CARGOCONNECT JULY2024 - Flipbook - Page 67
“Two years ago, we introduced the
Automated Truck Parking Facility at
our airport. It operates entirely through
automation, allowing truck bookings
with detailed information on their
destination cargo terminals for loading
or unloading. Upon booking, a vehicle
token and QR code are generated, which
can be conveniently sent to the driver.
Upon arrival, the driver presents the
QR code at the entry point, where it is
scanned, transmitting real-time data to our cargo terminal operators. The truck
is only permitted to leave the facility once it receives approval from the cargo
terminal operator, contingent upon dock availability. This process ensures
seamless coordination between truck arrivals and terminal readiness. With the
introduction of this automated system, turnaround times have signi昀椀cantly
improved to between 45 minutes to 1 hour. This substantial reduction not
only optimises our operational capacity but also enhances e昀케ciency across
our supply chain ecosystem. Initially, truck dwell times on campus averaged
between 5 to 7 hours due to unpredictable arrival and release schedules. No
matter how e昀케cient your operations become, the e昀昀ectiveness of your supply
chain ultimately hinges on these factors.”
FLETCHER SAMUEL
Senior Manager– Cargo Business, Bangalore International Airport
“To effectively address the risks,
diversi昀椀cation is key. From a sourcing
perspective, increasing diversi昀椀cation
and localising production, such as
through initiatives like ‘Make in India’
can mitigate the risk of supply constraints that arise from over-reliance
on global markets for competitive
pricing. Secondly, robust inventory
planning is crucial to hedge against
upstream risks. This involves strategically managing inventory levels to bu昀昀er against disruptions in supply. On
the demand side, leveraging technology is essential. Adopting advanced
analytics and some degree of arti昀椀cial intelligence (AI) enables businesses
to anticipate and manage future demand 昀氀uctuations e昀昀ectively. Internally,
preparedness across various transportation modes and diversifying between
昀椀rst-party (1P) and third-party (3P) strategies are vital risk management
strategies. Balancing self-reliance with strategic partnerships helps mitigate
vulnerabilities. Flexibility in operational capacities is paramount, particularly
in inbound logistics, warehousing, processing, and last-mile delivery.
Adapting these capacities ensures readiness to tackle day-to-day risks.”
NITIN MANCHANDA, Head– Supply Chain, Amazon Fresh
“Firstly, establishing a mindset and
organisational culture that embraces
continuous change is paramount. This
mindset ensures readiness to meet
increasing customer expectations daily.
Secondly, recruiting and nurturing
talent capable of thriving in ambiguity,
handling tight deadlines, demonstrating agility, and embracing technology
is crucial. Diversity within the team
enhances adaptability and innovation.
Thirdly, optimising processes is essential. Bureaucratic impediments must be
minimised to facilitate swift and agile execution, enabling rapid adaptation to
market dynamics. Fourthly, adaptable infrastructure is key. Unlike traditional
large-scale warehouses, modern logistics demand portable and 昀氀exible solutions
like dark stores strategically located for quick delivery, adapting swiftly to
changing operational needs. Lastly, leveraging technology is indispensable. It
provides the necessary agility and visibility across the supply chain, enabling
swift decision-making and customisation to meet evolving consumer demands.
As a business leader navigating the fast-paced e-commerce supply chain
environment, focussing on these aspects ensures resilience and competitiveness
in meeting current and future challenges e昀昀ectively.”
HIMANSHU MALOO, VP– Supply Chain Planning and Logistics, Diageo
“From procurement planning to demand
planning and store replenishment, our
approach is fully integrated. We've developed multiple tools and algorithms, some
with AI support from our tech team. Currently, these AI tools provide preliminary
outputs, but they're not yet at a stage
where they can autonomously make
decisions. Planning and availability are
critical, especially with shifts in consumer
demand post-COVID, particularly towards
ready-to-cook and ready-to-eat products. This trend presents challenges in
planning and inventory management. We're also developing a tool to track
impression data. If impressions for a product spike on a given day, it signals
our planning team to assess its availability. For example, if a product is highly
searched but not readily available for express delivery, we might shift it from
backend inventory to our faster delivery channels. These initiatives aim to
integrate customer insights directly into our demand planning processes. As
soon as customers show interest in a product through searches, it triggers
adjustments to our catalog or increases in product demand forecasts.”
ABHIJEET KAKANI, Head of FTH Daily and Head of Planning and
Replenishment, FreshToHome
“Supply chain leaders now operate in
ecosystems where technology-enabled
solutions, such as 15-minute delivery capabilities and optimised warehouse networks,
play a pivotal role. When engaging with
partners, there is an expectation that they
adopt and integrate these technologies
into their operations. This prerequisite is
non-negotiable for partners to participate in
discussions. Moreover, achieving maturity
in these ecosystems requires substantial
investment, leading to higher upfront costs but also higher valuations in return.
In the words of Dr Goldratt, it's crucial not to view costs in isolation but rather
as part of a broader solution-oriented approach that prioritises pro昀椀tability
alongside cost considerations. By focussing on delivering comprehensive solutions that meet customer needs and service requirements, supply chain leaders
can drive market success. Ultimately, the emphasis is on ethical practices and
organisational values and starting with a strong value system. Cultivating
such a culture within organisations shapes decisions related to cost structures,
technology investments, and the overall solutions o昀昀ered in the marketplace.
This holistic approach ensures alignment with evolving industry standards
and fosters sustainable growth in the supply chain ecosystem.”
RAUSHAN RISHU, VP– SCM, Page Industries (Jockey India)
“Trade-o昀昀s are inherent in supply chain
decision-making processes. One classic
example is balancing cost versus service
levels, a daily consideration. For instance,
in e-commerce, ensuring high stock availability on platforms enhances customer
satisfaction but typically requires higher
safety stock levels to manage demand
variability. This results in increased
inventory holding costs and the need
for larger warehouse capacities. Another
signi昀椀cant trade-o昀昀 in today's landscape is between quick commerce and
traditional e-commerce. Traditional e-commerce typically o昀昀ers next-day or
two to three-day delivery, whereas quick commerce promises delivery within
10 to 15 minutes. Achieving such rapid delivery times necessitates placing
warehouses closer to urban centers, despite higher real-estate costs and space
limitations. Consequently, these warehouses are smaller, limiting product
assortment compared to traditional setups. These trade-o昀昀s extend beyond
cost and delivery times to include considerations like assortment variety versus
delivery agility. Therefore, decisions regarding supply chain design cannot be
based solely on logistical metrics. They must align with the broader business
model, customer needs, and strategic goals of the company.”
PRANAV MEHENDARGE, Supply Chain Manager– Alternate Channels,
Britannia Industries
CARGOCONNECT JULY 2024 | 67
