known analyst in ERP and supply chain history, Bruce Richardson, is finally independent again after a stint at Infor. Only a couple of months into this newfound freedom, he's launched a new blog that, well, sounds like the same old Bruce -- and that's a good thing. Bruce offers up a few ideas that we can learn from in the sales and CRM world when it comes to social business connectivity. In Get Ready for "Social Supply Chains" he suggests that Marc Benioff should have included suppliers in his view of the social enterprise (rather than just "employees, customers and products").

Bruce wonders whether something like the now popular SalesForce.com social Chatter tool "could be deployed as the preferred collaboration medium between brand owners and their top suppliers. After all, it would seem that you would want to capture most or all of the back and forth discussions on forecasts, purchase orders, engineering changes, shortages, and other factors versus using email, IM, fax, etc. In this case, Chatter could be used as a knowledge management system, too." Of course then the cynical Bruce comes out in describing CPOs as "deadly serious people" who might likely scream "not in my lifetime!" in embracing a social supply chain world.

I'll save the social scenario Bruce outlines next for Part 2 in this series to try to make us believers in the vision (it's almost

more supply chain-centric than procurement-centric, but that's OK). More important, I would argue that we're beginning to see the social supply chain enter procurement in more ways than you might think. These include new sites like MySourcingTeam.com which are driving category collaboration (for MRO, initially) between peer companies in sharing best practice templates, supplier lists, vendor experiences, etc. (full disclosure: I'm a part-owner of the site). And they also include tools like SAP Supplier InfoNet that are driving new transparency and information sharing at multiple tiers of the supply chain to share performance benchmarks and reduce vendor risks. And let's not forget BravoSolution's Education Network (BEN) for the UK public sector, a long-standing peer-to-peer online community that shares tips amongst practitioners with common interests and needs.

The social supply chain world is more alive than you might think, Bruce. Sure, we might not be tweeting our POs our collaborating via Chatter to share demand schedules and haggle over commodity price escalation amongst supply chain partners yet. But we're further ahead than it might appear. Selfishly, I might also add that a humble blog rather than an established magazine or paper has also become the largest mouthpiece of the industry (and has expanded to four sites because the value of niche and micro analysis for smaller communities of interest). Not bad for less than a decade of social tools!http://bit.ly/pSMlSQ

— Compiled by Jayashree Mendes

BlogospheRe lAunchpAd


ArrowStream, a leading provider of supply chain management technology and logistics services for

the foodservice industry, announced the availability of ArrowStream Inbound Transportation Management (ITM). ITM takes a next generation approach to man-aging a supply chain by focusing on up-front planning, proactive margin management, root cause revenue and cost analysis and integrated execution tools.

ITM results include: -20-30 percent Logistics Savings Increase -- regard-

less of size-2-5 percent Inventory Reduction-1-5 percent Dock Traffic ReductionThe ArrowStream Inbound Transportation Manage-

ment solution combines four distinct yet fully integrated components.

ITM Profitability Optimizer: This modeling system simultaneously stabilizes ordering patterns, incorpo-rates network changes and optimizes routing to balance

inventory and achieve significant transportation savings for the network.ITM Freight Converter: This seamless workflow and reporting module aligns organizations around true freight revenue growth potential and progress and ac-celerates activation of new freight under management.ITM Freight Manager: This execution system integrates the preplanned solution guidelines into an efficient freight management module for automatically building shipments and tracking progress.ITM Profitability Manager: This component provides proactive profitability management utilities, which are fully integrated with load execution that alert margin loss before it occurs, enabling immediate root-cause analysis and savings recovery prior to load tender.Manufacturer: ArrowStream

Honeywell has launched Xenon 1900 Color scanner, the industry's first hand-held

area-imaging scanner with color-imaging ca-pabilities. The Xenon 1900 Color scanner will allow users to capture color images and scan high-contrast color bar codes that were pre-viously unreadable, while retaining Xenon’s best-in-class scanning performance on black and white bar codes.

A significant advantage of the Xenon 1900 Color scanner is its ability to read color bar codes, such as a red bar code on a white back-ground. Customers using the Xenon 1900 Color scanner will also eliminate the need for multiple image capture and storage devices, minimizing the risks of compromised data, privacy violations and related costs.

The Xenon 1900 Color, also available as the cordless Xenon 1902 Color, utilizes Adaptus Imaging Technology 6.0 and Honeywell’s Color-Fusion Technology to enable vastly superior reading performance on hard-to-read bar codes, including those on mobile device screens.

Deployment of color scanners will en-

able improved identification processes, as the colored portions of identification cards can now be captured in their original form. Healthcare professionals will also be able to take color images for improved wound man-agement, and visual identification of patients without a wristband. Both the Xenon 1900 and 1902 Color scanners are available with disin-fectant-ready housing for healthcare profes-sionals.

To ensure that the Xenon family of scanners continues to deliver class-leading perform-ance, upgrades have been made to the existing scanners including extended depth of field, improved data matrix and mobile phone read-ing, adjustable illumination, Bluetooth HID keyboard interface and optional laser aimers. Key Features: Multiple image scanner Visual identification Superior reading performanceManufacturer: HoneywellSelling Point: Adjustable illumination

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< EVENTS

November 2011

November 4 – 6, 2011INdIaN machINe Tool aNd auTomaTIoN expo Talkatora Indoor Stadium, New delhiIndian Machine Tool and Automation Expo New Delhi provides an excellent platform to manufacturers or suppliers of machine tools and automation products to display their products.

Indian Machine Tool and Automation Expo New Delhi will be a forum for discussion and demonstration of machine tool and automation.

Exhibitors expected at the event will be manu-facturers, designers, solution and service providers of machine tool and automation belonging to various categories such as CNC machines & tools, boring machines, drilling machines, electro erosion machines, machines for the production of bolts, screws, notch-ing machines, CAD, CAM, CAE, 3D planning /3D Simulation Precision, and MHE.organizer: Paramount ExhibitorsTel: +91 172 2274801/2274803

November 09 – 11, 2011poly INdIa 2011hitex, hyderabadPoly India 2011 is a significant event for the poly-mers and plastics industry in India. The event will provide the much needed impetus to the industry and will help in generating new business opportuni-ties for the participants. It will be the perfect place to be if one wants to gauge the latest trends in the industry and learn from the decision makers. The exhibition at the event will feature latest technolo-gies and products that will be displayed at the state of the art fairground. Over 80 exhibitors and 4000 visitors are expected to attend the event.Tel: +91 11 23738760/23738770

November 10 -12, 2011power INdIa 2011bombay exhibition centre, mumbai Power India 2011 will cater to the needs of the ener-gy and power sector in India. Due to the success of the APDRP (Accelerated Power Development & Reforms Program 2002 - 2012), the power sector has seen the production of around 22,000 MW during last five years. In future, even more power is needed to meet the requirements of the country. The major objective of the exhibition is to help the power sector in India to achieve the main goal “power for all” before the year 2012. Power India 2011 will act as a networking platform that will bring all major players associated in the power sec-tor together under one roof. organizer: Winmark Services Private Limited Tel: +91 22 26605550/26607755

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Printed by Jacob Joseph Puthenparambil, published by Jacob Joseph Puthenparambil on behalf of Hamburg Media Private Limited. Printed at Print House Private Limited, Rabale, MIDC, Navi Mumbai - 400 705, India and published at bldg.4/6, Sona Udyog, Parshi Panchayat Rd., Andheri (E), Mumbai - 400069.No part of this publication may be reproduced or transmitted in any form or by any means including photocopying or scanning without the prior permission of the publishers. Such written permission must also be obtained from the publisher before any part of the publication is stored in a retrieval system of any nature. No liabilities can be accepted for inaccuracies of any description, although the publishers would be pleased to receive amendments for possible inclusion in future editions. Opinions reflected in the publication are those of the writers. The publisher assumes no responsibilities for return of unsolicited material or material lost or damaged in transit. All correspondence should be addressed to Hamburg Media Private Limited. All disputes are subject to the exclusive jurisdiction of competent courts and forums in Mumbai only.

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INDIA

66

November 25, 2011Sclc aNNouNceS 2Nd edITIoN of food reTaIl aNd Supply chaIN SummIT & awardSmumbaiFood retail is one of the fastest growing industries in India. With fast growth come operational and logistical challenges. The perishable nature of these products makes it all the more challenging.

The 2nd edition of the India Food Retail And Supply Chain and Agro Logistics Summit to be held in Mumbai on November 25, 2011 is designed to address opportunities and challenges in this indus-try through an agenda that effectively inter-weaves service users and service providers.

India’s first awards of its kind, the food retail and supply chain awards aim at recognizing and celebrating achievements and innovations. The 2nd edition of these awards will be a part of this summit and will be compered by Cyrus broacha in a glit-tering ceremony laced with cocktails and stand-up comedy entertainment. organizer: KPMg-SCLC

december 6-9, 2011haNNover INdIa 2011 – explorINg New markeTSbangalore International exhibition centre, bangaloreHannover Milano Fairs India (HMFI) continues with its trend of introducing industry specific shows with an exclusive show for Laser Systems and Laser Technology in the Manufacturing sector with “Laser INDIA 2011”.

This year HMFI is organizing five concurrent shows:CeMAT INDIA – Materials Handling & IntrologisticsMDA INDIA – Motion Drive and automation (hydrau-lics and pneumatics)IA INDIA – Industrial automationSurface INDIA – Surface technologyLaser INDIA – Laser technology

CeMAT INDIA, continues its focus on the grow-ing demand for an integrated solution for logistics, material handling, transportation and warehousing and is considered highly significant.

For CeMAT INDIA, HMFI has support from the Manufacturers Association of Storage Systems of India (MASS), Materials Handling and Logistics Technology Association, ICEX - Spanish Institute for Foreign Trade, China Federation of Logistics and Purchasing, and, Indo-german Chamber of Commerce.organizer: Hannover Milano Fairs India (HMFI) Tel: +022 – 40050681 / 82 Endorsed by

Size 206 X 270 mmDate 14.06.2011

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