Forecasting demand is essential to supply chain management and businesses can best do that through the timely synthesis of information. This involves reducing the time for receiving projected and actual customer demand information and establishing as close to real-time product demand as possible. Managers should also work to understand demand patterns throughout all stages of the supply chain by sharing information and collaborating with other managers of different chain stages. Other methods include reducing the sizes of orders, consistently offering good product prices as a way to avoid surges resulting from promotional discounts, improving customer service, and eliminating causes for customer order cancellations to ensure smooth ordering patterns. Speculating a second wave of COVID-19, Avinash Gawade, Senior Manager- Supply Chain Planning at Mahindra and Mahindra says that detailed stock analysis of the inventory points from vehicle dealers to spare parts suppliers will help uncover idle excess inventories, and that supply chain managers can take corrective action, and set norms, while moving more inventories at a predictable, reliable cadence using real-time data and shipment information. Excerpts from his interaction with Upamanyu Borah.
There is much uncertainty related to the rapid influx of technologies poised to disrupt automotive manufacturing and changing trade policies that will likely impact supply chain performance. Acting with agility is the new currency of business. Where does Mahindra stand here?
Mahindra is not out of equation if we speak about adopting agility in service parts supply chain.
Bringing new technologies need lots of efforts and collaboration across the supply chain. From the Indian context, new policy for BS6 vehicles and the government’s plans for penetration of EVs in the market affect KPIs of supply chains not only in terms of product manufacturing but also in meeting service parts demand.
Therefore, analysing the current aggressive plan of launching EVs, upgradation of existing models with BS6, and rolling out new products that complement cutting-edge technologies, moving with agility will be the best option for us.
How is India’s automotive spare parts supply chain doing post-COVID and what is your outlook on the country’s market for 2021?
Automotive spare parts supply chain had gone through many challenges during the COVID-19 crisis. Even, at present, clouds of uncertainty loom large. Several factors contributing to it— unpredictive demand from end customers, and constraints in parts supply due to suppliers who are mainly engaged to fulfil OEMs production demand.
Moving ahead, everyone is cautious about predicting the outlook for auto parts and accessories market. With the experience of earlier lockdowns and considering the fear of a second wave of COVID, restriction on manpower up to 50 per cent at regional warehouses and following pandemic guidelines while running businesses will be challenging for everyone so as to minimise further damage to revenues. With uncertainty to achieve desired service levels for fast-moving spare parts, managing the bullwhip effect at various stages of supply chain will be a key concern in 2021.
But, we are optimistic despite the disorders and coming up with new model launches as well.
Re the process of looking beyond China and to de-risk supply chains, is India prepared to grab this opportunity?
Looking at the over dependence on China, decoupling it from the supply chain perspective and finding alternatives cannot be done in the short-term.
OEMs going through financial crisis cannot develop new alternatives in India which can compete with the price that the Chinese market offers. Although in the long-term, everyone has to look to find an alternative to de-risk supply chains.
However, at present, India in not ready to grab this opportunity as we need to reorganise many policy changes which give local players a competitive advantage over China and create better atmosphere for fair competition.
Although we’ve all talked about this in detail for the past year or so, the pandemic has certainly changed the manner we approach businesses. What do you think the long-term trend toward automotives over transit will be? And looking at those, how should auto supply chains act/react?
‘Readiness to face abnormality’ is the key lesson derived from the pandemic. No one was prepared or been able to foresee the challenges brought by the pandemic. Companies adopted every possible strategy to deal with it.
After the severe damage and looking at the lessons learnt, it is high time to introspect and revisit our supply chain strategies to remove inefficiencies and make it more agile. Auto spares supply chain is going through an extremely challenging situation—initially, suppliers commit to support production but later, their priorities change. I insist, the entire automotive industry value chain must highlight the importance of service commitments given to customers.
Other important key areas to be improved are— push- vs pull-based supply chain to drive planning based on actual sales of spares rather than building inventory in anticipation of sale, and determining service level vs cost of service, in practical sense.
What the main areas of opportunity are for domestic and or international automotive spare parts supplier companies in India? And what are the major challenges that International companies should be aware of and prepare for if they want to succeed in this market?
Challenges for international suppliers are more vigilant than domestic suppliers, as lead time plays a crucial role in terms of inventory investment and transportation costs. To respond to customer demand swiftly which is full of uncertainty in the current scenario, OEMs are asking for Vendor Managed Inventory (VMI) at the supplier’s end. This can be possible only if suppliers adopt sophisticated supply chain planning tools and leverage ERP platforms. As core planning parameters, lead time, variation in demand and supply, etc. would remain almost same, only a proactive approach with anticipation of challenges will help to succeed in the market.
One of the best examples of challenges being faced by suppliers is discontinuation of BS4 and roll-out of BS6 vehicles last year. To adhere to service commitments for the next 7 years, OEMs must supply parts to old customers with BS4 vehicles. But supplier companies are struggling to maintain inventory levels for exclusive old BS4 vehicles spare parts and asking OEMs to adopt ‘One time Buy’ strategy which is not a feasible solution.
What is the most important topic as far as technology is concerned in streamlining the automotive spare parts and component supply chain’s dynamics?
Managing 10+ different businesses with 15 warehouse locations and 3 different customer channels with different service strategy cannot be possible without adopting cutting-edge technology.
As we transitioned from manual excel-based planning to the most advanced supply chain planning tool, I see how technology can dramatically impact overall supply chain dynamics and be a game changer for any organisation.
In general, from a domestic perspective, what is the key to best practice in the automotive spare parts supply chain space? And, what needs to evolve to better standards?
Instead of focussing on current challenges, envisaging long-term market dynamics and aligning organisational strategies is the crux for inching towards better standards. Domestic players first need to implement fundamentals of supply chain management effectively. Resource optimisation amongst stakeholders will play a key role in doing so.
Mahindra is set for a big transition phase with—converting entire supply chain from the push to pull strategy, network optimisation, and aligning planning vs execution with minimal gaps.
Digitalisation of the supply chain can contribute heavily utilising Artificial Intelligence (AI), Machine Learning (ML) and overcoming challenges being faced with traditional supply chain technologies. Integration of busines applications with real-time interface, however, is an emerging challenge in the path of digitalisation, as different software solutions are being harnessed by different elements of the supply chain.
After facing the pandemic-led turmoil in 2020, now organisations are gearing up with full throttle to gain competitive advantage, reduction of costs to increase revenues, and providing best customer service, which will pave the way for a better tomorrow.
The Federation of Freight Forwarders’ Associations in India (FFFAI) held its 6th EC Meeting for the term 2021-23 on May 27 and 28 in Bengaluru. The meeting was attended by the Office Bearers and 28 Member Association representative of FFFAI from across the country, there were many issues discussed and updates provided concerning customs, CBLR, EDI, Service Tax/GST, logistics, air cargo, sea cargo, skill development,importance of social media which FFFAI has expanded recently, technology developments, etc. The special focus of the 6th EC meeting was the updates on forthcoming 24th Biennial Convention of FFFAI to be held from August 12 to 14, 2022 in Chennai with the theme LOGISTICS RESHAPE, EMBRACE AND SURGE IN THE DIGITAL ERA. At this EC meeting, FFFAI also implemented Digital Learning platform for members and next generation for e-learning. It has been decided that FFFAI would initiate FIATA eFBL here in India to benefit the trade, which empowers customs brokers, freight forwarders and logistics service providers. In addition, updates on the recently held FIATA HQ Meet was also provided by the concerned members of FFFAI. FFFAI members present at this EC meeting stressed upon enhancing productivity on ICEGATE for trade facilitation and Ease of Doing Business. The FFFAI members also urged for creating a dedicated portal for LSP integration. As regard to skill development initiatives, IIFF’s (training arm of FFFAI) past and forthcoming training programmes (both online and classroom/physical) for the entire logistics industry were presented at the EC meeting. In addition, FFFAI’s various initiatives on capacity building through technology/IT also discussed withadequate importance. Recent activities of FFFAI Women’s Wing including organising interactive meetings with Government of India officials and industry experts were highlighted at this meeting which drew huge appreciation from the members. The members committed to expand the activities of the Women’s Wing in all the 28 member association locations to empower/encourage the women logistics practitioners. At this EC meeting FFFAI has signed an MoU with the National Institute of Industrial Engineering (NITIE) with an objective of skilling the aspiring candidates looking for opportunities in the logistics sector. Notably, a special session was organised at this 6th EC Meeting where N Sivasailam, former Special Secretary (Logistics), Ministry of Commerce, Government of India was present to address the FFFAI members and highlight the recent initiatives of the government in strengthening the logistics infrastructure, thereby leading in increase of international trade through multimodal connectivity and faster cargo clearance. He projected the ambitious growth potential of the logistics industry in India with a strong collaboration between government and industry people. Also speaking on the occasion was Bani Bhattacharya, IRS, who interacted with members of FFFAI on various initiatives of CBIC for the trade facilitation without human intervention. FFFAI Chairman Shankar Shinde thanked all the 28 associations for their support and appreciated the contribution of CBIC/DG systems trade facilitation measures. FFFAI Member Associations are: 1. Ahmedabad Custom Brokers' Association2. Aurangabad Customs House Agents Association3. Association of Custom House Agents Thiruvanthapuram4. Bangalore Custom House Agents Association5. Brihnamumbai Custom Brokers Association6. Calcutta Customs House Agents Association7. Chennai Customs House Agents Association8. Cochin Customs Brokers' Association9. Coimbatore Customs House and Steamer Agents Association10. Custom Brokers Association Hyderabad11. Delhi Customs Brokers Association12. Goa Custom Brokers Association13.Indore Customs House Agents Association14. The Kakinada Customs Brokers Association15. Kandla Custom Brokers Association16. Kanpur Customs Brokers Association17. Ludhiana Customs House Agents Association18. Mangalore Customs House Agents Association19. Mundra Customs Brokers Association20. Nagpur Customs House Agents Association21. Nashik Customs House Agents Association22. Nadia Custom Brokers Association23. Pipavav Custom Brokers Association24. Pune Customs House Agents Association25. Rajasthan Customs House Agents Association26.Tuticorin Custom Brokers Association27.Visakhapatnam Cusotms Brokers' Association28.West Bengal Custom House Agents Society FFFAI welcomes Women in Logistics/Youth in Logistics to participate on FFFAI forums and also invites membership application form logistics service providers in industry as this is a big national and international forum to network.
Ecom Express Limited, India’s sole pure-play B2C e-commerce logistics provider as of the Financial Year 2024, has introduced a new brand identity, underscoring its commitment to customer-centricity. This rebranding reflects a focus on addressing specific customer needs, prioritising customer-facing metrics, and integrating innovative technology across its nationwide express logistics network. The goal is to enhance speed, agility, and network reach, ensuring a customer-focused approach. The rebranding includes a dynamic logo and a refreshed visual identity, symbolising Ecom Express’s pursuit of excellence. The new logo features a forward-moving arrow within a square, representing the company’s dedication to delivery. The letter "E" in the logo stands for Expression, Innovation, and Progress, while the bold magenta colour signifies bravery, self-expression, and strength. This vibrant magenta reintroduction reflects Ecom Express's renewed commitment to customers, partners, and team members, as the company aims to simplify and democratise logistics for all. Ajay Chitkara, CEO and MD of Ecom Express, elaborated on the transformation, stating, “Our refreshed brand identity reaffirms our customer-first approach as we continue to integrate technology and innovation to provide reliable, high-speed services with the widest network reach. This transformation also underscores our commitment to our employees and delivery partners, who are essential to our business.” The new logo embodies Ecom Express’s dedication to its core values, focusing on customer welfare and fostering a diverse, inclusive environment. This rebranding signifies a promise to redefine logistics through advanced technology, making life easier for all types of customers.
Delmos Aviation has transported the second lot of 300 units of oxygen concentrators from Russia to New Delhi for the Rajasthan state government. The consignment was airborne on an Aeroflot A333 aircraft (SU 232) and reached at 10:10 AM in New Delhi. The shipments were shipped by road and sent back to Swasthya Bhawan, Jaipur, Rajasthan Medical Services Corporation (RMSCL). RMSCL obtained oxygen concentrators from Russian companies together with Delmos Aviation. Delmos Aviation is procuring, transporting and supplying COVID-relied materials to the Rajasthan Medical Services Corporation with the mandate signed with the Rajasthan Government. There will shortly be two consignments with the remaining 800 oxygen concentrators. "We are ready to assist governments in the provision and delivery of any type of essential medical supplies, oxygen concentration and equipment as quickly as possible," said Dr Naveen Rao, Director, Delmos Aviation. "At this juncture, time-based deliveries are paramount. We can handle the airlift and deliver the shipment to the last point." In four lots, 100, 300, 450 and 400 units, a total of 1250 oxygen concentrations are ordered and continue to reach New Delhi in batches of shipments. On 14 and 16 May 2021, the remaining lots will arrive. Oxygen concentrators of Single flowmeter (0.5-10LPM Adjustable) and double flowmeter (0-5LPM Adjustable) are included in the delivery. The models are JAY-10A & LFY-I-5A. "The government of Rajasthan is working hard in this raging second wave of the pandemic to provide basic medical equipment to head Minister Ashok Gehlot and Minister of Health, Raghu Sharma. The government plans to import 1250 oxygen concentrators from Moscow, Russia, in partnership with Delmos Aviation, as part of its efforts to enhance medical oxygen in the state," said a spokesperson.
A significant milestone has been achieved in the Indo-Bangla railway project with the inauguration of the inaugural freight train connecting Bangladesh's Gangasagar to Tripura's Nischintanpur. This momentous event marks a significant step forward in strengthening the rail connectivity between the two neighboring countries. The new railway connection is set to enhance trade and commerce between India and Bangladesh, providing a more efficient and cost-effective mode of transportation for goods. It will not only boost bilateral trade but also promote economic development in the region by opening up new opportunities for businesses and industries. The Indo-Bangla railway project is part of a broader effort to improve connectivity and foster closer ties between the two nations. It is expected to play a vital role in facilitating the movement of goods and passengers, ultimately contributing to the economic growth and prosperity of both countries.
Omnichannel lifestyle brand The Souled Store has partnered with third-party logistics firm Emiza to manage its primary warehouse operations in Mumbai. The collaboration positions Emiza’s Mumbai warehouse as a central hub, managing orders from The Souled Store’s website, marketplaces, and offline stores across India. “This partnership marks a significant milestone in The Souled Store’s journey, enabling the brand to streamline operations and refocus on growth by partnering with Emiza as a trusted 3PL provider,” the company said. The strategic collaboration goes beyond standard logistics, providing services such as inventory management and order processing. The Souled Store has reduced its order processing time from 24 hours to just 12 hours, significantly enhancing customer satisfaction, a key factor in the competitive D2C market. Ajay Rao, Founder of Emiza, highlighted the value of the partnership, stating, “Their trust in our services underscores the value we bring, not just in warehousing and fulfilment, but in enhancing overall customer satisfaction. As India’s fashion e-commerce market is projected to reach USD 112 billion by 2030, our role is to provide the infrastructure and fulfilment expertise necessary for brands to thrive.” Aditya Sharma, Co-founder of The Souled Store, noted the impact of the partnership: “Emiza stepped in, providing exceptional warehousing and fulfilment services aligned with our commitment to delivering quality products. Their focus on optimising our fulfilment process has allowed us to cut order processing time by half, ensuring that our customers receive their orders faster.” With 27 fulfilment centres across 14 cities, Emiza is well-positioned to support The Souled Store’s expansion beyond metro cities, tapping into the growing consumer base in Bharat, the company added.
As we all know, supply chain management encompasses a multifaceted approach to streamline operations, optimise resources, and meet customer demands efficiently. Integrating the entire supply chain involves aligning and synchronising all components, processes, and stakeholders involved—from suppliers to end consumers. Most importantly, an integrated supply chain leverages technology and standardised processes to achieve seamless coordination, visibility, and data sharing across the entire value chain. As businesses navigate the complexities of today’s global marketplace, harnessing the power of an innovative supply chain through enabling technological advancements and process improvements is crucial for establishing resilient, responsive, and future-ready supply chain ecosystems. These aspects are brought together by three crucial elements: technology as the backbone of innovative supply chains, continuous improvement throughout the entire supply chain, and network structures driven by transparent communication and end-to-end visibility. Harish Singh, Head – Supply Chain, Burgerama talks about the amalgamation of these key elements that enable organisations like Burgerama to stay ahead in a rapidly evolving business landscape, fostering innovation and sustainable growth in the realm of supply chain management features. Excerpts by UPAMANYU BORAH from a recent interaction. Genesis and Operations Founded in 2018 by Kabir, Viraaj, and Vivek, Burgerama is a flavour-packed tale of the juiciest cheeseburgers in India. Starting strong in Sushant Lok in October 2018, not even a global pandemic could halt this culinary sensation. What sets Burgerama apart? It's the explosion of taste in every bite, achieved through meticulous ingredient selection and an unwavering commitment to authenticity. Beyond just a food joint, Burgerama is a narrative of enduring friendship and an unyielding quest to craft the perfect burger experience. Now operating 14 delivery outlets across Delhi NCR, Chandigarh, and Bangalore, Burgerama has come to be known for its passionate team, true-to-form flavours and genuinely delicious products, creating a truly unique burger experience for all. Adapting to Macro Challenges In recent times, our burger brand has experienced both positive and negative impacts from the macro environment. A shift towards healthier eating habits has inspired us to innovate our menu, offering diverse options with high-quality, nutritious ingredients, expanding our appeal. Embracing sustainability, we've adopted eco-friendly packaging and responsible sourcing, aligning with evolving consumer values. However, challenges persist. Fluctuating commodity prices and supply chain disruptions occasionally affect our quality and pricing consistency. To address this, we've prioritised supply chain flexibility. Technological investments and strategic partnerships enable swift responses to unforeseen circumstances. Building relationships with multiple suppliers and agile inventory management mitigate localised disruptions. Our logistics infrastructure, designed for agility, includes contingency plans and alternative routes, ensuring seamless operations. Despite macro challenges, our commitment to a flexible supply chain empowers us to navigate obstacles effectively, ensuring consistent delivery of quality burgers to our customers under any circumstances. Global Benchmarks, Local Adaptations Our burger brand prioritises a consistent supply through tech-driven forecasting, strategic partnerships, and global benchmarking. Leveraging predictive analytics, we adjust production to minimise shortages or overstocking. Long-term relationships with suppliers ensure transparent operations, from sourcing to delivery. We adapt successful global practices through benchmarking and continually improve through audits, adopting new technologies or optimising routes. Our commitment to agility and learning from global benchmarks ensures a reliable supply chain, meeting dynamic customer demands. Cost Management Methods In the face of escalating input costs, especially in a landscape where our primary business operates through Zomato and Swiggy, our commitment remains to shield end consumers from additional financial burdens. Our strategy is multi-faceted, emphasising cost management without compromising quality or transferring extra expenses to the customer. Internally, we relentlessly optimise operations, streamlining processes from sourcing to distribution to enhance efficiency and minimise wastage throughout the supply chain. Furthermore, we are resolute in absorbing a certain degree of these cost increases within our operations, ensuring that the quality, value, and experience associated with our brand remain uncompromised. Collaborating closely with our suppliers and distributors, we navigate peak input costs by absorbing some of the financial pressures internally, ultimately ensuring that the end consumer is spared from additional financial strains. Automation advancements in Operations Harnessing advanced information technology has been transformative for our supply chain. Integration of cutting-edge solutions has significantly boosted efficiency, agility, and responsiveness. A key initiative involves implementing robust inventory management systems driven by machine learning algorithms. These systems enhance demand forecasting, optimise inventory levels, and predict supply chain disruptions. This proactive approach ensures balanced stock levels at both outlet and warehouse, preventing excesses or shortages. Automation further streamlines operations, with an indent planning tool seamlessly integrated into our inventory management for more precise order fulfillment planning. Strong Partnerships: Key to minimising disruptions In India's supply chain landscape, seamless coordination among suppliers, distributors, and logistics partners is crucial. Our approach emphasises robust communication channels, fostering transparency, strategy alignment, and quick problem-solving. During crises, like recent disruptions, our coordination becomes even more vital. Swift adaptations, such as diversifying supply channels and optimising stock, help us navigate challenges. Strong partner relationships minimise disruptions. Despite widespread implications, our focus stays on fostering collaborations and open communication to navigate challenges effectively and deliver quality service in alignment with the dynamic Indian market. Logistics: Enabling Our Burger Success In our burger brand's success story in India, logistics plays a vital role, serving as the backbone of our operations. Entrusting specific functions to external partners, such as transportation and warehousing, ensures efficient delivery routes and streamlined distribution. While external partners handle certain tasks, the majority of logistics operations, including inventory management and strategic planning, are internally controlled. This internal control is crucial for optimising inventory, anticipating market demands, and maintaining a smooth product flow. With approximately 90 per cent of logistics operations managed internally, we strike a balance, leveraging external expertise while retaining control over core functions. This collaborative strategy ensures the benefits of specialised skills from partners, coupled with the agility needed to adapt to India's unique market demands. Win-Win Partnerships In selecting logistics partners for our Indian operations, we prioritise reliability, scalability, and technological proficiency. Timely and consistent deliveries are crucial, requiring partners adaptable to India's dynamic landscape. We emphasise technology-driven solutions, favoring partners with advanced tracking systems and route optimisation. Cost-effectiveness is key, seeking competitive pricing without compromising service quality. Transparency, compliance with regulations, and a customer-centric approach are foundational criteria. Thorough evaluations and trial periods ensure compatibility and strong partnerships, ensuring a smooth and efficient logistics operation for our burger brand in India. Efficient Transportation Strategies In response to the evolving logistics landscape in India, our policies and strategies pivot towards embracing alternative transport modes and optimising routes for efficient outsourcing of logistics services. We advocate for multimodal transport, acknowledging the strengths of various modes like road and rail to optimise cost, time, and environmental impact. Prioritising route optimisation through advanced technologies enables us to minimise transit times and costs, leveraging data-driven analytics to assess traffic patterns and road conditions. Collaboration with specialised 3PL service providers in alternative transport modes enhances our network efficiency. Recognising the last-mile delivery challenge in India, our policies explore innovative solutions, including partnerships with local services and micro-warehousing strategies. The emphasis on adaptability and agility allows us to respond dynamically to market dynamics, embracing new transport modes for enhanced efficiency or reduced environmental impact. Continuous evaluation and improvement are ingrained in our policies, fostering a diversified and adaptable logistics framework that ensures efficient supply chain operations for our business. Warehousing strategies that alleviates the bottom-line To optimise our operations, we strategically position warehouses for proximity to major consumption centers, minimising transportation costs and reducing delivery times across India. Leveraging technology, we implement warehouse management systems and plan to introduce barcode systems for enhanced accuracy. Embracing lean principles, we focus on continuous improvement, eliminating non-value-added activities, and maintaining efficient layouts. Anticipating seasonal or peak demand, we implement inventory strategies for optimal preparation without excess costs during quieter periods. Collaboration with 3PLs allows scalability and access to specialised facilities. Utilising data analytics, we continuously analyse warehouse efficiency, facilitating data-driven decisions for ongoing process improvements. Through these strategies, we aim for efficient, agile, and customer-centric operations, ensuring timely product delivery across India while optimising costs and resources. Distinct capabilities with a strategic Innovation Approach Maximising the efficiency of our logistics and backend operations involves a multifaceted approach focussed on continuous improvement and innovation. Leveraging advanced analytics, we prioritise accurate demand forecasting for optimised inventory levels, balancing meeting customer demands with minimising excess stock. Building strong relationships with suppliers and implementing lean supply chain principles help in reducing lead times, cutting costs, and maintaining a responsive supply chain. Constantly exploring and integrating emerging technologies such as AI and Bar Coding enhances visibility and transparency across the supply chain. Sustainability initiatives, including eco-friendly packaging and optimised delivery routes, align with our commitment to environmental responsibility. Regular assessments and adaptation to market changes, whether regulatory shifts or consumer preferences, ensure operational agility. Our ultimate goal is to create a responsive, cost-effective, and sustainable supply chain that meets customer demands across diverse cities. Megatrends changing the face of Supply Chain Executives In the dynamic landscape of India's supply chain and logistics, several pivotal megatrends are set to reshape the roles of managers in these domains. Technology integration, including AI and machine learning, will revolutionise operations, requiring managers to harness these tools for enhanced visibility and data-driven decision-making. Building resilience against disruptions and diversifying sourcing channels will be imperative. Leveraging data analytics for predictive insights will be essential for optimising inventory and enhancing overall efficiency. Collaborative partnerships across the supply chain ecosystem will strengthen, necessitating closer ties with suppliers, distributors, and technology providers. Adapting to evolving regulations, upskilling the workforce for increased automation, and prioritising customer-centric logistics experiences are paramount. Striking the right balance between globalisation benefits and localised strategies will be a key challenge. Managers who adeptly navigate and capitalise on these megatrends will build agile, sustainable, and technologically advanced operations, meeting the evolving demands of the market. Advice for budding professionals To young supply chain professionals entering the industry in India, here's some invaluable advices for navigating the evolving landscape. Embrace continuous learning by staying updated on technological advancements and industry trends, and seek certifications and mentorship. Develop a holistic understanding of the supply chain spectrum, acknowledging the interconnections between procurement, logistics, operations, and customer relations. Cultivate adaptability and flexibility to navigate the fast-paced and disruptive nature of the industry. Focus on data literacy, particularly proficiency in analytics tools like Excel, for making informed decisions. Hone communication and collaboration skills to effectively coordinate with diverse teams and stakeholders. Embrace ethical and sustainable practices, recognising their growing importance in supply chains. Lastly, foster a problem-solving mindset, as the ability to address challenges efficiently is highly valued in the dynamic field of supply chain management.
Fabindia embarked on a journey that evolved from exporting home furnishings to establishing over 350 retail stores across India. This expansion wasn't merely about market presence but a deep-rooted commitment to sustaining traditional craftsmanship and empowering rural artisans. Nitin Joshi, Head Warehousing and Logistics, Fab India, in a recent tête-à-tête takes us through the 64-year-old legacy and most recognisable retail brand’ resilient supply chain strategies, balancing fulfilment across various channels, and effectively managing diverse demand patterns, weaved into the ethos of collaboration and innovation. With a combination of practical knowledge, solution-oriented mindsets, technological advancements, and a dedicated focus on customer satisfaction, Fabindia consistently sets industry benchmarks while promoting sustainable practices and preserving India's cultural heritage. It is, therefore, affirmable that Fabindia's supply chain model stands to provide valuable insights for managers navigating the complexities of modern-day fashion fulfilment and SCM mandates. Natural, Craft-Based Products with Community Collaboration Established in 1960 by John Bissell with the aim of promoting India's rich craft traditions, Fabindia initially focussed on exporting home furnishings. Its first retail store opened in Greater Kailash, New Delhi, fifteen years later. By the early 1980s, Fabindia had gained recognition for its handwoven and hand-printed fabric garments. In 2000, the company expanded its offerings to include non-textile products. Today, with over 350 stores across India, Fabindia stands as the largest private platform showcasing traditional crafts and knowledge. A significant portion of its products originates from villages nationwide, where Fabindia collaborates closely with artisans, providing support in design, quality control, financing, and sourcing raw materials. Fabindia's mission is to provide customers with a range of natural, craft-based products and a lifestyle that champions alternatives to mass-produced goods, all while fostering sustainable livelihoods in rural areas. Lessons Learned: Building an Adaptive and Resilient Supply Chain The COVID-19 pandemic disrupted our supply chain, particularly impacting our core apparel business despite an uptick in home sales. However, thanks to our enduring partnerships with all our suppliers, we chose not to cancel orders and remained committed to our agreements. These relationships, cultivated over decades, are built on mutual understanding and trust, transcending mere transactions. This bond of trust between Fabindia and its suppliers proved invaluable in navigating the pandemic's challenges. Consequently, our performance now exceeds pre-COVID levels, highlighting the robustness and adaptability of our supply chain in facing future adversities. Seamless B2B, B2C, and D2C Operations Over the last six decades, Fabindia has nurtured and expanded its ecosystem. Artisans from diverse regions of India meticulously craft our products, which are then transported to our warehouses and retail outlets. Our longstanding relationships with craft-based vendors, developed over many years, have enabled us to implement Closer to Trend (CTT) buying practices. This includes strategic planning for seasonal purchases and maintaining an Ideal Stock Quantity (Perennials) well in advance. We closely monitor On-Time-In-Full (OTIF) performance throughout the supply chain to ensure the freshness of products across all sales channels. Our seamless omni-channel fulfillment covers Business-to-Business (B2B), Business-to-Consumer (B2C), and Direct-to-Consumer (D2C) channels, facilitated by Warehouse Management Systems (WMS), Order Management Systems (OMS), and a robust Transportation Management System (TMS). Omni-Channel strategies for Growth Whether catering to internal customers (B2B) or external customers (B2C/D2C), our warehouse and logistics team collaborates closely with the business teams to ensure an exceptional overall customer experience. We continuously identify areas for improvement and diligently work to enhance them. Central to our efforts is maintaining efficient dispatch to delivery Turnaround Times (TATs), providing transparent delivery timelines to customers, and ensuring a superior last-mile delivery experience. Our omni-channel fulfilment capabilities have been honed through meticulous operational and infrastructure preparations tailored to the specific requirements of each channel. Our focus on inventory management, fulfilment processes, and customer service standards has enabled us to effectively manage growth across all channels. We've established omni-channel fulfillment capabilities that allow customers to place orders through in-store tablets, as well as via the website and app. Fulfilment for B2B, B2C, and D2C orders is managed through best-in-class Warehouse Management System (WMS) and Order Management System (OMS), supported by a robust Transportation Management System (TMS). Nevertheless, challenges arise in managing fulfilment TATs that differ among channels. Maintaining optimal inventory levels across multiple channels, without excess or shortages, is especially challenging due to the diverse demand patterns observed in each channel. Cost Optimisation Strategies: Balancing Quality and Services To tackle the challenge of increasing input costs, we've put in place several strategies. First, we're optimising our internal processes to cut costs without compromising quality. Second, we're working closely with our logistics partners to lessen the impact of these rising costs. Our partners are key in helping us streamline operations and come up with creative solutions during tough times. We've found success in reducing transportation expenses by consolidating shipments at our warehouses, optimising routes, and negotiating with suppliers. Our logistics partners ensure on-time delivery and minimising disruptions, which improves overall efficiency and cost-effectiveness. Our goal is to shield consumers from extra financial burdens while maintaining the quality and reliability of our products and services. This proactive approach to cost management, combined with our strong partnership with logistics experts, helps us achieve these goals. Enhancing Efficiency in Supply Chain The Fashion Supply Chain's complexity stems from managing a wide range of unique product variations (SKUs). To tackle this, technology and automation have become crucial for enhancing efficiency. Product Lifecycle Management (PLM) software offers detailed insights into each stage of a product's life, optimising development processes. Vendor portals, like Advance Shipping Notice (ASN) systems, improve inbound visibility from vendors to warehouses, speeding up receiving processes. WMS tracks inventory in real time, guiding storage and retrieval for efficient omni-channel fulfilment. Automated sortation systems rapidly sort large inventories based on various attributes like size and shipping speeds. TMS provides complete visibility of in-transit stocks, automating shipping processes for cost savings, visibility, and faster deliveries. Merchandise planning tools aid in precise stock planning, boosting sales and reducing markdowns. OMS consolidate orders from multiple platforms and automate their fulfilment. These technologies, integrated into our omni-channel supply chain, have optimised warehousing and logistics, enhancing efficiency, accuracy, and agility with comprehensive visibility across the process chain. Integrated Systems for enhanced Visibility Implementing a WMS, Put-to-Wall sortation system, and robust TMS has strengthened our ability to consistently achieve OTIF performance across our omni-channel fulfilment operations. Seamless inventory visibility throughout the supply chain enables us to optimise operations and anticipate potential delays. As our volumes grow and our domestic and international presence expands, we actively collaborate with new automation and technology vendors to stay ahead of industry advancements. In our omni-channel supply chain, we've leveraged technology across various areas to enhance warehousing and logistics, leading to improved efficiency, accuracy, and flexibility. Integration of WMS, sortation systems, OMS, and TMS with our Enterprise Resource Planning (ERP) solution has provided complete visibility throughout the process chain. Continuous Improvement Culture: Collaborative Solutions Efficient logistics management is critical for ensuring timely and cost-effective operations, directly impacting customer satisfaction. Our logistics partners oversee a range of functions, including transportation, warehousing, inventory management, order fulfilment, and distribution. Third-party Logistics (3PL) providers come into the picture as strategic partners that offer benefits such as optimising supply chains, cost efficiency, and improving customer satisfaction. Through close collaboration, we align with our 3PL partners to understand warehouse processes and pursue shared strategic objectives. Our company fosters a culture of continuous improvement, actively seeking feedback and collaborating on innovative solutions. Key performance metrics with our 3PL partners include order and inventory accuracy, productivity per person, and space utilisation. Similarly, with transportation partners, metrics like on-time delivery and accuracy are crucial. We regularly monitor carrier performance scorecards to ensure customer satisfaction. Collaborating with 3PL partners indeed allows us to leverage their expertise, network, and resources, optimizing our logistics operations. To efficiently manage omni-channel (B2B, B2C and D2C) fulfilment, we strategically utilise diverse transportation modes such as containerised Full Truck Load (FTL), Express Cargo (Surface), Air Cargo, and various last-mile delivery options for Same Day Delivery (SDD) and Next Day Delivery (NDD). Foundations for Renewed Success In today's business landscape, supply chain management is pivotal due to factors like Customer Satisfaction, Innovation, Strategic alignment, and Cost Efficiency. These elements underscore the importance and value of a well-managed supply chain in modern businesses. My two cents of advice for new and aspiring supply chain professionals are: Gain practical knowledge: Seek hands-on experience in Procurement, Warehousing and Logistics through internships or entry-level roles to understand supply chain operations better. Foster a solution-oriented mindset: Develop problem-solving skills to tackle complex challenges in the supply chain effectively. Strengthen interpersonal skills: Effective communication and collaboration with cross-functional teams are crucial for success in supply chain management. Embrace technology and automation: Stay updated on new technologies and automation to optimise supply chain processes and improve efficiency. Prioritise sustainability: Focus on integrating sustainable practices into the supply chain and explore ways to implement best practices.
To remain profitable and create value for customers, the air freight supply chain has to effectively build on criteria such as quality, innovation, efficiency, speed, reliability with the vision to be open to all sectors and offer innovative products, services and operations that can help the industry flourish. The explosive growth of on-line shopping alone will keep the air cargo sector very healthy in 2022 and beyond, and carriers like Turkish Cargo are starting to use big data research in creative ways to increase cargo yields and introduce more velocity into shipper’s supply chains. While economies of scope are characterised by efficiencies formed by variety, economies of scale are instead characterised by volume. Economies of scale, for instance, helped Turkish Cargo maintain sustainable success within its air cargo operations conducted to all over the world. According to Fatih Ciğal, the airline’s Senior Vice President of Cargo Marketing, they continue to script success with more effective solutions by developing and using new technologies and innovative approaches. One of the significant examples of these approaches, he says will be the SmartIST, one of the biggest and most modern air cargo facilities in the world. Excerpts from an insider with Upamanyu Borah. CARGO AVIATION IN A POST-PANDEMIC WORLD Air cargo capacity has become even more valuable, since half of the world’s capacity was supplied by passenger aircraft. From the data point of view, difference between the growth rates of demand and supply kept the rates higher. In 2020, this difference was roughly 10 percentage points, but now it increased to 15 percentage points. We expect this situation to continue until mid-2022. The past years have resulted in a modal shift from sea to air, and the entire aviation industry stakeholders are taking advantage of the conveniences air mobility offers to customers. In this context, Turkish Cargo had come up with new strategies and took necessary actions during the pandemic. Our operations worldwide have provided a global air bridge via our cargo facilities at Istanbul Airport. We have been carrying time- and temperature-sensitive products such as medical supplies and other essentials to meet the needs of the market and customers with offering faster and reliable shipping across a worldwide network. Today, we boast a huge cargo fleet comprising 24 freighters further supported by belly and PaxFre flights in order to meet the increasing demand with efficiency in network management. CRISIS OFTEN SPAWNS THE BEST INTERVENTIONS THROUGH DISTORTIONS The issues, experienced currently by the air cargo industry can be listed under a few main topics. These are digitalisation, capacity, security and safety, liberalisation, sustainability and intra-industry cooperation. I consider one of the most important challenges to be digitalisation. In the last five years, the industry has been involved with virtual integrations due to digital developments. Within this framework, even Turkish Cargo has been adapting activities to the new market dynamics in terms of network and fleet. We have been enhancing the overall service and network coverage offered to customers. MAKING TECHNOLOGY WORK HARDER FOR OWNSELF The future of air cargo is based on technological developments and digital transformation, and Turkish Cargo has been attaching great importance to digitalisation which has enabled the company to overcome challenges during the pandemic and adapt operations and services. Within this framework, Turkish Cargo took good steps towards digitalisation with a WhatsApp Chatbot called ‘Cargy’ which is offering customers opportunity to learn about their AWB status and tariff inquiries based on O&D via WhatsApp with 24x7 access from their phones. One of the processes that we have been conducting and investing into is RPA technology, and therefore integrating software robots which we call metal collars into our business processes. Turkish Cargo has also enhanced services in partnership with WebCargo in order to provide a brand-new channel to customers for smoother, easier and faster reservation. Customers can book from anytime and anywhere and get fast responses to their inquiries. In this context, we have been receiving very positive feedbacks from our customers and sector partners. SEAMLESS MOVEMENT OF GOODS AND INFORMATION Being highly competitive, the air cargo industry requires innovative and digital solutions to meet the needs of customers for an enhanced speed and efficiency. Within this framework, digitalisation strategy is one of the key points to ensure digital transformation. Providing end-to-end digitalisation to cover all processes is both critical and essential. Significantly, Turkish Cargo's most recent investment in this development path is the new cargo terminal project at Istanbul Airport ‘SmartIST’ which will be offering smart warehouse systems, work orders integrated with the use of augmented reality and voice directed warehousing, unmanned ground vehicles, RPA robots, IoT and other technological advancements to propel Turkish Cargo to the future. A SHARP, RATIONAL AND CONSISTENT APPROACH TO REFORMS TO HELP THE INDUSTRY CRUISE What is significantly observable is that airlines have started to make use of their freighter fleet more actively and the orders for freighters have also increased worldwide. We are of the opinion that such solutions will provide significant contributions to the offerings around current needed capacity to the industry. Along with global warming, quest for clean energy prompts the search for alternative resources with respect to environmentally-hazardous fuels to curb carbon emissions. Investment in this field by companies will place significant burden into financials coupled with the Air Cargo Carbon Footprint (ACCF) programme implemented by IATA for the purpose of accomplishment of its projects under the sustainability heading. Revenue-decreasing factors may be encountered in the field, such as reduction of the tonnages being carried (due to fuel consumption) and modernisation of fleet due to the risks of sanctions by the regulatory and supervisory supranational organisations. Looking into such issues, companies have managed to reduce fuel costs further, in particular with the increase at the factory-fresh and younger freighter fleet during recent years. Two per cent of global carbon emissions are generated purely by aviation, given the fact that the share of aviation is lower as compared to that of maritime transportation which constitutes 4 per cent of global carbon emissions. However, air cargo is the only mode of transport within which carbon emission per shipment is the highest. All stakeholders of the air cargo industry have therefore set the foot forward to play a key role in the accomplishment of carbon emission targets they have set for themselves and subsequently for the aviation industry. ENOUGH SCOPE FOR OFFERINGS AND CAPACITY TO BLOOM AND GROW Turkish Cargo has been operating one of the world's largest airfreight networks and stands as the fastest growing air cargo brand in the world. We are proud to say that we transport 1 each 20 shipments transported worldwide and we further aim to adapt rapidly to the new market dynamics by acting proactively in order to take the right position in the industry. Turkish Cargo increased global market share to 5.4 per cent according to September 2021 data and reached 97 international destinations with cargo freighters. This means the world's largest network of cargo freighters. As we target to become one of the top three air bridges of the world, we continue to expand our network and fleet along with services offered to meet the needs of customers.
