adding wings - an industry in transition, powered by innovation

8/6/2019 Adding Wings - An Industry in Transition, Powered by Innovation

1/36

TransporTaTion & LogisTics

Adding wingsAn industry in transition.

Powered by innovation.


2/36

Foreword

a the id ttt d lt duty tt

twd le d htt, vt wll be key eble,

lde tl d tlet. The deee wll be tht whle the

w tl d tlet eelly kw t be detemed

by exeted etu, vt mdet, the etu m

whh my t td the tet mtet evlut. ad tht

the hllee the lede the duty hll hve t me. T

kee t t.

Whe we et ut t devel th e, we wee, dmttedly,

t fdet but the umbe d qulty etl

vt exmle tht the duty wll be ble t me u

wth. Hweve, the ee m the duty vewhelmed u.

nt ly wee thee e vt exmle m

duty emet, the ethum wth whh the me

eeted them t u tld u th tw but the zel d

bele th et d e.

We, t KpMg id, hve hd the tuty wk

lely wth evel ttt d lt me

the et, l u the mdt evet h u

th duty. We e ld tht we uld ue th exeee d

mblze tht the t eeettve the duty twd

the develmet th e. The tet th e t dve, he d ed vt whh wll, we e

fdet, evetully eeet the w the duty wll tke

t ht t ue.

Manish Saigal

Exeutve Det d

Hed Ttt

d Lt


3/36

Ttt d lt ext duty. i t, t

tellt evel le dute, eh wth deet

tut d ftly vy mlexte, mk t etle

ud vt wth et deth d wdth. Uuly

theee, thee e multle vt ud et vble

ttt mde ltetve t d but l evel the

ued tet multle ttt mde emle

etvty eve tht vlve te-my -et.

The thee e tehll vt eetl dv

vblty, mmut d tet uly h et

dutvty mvemet t u t, t d wehue.ad the t tht ll th h bee heved wth the lmtt

u hyl d leltve tutue emkble, t y the

let. Th uet tht the duty t wt vuble

tde but uh t t.

We e teul t KpMg mblz the e tude ted

th e m the duty tuly mk th e

the duty, the duty d by the duty. We l hve

dmt the evel zt wh tvely tted

the develmet th e d hed de d mt

wthut e ejude the d the duty d t

utme.

Th e well eeet the vey ue d the Dna the

suly ch Ledeh cul. scLc dedted t be the

lyud well the ltm the id ttt

d lt mmuty. i t le the lyud, scLc wll

ete qulty d equet tet tute betwee the

membe th mmuty we, eve vde,

vet, tutue et d lymke. i t le the

ltm, scLc wll ytllze the , du d whe

the id ttt d lt duty t the ttet

the duty tel but l lymke. adly, we e

ld t hve vded the ltm id cte Lt &

itutue summt 2011 the elee th e.

Gautami Seksaria

Fude & pte

suly ch Ledeh

cul

utm@l.

www.l.


4/36

4 | set Bhue me


5/36

ABC India 3

Agility Logistics 5

AllCargo Global Logistics 7

APM Terminals Pipavav 9

Arshiya International 11

Future Supply Chain Solutions 15

Innovative B2B Logistics Solutions 17

Kale Logistics Solutions 21

Saexpress 25

Sun Logistics 27

Contents

ce tude

pee 1


6/36

Preace

Ev beyd the femet vet vt.

a lblzt t deee, utme beme me

demd, ehl be t mket ety de wy dtlet beme e, me tht eue vt

hll hve ete he t ty elevt, be deet

d, tu, w ftbly. The whethe th vt

dut e, utme et tel, tehl

mle, dve by eeh mly jugaad, t td

eqully d he t et vlue - ly de qutum.

Eve id my t yet be kw emy tht due

ft vet ud bek vt, t Tt

n; tddzt uee mt medl tum;

gdej chotuKool, the UsD 69 eet id ul

eve the id peme Leue eem t be dtve wht

le jut beeth the hz. a me id mve u the

nte: () se det Lpi (Lt peme idex) elet mket

(b) Develed mket ee t the Us, the UK, se d J

() Bric ee t Bzl, ru, id d ch

sue: Wld Bk Lpi ret 2010, KpMg aly

mtuty uve, vt ely lkely t be dued

bd meet d t l, ultmtely bem

tel t ttey. cme the id Ttt &Lt duty hll be exet.

The id Ttt & Lt et t teet

t t evlut uve. i the lt dede tel, the et

h mbbed me htt, bth tutue d

eve u, th t h evu evel dede. Yet,

efee tue t be the dmt t et tht

bth udmetl d tl t the te wth the id

emy. Thee efee eeet tht ete th

et id m the develed mket uh Us, Wete

Eue d J multle mete etl d t

efee. The llw ly llutte th.

Transportation and logistics industry in India vis-a-vis key global economies

0

1

2

3

4

5

Efficiency of

customs

procedures

Quality of

transport ation and

IT infrast ructure

International

transportation costs

Logistics

competence

Trackability of

shipments

Domestic

transport ation costs

Timeliness of

shipments

Developed markets BRIC India

1 | a duty tt. pweed by vt.


7/36

Thee efee, thuht t deve id 1-2 eet

gDp eh ye, e lely eult id dvee d mlex

eh dt, e tutue, mlex tx

le d uly de tt ll whh eult hh

ttt, te d eve t. at the me tme,

id ttt d lt ty tue t be

tttve e, bed t dly w emy, tde,

ete ete twd utu lt, ft

vemet thut vetmet tutue d ldmk

he tx d eulty le.

it th tttvee, l wth the tetl t tde ve

efee tht h dve e vet d et

t tte the id ttt & lt et d

hel t tt le. ivetmet d, l, t d vt

te the m ubl-vte teh h vded id

i fm ud m whh the duty wll ete. i the lt

dede, hdl ty t id t h tebled d

the vell leth d h e ubttlly. o the eve

de, lt eve vde e w ble t e d-t-d,teted dtbut lut utt multle mde

ttt. Bede, ft vte equty vetmet

the et ve the lt dede h heled evel me

The lu ly te e tude th e huld,

wy, led t the eumt tht vt the duty

lmted t thee e eve thee tye e. o the

ty, du the mk th e, t beme evdet tht

the extet vt the duty u wde d dee d

the umbe exmle u t huded, muh beyd the

e th e e. F te, the rll- rll-'

eve eted by Kk rlwy exellet vtwhee tuk e ed t lwy w th llw

the tet tw ttt mde te lt mle

etvty, edued hdl d evmetl beeft. The

e LcL Ltx be ueul t tez e

fe, tdtlly ed by bulk veel, eeet ft

nte: Vas Vlue-dded seve

sue: iduty du wth me, KpMg aly

Process re-

engineering

Modal shit Technology

upgradation

Customiza-

tion

Visibilty and

communica-

tion

Saety and

security

Regulatory

and

compliance

ABC India a a a a

Agility Logistics a a a a

AllCargo Global Logistics a a a

APM Terminals Pipavav a a

Arshiya International a a a

Future Supply Chain Solutions a a a a

Innovative B2B Logistics

Solutions a a a

Kale Logistics Solutions a a a a a

Saexpress a a a

Sun Logistics a a a

mt emet le, b eed vt t tke

le d thve. Th le develmet l ded by the

Mee & aqut (M&a) tvty the et, tu,

uell vt, meted duty ulkely t ut

yth ele but tule uvvl ft d etly t

vt. Bede, le umbe Mult-tl cme

(Mnc) w ete the id mket dvetetly ubb

the vt u the dmet ee. all thee

develmet e e th duty t emee ht bed

vt.

i the llw et, we eet e by e ly

te exmle vt m duty emet

d me. al, the e tye vt eh

thee ve ftly. s, whle e e but ve

m d t me tml mde, the but

tehly dve lut t mlex hllee d tll

the but let-ef eve utmzt t

t extet. Bede, t teet t te tht deet

vt e bed ftly vy tut dtl. i the e the te exmle vt veed

th e, the llw tble tue thee ve.

Key ocus segments o LSPs

hevemet lde the wde duty uh ete

tezt bulk mmdte. othe exellet vt

we me luded DHL smtTuk, tehly tht

deteme the bet delvey ute dymlly bed tf

dt d rdh Kh Fdld gps bed tehly

met t utmte the ed -tme delvee by

eet let whe the vehle wth 100 mete the

let eme.

ovell, th e ttemt t tu dvee exmle

vt u t evel emet wth the

tet t bd be thee uee d ed

le t the duty whle.

a duty tt. pweed by vt. | 2


8/36

Resolution

aBc id develed mult-mdl, mult-tl lt

lut tht w led d exeuted ve the ue eve

ye (2004-11). The teted et vlved the llw key

develmet eheded by the eed ee wth

ut m the gvemet id d Bldeh:

a medmet w mde t the ild Wte Tt d Tde

(iWTT) tl betwee id d Bldeh t llw the

ue ahuj pt Bldeh pt cll m

whh id et by be t ahuj tt by

d t atl id.

cle llw u d dt w eued wth vu

gvemet ee Bldeh uh immt,

cutm, rd d Hhwy, cmmut, Bde

seuty Fe d ll Dtt admtt uthte t

eue em ue aBc id tle d ew

wth Bldeh the d ttt m ahuj

t id.

ctut 25 bye t wek bde, 3 vee jette,

d etut/wde 16 Km d betwee

ahuj d plt.

F the hevet met m Hydebd weh 300

t, ed-t-ed dte w but 2,500 Km (t but

4,000 Km ml d eht), whh w veed the

llw 3 te:

Fm Hydebd t Mhltm t by d, (equ

the develmet x bye t wek bde d

jetty t the t)

Fm Mhltm t ahuj Bldeh by

tl-um-vee be

Fm ahuj t plt Tu by d.

Context

ongc Tu pwe cmy (oTpc) ett u 726 MW

bed theml we jet lted t plt Tu,

xmtely 60 km m atl nth Et id. The

Eee, puemet d ctut (Epc) tt

th jet h bee ve t Bht Hevy Eletl Lmted

(BHEL), whh h, tu, tted wth aBc id t tt

hevy mhey t the jet te m BHEL mutu

ut Thy, Hdw, Hydebd d Bhl id d m

geel Elet Tex.

Complication

gve the ft ze thee jet e d the hlly

te id th ete e, the met vlved

multle hllee:

se hdl d ttt hue mhe weh

u t 300 t thuh the vetl ld ute v am

w hlle, ve the d tutue am

d Tu eelly the evel bde e ute, ble

hdl th weht.

The the ute qute vtve tel, vlv the ue

t t be ly ld wtewy v Bldeh t

utble dhe t id tety uthe tuk

t the te, w t deed eble e the hevet

tke v th ute t Tu the t wehed 100

t ly. The d t th ute ed v hlly te,

t utble 300 t ke.

a tt w uled ut the hevet ke the

e weh 300 t w me th duble the ty

the let mmel hevy lt t lblly.

ABC India

Project logistics

Water is the way



9/36

Ed-t-ed tt tme w 50-60 eet the tme tke

wth d-bed mvemet

Ttt t etmted t be 40-50 eet tht

by dwy, mly due t hte dte d lwe

uel umt

i-tt ety hmet, ve the ext-dy

dme d weht, w ftly hh

wtewy th tht d.

cmlete d-bed ttt wuld hve vlved my

me te-tte bde th the wtewy,

thu e the -tt dely, t m dt

wth multle ee lud lwy uthte whle

tt thuh l tutue uh

bde.

The the mlex met ttl 77 wee tted

m Thy. Ed-t-ed dte m Th t plt w

but 3,000 Km (t but 4,500 Km ml d

eht), lt llw:

Th t Kkl pt by d ~ 170 Km

Kkl pt t Klkt pt by tl h ~ 1,700

Km

Klkt pt t ahuj pt by ve be ild

Wtewy Ttt (iWT) thuh ve uh

Hl, rml d Meh ~ 1,000 Km

ahuj pt t plt by d ~ 130 Km

Ttl tt tme w but 45 dy wthut ut hlt

t thmet t.

Outcome and Impactat the bkud evel hllee heet t the

ttt jet e mlfed by the nth Ete

te, the vtve de ud the ue multle mde

ttt vted ud wtewy buht the llw

tve mt:

The jet w mde ble ue d tt

h w ethe eble e.

The dvey the mult-mdl ute betwee Klkt

d atl vlv d d wtewy exeted t

edue the tt tme d t eel tt

betwee Wet Bel d Tu by 65 eet, theeby

detly beeft the ete tte Tu d the t

nth Ete id. she d-bed ttt

w edued t lw eete ( te, 5 eet

tted m Th t plt) the multmdl

h med t ue d-bed tuk. Th eulted

llw ul dvte:

The multi-modal, multi-

national approach involving coastal

shipping and inland waterways to

move the heaviest ever cargo to

Tripura has signifcantly widened

the North Eastern regions logistical

bandwidth, thus, setting a precedent

or years to come.

Ashish AgarwalMD, aBc id



10/36

Resolution

T vde tmum lut t the let, alty Lt

ed t mee tw ytem vz. the let sap d

alty Wehue Memet sytem (WMs) v

Elet Dt itehe ( ele tt e

whh tw ytem tt dt eletlly u vu

tl), whh tk ud thee mth u ue

ete edue). al, ft utmzt WMs w udetke t heve the deed eult. The ete

develmet w de -hue. F eh sKU, bet ft w

ved t bed mlex vlumet lult. Th l

heled de mthemtl tl t ve t llet-we

lult t eh lt thu mletely d wy wth the

eed hyl ut llet bll.

T eue efet ue, ue m bth ed wee ted

the ew ytem. Thee w tl ketm whh qukly ve

wy t ete e the eult wee ud t be le wth

exett.

Outcome and Impact

The ue the jet ly t mlty d edut

eeted mul ete whh buht dw the e te t

e l. The eed the tt eed temeduly.

The te e ut wy & k wet u by lmt 70

eet e wee lmt ze d tw ytem wee

wk tdem emle evmet. Wth dve

hmet te d e-let ml, the te/e w

efetly med e the wehue hd le l the

umbe m llet whh l met tht the e

te e ll ve eldm ued. se the wehue

lt e med the ytem, th h eulted efet

ut wy d k. Thee meue edued the tuudtme ut d k d hee tbuted t te etl

utut. cle vblty vety h led t le ut--tk

Context

Beed ag u lblly tve me ued

the develmet, mutue d wldwde dtbut

hh-qulty k e d beuty dut, me the bd

be Eue, L pe, Lbell, 8x4 d Hlt, Beed

gemy let met my d e t bd,

niVEa, m the wld bet kw bd mt k

e d beuty dut.

Beed eteed id 2005 t dut t mutu

d dtbut the id mket llly. i the lt 5 ye,

Beed bue id h demtted t wth

dd t vlume d dtbut mlexty. alty Lt h

bee the lt eve vde e the be d hve

bee te th wth e the dt whh the

wth the umbe ve eed ully m 11,000

2009 t 23,000 uetly.

Complication

nve wted id wehu et & edy

dtbut wth mmum hum tevet. The de w t

hve le, ytem-dve et el tme b whee

the te elet wuld be bth we, mutu

dte we k FiFo b. gve the le sKU be d

tt le t 23,000 e um whee the dut

met det led hum k, the hllee w

emu. al, the equemet bth/lt teblty, whh

eetl e ell tul bth/lt ledy

dtbuted id t vu dtbut dded t the

mlexty.

Th w uthe muded by mth-ed kew, whee the

lt 4 dy y mth uted 30 eet mthly

vlume, well the elty the dut.

Agility Logistics

Warehousing and distribution

Technology 1, Inefciency 0



11/36

blem d bette ue wehue e. ivety uy

betwee hyl & ytem tk w td t lmt 100

eet.

i ddt, the but Memet imt sytem (Mis)

utmtlly eeted eml t ll tkehlde t e-

detemed tevl d eed mlete vblty vety

id, thu ebl efet dut d dtbutl ut t le wth.

Sensible automation and

customised adaptation o new

technology is the pivot o a long

term partnership between a logistics

service provider and its clients.

Tom JosephcEo, alty Lt



12/36

aque le udetd the my bue

mdel mket mmtmet

Udetd tl ue t eltve t wehu

mj ue t the my uly h

idety the uet tte eltve t wehu

cete d evlve ftly wehu et

eltve t mket mmtmet exeuted v detled tudy

et d vlue-tem m.

The h ttuted e-eee the et mdel d

tdut ee d dle tht ft the my

bue eed well:

peme lked eve level eemet

Meu etl t veu eve vlue

Le methdly t ee efey

Kwlede memet wth emh bet te.

Outcome and Impact

Wth 3 mth mme et (J t M 2011),

agL delveed key bue eh ttve:

rbut d vluble et mehm ltt tmely

mt eet ebl muh mved ee t

m tetl de m dele d dtbut

70 eet edut led tme tu-ud e

t delvey eult hhe vlblty dut the

mket

40 eet ee vety tu

ieed tt level m ed utme.

Context

cmy XYZ, ut ol Equmet Mutue (oEM)

eed the mutue mmel vehle, eted

d med te-mket e wehue lted wth

t dut eme. The my ut thuh

xmtely 100 dele d dtbut ed

id. The te-mket wehu lty me 40,000q. t. d hue xmtely 20,000 stk-kee Ut

(sKU), whh e dtbuted wth id d elet mket

tetlly.

Complication

The my eted the wehue thuh 3pL eve

vde d eetedly euteed dfulte wth meet t

bue tet d e-t delvey hedule t the mket.

Belw wee the key hllee:

Dth de tk 5-7 bue dy m dte ue t

hmet lded delvey. The bttleek eted hh

level dtt mt dele d ed-utme.

The l w ftly dveet t the mket t

d bd vlue the my.

a vlume e, dd the my exett m the

3pL wth eet t me tmely d equet let.

Resolution

allc glbl Lt (agL) umed eblty

et wth th wehue du Deembe 2010 wth

the bjetve tdu utble d hh-eme

ttve.agL tted the llw mme:

AllCargo Global Logistics

Warehousing

Whirring value or an Auto OEM



13/36

Evaluate every opportunityand challenge the existing

business process to rationalize and

improve them urther. Amongst

others, modern warehousing

techniques oer tremendous

potential to improve efciency,

reduce overall logistics cost and

optimize inventory turn-around

time.

Ken EcclescEo, allc glbl Lt



14/36

Complication

i the ext lt lde, tlly detemed by

ehl t uh the gul Khmbht d dte

thee, the E gu hd t but t mve the

by d t nhv shev, ft dte wy, e

l lte e t vlble th e. Th etu t

xmtely inr 20,000 e TEU t/m nhv shev.

Th h met ft l bue tuty m

thmet vlume but 250,000 TEU ully tht et

meted ve multle t the e d mved by d.

Wth th bde et u, apM Teml pvv vte

tewy t lted ttelly gujt well ted t

ete ht tdtl mvemet tte twd the

let beeft.

Context

Hz key dutl e, 59 Km the gul

Khmbht m pvv the tte gujt. Hweve, due t

the ul, the d dte m Hz t pvv 494 Km. a

eult, the E gu, led dutl hue, wth tve

t Hz, tuk but 1,300 TEU (Twety-t equvlet

ut) t tezed mthly b m Hz tnhv shev, 350 Km by d.

gve th dvte hte d dte med t

pvv, nhv shev h bee the tul tewy t

t the Hz/sut e suthe gujt.

Logistics landscape in Southern Gujarat: Select transportation options

APM Terminals Pipavav

Ports and coastal shipping

Full speed ahead

Gujarat

Maharashtra

494 Kms

350 Kms

Hazira

Nhava

Sheva

Pipavav

59 Kms

GoK

Land based route

Coastal shipping route

Key

GoK Gulf of Khambhat



15/36

Resolution

T vde ltetve uly h th tht e

edued tt tme d t, apM Teml pvv tdued

e ute t pvv suth gujt . a the ft te,

pvv tted llbt wth E Hz t.

E Hz t w deed t tve lthuh

t h l ex the utue. Bede, the t

w equed t hdle bulk ly. pvv exled the

blty tt te thuh Hz t wth

me m ltet, te, l et lt

te, wth ext mhey d yd.

E eed t mmdte the hdl te

t t t Hz d l ue t be tt

te t pvv whee le veel bel t

tetl h le beth. Bede, beth wdw hd t

be mdfed t pvv t mmdte the b-weekly ll the

be, eed the -et the eul utme

pvv pt.

at m multle hllee elted t utm edue,

bll ld detl, bll et. tht hd t be elved, e

uttd ue w t et the h le ev suth

gujt utme t nhv shev t ee t me t pvv

heeth. Th hllee w mlfed du the tt

he whe the vlume hd t ehed tl level t wt

t ll t pvv.

Outcome and Impact

pvv vtve t, heved wth due -et

m the E gu, eulted det v me th inr5,000 e TEU E t m v but week (lud

tuf, tt, utm le d ld the te

t the h). nt wthut e the, the tl mthly

vlume 72 TEU tht wee mved v the be eve m

Hz t pvv w but t eh the 1,200 TEU mk.

This case is an excellent example

o synergy between two separateinrastructure companies to oer a

strong and tangible beneft to its users.

On the basis o a 25 percent saving per

TEU and an increase in container trafc,

this idea won the prestigious Play to

win award amongst APM Terminals

worldwide network o 50+ ports/

terminals or creating new business

opportunities through innovation.

Prakash TulsianiMD, apM Teml pvv

at m e u ew d efet ltetve

mvemet tmult wth the e, th vt

mlmet the gvemet l t hte the dt

evmet edly d t efet methd

mvemet.

The he the e uly h h eulted w-

w tut bth E d apM Teml pvv. Whle

the ew mde/ute mde the utme uly h me

efet, t l eted ew bue tuty E

vd tl h eve the utue. Eued by

th ue, pvv h bee du ml tute

wth lye uh rele d steel gujt Ltd.



16/36

Context

Th e tudy elte t beeft mt dut t id thuh FTWZ (ee tde

wehu ze whh deemed e tety)

cmy aBc h mutu lty pue. aBc mt w mtel m multle

ule lblly. Tw ule, bed ch d the Usa, hve bee deed the tudy.

Whle ule 1, bed ut ch, ute the hmet by e t aBc ty t pue

v Jwhll nehu pt Tut (JnpT) eult 45 dy-l vety ele, ule 2,

bed ut Usa, mve the by v Mumb, led t 33 dy-l vety ed.

Supply chain without FTWZ

Arshiya International

Free Trade Warehousing Zone

Structure through

inrastructure

* at 38 eet lt ty utlzt

(3.47 percent of imports)

(4.84 percent of imports)

Supplier 1 - China

Supplier 2 USA (EXW)

JNPT (CIF)

6 days

6 days

Mumbai airport

Warehouse

Kathawade

12 days

12 days

8 Kms

Pune factory

2 days

7 days

Total inventory in pipeline

(China): 24+6+1+12+2 = 45

days

Total inventory in pipeline

(USA): 7+6+1+12+7 = 33 days



17/36

Complication

The bve exled uly h mdel hd me heet

hllee:

The qulty hek u t duty ymet tbuted t

umeted evee lt d lve t. F sule 1, aBc mted ude dve lee. Hee,

thee w lk wk tl due t duty ymet.

Hweve, wk tl w lked vety 14 dy

du tt m the wehue t the lt, ct, iue

d Feht (ciF).

F sule 2, wk tl emed lked e vety

w mted t duty ymet, d vety du

tt m the Usa t aBc lt tht tk 33 dy

ex-wk b.

Economies like Dubai &

Singapore have prospered by oering

unique benefts to companies, due

to the presence o Free Trade Zones.Similarly, FTWZs in India will oer a

unique operational, regulatory & tax

environment, enabling companies

across industries involved in imports,

exports & re-exports to eliminate

inefciencies & added costs rom their

current supply chain in India, thus

boosting their proftability.

Ajay S. Mittalchm d MD,ahy itetl



18/36

Resolution

ahy itetl, led lye the FTWZ dm,

deed utmed lut aBc by eetvely tet

t FTWZ wth the vell uly h. a deted the

eeett belw, lu FTWZ elmted the eed

wehue t Kthwde, e the ty.

U th lut, aBc mlemeted Ved Med ivety

(VMi) mdel the FTWZ. Hee, the ule mted the

vety the FTWZ, whee the weh the ly

wth them. oweh w teed t aBc m the ule

ly t lee m the FTWZ.

Outcome and Impact

The ue ltetve uly h by the tw ule,

uted by ahy vtve lut, hd the llw

beeft aBc bue mdel.

ivety hld dy aBc wth eet t hmetm ule 1 (e, ciF) wee edued m 14 dy t 3 dy,

eult v 11 dy.

ivety hld dy aBc wth eet t hmet m

ule 2 (, EXW) wee edued m 33 dy t 3 dy,

eult v 30 dy.

Qulty ue t FTWZ bee dth elmted y

blty ejet t duty ymet, thu elmt the

vdble evee lt t.

The tuud tme the t eh the FTWZ m

the JnpT pt edued m 7 dy t 2 dy, e FTWZ

deled Dy pt wth t w utm lee et u.

all dumet d the m JnpT pt mved detly

t FTWZ wthut utm lee eeded t the pt (

te, Bll Ety w fled t the FTWZ).

Lblty d weh tk t FTWZ hed hd maBc t the ule.

pv t y duty t the tme dth, wth exblty

24 x 7 utm lee, heled elee wk tl

aBc.

The ule w t eed veee t hdle ejet

beue hle ee e-ext lty t the FTWZ.

at m the t tht the wehue e the ty

beme edudt, the beeft luded ed-t-ed vblty

t aBc thuh utmzed imt Tehly (iT)

lut, edut hmet d elted hh t,

qulty tl t duty ymet, vlblty bue tk,et.

Supplier 1 - China

Supplier 2 USA (EXW)

140 Kms

Pune factory

Inventory: 3 days

Inventory (China)

supplier at FTWZ:

24+2+3 = 29 days,

liability on supplier 1

Inventory (USA)

supplier at FTWZ:

7+2+3 = 12 days,

liability on supplier 2

Reduction from 6 to 2 days

Consolidate supplies

Dispatch twice a week

JNPT

2 days

2 days

Mumbaiairport

Arshiyas FTWZ

VMI


Supply chain with FTWZ


19/36

idtve t beeft aBc ut the tw ule w llw:

nte: The bve lult e de ul b. The v hve bee lulted bed () Ttl Vlue

imt m sule 1: inr 70.74 m; (b) Ttl Vlue imt m sule 2: inr 98.65 m; () Wehted

vee t tl: 10 eet; (d) avee duty d by aBc the w mtel: 24 eet

Benefts accrued to ABC With respect to Supplier 1 With respect to Supplier 2

at aBc lt ty utlzt 38% 75% 100% 38% 75% 100%

all fue belw inr m

Wk tl ulked m vety edut(m 14 dy t 3 dy)

2.13 4.21 5.60 8.11 16 21.34

Wk tl ulked m duty deemet 0 0 0 1.04 2.05 2.73

Total working capital unlocked 2.13 4.21 5.60 9.15 18.05 24.07

iteet v (t 10 eet) due t ulkedwk tl

0.21 0.42 0.55 0.91 1.81 2.41

Beeft due t qulty hek de FTWZ (ejet t lt)

0.33 0.65 0.87 0 0 0

Total benefts due to interest saving and

quality check inside FTWZ0.54 1.07 1.42 0.91 1.81 2.41



20/36

multle tee dut t be hdled wth eh tey

hv t w uly h eed.

The the tl hllee w t del wth ek vlume

du the auut 15 d Juy 26 le mt evet

ued by the my. F te, the vee k

30,000 el ee e dy ude ml le dy w t

teble t e the wehue. Th tlted t e

the umbe k t 3-4 tme the ml ty (wth

ddtl lbu) wthut mm utbud uy.

Resolution

T elve the mlex hllee ed by the my, Fscs

lyzed the detled dt the vu mete uh

uet de vlume, umbe stk-kee Ut (sKU),

vety e, umbe ed lt t be eved

thuh Dtbut cete (Dc), et. amed wth th

ly d the dm udetd hw eh dut

tey behved thuh the uly h, Fscs deded tht t

w the el tey whee ew tehly w eeded t

hdle the hllee, tully k d t.

F k, Fscs ledy hd WMs. Hweve, e wth

hue vlume d hhe umbe utlet e wehue,

bth k w metve, d wth bth k, hyl

t te eeded t u mld. Fscs the tted

t lk t the vlble tehle tht uld hel ee

the t eed dtlly d t the me tme mve

the uy the d eed. athe et t

detem the tehly t be ued wee t, elblty d

lblty - ll t the me tme.

T ve t the bet uted tehly, Fscs evluted multle

tt ytem uh r te, Bmb By te,

Context

Futue retl led etle id the zed

emet, et vu bd uh B Bz, ptl,

Fd Bz, cetl d eZe id. The my h mve tt the id etl mket, wth tuve

but inr 95 b (2009-10)1, but 16 m q.t. etl e d

ve 1,000 te ed 80 te d 60 ul ete

vu mt.

Fh d el h bee e the m wth dve

the bue d ee the le th emet be

ued m the t tht the el vlume tht mve thuh

the etl etwk muh me th tht ll the bded

h el id ut tethe. Le d w vlume

le d wdely ed etl etwk h dded

ft mlexty t the dtbut et.

Complication

oe the key quet the my w hw t heve

hhe thuhut m the wehue med by the 3pL

eve vde, Futue suly ch slut (Fscs). Bue

jet the my wee ft, bth tem

blute qutte tht hd t be hdled by the wehue

d the umbe te t be eved e wehue. Wth

the be wehue ledy ev ve 40 te d

lde e jet, the hllee w emu.

Fscs ledy hd Warehouse Management System (WMs)

whh w hel t wth u the et t uh

le vlume level. it w w ll vted ud e

efee hdl hue vlume, hev fll te 99

eet d eu dth ue t 100 eet ll

thee t be heved t tmum t. Futhe, thee wee

Future Supply Chain Solutions

Warehousing and Distribution

Future lies in automation

1 cuey ve t 1 UsD = inr 45



21/36

set Bhue me | 21

c Belt te, pk-t-Lht ytem d put-t-Lht

ytem m the. Flly, put-t-Lht (pTL) ytem w

eleted beue t eetvee the ve e

ll the tl equemet dued bve. al, th w mle ytem tht equed mml t t the ue t the

lwet level, mtt t the id text. Futhe, t

dubly eue uy eelly du the ek dy, Fscs

teted the pTL wth pt & aly ytem whh eued

tht the ked bxe wee ubjeted t weht hek d

wee ejeted the hek led.

Whle dde thee e-bed mvemet, Fscs

hd t veme evel hllee uh the emle

tehly tet wth the WMs, dt wth

multle ved d the exeted ht tuud tme

mlemett. ow t tmely elut ll thee ue,

Fscs w ble t mlemet pTL wth ht 5 mth(My 2010 setembe 2010) 5 le wehue.

Outcome and Impact

a exeted, thee wee vble mvemet dutvty

d efey: whle e blte tem t

d k the ee eed thee-0ld, bth k

efee l eed t w le bttleek.

Th met tht wth the me eue, Fscs uld w k,

t d k t the the ele e.

Futhe, whle the utbud bx ty utlzt eed

dmtlly t lmt 100 eet, u m vee 80

eet, the utbud tk uy eed mmlly t

ft d the ket mv the t beme ely

vet wth the ew tehly. althuh th mvemet

w tlly teed by the WMs, the uy mved uthe

dete the e vlume.

Increasing reliance on technologysolutions is the key to increasing

efciency o logistics operations,

particularly while handling huge

volumes on a daily basis. As India

gears up or opening up o the

organized retail sector, a well managed

and tech-assisted supply chain

will emerge as a key enabler and

dierentiator.

Anshuman SinghMD d cEo,Futue suly ch slut

next, vblty tem vety t evey te eed.

Me detled d equet Memet imt sytem

(Mis) et uld w be eeted me meuemet

ytem uld w be led t the tl te. Th ebledthe wehue memet t tke mmedte etve

t whee eey. Meve, the ee t eulted

t ll-ut the tehly, whle the lblty eued tht

the e umbe te med t y Dc w t

hllee yme tem k d t te. The

the dvte w tht the dted meue eleved me

lbu bdwdth. Fscs uld w dely me t vety

memet t eue tk uy thuh tuu yle

ut. al, exet memet w t t due u.



22/36

l-bed ttt. ilt, te t etwth the lee t ete t mt the e w

kee t tlyze th tetl ht. But bede ke d the

etl blty, the llw med the ete

ilt ttey t ete th emet.

1. Develmet eetul etblty mket

tezed mvemet

2. attmet tml et te t ltte

mettve delvey tme

3. Develmet etlzed mt ytem et-u

4. geet demd ufet t heve tml utlzt

tu et equey vbly. F th, the e et ilt w exded m 150 Km ud

Khh e t thmet e exted 700

Km.

Futhe, ilt heled wth ede the mket uly

h by emly u ed ttey.

High rake requency:

TT eue tht the med delvey tme heved, t w

eey t t jut ee the umbe ke ext

the ytem but l eu tht they tu ud t whh

deed lt the et ke ld.

ilt mde tuu bue develmet et t kee

e wth the mmtted equey e ke e thee dy.

a le t the ld w ked m the Khh mket;

hweve, the thmet e w wdeed t ll ve rjth

t dd t the eed et.

ContextMble d mble dut t rjth w

mv t Wet Bel mly by d, whh, the e

mt ttt d id, w dmted by

uzed tuk me. Th ttt ute l

vlved mvemet dut m the emet uh

whte emet mutue d ly me, thuh mble

med the let t the dut mx.

Complication

The mvemet mble m rjth t Wet Bel w

lued by uvlblty tuk eul b, equet

utut eht te, uelble delvey tme d lk mt but the tt. Bede, beke

d l mtel du tt dded t the efey

the vell lt ytem. The dee beke w

equet tht the mble duty hd vtully eted u

t 5 eet mble beke du tt m d

t w ted the t. The t wee l eted by

uel e d xel ld dedut. The delvey d t

uette mde dut Klkt mket dfult

tblzt whh uld ly be heved by tk ht

m ethe t t ee ed.

ResolutionHevy tye, quk d e delvey equemet, the

dee t tet t mtel l du tt d m

eue dve by hh d vy lt t me

tethe d e the mket t de ht t

Innovative B2B Logistics

Solutions

Rail

Changing track,

changing tack



23/36

T uthe eue te et, ilt l tduedet vu the mmdte mely Ktte

m Kt, whte emet m le whte emet due d

ly m Met d Bke.

addtlly, eve et bue develmet wee

mde t et etu ld the et-wet det. cet

thee et led t llw mvemet:

gdul m-u ut equey m the tl 1 ke e

te dy t 1 ke e 3 dy

Vey mettve delvey tme tht mved m the tl

18-22 dy t 11-14 dy e wy tt tme.

b) Transparent and standardized reight:

Eve e hule he, ee ft & lt mle

he due t deel e hke, demd utut d

eulty he hd eulted dym vt t

whe the mket deeded d tt. ilt

tdued t, tddzed , ett the m

e the let ed due t emum du

ted uly dt.

T mt tey lt t utme,

ilt ued e ul d t ulte the utme

m uetty, ilt lmted the umbe

ev e ul y ve mth.

c) Credit acility or customers:cutme wth hh vlume d qulty ymet hty hd

ext dvte v--v the utme wth lw vlume d/

ymet hty. ilt eed edt t utme

e tetly hh vlume uled wth d ymet

ed. Thu, ilt w ble t eue the tke le

vlume key utme twd tezed mvemet the

dut tu, ebl the le tem utee th

eve.

Sometimes the simplest

innovation can unlock signifcant

value. Like this case brings out, the

marble industry had virtually accepted

breakage during transit as the norm

and the same was actored in costing.

However, containerized rail carriage

o the product turned the norm on its

head.

Hardeep SinghcEo, ilt



24/36

d) Use o technological innovations:

rely tehll vt twd eve

mvemet, ilt eeed the et ll

ete mth wk te de bk d

llt. Futhe, gps deve lted t eet (vehle d

ke) vded el tme udte, whh w hed wth

utme thuh sMs d the web.

Outcome and Impact

ilt tetly delveed te vee 11-14 dy

tme d vded e ke evey thd dy. Thuh th me

th the vee d-bed e-wy tt tme 6-8 dy,

utme deed l-bed ttt t be d

ltetve due t vu the dvte uh tey,

ety, vblty d elblty.

i tem t beeft, l eht ed ethe equl t t 1-2 eet hhe th d eht. Hweve, de

lwe beke d edt e, l eht wk ut t be 3-5

eet hee th d eht.

Rail driven marble supply chain

The eeee l ve d evdet m tht uetly

90 eet (te b) the ttl mble mved

tezed m. The ft mve dvte, ututed by

ed k, h met tht ilt h 70 eet

mket he the ttl mvemet by l. Th ue h

muh wde d deee mlt med t t mmedte

ee. Ft, beue th ttemt t det id

ub-tml mdl mx tht me th tw-thd ll

ed by d whe uh huld be the he l ve the

ltte etl, t d evmetl efey. sed,

beue t et eedet th yu duty t th

deee th the ue d ete ew bue ted

fht ve the ext.



25/36



26/36

t let 6-7 deet ytem du the tt d whhultmtely eult dely, eed t d e.

Airlines: gve tht mt the wde dd t hve the

blty t eletlly ete d tmt the hmet

dt, multle let lud led id vte le

d led mddle-ete le, ued t eeve equy &

bk equet mully whh dded t t t, edued

ftblty, med l d delyed ttt. al,

thee w udt tl utue eeee. i e l

e, le lue t edue tl dumet eulted

elte. ite he wybll ue eeu

a Wy Bll (aWB) mt whh tu led t eveue

leke d edudt dt ety. abve ll, the my hd te mket tute due t blty t eh the hhly

meted eht wd duty id.

Customs House Agents: cme th emet,

te, Tle a c seve, hd t mully hdle

lt dumett elted t et, fe d

wd ddt t mmut thuh he/ e-ml

tht l luded mmut elted t jb ttu. al,

evel cHa ytem wee t ble t mt utme

tt/ qutt.

Resolution

T dde thee hllee, Kle Lt t wth a

c aet at id (acaai) d the tkehlde

m the duty develed Uvel pltm

Lt d iteted Feht Tt (UpLiFT), ft--

t-kd mmuty wde utmt ltm the

ContextThe mvemet the id e et eted

ut multle t tht tbute t hhe led tme

the mvemet , eed e wk, dely d the

efee. The tkehlde the mmuty id

- eht wde, cutm Hue aet (cHa), ,

ee t, et, le, tte, d utm

mt the - hve t le wth my hllee t

em the e jb tt the , tmely, ely d

wth budet.

Complication

almt ll the key tkehlde wee the w et etl hudle tht tlly veed t the le b

hllee mth d tmely exhe mt

the lye d the dvee tehly ltm wth deet

blte:

Consignors: Lk hmet vblty the uly h

mted the t tk le vety t mmze

te embly le dut. F lk ed-t-ed

utmt, eve wld l Etee reue pl

(Erp) ytem t uld t be eue due

t lk mlly ble tetve ytem the t

the tkehlde (Fwde, cHa, Tte, Bk d

cee) the uly h.

Freight orwarders: Fwde le dt hmet

ete mvemet vlved tet wth evel tkehlde,

but v mul/em-utmted med, ete the me dt

Kale Logistics Solutions

Air reight

Coupling businesses,

decoupling inefciencies



27/36


28/36

Industry scenario without UPLIFT

nte: The w d text the me bve eeet me the mt exhed betwee the duty tkehlde.



29/36

Industry scenario UPLIFT

seflly, UpLiFT h beefted let the llw wy:

UpLiFT ueully elmted mul et,

ewk, d edudt dt ety d buht ed-t-ed

hmet vblty the uly h.

it l ddeed key e id utd lke

Mumb itetl at Lmted (MiaL) by detly

tet wth t eet ytem (gaLaXY), edu dt

ety et d tme, thu mv ue dutvty by but

70 eet.

it beefted mth ttt ud 28 eet

id hmet, e uetly 40 eht

wde d 38 cHa et beefted m the UpLiFT a

c e. The ytem eted t e id

let t teml et, MiaL, utd

et d exhe EDi mee wth evel le

d wth id cutm.

id wde mv m mul et t le

fl thuh UpLiFT lk wd t t let tw-thd

v m t uet t e hmet whh be

ud 8-10 Eu fl le hmet e EU

eult.

Eve the ale exeee ft tme & et v

due t elet fl aWB m m UpLiFT detly

t the ytem, whh they thewe hve t tue

mully. Th l vd e dt ety.



30/36

wth well-ted tl wh uld elly hdle

Mdu emum dut, ud them t the l

mket vlue.

Evetully, sexe w l eble mv the

d t hh-demd etl lt.

Outcome and Impact

The evee lt eve by sexe heled Mdu

gmet del wth ded vete tmlly. ow t th

mdel, the dte tht ejeted d wuld hve t tvel

wee utled ftly eult mj edut

tuud tmele d t. Wth sexe utmzed

evee lt lud vlue-dded eve, Mdu

gmet uld u t e buee whle the etle

wee beefted the dut the lked-u tl

vete w tml.

Context

ael & letyle e the let emet m the

eetve evee lt. oe the let lye

th duty, Mdu gmet h ft ul vlume

be ld ude deet bd etl te id.

sme thee lude alle slly, Et d Lu phle. a

vlume e, dd the mlexte ud evee lt

Mdu dut whh eeded t be med efetly.

ComplicationWhle mv thuh the evee uly h Mdu

gmet the uty, me the d ethe t

t e beue udde he h/utme

eeee t tht lt t dmed tt, thu,

bem -leble.

i e ew dut w ud t be deetve, the etle

wuld etu t t the dtbut wh, tu, wuld etu t t

the mutue. sft tme d mmel eue

Mdu gmet t lked u thee ee.

Mdu gmet wted t edue the tme d t

vlved the bkwd uly h but l evet utmedtt, h lkdw the etle d e the

dtbut vety.

Resolution

T dde the ue ed by Mdu, sexe tdued

well deed evee lt e mdel. Ude th

mdel, sexe, 3pL eve vde, detly tk the

deetve d ude t e d mved them t evee

lt ete, whee thud stk-kee Ut (sKU)

uh butt, thed, lth, lbel, et., wee mted

vety by sexe. at m m the dut

tk mth the ht sKU wth the ht dut, sexel eued tht the evee lt ete wee equed

Saexpress

Reverse logistics

Going reverse to go orward


Reverse logistics has alwaysbeen a grey area or logistics

service providers as well as

manuacturers. However, when

customised to a clients needs

and accompanied with value-

added oerings, reverse logistics,

as a service, has the potential to

become a key tool or overall cost

optimization.

Saexpress


31/36



32/36

3. Whethe extk uvve the ve e vye

ttt by d l, eelly the text the

tte the tutue id.

Resolution

sued by the et but ved by the vlue d

lblty the vt the text t utme

id, su Lt tk t u tel t ude the utme

mdet t ete the extk u the llwmeue.

1. su Lt tted edutl m t edute

the tetl utme the ue extk. smle

b wee elly develed d hded ve t the

utme t hek mtblty the dut wth

the tut mtel. Meet wee held wth

utme exl t them the v they exet by

ttt extk. Tl wee held the lt

id exte t demtte the ty d teth

the dut t them. The utme wee eduted the

um t be ued, the et fll temetue d e

tllt the exb.

2. iue w mde vlble t ll utme l

lud thd ty lm t y leke due t

mutu deet.

Context

Tdtlly, lqud h bee ed tk te. The

tdut tk te the md-1980 hd heled the

mket mve m ttt lqud bulk dum

ked dy te. Th heled hev utzt

lqud d eed efey thuh elmt

the eed dum well ee mult-mdl dtbut.

Me eetly, su Lt, elt lqud lt eve

vde, eeed, tethe wth hdul fm, thetdut extk the mket whh eeeted

ft vt ve ext methd. Flextk t

eetve, le ue, bdedble k whh led

de ml te vet t t tk e

lqud uh hzdu heml, we jue.

Complication

The mlt w tht te the ft beeft

eed by extk, the duty w elutt t et t e

t eeeted te he m tdtl e methd

tetlly dev th vtve dut the tme t tke t

thld ew mket d wt tll, bly devthe mket the vt tel. The e utme

uld be ummed u ude the llw thee hed.

1. geel elute twd he

2. Flexble k, hee the e l the

Sun Logistics

Liquid logistics

Ballooning growth



33/36

3. The tuu r & D ed ut heled u devel dut

tht w mtble t the id lmt d tutul

dt.

) all leke wee vetted ue d tet ed

t duble hek

) cmtblty dut wth tut mtel.

) a udetd the itetl equemet

mutu extk d dd the idequemet t tt the mt tmum dut

v) imt tet wee duted t TUV gemy twe t

tudy the mt d e extk du the vye

t e

v) imt tet emed t Ttt Tehly cete,

i., at ame rld (TTci aar) Usa

tet wthtd e 2g.

Outcome and Impact

The mt the meue udetke by su Lt eulted

utme tl whh, tu, eulted utme fdee.Th, tu, met ft t d etl dvte

t thee utme. F te, tdd 20 eet te,

extk ee the e ty by ve 50 eet

med t the ue dum. Bede, the uhe e

d dl t extk e 30-40 eet lwe th

the dum the me vlume eht. al, extk

bvte the eed le whh equed e tk

te. i ddt, bled etu ld, te ul t the

mmel vblty tk te mvemet, t t

extk.

oe the te utme th e the le tht t

my te t be euh t tdue vt the mket

le wth the umt tht t dvte wll utmtllyled t t ete.

An innovation, eventually,

represents a change and like every

change, it is resisted and may

thereore warrant a well considered

handholding process.

Haresh S. LalwaniJt MD,su Lt


Flextk lded

te; edy hmet


34/36

acaai a c aet at id

aWB a Wy Bll

agL allc glbl Lt

BHEL Bht Hevy Eletl Lmted

cEo che Exeutve ofe

cFs cte Feht stt

ciF ct, iue d Feht

cHa cutm Hue aet

Dc Dtbut cete

EDi Elet Dt itehe

Epc Eee, puemet d ctut

Erp Etee reue pl

EU Eue U

EXW Ex wk

FiFo Ft i, Ft out

FTWZ Fee Tde Wehu Ze

Fscs Futue suly ch slut

FsU Feht sttu Udte

gps glbl pt sytem

icD ild cte Det

inr id ruee

List o Abbreviations

iT imt Tehly

iWT ild Wtewy Ttt

iWTT ild Wte Tt d Tde

JnpT Jwhll nehu pt Tut

Km Klmete

MD M Det

MiaL Mumb itetl at Lmted

Mis Memet imt sytem

MW Mewtt

oEM ol Equmet Mutue

ongc ol d ntul g ct

oTpc ongc Tu pwe cmy

pTL put-t-Lht

sKU stk-kee Ut

sMs sht Mee seve

TEU Twety-t Equvlet Ut

UpLiFT Uvel pltm Lt d itetedFeht Tt

VMi Ved Med ivety

WMs Wehue Memet sytem

3pL Thd-pty Lt



35/36

Acknowledgement

Th eeh e h bee jtly develed by KpMg id d the suly

ch Ledeh cul.

Th e h bee uthed by chd chubey d g sek KpMg

id the b mt vded by multle eeettve the

tt me. i ddt, th e h eled KpMg udetd

d exeee wth the et well exteve du wth ledtkehlde the ttt d lt et id.

i ddt, the suly ch Ledeh cul vded exteve ut t the

develmet th e d heled wth eh ut t e me

th et. Bede, the suly ch Ledeh cul vded the del

ltm the elee th e the m 'id cte Lt d

itutue summt 2011'.



36/36

The mt ted hee eel tue d t teded t dde the umte y tul dvdul

etty. althuh we edevu t vde ute d tmely mt, thee be utee tht uh mt

ute the dte t eeved tht t wll tue t be ute the utue. n e huld t uh mt

wthut te el dve te thuh exmt the tul tut. The vew d exeed

hee t the suvey e the the uvey edet d d t eely eeet the vew d KpMg

id.

The mt ted hee h bee ethe vded by the eetve me t KpMg h thewe bee llted

m multle duty ue d theee KpMg t eble the uy, eleve y mt te th

KPMG Contacts

Rajesh Jain

Head o Markets

T: +91 22 3090 2370

E: [email protected]

Manish Saigal

Executive Director and

Head o Transportation and Logistics

T: +91 22 3090 2410


Gagan Seksaria

Associate Director

Transportation and Logistics

T: +91 22 3090 2602

E: @km.m

Chandan Choubey

Senior Analyst

Transportation and Logistics

T: +91 124 612 9382


www.kpmg.com/in

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