Even with these advances in modern supply chain management, global supply chains add several layers of complexity to inventory control. This means that inventory management is vital to supply chain planning. In light of the logistical and cost challenges faced over the past year, companies need to do a better job stressing the importance of the discipline. Fortunately, initiatives toward leveraging Big Data, AI, and Machine Learning are empowering inventory management systems that enable supply chain managers to meet increased demand for production and speed of fulfilment. If the world had any doubts about the importance of a responsive and agile supply chain, the erratic demand variation associated with the COVID-19 pandemic removed them. Creating a responsive and agile supply chain and then creating benchmark inventory management capability where it must exist is vital to today’s supply chains. Vishwesh J Nair, Head of Strategy, Operations and Supply Chain at The Belgian Waffle Co. speaks in detail about how inventory optimisation has become the gold standard for today’s supply chain managers and that efficient inventory management has boosted his company’s profitability, enhanced supply chain visibility and improved operations by keeping a steady inventory flow. Excerpts by UPAMANYU BORAH...
Genesis and Operations
The Belgian Waffle Co. started out with one outlet in Mumbai and today is present in more than 100 cities in India and counting.
Taking the multichannel route, the brand, which was founded in 2015, now aims to be present across segments, including quick-service restaurant (QSR) outlets, e-commerce platforms, modern trade and A-list stores across the country. In fact, we intend to soon become the largest QSR player in the country in the dessert category.
As we continue to build our offline presence, we are guided by the same ethos we had in 2015 – simplicity, affordability and excellence in customer experience. We look to the future of making a shining example of an Indian QSR brand making its mark globally on the back of our patrons’ affection and love.
Unique and innovative strategies enabling service abilities
To ensure better supply of our products, we continuously assess and adapt stringent strategies to remain competitive and meet customer expectations. Benchmarking practices play a critical role in this ongoing process of improvement, helping us stay informed about global best practices and adapt to changing market conditions.
We focus on optimising the supply chain by leveraging advanced technologies, such as AI, IoT, and data analytics, to gain better visibility into operations. This helps in demand forecasting, inventory management, and order fulfilment.
We often strive to strike a balance between lean and agile supply chain strategies. While lean principles reduce waste and minimise costs, agile strategies enable quick responses to changing customer demands and market dynamics.
We are keen towards building strong relationships with vendors and suppliers. Collaborative partnerships, long-term contracts, and open communication help us to ensure a steady supply of high-quality products.
We also implement risk management strategies to identify, assess, and mitigate potential supply chain risks. This includes diversifying suppliers, assessing geopolitical and environmental risks, and having contingency plans in place.
Aligning distinct capabilities with a strategic Innovation Approach
For our core business, we have always had a pan-India focus and ensured our model is built to always fit that vision of scale while prioritising quality. Our products have a high shelf life and we provide our own custom products and flavours centrally to all our own and partner stores throughout the country and internationally through third-party logistics. Importantly, by maintaining a strong focus on food quality, we ensure that delivery orders meet the same high standards as in-store service.
Adapting to the demands of e-commerce and faster deliveries in the QSR industry requires a combination of technology, data-driven insights, process optimisation, and a customer-centric approach. By embracing digital transformation and focussing on efficient supply chain practices, we ably meet the evolving expectations of today's consumers. We strive to implement an integrated digital ordering system that enables customers to place orders through various channels: mobile apps, websites, third-party delivery platforms, and in-store kiosks, ensuring seamless communication between the digital front-end and the back-end supply chain to optimise order processing.
Talking about inventory management, we continue to focus on implementing advanced inventory management systems to monitor and adjust inventory levels in real-time by leveraging demand forecasting tools to anticipate fluctuations in demand and optimise stock levels.
Enabling straightforward Value Generation
We are implementing cost optimisation measures to prevent additional costs for consumers. Our logistics partners also play a crucial role in streamlining operations to mitigate adversities.
In the current landscape of escalating input costs for various products, we have implemented a multifaceted strategy to ensure that the burden of these additional expenses is not passed on to the end consumer.
Our approach involves rigorous cost analysis and optimisation of our internal processes. We identify areas where we can reduce costs without compromising product quality or customer experience. This involves renegotiating contracts with suppliers, exploring alternative sourcing options, or enhancing our production efficiency.
Collaboratively, our company ensures efficient transportation, warehousing, and distribution, which minimises the overall cost of bringing products to the market. Our logistics partners work closely with us to identify opportunities for route optimisation, reduce transit times, and implement sustainable practices to save on fuel costs.
Additionally, technology and data-driven logistics solutions are leveraged to enhance visibility and responsiveness in the supply chain. This allows us to anticipate and address any logistical challenges promptly, avoiding delays and additional expenses.
Ensure technological prowess in a rapidly evolving system
In today’s fast-paced and dynamic business environment, we recognise the pivotal role that technology plays in ensuring efficiency, visibility, and responsiveness within our supply chain. Our commitment to leveraging advanced information technology solutions to fortify our supply chain operations has yielded significant success.
We use Custom Less than Truckload (LTL) Panel/Dashboard to track consignments on a Part Truck Load (PTL) basis. We are able to track freight charges, when will it reach, breakup of delivery cost and many other elements of delivery.
We use Advance Data Analytics tools to forecast the demand for every SKU which is used in our organisation.
We use a Transportation Management System (TMS) to plan and optimise our transportation routes. This helps us to reduce costs and improve delivery times. We are also committed to sustainability, and we are using information technology to reduce our environmental impact. For example, we use our TMS to optimise our transportation routes to reduce fuel consumption.
We use a Warehouse management system (WMS) to manage our inventory and automate tasks in our warehouses. This helps us to improve efficiency and reduce error as well as waste.
We use Big Data to optimise routes and space in the warehouse. Route optimisation helps in delivering raw material on time in minimum cost. Similarly, warehouse space optimisations help in accommodating more material, which leads to timely supply of goods to each and every outlet.
Tight-knit collab strategies to keep the engine running
To ensure smooth coordination between suppliers, distributors, and transporters/logistics service providers, we take the following steps:
Establishing clear communication channels: It is important to have clear communication channels in place so that all stakeholders can communicate with each other easily and efficiently. This includes establishing clear channels for order placement, tracking, and dispute resolution.
Sharing information regularly: It is also important to share information regularly with all stakeholders. This includes sharing information on inventory levels, order demand, and transportation schedules. This helps to ensure that everyone is on the same page and that potential problems can be identified and addressed early on.
Using technology to automate tasks: Technology can be used to automate many of the tasks involved in logistics coordination. This can free up time for stakeholders to focus on more strategic initiatives. For example, we use a TMS to optimise transportation routes and track shipments. We have also deployed a WMS to automate tasks in the warehouse.
Building relationships with key stakeholders: It is important to build relationships with key stakeholders, such as suppliers, distributors, and transporters. This helps to build trust and cooperation, which can lead to improved coordination. For example, we meet with our suppliers and distributors on a regular basis to discuss their needs and requirements. We also work with our transporters to develop contingency plans in case of disruptions.
Logistics—Essential to Strategy
We are one of the fastest growing QSR chains across India. We believe in only serving freshly baked, hot crunchy waffles to our customers, which is why we require our logistics team to supply the raw material to all our stores at regular intervals and on time.
We have our own in-house logistics arm as well as outsource to other logistics partners. We handle 80 per cent of logistics on our own and 20 per cent is managed by 3PLs. Following are some of key functions bestowed on our 3PL providers:
Transportation: 3PL providers help us to transport products from one location to another in the designated areas. They are responsible for timely dispatch of orders to the stores.
Warehousing: 3PL providers help us to store our products in the warehouse. This includes providing secure storage, inventory management, and order fulfilment services.
Direct Procurement: Some of the products are directly procured by the 3PL facility without interference of the mother warehouse.
Freight Forwarding: 3PL providers manage the entire shipping process, from booking transportation to handling customs clearance.
Value-added Services: 3PL providers offer a variety of value-added services, such as kitting, packaging, and assembly. This saves our business time and money, and helps us to improve the quality of our products.
Technology Solutions: Our 3PL providers offer us technology solutions that help our business to track our shipments, manage our inventory, and optimise the supply chain.
Few of the qualities we seek in a logistics service provider before choosing their services:
Experience and expertise: We look for LSPs with experience in transporting the types of goods we need to ship and in serving the Quick Service restaurant industry. We also look for LSPs with expertise in the specific transport modes and routes we need to use.
Reliability and good track record: We look for LSPs with a reputation for reliability and on- time delivery. We also look for LSPs with a good track record of customer service.
Competitive pricing: We compare the prices of different LSPs to get the best possible deal. However, we are willing to pay a premium for a reliable and experienced LSP.
Technologically-enabled: We look for LSPs that use technology to track shipments and provide real- time visibility. We also look for LSPs that offer web-based portals where we can manage my shipments and get quotes.
Flexibility and customisation: We look for LSPs that are flexible and can customise their services to meet specific needs.
In addition to the qualities listed above, we also look for LSPs that are committed to sustainability. We want to work with LSPs that are taking steps to reduce their environmental impact. For example, we look for LSPs that are using alternative fuels and investing in renewable energy.
Refined planning of Logistics
Some policies that we have implemented to streamline outsourcing of logistics services and the use of alternative transport modes and routes:
Developing a clear understanding of our logistics needs: This includes understanding the types of goods we need to transport (durable or non-durable goods, raw material or packaging material), the distances involved, and the delivery timeframes. Once we factor in these variables, we have a clear understanding of our needs. After that, we start to identify alternative transport modes and routes that can meet those needs.
We transport goods in urban areas, which is why we work with a logistics provider that specialises in last-mile delivery. This helps us to reduce congestion and emissions in urban areas
Work with a variety of logistics providers: We don't rely on a single logistics provider for all of our needs, because that can make us vulnerable to disruptions and price increases. Instead, we work with a variety of logistics providers, including those that specialise in alternative transport modes and routes.
Negotiating contracts with logistics providers: This helps us to get the best possible prices and service levels. While negotiating contracts, we make sure to specify our requirements for alternative transport modes and routes.
Monitoring logistics operations and making adjustments as needed: It's important to monitor logistics operations on an ongoing basis to identify areas where we can improve efficiency and reduce costs. This includes monitoring the use of alternative transport modes and routes. For example, we use data to identify shipments that are frequently delayed or that are costing too much to transport. Then, we work with our logistics partners to identify ways to improve the efficiency and cost-effectiveness of these shipments.
Warehousing strategies that alleviates the bottom-line
Some of the warehousing strategies we deploy are:
Hub and Spoke Model: We follow this model for the distribution of raw material across different warehouses and stores. We have four major hubs across India, i.e. Mumbai, Delhi, Kolkata and Bengaluru (which are our warehouses) and all our outlets are the spokes, which receive material from them.
Centralised Inventory Management: We maintain a centralised inventory management system that allows real-time visibility of stock levels at one warehouse. Mumbai is helmed as the mother warehouse which provides material to all the other warehouses. This ensures that we have a holistic view of inventory, enabling better decision-making and coordination.
Efficient Transportation Strategies: We implement efficient transportation strategies, such as route optimisation and consolidation, to minimise delivery costs and enhance delivery speed. This ensures that all stores receive stock promptly while reducing unnecessary expenses. Every store is allocated a particular time period for the delivery of raw material depending upon the locations. Further, we deploy multiple transportation vendors in order to put in place a cost-efficient and quick transportation system by ensuring:
Collaboration: This is the process of working together with suppliers, partners, stores and other stakeholders to optimise the supply chain. By collaborating with others, we share information and resources to improve efficiency and reduce costs.
Continuous Monitoring and Analysis: Our supply chain team constantly monitors inventory levels, sales performance, and logistics efficiency. Regular analysis of this data allows us to identify trends, opportunities, and areas for improvement in the supply chain.
Some of the other tactics that we deploy are:
Lean warehousing practices: Lean warehousing is a set of principles and practices that help QSRs to eliminate waste and improve efficiency in their warehouses. Lean warehousing practices help QSRs to reduce costs and improve customer service.
Vertical spaces: QSRs use vertical space to store more inventories in their warehouses. This helps QSRs to reduce their warehouse footprint and save money on rent.
Meeting the need for a viable backend infrastructure
Few of the other things we do to maximise the efficiency of our logistics and backend operations:
Use demand forecasting tools: These tools help us to forecast demand more accurately and ensure that we have enough transport resources to deploy on a regular basis to meet the demand.
Use technology: Technology helps us to automate tasks, improve visibility into the supply chain, and make better decisions. We use Custom LTL (Less than Truckload) Panel/ Dashboard to track consignments on a PTL (Part Truck Load) basis. We are able to track freight charges, when will it reach, breakup of delivery cost and many other elements of delivery.
Fast track Service: We understand that the business involves unprecedented circumstances which might create the need for last minute delivery of raw material which is why we also provide fast track service to all of our stores for delivery of raw material apart from its delivery schedule.
Stay up-to-date on compliance requirements: We try to stay up-to-date on compliance requirements so that we can ensure that our business is compliant.
Use data to improve your decision-making: We collect data on our logistics and backend operations and use it to identify areas where we can improve efficiency. For example, we use data to optimise our inventory levels and shipping routes.
Invest in people: We invest in training and development of employees so that they have the skills and knowledge they need to be successful. We also create a positive work environment where employees feel valued and supported.
Monitor and measure performance: We monitor and measure the performance of our logistics and backend operations on a regular basis. This allows us to identify areas where we can improve.
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.
Mahindra World City Jaipur (MWC Jaipur), a joint venture between Mahindra Lifespace Developers Ltd (MLDL) and Rajasthan State Industrial Development and Investment Corporation (RIICO) announced it concluded 26 new lease agreements between April 2021 and June 2022. The new signings included both new customers and expansion of facilities by existing clients, together leasing about 137 acres of land. In the same period, MWC Jaipur and its constituent units' aggregated investments crossed Rs 721 crores, and cumulative exports by MWC Jaipur exceeded Rs 15,930 crores, of which Rs 3,321 crores were in the last 15 months. Over these fifteen months, a total of 69 companies have completed their facility buildout at MWC Jaipur and become operational. The new entrants to MWC Jaipur represent a variety of sectors, like Logistics and Warehousing, IT & ITeS, Engineering, Furniture Manufacturing, Solar Energy, Gems and Jewelry manufacturing. The newly added roster of clients at MWC Jaipur includes Wipro Hydraulics, Shakti Hormann, Renew Photovoltaics, Kerakoll India, Normet, Gulmohar Lane Lifestyle, Manor & Mews, J Atelier Pink City, Kamal Coach Works, Maxop Engineering, amongst others. Rajaram Pai, Chief Business Officer – Industrial, Mahindra Lifespaces said, “MWC Jaipur today is home to prestigious domestic and international manufacturing companies from across the world, who have established a manufacturing base in India for the first time. Enabling business acceleration for customers has always been our focus. We continue to deliver the highest urbanisation standards by leveraging innovation, thoughtful design, and a deep commitment to sustainability. MWC Jaipur contributes towards generating incremental employment and income for the state while creating world-class infrastructure which would serve the nation for many years to come. We are glad to be the enablers of Make-in-India and Make-for-India.” Becoming a preferred destination of choice for over 121 global and domestic companies, MWC Jaipur is enabling business growth for customers by crafting a conducive environment, with robust infrastructure and facilities that propagate ease of doing business. Mahindra World City Jaipur is the first project in Asia to receive Climate Positive Development Stage 2 Certification from the C40 Cities Climate Leadership Group (C40), a global network of large cities taking action to address climate change. With a focus on climate-positive development, MWC Jaipur is continuing its efforts on integrating sustainability within the city. Green, integrated developments is continuously being upgraded to mitigate the impact of business operations on the environment. As of March 31, 2022, a total of 59,955 trees have been planted in government-approved forest areas and rural areas under the Mahindra Group’s flagship program – Hariyali. Around 11,100 trees have been planted within the industrial park.
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.
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.
