Emerging Trends in Warehousing

1Integrated Supply Chain Solutions

VALUE ADDS THRU SERVICE PROVIDERS

EMERGING TRENDS IN

WAREHOUSING.

A Division of TCI Ltd

B Sumit KumarDGM-Projects

2Integrated Supply Chain Solutions

1. TCI Group : Brief Overview

2. Emerging Warehousing Trends

3Integrated Supply Chain Solutions

HERITAGEHERITAGE

• 48 years of experience• Started as One Man, One Office and One

Truck.• India’s leading Integrated Supply

Chain Solutions provider.

• Amongst the most respected service organization in the country.

4Integrated Supply Chain Solutions

GROUP INFRASTRUCTUREGROUP INFRASTRUCTURE

• Group Revenues of Rs 10000 Mn (US$ 225 Million) in Financial Year 2005-06

• Network of over 1100 company owned branches

• One booking station within every 100 sq. kms. • Five million sq. ft. of warehousing space ,

including 1.2 million in the metro’s• High mobile asset base of owned vehicles and

dedicated vendors.• At any point 6000 trucks are carrying TCI

shipments.

5Integrated Supply Chain Solutions

STAKE HOLDERSSTAKE HOLDERS

• 150,000 customers across all major verticals

• 20,000 Shareholders

• 3,000 vendor associates

• 5,000 professionally trained personnel

• 15,000 outsourced hands.

6Integrated Supply Chain Solutions

STRATEGIC BUSINESS UNITSSTRATEGIC BUSINESS UNITS

Providing FTL/FCL, LTL, Sundry & Over-dimensional cargo services through surface and sea.

India’s fastest growing express company for door to door, time sensitive needs.

A Single-window solutions enablerproviding customized services.

7Integrated Supply Chain Solutions

STRATEGIC BUSINESS UNITSSTRATEGIC BUSINESS UNITS

A TCI-Mitsui JV, it is the Lead logistics partner for Toyota for their entire in-bound and out-bound logistics in India.

Specialized in coastal shipping around India & neighboring countries

Involved in education, health care and a beneficiary of the Bill & Melinda Gates Foundation running AIDS Intervention Programs.

8Integrated Supply Chain Solutions

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Clearing and Forwarding

Supply Chain Management

LogisticsRoad / Rail / Sea / Air

Warehousing

GROUP PRODUCTSGROUP PRODUCTS

9Integrated Supply Chain Solutions

KEYKEY VERTICALSVERTICALS

• OEM Solutions

• Line feeding

• Spares Distribution

• CBU Distribution

• Reverse Logistics

• Customized Fleet

• Warehousing

• Supplier Management

• Multi-Modal Movement

• Mother Depot

• Distribution Centers

• Last mile distribution

• Supplier Management

• Multi-Modal Movement

• Warehousing

• Reverse Logistics

AUTO CHEMICALS TELECOM

• Inbound Logistics

• Tower Installation

• Handset Distribution

• Warehousing

• Multi-Modal Movement

• Express Movement

• Reverse Logistics

RETAIL & CP

• Supplier Management

• Multi-Modal Movement

• Express Movement

• Cold Chain

• CFA management

• Reverse Logistics

PHARMA

• TCI- SCS is focused on Six Industry verticals with a separate dedicated team for each of them:

• Supplier Management

• Primary Movement

• CFA management

• Spares management

• Warehousing

• Reverse Logistics

E & E

10Integrated Supply Chain Solutions

1. TCI Group : Brief Overview

2. Emerging Warehousing Trends

11Integrated Supply Chain Solutions

Trend : Palletization

• Most storage in India is done by manual labor with head loads

• Slowly ,head loads are giving way to palletization

Perceived lower cost of laborHigher handling cost / unit / ton ,Labor Unrest.

Absence of consciousness of the inherent costs of time

Faster turnaround in WH and vehicle

RETARDERSCATALYSTS

12Integrated Supply Chain Solutions

Trend : Racking Systems

• The major warehouses today are on block storage

• The trend is now towards vertical warehouses .

Staggered response parametersBlock storagePalletization and MHE’sLow cost of landCost of Land

RETARDERSCATALYSTS

13Integrated Supply Chain Solutions

Trend : Mechanization

• With head loads being the norm , MHE usage is low.

• The start is from trolleys and then progressing to hand-pallet trucks and fork lifts and stackers

Perceived low cost of laborCost of laborChalta hai Response time

Globalization , EXIM tradeRETARDERSCATALYSTS

14Integrated Supply Chain Solutions

Trend : Consolidation

• The warehouses for distribution are being consolidated from multiple (28!) to few ( 6?).

Awareness of Supply ChainCost of operationsUncertaintyVAT implementation

RETARDERSCATALYSTS

15Integrated Supply Chain Solutions

Trend : Bar Coding !

• Conventionally material is counted physically based on visible markings.

• Bar coding is picking up strongly in the unit packaging as a pressure from customers (especially retailers)

Customer pressureLack of IT infrastructureHigh transactionsLow value Accuracy of operation

RETARDERSCATALYSTS

16Integrated Supply Chain Solutions

Trend : WMS

• The traditional ‘storage’ software is given way to advanced Warehouse Management Systems

Cost of WMS is “Non-Indian”ComplexityLow responseLarge warehouses

RETARDERSCATALYSTS

17Integrated Supply Chain Solutions

Trend : Online

• From a stand-alone status we are fast progressing towards web-enabled applications

UnderstandingBetter connectivityConnectivity issuesMultiple Data Entry

RETARDERSCATALYSTS

18Integrated Supply Chain Solutions

Trend : Outsourcing

• The “do-it-ourselves” approach is giving way to an understanding of benefits of outsourcing to professionals and keeping the organization lean.

Cost consciousnessHidden costsSupply chain savvy

RETARDERSCATALYSTS

19Integrated Supply Chain Solutions

Trend : Co-Warehousing

• Another trend is the acceptability of co-warehousing and enjoying cost benefits.

Uncertainty of demandData SecurityCost pressures

RETARDERSCATALYSTS

20Integrated Supply Chain Solutions

Trend : RFID

• The most “glam” technology today in Supply chain

VISIBILITY

Still in nascent stages of evolution – accuracy concerns

Synchronized supply chain requirements

RETARDERSCATALYSTS

21Integrated Supply Chain Solutions

Thank YouFor enquiries

Sumit.kumar@tcil.com

09373311456