View
224
Download
0
Category
Preview:
Citation preview
8/6/2019 LogisticsXpress Vol2 Issue 4
1/57
8/6/2019 LogisticsXpress Vol2 Issue 4
2/57
LOGISTICS NEWS (vi)
REVERSE LOGISTICS
18 Reverse Logistics as the
element of EnterpriseMULTIMODAL
Vol. 2 Issue No. 04
HUMANITARIAN SUPP
FROM THE EDITORRETAIL LOGISTICS
14 Retail logistics and supply
chain management in Indian
INDIAN TRANSPORT & International Context.
NETWORK2 Indian Transport Network at a
glance
Management7 Multimodal Transportation inIndia-An Overview
10 Multimodal Logistics Park
CHAIN
21 Role of Humanitarian Supply C
24 Supply Chain through
Humanitarian Logistics
LOGISTICS IN MEGA EV
29 5 Tier Transportation Plan Fo
Commonwealth Games
31 Mega Events- Logistical Challe
SUPPLY CHAIN RISKS35 Supply Chain Risks
An Indian Scenario
CAMPUS BUZZZ 3
8/6/2019 LogisticsXpress Vol2 Issue 4
3/57
8/6/2019 LogisticsXpress Vol2 Issue 4
4/57
OGISTIKASAdvisory Body:
Dr. S.J. Chopra (Chancellor)
Dr.Parag Diwan (Vice Chancellor)
e-Logistics Xpress is published quarterly.
All Editorial correspondence and papers for
publication should be addressed to the ChiefEditor, Logistikas Society, UPES, Energy
Acres, Bidholi, Dehradun. The submitted
papers will be reviewed by members of the
editorial board and external references.
Dr.G.C.Tewari (Pro-Vice Chancellor)
Prof. Dr. H.C.Trivedi (Dean, CMES)
Prof Mohan Rao (Asso. Dean, CMES)Rakesh Mehrotra (Former MD, CONCOR)
Mukul Jain (Exec. Director, CONCOR)
Arun Sharma (Manager-Supply Chain
Operations, Apollo Tyres)
J.V.B Sastry (Sr. VP Logistics, ACC)
Views expressed in the articles are those of
respective authors. Neither e-Logistics
Xpress nor Logistikas Society, UPES,
Dehradun will accept any responsibility for
views expressed by the author(s). All
copyrights are reserved by respective authors.
Unless authorized, no part of the material
published in e-Logistics Xpress may be
reproduced or stored in retrieval system or used
for commercial and other purposes.
All rights reserved.
Copyright @2010 by Logistikas Society.
Editorial/Subscription Address:
Chief Editor, Logistikas Society,University Petroleum & Energy Studies,Energy Acres, BidholiDehradun-248 007
Email: nanand@ddn.upes.ac.in
Pradeep Dubey (GM, SNOWMAN)
Vivek Tripathi (Manager-HR,Jindal Steel)
Prof. Janat Shah (IIM-B)
Kanakendu Chatterjee (Sr. Supply Chain
Consultant)
Yuvraj Sharma (Regional Director
North, UT Worldwide)Arvind Jain(V.P Supply Chain ,Indo-Asi
Gear Ltd)
Managing Editor:Dr. Rameshwar Dubey (AssistantProfessor, Senior Scale)
Chief Editor:Dr. Neeraj Anand (HOD-LSCM)
Publisher:UPES Dehradun
Administrative Support:Brig. S.S. Dhillon
8/6/2019 LogisticsXpress Vol2 Issue 4
5/57
Subscription DetailsDuration Amount
1 Year `250
2 Years `400
5 Years `850
Editorial Committee:
Mr. Siddharth Mathur(Assistant
Prof.,Selection Grade)
Mr. Vimal Prasad Mathur (Asstt.
Professor, Selection Grade)
Mr.Saurabh Tiwari (Lecturer)
Cover Design & Design And Layout:
Creative Team
Coordinators:
Nitin Mishra
Sangram Keshari Nayak
Rudraksh Saxena (Former Coordinator,MBA-LSCM, Sem III)
Shivansh Tyagi (Former Coordinator,
MBA-LSCM, Sem-III)
Executive Body:
Research Team:
Pankaj Tiwari (Head)
R.Arunan (Former Head,
MBA-LSCM,Sem.III)
Hemant Goyal
Vishnu Padmakumar
Ninad Sawant
Prakhar Saigal
Krishna Shankar Pandey
Poornima Gupta
Editing Team:
Nitin Tripathi (Head)
Ankit Agrawal (Former Head,
MBA-LSCM, Sem III)
Akhil Goyal (MBA-LSCM, Sem-III)
Priyanka Rawat
Sarang Rajvanshi
Aakash Mishra
Sharad Kumar
Ankur Gautam
Event Team:Apurv Malhotra (Head)
Hemen Deka (Former Head,
MBA-LSCM, Sem-III)
Ashish Kumar
Megha Bhatia
Aanchal Sharma
Kushika Sharma
RM Kanappan
Varsha Agarwal
Aparajita Chauhan
Creative Team:Shekhar Kaushik(Head)
Bhanu Nimrani(Former Head,
MBA-LSCM,Sem-III)
Sautik Samanta
Venus Chauhan
Sujata Dumka
Demand Draft to be drawn in favour ofUPES Fee Account
Payable at Dehradun, U.K., India & sent to Chief Editor,
Dr. Neeraj Anand at the subscription address.
8/6/2019 LogisticsXpress Vol2 Issue 4
6/57
FROM THE EDITORSDESK
I feel elated in launching thecurrent issue of volume-II ofour in-house magazineLOGISTICS XPRESS .Wehave incorporated the currentnews in logistics world and
the best practices that arefollowed in logistics andsupply chain industry. Thisissue also covers logistics inmega events & disastermanagement. We lookforward for contribution inthe form of write ups from
industry professionals for thefuture issues of LOGISTICS
XPRESS
Dr. Neeraj AnandCHIEF EDITOR
Head of Department (LSCM)
8/6/2019 LogisticsXpress Vol2 Issue 4
7/57
Logistics NewsDHL to focus on India-Africa trade lane
DHL, the worlds leading logistics company, has announced that its Global Forwarding division is
focusing on Africa as a new engine of growth in the rapidly developing economy of India. With trade
between India and Africa having risen almost four-fold in the last five years, from $9.9 billion in 2004-05
to $39 billion in 2008-09, DHL Global Forwarding sees vast potential in the India-Africa trade lane.
Source: Eye for Transport, Retrieved From: http://logisticstimes.net/news, Retrieved on: 26 Nov, 2010
Pro Logistics signs JV agreement
Pro Logistics India has entered into a joint venture with 2.7 billion Germany Head Quarteredlogistics giant, Rhenus. With this, Pro Log, a reckoning force in logistics in Asian markets is
poised to enhance presence across Europe as well.
Source: Construction Week Online, Retrieved from: http://logisticstimes.net/news, Retrieved on: 26 Nov,
2010
Logistic Bottlenecks Affecting GDP
The Associated chamber of Commerce & Industry of India (ASSOCHAM) has suggestedintroduction of an unified body to develop Indias Logistic Master Plan. In a note submitted to
the government recently, the chamber has stated that currently the Ports, Shipping and Maritime
Logistics (PSML) are highly fragmented and affecting the growth to the extent of 2% of the GDP
on account of logistics and transportation bottlenecks.
Source: Logisticstimes.net, Retrieved from: http://www.scdigest.com/assets/newsviews,
Retrieved on 26 Nov, 2010
Aegis Logistics investing Rs 430 Cr in two oil terminal complexes
Aegis Logistics will invest Rs 430 crore to set up two oil terminal complexes, one at Pipavavport in Gujarat and the other in Haldia port in West Bengal. Addressing newspersons onTuesday, the Aegis Managing Director and CEO, Mr Anish Chandaria, said the company hassigned an agreement with Gujarat Pipavav Port to sublease about 100 acres to set up a 6-lakhkilo litre oil terminal complex at the port. The facility will be set up over a period of three yearsand will attract Rs 400 crore as investment, he said.
8/6/2019 LogisticsXpress Vol2 Issue 4
8/57
Source: Business Line, Retrieved from:
http://www.thehindubusinessline.com/2010/11/24/stories/2010112451680200.htm,Retrieved on:
26 Nov, 2010
Recycling pacemakers may alleviate burden of heart disease across the globe
Millions worldwide die each year because they can't afford a pacemaker. Meanwhile heart
patients in the United States say they'd be willing to donate theirs after death to someone in need.
Small humanitarian efforts have shown reusing pacemakers is safe and effective with little risk
of infection and patients live as long, and as well, with a recycled pacemaker as those who get
new ones, authors say.
Source: Retrieved from http://www.eurekalert.org/pub_releases/2010-10/uomh-rpm101910.php,
retrieved on 26 Nov, 2010
FedEx to buy Indian logistics company AFL
FedEx Express, the delivery giant's airline unit, said Wednesday it has entered into an agreement
to acquire the logistics, distribution and express businesses of AFL and its affiliate, Unifreight
India. "This acquisition will give FedEx a more robust domestic ground network and added
capabilities in India," the company said in a statement. It said the transaction will likely close by
the end of February. Purchase price was not disclosed.
Source: Air Transport World, Retrieved From: http://atwonline.com/airline-finance-
data/news/fedex-buy-indian-logistics-company-afl-1103, Retrieved On: 26 Nov, 2010
Wal-Mart Says Indias Foreign Investment Approach in Retail Progressing
U.S.-based Wal-Mart Stores Inc. Monday said India is progressing in its approach to furtherrelaxing foreign investment rules for the retail industry.
Source: Indian Retailer News, Retrieved From: http://indiaretailernews.com/?p=217#more-217,retrieved on: 26 Nov, 2010
Commercial Warehousing Returns to 2008 Levels
Commercial warehousing revenue in the United States will reach $50 billion this year, accordingto analysis conducted by Armstrong & Associates, a supply chain management market researchand consulting firm.Contract and public warehousing combined are expected to exceed 2008 revenues by 2% afterdeclining in 2009. The contract and public commercial warehousing market now constitutes 45%of the total U.S. market.
http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=217http://indiaretailernews.com/?p=2178/6/2019 LogisticsXpress Vol2 Issue 4
9/57
Source: Logistics Today, retrieved from:http://logisticstoday.com/operations_strategy/commercial-warehousing-returns-levels-1124/,
Retrieved on: 26 Nov, 2010
Retail Deployments Help RFID Market Reach $5.5 Billion
There's no end in sight when it comes to the growth potential for the radio frequency
identification (RFID) market. Analyst firm ABI Research is forecasting a total market size of
about $4.6 billion by the end of 2010 for RFID systems (hardware, software, and services). The
total could reach as high as $5.5 billion when hardware-only shipments to support automobile
immobilization are included.
Source: Logistics Today, Retrieved From: http://logisticstoday.com/operations_strategy/retail-
deployments-rfid-market-reach-billion-1124/, Retrieved on: 26 Nov, 2010
High-Tech Container Solution Developed to Foil Terrorists
The shipment of cargo containers is a critical component of international trade and plays afundamental role in the global economy. According to the U.S. Bureau of Customs and BorderProtection, about 90% of the world's trade is transported in cargo containers, with almost half ofincoming U.S. trade arriving by containers aboard ships. As terrorist organizations haveincreasingly turned to destroying economic infrastructure to make an impact on nations, thevulnerability of international shipping has come under scrutiny. Researchers at the University ofMaryland, College Park, have developed a technique to detect use of dirty bombs. Ionization ofair surrounding crates is a sign of radioactive material. If authorities can detect this ionization
outside of the crate, they can select specific containers for inspection, improve security and avoiddelays in commerce.
Source: Logistics Today, Retrieved from: http://logisticstoday.com/global_markets/container-
solution-developed-foil-terrorists-1124/, Retrieved on: 26 Nov, 2010
Aviation & Aerospace Supply Chain Summit
Held for the first time in Hong Kong, the Council's Aviation & Aerospace Supply Chain Summit
will take place on March 9, 2011 in conjunction with the Air Freight Asia and Asian Aerospacetrade shows.The Aviation & Aerospace Supply Chain Summit will bring together senior supply chain,logistics and supplier management executives to discuss best practices that will lead to processimprovements and reduced costs in their operations in Asia.Source: China Supply Chain Council, Retrieved from: http://www.supplychains.com/en/cev/580,
Retrievedon: 26 Nov, 2010
8/6/2019 LogisticsXpress Vol2 Issue 4
10/57
PRAGATI MAIDAN LOGISTIKATRADE FAIR
INDIA AIDC SHOWVenue:
Start Date:
End Date:
Industry:
Pragati Maidan, New Delhi
03-DEC-10
06-DEC-10
Electronics & Electricals
Event Profile
AIDC Expo is the only international trade show and knowledge forum in India to showcase the
convergence of various AIDC technologies in Supply Chain. International Exhibition &Conference for Automatic Identification & Data Capture Technologies featuring Barcodes,Biometrics, Radio Frequency Identification (RFID), Smart Cards, Electronic ArticlesSurveillance (EAS), Real Time Locating Systems (RTLS), Mobile Computing, Wireless &Networking Solutions etc.
HighlightsThe exhibition will be accompanied by an international conference that will track the latest
developments and emerging trends of the AIDC technologies and trace all its application areas.
Visitor's Profile
The expo is organized to attract the visitors from Electronics & Electricals, Retail & OEM,
Logistics & Automotive, Garment & Textiles, Airlines, Hotel, Banking, Financial Services,Insurance, Security, Surveillance, Pharma, Health Care, Food & Beverages, Chemicals,Labeling, Publishing, Packaging, Printing, Perfumes, Toiletries And Cosmetics, Toys & Games,Consumer Electronics, IT.
Exhibitor's Profile
A unique platform for the AIDC industry & the labels & labeling industry which includes
Barcode Technology, Electronic Articles Surveillance, Radio Frequency Identification, CardTechnologies, Mobile Computing, Biometrics, Security Solutions, Real Time Locating Systems,Wireless & Networking Solutions, Other Technologies Including Contact Memory, VoiceRecognition, Magnetic Ink Character Recognition, Optical Character & Optical MarkRecognition, Machine Vision.
INDIA LOGISTICS SHOWVenue:
Start Date:End Date:
Industry:
Pragati Maidan, New Delhi
03-DEC-1006-DEC-10
Railway, Shipping & Aviation
Event Profile
India Logistics Show is one of the prestigious event for logistics industry in India. The exhibition
will provide a unique platform for related industry professionals to meet and exchange ideasunder one roof. The venue for the trade show will be at Pragati Maidan.
8/6/2019 LogisticsXpress Vol2 Issue 4
11/57
Visitor's Profile
Key Personnel from top and middle management responsible for package development,procurement, production, IT systems and quality control from user industries across the boardare targeted to visit the exhibition with a special focus on following industries: Food,Pharmaceuticals, Personal Care, Retail and Logistics.
Exhibitor's Profile:
Profile for exhibit includes Supply Chain system designers & integrators, cold chain, sorting,
grading, cleaning, warehousing systems, material handling, weighing, and testing equipment,software, back end support and other services.
IMMERSION WORKSHOP ON LEAN SUPPLY CHAIN MNGMT.Programme: Senior Executive Immersion Workshop on Lean Supply Chain
Management by CII Institute of Logistics
Venue: Radisson Hotel GRT, Chennai: 531, GST Road (Near Airport), St.Thomas
Mount, Chennai TN.
Phone: 044- 22310101
Training Timing: 09:00 AM05:30 PM (Registration on first day-8.45 AM9.00 AM)
Date: 6th and 7th December 2010
In Brief:A two day highly interactive senior executive workshop to discover the best global approaches to
lean supply chain management.
Purpose:The purpose of this workshop is to guide forward thinking business leaders through the wealth
of new lean strategies, architectures and processes that challenge this current reality, and prepare
leaders to implement new ways of working.
Faculty: Crispin Vincenti-BrownOne of the founders of the Bourton Group, currently based in
Europe, with in-depth experience of international supply chain management.
Pramod AthalyeBased in India with extensive executive experience of leading change
in the US.
The format and material used have been prepared by Bourton Group member companies
worldwide who have provided over 80 such workshops in the major industrialized countries of
the world.
8/6/2019 LogisticsXpress Vol2 Issue 4
12/57
8/6/2019 LogisticsXpress Vol2 Issue 4
13/57
INDIAN TRANSPORT NETWORK AT A GLANCE
Pankaj Tiwari, MBA-LSCM (Sem I, 2010-12)
Introduction
Indias transport sector is large anddiverse and forms major part of its economy,
occupying an estimated land area of
approximately 32,87,240 Km. After
liberalization in 1990s, the high GDP
growth in the Indian Economy has witnessed
a rise in demand for transport infrastructure
and services by around 10%. India is making
progress in developing the requiredinfrastructure and the transport infrastructure
is growing to align its logistics system with
the high demand. But this development is
not uniform over all transport modes viz.
rail, road, air and water. Most of the Indian
transport infrastructure is developed
independently on a mode specific and
regional policy premises. The transport
sector has not been able to keep pace with
rising demand and is proving to be a drag on
the economy. The road transport is the most
become one of the worlds largest railnetwork with 7,025 stations spread over a
route length of 63,273 kilometers with a
fleet of 8,330 locomotives, 47,375 passenger
service vehicles, 6,180 other coaching
vehicles and 2,04,034 wagons as on 31st
March, 2008. The network runs multi gauge
operations extending over 63,273 route
kilometers. Indian Railways carried 19
million passengers and 2.29 million tones of
freight each day during 2008-09. It is the
world's largest commercial or utility
employer, with more than 1.4 million
employees.
favored transport mode, but road
infrastructure capacity is not able to keep
pace with the demand for transport mainly
due to barriers such as the lack of adequate
public funds, land scarcity and
environmental impacts.
Performance by Transport Modes
1. Railways
From a very modest beginning in 1853,
when the first train steamed off from
Mumbai to Thane, a distance of 34
kilometers Indian Railways today has
It operates both long distance and suburban
rail systems on a multi-gauge network of
broad, meter and narrow gauges, and is in
the process of converting the entire meter
gauge (14,406 km (8,951 mi)) into broad
gauge in a project called Project Unigauge.
Till recently, the railways played a leading
role in carrying passengers and cargo across
Indias vast territory. However, with tariff
policies that overcharge freight to subsidize
passenger travel, the movement of freight is
increasingly shifting from railways to roads
8/6/2019 LogisticsXpress Vol2 Issue 4
14/57
Length(In Km)
Expressways 200
National Highways 70,548
State Highways 1,31,899
Major District Roads 4,67,763
Rural and Other
Roads 26,50,000
Total Length33 Lakhs
Kms(Approx)
Table 1 shows the ratio of average passenger
fare to average freight rates in various
countries.
Table:1
Ratio of average passenger fare toaverage freight rates
with poor surface quality, and 40 percent of
Indias villages do not have access to all-
weather roads.
Table: 2
Indian Road Network
Indian road network of 33 lakh Km.is
1.601.401.201.000.800.600.400.200.00
1.40
Korea
1.30
France
1.20
China
0.26
India
1.10
Austria
second largest in the world and consists
of :
Source: Ministry of Railways, 2010
2. RoadsIndia has one of the largest road networks in
the world, aggregating to about 33 Lakh
kilometers at present (Table 2). The
countrys road network consists ofNational
Highways, State Highways, major / other
district roads and village/rural roads. Roads
are the dominant mode of transportation in
India today. They carry almost 90 percent of
the countrys passenger traffic and 65
percent of its freight. The density of Indias
highway networkat 0.66 km of highway
per square kilometer of landis similar to
that of the United States (0.65) and much
greater than China's (0.16) or Brazil's (0.20).
However, most highways in India are
narrow and congested
Source:Indian Road Network, NHAI
website, http://nhai.org/roadnetwork.htm,
accessed on 26 November 2010
3. Ports
Shipping plays an important role in thetransport sector of Indias economy.
Approximately, 90 per cent of the countrys
trade by volume (70 per cent in terms of
value) is moved by sea. India, with her
7,517 km long coastline has 13 major ports
and 200 non-major ports. These ports serve
the countrys growing foreign trade in
petroleum products, iron ore, and coal, as
well as the increasing movement of
containers. The traffic handled at Indian
Ports (major plus non-major ports) in FY10
was 738.2 million tones (Table 3 shows the
total traffic handled at Indian Ports, FY 04-
09, in Million Tons). Inland water
transportation remains largely undeveloped
despite India's 14,000 kilometers of
navigable rivers and canals.
8/6/2019 LogisticsXpress Vol2 Issue 4
15/57
Table:3 attendant benefits of economic development
800
Total Traffic Handled at Indian Ports, FY
04-09, in Million Tons
and quality of life. This would also helprapid intervention during natural calamitiesand other emergencies.
600
400
200
115.3
344.8
137.8
383.8
145.5
423.6
186.1
463.8
203.6
519.2
207.8
530.4
Major Challenges facing the IndianTransport System:1. Roads
0
FY04 FY05 FY06 FY07 FY08 FY09
Major Ports Non-Major Ports
Most of the Indian roads are two lanes, poorquality roads and their maintenance is notproperly funded. Congestion on roads leadsto high fuel consumption, low transportation
Source: India Infrastructure Research, June2009, India Infrastructure Summit10
4. AviationIndia has 449 airfields out of which 85 are inthe Commercial Air network .70% of thepassenger traffic is between six metros eventhough air services are now operational at 85airports. This has resulted in heavy trafficcongestion, increase
in emissions and safety concerns. In additionto six metro airports, 35 other airports arealso getting expanded and modernized. Foreconomic growth, it is essential to provideair network to all Tier 1/ Tier 2 cities,
industrial and Tourist/Pilgrim centres.Recent studies show that if all the existingairfields of 1 km length and above areoperationalized, 2/3 rd of Indias populationwould be within 90 kms of an airfield. Asystematic, integrated approach ofnetworking airways with road and rail willprovide the interior regions of the countryfastest mode of transportation with the
speeds, huge pollution and high fatalityrates. Almost 70% of Indian populationresides in rural areas. Although there is anextensive rural road network, but most of the
Northern & North-Eastern states are poorlylinked to the countrys major economiccenters. The problem becomes severe inMonsoon seasons when almost 40% of thevillages are cut off due to lack of goodaccess to all weather roads. There has been adramatic growth in vehicle ownership-estimated at some 15% a year during thepast decade. This has lead to an increase inroad congestion during rush hours. Also, theintensive construction work to add capacityin congested areas has further added to thecongestion problems.
2. RailwaysThe rail corridors face capacity constraints.The freight costs by rails are much higherthan in most countries as freight tariffs havebeen kept high to subsidize passengertraffic.
3. PortsIndian port traffic has increased
exponentially to 521 million tons in 2004-05
after the liberalization of the economy. But
the capacity deficit has resulted in a
congestion problem. Moreover, the port
traffic volumes are expected to grow further
to about 900 million tons by 2011-2012.
Thus India's ports need to significantly ramp
8/6/2019 LogisticsXpress Vol2 Issue 4
16/57
Transportation Sector Budget 2010-11
Rs (in
Cr.)
Capital PlanNon-
Plan Total
1Civil
Aviation 1429 1429
2Roads &
Highways 7885 2208 10093
3 Shipping 486 33 519
4 Railways 16752 16752
26552 2241 28793
Revenue
1CivilAviation 571 885 1456
2Roads &
Highways 12009 1977 13986
3 Shipping 137 1517 1654
4 Railways 12717 4379 17096
Grand Total 39269 6620 45889
up their capacity and productivity to meet
this surging demand.
4. Airports
The entry of low cost carriers has lead to an
annual increase of approximately 15% in air
passenger and goods traffic growth. There
are severe strains on infrastructure at major
airports, especially in Delhi, Chennai,
Bangalore and Mumbai which account for
more than 70% of nations air traffic.
Key Government Strategies to overcome
these challenges:
According to Indias Tenth Five Year Plan,the Government aims to modernize, expand,
and integrate the country's transport services
(Table 4 shows the budget allocation for
transport sector for the year2010-11). It also
seeks to mobilize resources for this purpose
and to gradually shift the role of government
from that of a producer to an enabler. In
recent years, the Government has made
substantial efforts like increased public
funding, launching of National HighwayDevelopment Program (NHDP), creation of
a Central Road Fund (CRF) and amendment
in National Highway Act to expedite land
acquisitions to overcome the sectors
shortcomings.
TABLE-4
Source: Indian Budget 2010
Conclusions
Transport infrastructure is one the most
important drivers of the Indian economy.
Indian Transportation system faces major
problems due to outdated structure and
exploding education. Major improvements
in the transport sector are therefore required
to support the country's continued economic
growth and to reduce poverty.
Reference:
Workshop on Transport Network for India Vision 2020, IISc, Bangalore Website,
http://cistup.iisc.ernet.in/Workshop_on_Indias_Transport_Network_Vision_2020_-_Overview_ver2.pdf
INDIA 2010, a reference annual compiled by, research, reference and training division
Budget 2010-Snapshots for the Transport Sector-A report by 2010 Deloitte ToucheTohmatsu India Private Limited
National Highway Authority of India Website, http://nhai.org/roadnetwork.htm
8/6/2019 LogisticsXpress Vol2 Issue 4
17/57
8/6/2019 LogisticsXpress Vol2 Issue 4
18/57
Multimodal Transportation in India-An Overview
Prakhar Saigal, Nitin Tripathi MBA-LSCM (Sem I, 2010-12)
Introduction
Over the past decade, India haswitnessed significant strategic
developments. Globalization & trade
liberalization paralleled by revolution in
information & communication technologies
are continually advancing and significantly
varying existing markets and triggering a
race for the future. Apparently a new
economic era is materializing and driving
more countries toward global economic
integration. These developments were notpossible without the change in the quality of
transport and logistics services and
infrastructure. This lead to the development
of new patterns of provision & management
of transport .The massive growth in
The goal of these systems is to approach theservice quality of rail transit while still
enjoying the cost savings and flexibility of
bus transit.
Multimodal Transport Developments
containerization which introduced the Multimodal transport is also referred to as
modern concept of Multimodal Transport
has shifted the cargo delivery system from
"port-to-port" to "door-to-door". Moreover,
several industrial and agricultural companies
have changed their production methods to be
able to use containers for export and capture
the advantages of Multimodal Transport.
Multimodal transport in its limited sense
combined transport. It is the transportation
of goods under a single contract but
performed with at least two different means
of transport. The carrier is liable for theentire carriage even though it is performed
with several different means of transport e.g.
rail, sea and road. However the carrier does
not have to be in possession of all of the
means of transport& in practice, and
may also include only motorized mass rapid
transport systems. As in Delhi, Bus Rapid
Transport (BRT) System together with Delhi
Metro and soon to be introduced Monorailand Light Rail, Delhi will be first city of
India to have such an integrated multi-modal
transport system.
usually it is not so. The carriage is often
performed by using sub-carriers. The carrier
http://en.wikipedia.org/wiki/Delhi_Metrohttp://en.wikipedia.org/wiki/Delhi_Metrohttp://en.wikipedia.org/wiki/Monorailhttp://en.wikipedia.org/wiki/Monorailhttp://en.wikipedia.org/wiki/Delhi_Metrohttp://en.wikipedia.org/wiki/Delhi_Metro8/6/2019 LogisticsXpress Vol2 Issue 4
19/57
that is responsible for the entire carriage is
referred to as a multimodal transport
operator (MTO).
The concept was developed in the late
1950s; the cooperation between different
modes began with the governments
deregulation of the different modes in late
1970s and early 1980s. Over the past two
decades due to hyper competition, various
tools and techniques are developed and
adopted by the business units for their
survival- like quantitative management,
outsourcing, time based competition etc. No
matter which tools is adopted by which
company, the common or ultimate goal is todeliver greater value to the customers or
create compatible value at a lower cost, or
both. For reducing the cost and improving
the customer service, integration of different
activities in supply chain, including the
transport chain is done.
Therefore the better the business manages
these activities & there flow, the more
competitive advantage they will gain. With
this competitive & strategic importance of
According to this, the different conventions
exists unchanged side by side and the
carriers liability is defined according to
where the breach of contract has occurred
e.g. where the goods have been damaged
during the transport. However, problems
tend to arise if the breach of contract is
unlocalized.
Trends & OpportunitiesAs demand for transport is derived from
demand for trade, the growth in international
trade is reflected in similar and some times
higher growth in the demand for
international transport services.
Consequently, growth in international
transport services is supported by the
explosive growth in trade. Over the last two
decades, world trade has grown more than
twice as fast as world gross domestic
product (GDP). In fact, it was realized that
during the 1990s, growth in expenditure on
international transport grown faster than
trade. While world exports increased by
about 75 per cent, real expenditure onlogistics and supply chain management, international transport got more than
multimodal transport gained increased
importance being the facilitator of a global
supply chain.
Legal Aspects
From legal point of view, multimodal
transports create several difficult problems.
Currently unimodal transports are governed
by different but mandatory international
conventions. These conventions specify
different basis for liability and different
limitations of liability for the carrier.
Currently the solution to this problem has
doubled.
Growth of World GDP, trade, and
expenditure on international transport
been the so-called network principle. With booming expansion of international
trade, global outsourcing of manufacturing,
8/6/2019 LogisticsXpress Vol2 Issue 4
20/57
significant growth in internet and E-
Commerce and increasing demand for Just-
In-Time (JIT) deliveries & production
transhipment opportunities. While the
United Arab Emirates Port of Dubai and the
Malaysian Port of Tanjung Pelepas have
system, there is a shift in the behavior of successfully implemented this logistics
shippers to demand door-to-door delivery
instead of the traditional port-to-port system.
Therefore, to ensure the efficiency of this
chain and gain operational control over it,
new transport patterns and practices have
emerged. While liner companies became
port operators and providers of door-to-
solution, several other ports like the
Jordanian Port of Aqaba will soon follow.
Challenges
With the globalization of production and
liberalization of services, transport and
logistics services are becoming far more
door services, several levels of logistics crucial for remaining competitive in
services providers were created which will
not only increase the demand for more
frequent, more secure and more reliablemultimodal door-to-door transport services,
but also increase the share of air
transportation. Accordingly, the demand for
efficient and prominent MTOs will increase.
Several countries have realized these
developments and invested in developing
international trade. Thus countries who wish
to participate effectively in the global trade
face increased challenge of having toimprove their capabilities in offering reliable
and cost-effective transport and logistics
services. Another important challenge is
seen in the need for harmonization of the
legal environment for multimodal transport
to ensure a uniform liability regime that
and integrating their sea-air transport protects the interests of all concerned.
logistics system to capture the sea-air
References:Al-Muhaisen, S. (2004). The Logistics Potentials of the Aqaba Special Economic Zone
(ASEZ) as a Regional Gateway. World Maritime University, Malmo-Sweden
Malchow, M. B. (2001). An analysis of port selection.
Porter, M. E. (1996, November - December). What is Strategy? Harvard Business Review,Aqaba Special Economic Zone Authority, ASEZA (www.aqabazone.com)
International Multimodal Transport Association (www.immta.org)
United Nations Conference on Trade Development, UNCTAD (www.unctad.org)
World Bank (www.worldbank.org)
World Trade Organization (http://www.wto.org), World Free Zone Convention-IZMIR 2005
Intl Conference, 22nd April 2005.
8/6/2019 LogisticsXpress Vol2 Issue 4
21/57
Multimodal Logistics Parks- Indian Scenario
Krishna Shankar Pandey, Tushar Shukla MBA-LSCM (Sem I, 2010-12)
Indian Railways has planned megamultimodal logistics parks (MLPs) or hubsproviding state-of-the-art integrated logistic
facilities with mechanized handling and
intelligent inventory management at selected
locations along the dedicated freight
corridors (DFC) to reduce the overall
logistics cost in the supply chain for the
customers to meet time-sensitive freight
transportation requirements.
A multi-modal logistics park (MLP) is
defined as a rail-based inter-modal traffic-
handling facility complex comprising
container terminals, bulk / break-bulk cargo
terminals, warehouses, banking and office
space and facilities for mechanized
handling, inter-modal transfers, sorting /
grading, cold chain, aggregation /
disaggregation etc. to handle freight. To besuccessful, MLPs have to meet certain bare
currently being designed to accommodate at
least two modes of transport- a rail terminal
and road terminal.
Some MLPs include airports and other
means of transport. For instance, MIHAN
(Multi-modal International Cargo Hub &
Airport at Nagpur) is an airport based MLP
with road and rail connectivity linkages,
terminals and warehouse, storage yards and
container depots. It caters to the air cargosegment as well as container handling and
minimum requirements-the first and movement to gateway ports like Jawaharlal
foremost being the location. MLPs are
located near the ports or production centers
or both. The optimal geographical location
can reduce the unnecessary transportation
and handling costs. The second important
factor is the connectivity to major industrial
hubs, gateway ports, inland hubs, gateway
ports and airports. These would generally bedeveloped by the project authorities in
charge of Special Economic Zones (SEZs)/
industrial townships or prospective
developers for use of multiple users on the
terms and conditions. However, all MLPs
need not have all the features. MLPs are
Nehru Port Trust (JNPT). Further, their
connectivity to the gateway ports and other
MLPs is very crucial to their success as
well as improve efficiency in the supply
chain. The next important factor is putting
up the right infrastructure at the facilities.
Planning for multiple modes of transportinvolves setting up adequate cargo handling
facilities for each of the modes and other
common facilities like warehousing and
inventory handling. Utility planning like
power, water, communications, online
connectivity and other such facilities for
8/6/2019 LogisticsXpress Vol2 Issue 4
22/57
unhindered operations is also important.
Provision of necessary office space and
other required facility for the clients to
operate in the MLPs is also essential. The
advantages of multimodal logistics parks are
manifold. For instance, they offer the
flexibility of road, capacity of railways,
speed of air and cost efficiency of water
transport. The biggest advantage is cost
reduction.
India is a country which is known for high
logistics costs& it would extremely benefit
from MLPs in bringing down the
transportation costs. When all services arebrought under one roof, it will surely
eliminate unwanted steps in the process and
reduce the associated cost. MLPs are
usually equipped with single window,
integrated documentation and thus require
lesser time and resources to process the
cargo. Further, MLPs are linked with huge
aggregation of cargo leading to economies
of scale, which will have its own effect on
cost reduction. The other benefit isefficiency improvement. Excellent
connectivity, mechanized truck and rake
handling, mechanized inventory handling,
quick change between transport modes and
singe window documentation make MLPs
highly efficient as compared to traditional
modes of cargo. The highly developed
infrastructure makes up for smooth cross
docking operations between different modes
of transport like road, rail and water. MLPs
offers end to end logistics under one roof.
The customers also benefit from such an
arrangement as they need not search for
individual service providers for each of the
services. Providing various services, such as
custom bonded warehousing, inventory
handling, packaging and repackaging and
other such services under one roof of MLP
will save lot of time and money of the
customers who have to look out for
individual vendors in other case.
According to a report by Cushman &
Wakefield, Indian logistics industry is
expected to grow annually at the rate of 15
to 20 per cent, reaching revenues of
approximately $385 billion by 2015.
According to industry analysts, many
logistics companies are in various stages of
setting up warehouses, container freight
stations, inland container depots, logistics
parks, distribution centres and other
facilities to tap the trade opportunities. Some
of these include DHL Logistics, Transport
Corporation of India (TCI), Gati, Adani
Logistics, Sical Logistics, World Windows
Infrastructure and Logistics and Mahindra
Logistics.
The basic objective of the policy is to
enhance the presence of rail transport in theoverall transport chain and achieve
increased freight traffic volumes and
movement by rail through reduction in the
logistics costs for the users. This would be
achieved through minimization of multiple
handling, provisions of various logistics
8/6/2019 LogisticsXpress Vol2 Issue 4
23/57
related services close to a rail transport hub
and better integration with logistics and
supply chains. To develop these MLPs
through Public Private Partnership (PPP),
cruising speeds of 75 km/hr and top speeds
of 110 km / hr, between JNPT (Mumbai)
and TughlakabadRewari (western route)
and Dankuni (Kolkota) to Ludhiana (eastern
the ministry of railways has invited route). Later in expansion stage, 2 more
expression of interests (EOI) in this regard,
seeking essential information regarding
proposed locations, land area required and
type / segment of logistics business to be
developed etc. from large logistics service
providers, real estate developers, third party
logistics players warehousing investors,
container operators, financial institutions,
industrial houses etc. who are willing to
corridors are planned which will be
developed between Mumbai to Vizag via
Chennai & Chennai to Kolkata. A number of
industrial nodes are also being planned as a
part of a related initiative by the
Government of India alongside the western
route of the DFC.
The proposed Multimodal Logistics Parks
participate in the development of these and their business models are quiteMMLPs.
The ministry of railways has launched its
impressive and visionary. However, they
would require to be justified by exporters
flagship project, the dedicated freight using the facilities and logistics service
corridors (DFCs) requiring construction of
approximately 3300 kilometers of mostly
double, electrified, high axle load track, with
liberal space envelope, fit for high capacity
providers through proper transportation
estimates and necessary commercial
viability studies. This would make setting up
of the parks complete.
wagons and heavy haul freight trains at
References:
http://www.planningcommission.gov.in/
http://www.indianrailways.gov.in/indianrailways/directorate/direct.jsp
http://www.indianrailways.gov.in/indianrailways/tenders/pdf/EOI-MMLPs-060109.pdf
http://www.cargotalk.in/pdfs/april09.pdf
http://www.assocham.org/events/recent/event_431/vk_kaul.pdf
8/6/2019 LogisticsXpress Vol2 Issue 4
24/57
8/6/2019 LogisticsXpress Vol2 Issue 4
25/57
Retail Logistics and Supply Chain Management-
An Indian and International Perspective
Vishnu Padmakumar, MBA-LSCM ( Sem I, 2010-12.)
TRANSFORMATION
Retailers were once effectively thepassive recipients of products, allocated to
stores by manufacturers in anticipation of
demand. Today, retailers are the active
designers and controllers of product supply
and logistics services providers) rather than
at the single firm level. In 1996 Alan
McKinnon reviewed and summarized the
key components of this retail logistics
transformation. He identified five closely
related and mutually reinforcing trends:
1. Increased control over secondaryin reaction to known customer demand. distribution - Retailers have
They control, organize and manage thesupply chain from production to
consumption. This is the essence of the retail
increased their control oversecondary distribution (warehouse to
shop) by channeling an increasinglogistics and supply chain transformation
that has taken place.
2. proportion of their supplies through
distribution centers (DCs). In some
sectors such as food this process is
now virtually complete. British
retailers exert much tighter control
over the supply chain than their
counterparts in most other countries.
Their logistical operations are
heavily dependent on information
Times have changed and retail logistics has
changed also. Retailers are the channel
captains and set the pace in logistics. Having
extended their channel control and focused
on efficiency and effectiveness, retailers are
now attempting to engender a more co-operative and collaborative stance in many
aspects of logistics. They are recognizing
that there are still gains to be made on
standards and efficiency, but that these are
probably only obtained as channel gains
(that is, in association with manufacturers
technology (IT), particularly the
large integrated stock replenishment
systems that control the movement
and storage of an enormous number
of separate products.
3. Restructured logistical systems -
Retailers have reduced inventory
and generally improved efficiency
through for example the
development of composite
distribution (the distribution of
8/6/2019 LogisticsXpress Vol2 Issue 4
26/57
mixed temperature items through the
same distribution centre and on the
same vehicle) and centralization in
specialist warehouses of slower
moving stock. In the case of mixed
retail businesses common stock
rooms have been developed, where
stock is shared across a number of
stores, with demand deciding to
which store it is allocated.
4. Adoption of Quick Response
(QR) - The aim has been to cut
inventory levels and improve the
speed of product flow. This has
involved reducing order lead-time
and moving to a more frequent
delivery of smaller consignments
both internally (between DC and
shop) and externally (between
supplier and DC). This has greatly
increased both the rate of stock-turn
and the amount of product being
cross-docked, rather than stored at
DCs. QR (Lawson, King and
Hunter, 1999) was made possible by
the development of EDI (Electronic
Data Interchange) and EPOS
(Electronic Point of Sale), the latter
driving the Sales Based Ordering
(SBO) systems that most of the
larger retailers have installed. In
other words as an item is sold and
scanned in a shop, this data is used
to inform replenishment and re-
ordering systems and thus react
quickly to demand. Sharing suchdata with key suppliers further
integrates production with the
supply function. Major British
retailers have been faster to adopt
these technologies than their
counterparts in other European
countries, although they still have to
diffuse too many small retail
businesses.
5. Rationalization of primary
distribution (factory to
warehouse) - Partly as a result of
QR pressures and partly as a result
of intensifying competition, retailers
have extended their control upstream
8/6/2019 LogisticsXpress Vol2 Issue 4
27/57
of the DC (that is, from the DC to
the manufacturer). In an effort to
improve the utilization of their
logistical assets, many have
integrated their secondary and
primary distribution operations and
run them as a single network
system. This reduces waste and
improves efficiency.
6. Increased return flow of packaged
material and handling equipment
for recycling/reuse Retailers - have
References:
http://www.supplychainstandard.com/Retail/Default.html
http://www.necindia.in/solution_rs.html
http://www.citeman.com/10109-retail-logistics/
become much more heavily involved
in this reverse logistics operation.
This trend has been reinforced by
the introduction of the EU packaging
directive. Although the United
Kingdom currently lags behind other
European countries, particularly
Germany, in this field, there remain
opportunities to develop new forms
of reusable container and new
reverse logistics systems to manage
their circulation.
8/6/2019 LogisticsXpress Vol2 Issue 4
28/57
8/6/2019 LogisticsXpress Vol2 Issue 4
29/57
Reverse Logistics As The Element Of Enterprise
Management
Sawant Ninad Shivram MBA-LSCM (Sem I, 2010-12)
Nowadays, reverse logistics is avery useful tool for enterprises which have
to deal with production wastes and
commercial returns. Forward logistics is not
able to manage them, because they show up
on the beginning of reverse supply chain.
That is the reason for growing importance of
reverse flows. Reverse logistics is quite new
logistics system and the most common is
using in developed countries. The reasons
for this are high costs of such system and
some organizational problems.
For past decades enterprises have been using
forward logistics processes in their
economic performance and their
management was fully successful. But since
few years forward logistics have become
insufficient for some parts of management.
A lot of companies faced problems
concerning high costs of materials to
production, high costs of waste final
disposal or problems with return products.
Additionally, many countries made their law
stringent, what became a reason for firms to
find some alternative ways to manage their
problems.
Such alternative is reverse logistics. Because
reverse logistics is quite new system, there
are also many different terms in literature,
which sound different but mean the same.
Green logistics, eco-logistics, return
logistics, waste logistics or reverse
distribution all the terms have
the same meaning as reverse
logistics.
Reverse logistics
characterization is quite hard
because of the differentiating
reverse processes in comparison
with forward logistics. Reverse
logistics system starts when the
used products are sent back or
when some kinds of wastes show
up in the production processes. So reverselogistics processes are strongly connected
with production wastes or returned products.
To make sure that after creation of reverse
logistics system in the company there is a
stable flow of used products or wastes,
special organizations are formed, like
8/6/2019 LogisticsXpress Vol2 Issue 4
30/57
collection centers, which collect and manage
objects for reverse logistics and reverse
flows. Then the objects are selected, for the
control and test of quality, so that products
or materials can be remanufactured and
reused. When products are at the end of
reverse supply chain, they become part of
forward supply chain
are still delaying the introduction. Here,
thinking about the costs, it is possible to
compare the costs of reverse logistics and
forward logistics
1) Costs of transportation are muchgreater in reverse logistics, because
usually reverse shipments are
smaller.
2) Costs of inventory holding are lower
in reverse logistics than
in traditional one, the
calculation here is
based on inventory
theory, where this costs
is counting as a
percentage of the
product value so
when in reverse
Source:
https://reader009.{domain}/reader009/html5/0516/5afb56f83e91a/5afb5707e5935.jpg
Some Major Drawbacks of Reverse
Logistics
Main Problem in reverse logistics is dealing
with its costs. The costs of reverse logistics
are usually higher than in forward one. This
logistics the products
have always lower value also the
costs of inventory holding should be
lower.
3) Costs of handling are much higher
for reverse logistics, because smallervolumes of shipments are connected
with more material handling costs.
is one of the reasons why many companies
References:
http://www.reverselogisticstrends.com/reverse-logistics.php(Rommert dekker,2004)
http://reverselogistics.in/index.asp(Moritz Fleischmann,2004)
http://books.google.co.in/books?id=6i4b1F0zX90C&printsec=frontcover&dq=reverse+logistics&source=bl&ots=hsl2v9XSK2&sig=H9IihBxBK8ajR9QImEzg8dzfhp4&hl=en&e
i=HmfvTOLvNYiXcYa42coK&sa=X&oi=boo(k_result&ct=result&resnum=10&ved=0C
E0Q6AEwCQ#v=onepage&q&f=false(Luk N.Wassenhove,2004)
8/6/2019 LogisticsXpress Vol2 Issue 4
31/57
8/6/2019 LogisticsXpress Vol2 Issue 4
32/57
Role of Humanitarian Supply Chain
Nitin Tripathi, Sarang Rajvanshi, MBA-LSCM (Sem I, 2010-12)
Humanitarian organizations( thoseHumanitarian Logistics in disaster include:
type of organizations which exist as
professional aid organizations within the
government and also as private voluntary
Procurement
Warehousing
Fleet Management
organization) It includes government Transportation (of both supplies & people)
agencies such as United States Agency for
International Development (USAID) and the
United Kingdoms Department for
International Development (DFID),
multilateral agencies such as the United
Nations Children's Fund (UNICEF) and the
Asset Management
Building Management
Security
Information Technology (IT)
Radio Communications in a humanitarian
World Food Program (WFP), non- supply chain refers to the network created
government organizations (NGOs) such as
Save the Children and Medicis Sans
Frontiers (MSF) and members of the
International Federation of Red Cross and
Red Crescent Movement ,private voluntary
organization includes (e.g. Action Aid,
Oxfam)
through the flow of supplies, services,
finances and information between donors,
beneficiaries, suppliers and different units of
humanitarian organizations for the purpose
of providing physical aid to beneficiaries.
Humanitarian supply chains include
functionalities which do not typically fall
into the field of
humanitarian logistics.
Managing
relationships with
donors, performing
needs assessments,
planning for supplies
required and
monitoring and
evaluating the impact
of distributed supplies
are usually the
responsibility of non-
logistics. Logistics
units are only
considered as a
8/6/2019 LogisticsXpress Vol2 Issue 4
33/57
function to support these activities of
humanitarian organizations. Logistics units
have traditionally been marginalized within
organizations and logisticians have been
pigeonholed in the field, making it hard to
move into management positions. This has
contributed to a silo mentality in regards to
logistics within humanitarian organizations.
Better integrating logistics with other units
within the organization will form stronger
humanitarian supply chains.
It Includes:
Enhancement of needs assessments by
ensuring that field staff knows what supplies
are available for beneficiaries, either in local
warehouses, pre-positioned emergencystocks or from local and international
markets.
Sharing of lists of supplies available in
both local and international markets,
including prices and lead times, logisticians
to empower program staff to better plan
their procurement activities.
Keeping program staff informed of
procurement activities will help to develop
an understanding of the constraints within
logistics and create trust.
Providing budget holder more accurate
financial information regarding funds which
are committed within the procurement
process, to avoid the over or under spending
of budgets.
Providing warehouse inventory reports toprogram staff to allow them to take more
responsibility for their supplies, and
ensure that they are utilized effectively.
Sharing information on the distribution of
supplies to allow program staff to better
In literature on humanitarian organizations,
there is a shift from logistics to supply chain
management. Humanitarian logisticsinformation systems can improve the flow of
information with other units, in mutually
constructive manner, improving the
effectiveness of the humanitarian supply
chain.
monitor and evaluate activities and avoid the
need for duplicate record keeping between
logistics and programs.
Accurate division of logistics overhead
costs such as warehouse rental,
transportation and logistics staff.
8/6/2019 LogisticsXpress Vol2 Issue 4
34/57
The Value of Information in the network customers ask for their
Humanitarian Supply Chain:
Flow of information plays a key role as far
as humanitarian supply chain is concerned;
the end receiver is delinked from the servicehe receives. The key decision makers in
requirements and their demands are met
accordingly but in the latter one the
customers do not have any special
requirements and in most cases , it is
necessities which is fulfilled.
humanitarian supply chain are the donors,
who are the actual customers to these supply
chain network. If commercial and
humanitarian supply chain is compared, it
can be identified that in the commercial
References:
http://www.fmreview.org
http://www.humanitarianlogistics.org/research
http://www.humanitarianlogistics.org/about-hla/professional-resources/jobs/senegal-project-
coordinator-optimize
http://www.fritzinstitute.org/PDFs/findings
http://dictionary.babylon.com/humanitarian%20organization/
8/6/2019 LogisticsXpress Vol2 Issue 4
35/57
Supply Chain through Humanitarian Logistics
K.S. Naarayen, Deepak S, MBA-LSCM (Sem I, 2010-12)
Humanitarian logistics represents abroad range of activities taking place withinhumanitarian organizations. Bulk
Recovery
Mitigation
Preparedness
Humanitarian logistics information systems
improve information flows of these
activities. Humanitarian logistics
information systems improve information
flows which integrate logistics units more
efficiently with non-logistics units within
the humanitarian supply chains components
ensuring more effective operations.
Humanitarian Logistics Activities:
Basic activities occur across disaster
management cycle in humanitarian logistics.
Humanitarian logistics information systems
not only improve logistics activities in each
phase, but also can improve the continuity of
humanitarian operations by sharing
During humanitarian operations there will
be overlap between activities from different
phases, and a separate transition phase can
be considered between the response and
recovery phase. Humanitarian supply chains
must provide supplies to beneficiaries in
each of these phases and these activities
require logistics support, although the
volume, variety of supplies and urgency will
change according to the phase.
Humanitarian logistics information systems
Response
information throughout the transition ofdifferent disaster management cycle phases.
Through collaboration between
organizations, humanitarian logistics
information systems also have the potential
to reduce corruption and the market
distortion which can occur during
humanitarian operations.
Preparedness
Mitigation Recovery
Transition
Humanitarian Logistics
Management Cycle:
in Disasterimprove the effectiveness of logistics units
throughout the disaster management cycle
and can provide continuity throughout the
The operations of humanitarian
organizations in disaster management can be
separated into five major phases:
phases.
Disaster Management Cycle
Response
Transition
Preparedness: The preparedness phase
involves building the capacity to respond to
8/6/2019 LogisticsXpress Vol2 Issue 4
36/57
a disaster, such as working with
communities to ensure they know
evacuation options, pre-positioning
emergency response supplies and building
organizational capacity to respond to
disasters. These activities are on-going and
are implemented prior to the onset of a
crisis. Pre-positioned emergency response
supplies tend to be less varied, as they are
specific life supporting items, such as food,
medical supplies, water and sanitation
equipment, shelter, household kits, etc. The
necessities of life are less dependent on the
social, cultural or economic context of the
disaster; therefore it is easier to standardizethe supplies required. Also, because it is not
known if these supplies will be available in
local markets, or if markets may be
disrupted by the disasters, they will need to
be procured internationally. Both Medicines
Sans Frontiers and the Red Cross have
standard catalogues of items for emergency
response. These items can be procured
internationally, with pre-existing
arrangements with vendors, and are also pre-positioned in warehouses globally, ready to
be deploy 80% of the disaster response
phase consists of How Information Systems
Can Improve Humanitarian Response.
The response phase occurs immediately
after the disaster, and activities are focused
primarily on saving lives and preventing
further damage. Humanitarian operations are
most reliant on logistics during the responsephase as they distribute food, medical
supplies and other necessities of life to
affected populations, and lives will be
dependent on the speed of logistics
activities. The response phase may last from
days to months, depending on the scale of
the disaster. While the humanitarian
logistics is most significant during the
response phase, it is important to consider its
role throughout the entire disaster
management phase.
Transition
During the transition phase NGOs begin to
look at providing ongoing assistance, such
as temporary shelter and revitalizing basic
social services (ref ADB). NGOs will also
plan strategically to transition from
implementing response activities to longer
term recovery and mitigation programs.
Logistics activities, such as identifyingsuppliers to in either local or international
markets to provide supplies for longer term
programs, ensure a smooth transition.
Recovery
The recovery phase involves aiding
communities to return to their conditions
prior to the disaster. These activities may
include training people and distributing
supplies for livelihood building,
reconstructing houses, buildings and
infrastructure and may be carried out over a
period of months to years. Across both the
recovery and following mitigation phases
the supplies are no longer essential for the
lives of affected population and are therefore
no longer required at such a high rate or
with such short lead times. The activities
across these phases are largely dependent onthe social, cultural, economic and
geographical conditions of the affected
communities. These may vary hugely
between different disasters.
8/6/2019 LogisticsXpress Vol2 Issue 4
37/57
Humanitarian organizations supported
fishermen affected by 2004 Indian Ocean
Tsunami by distributing new boats and
fishing equipment whereas the needs of
landlocked communities recovering from
2005 Kashmir Earthquake were quite
different. Humanitarian organizations will
also attempt to procure supplies locally in
order to support local communities and
avoid flooding local markets through the
influx of external supplies.
The recovery phase represents a significant
proportion of the duration and funding of a
humanitarian operation and may last from
5-10 years. In April 2005 the Government
of Indonesia established a 5 year time
frame for reconstruction after the Indian
Ocean Tsunami, and activities are still
ongoing at the start of 2009, indicating the
long duration of the recovery phase.
Recovery phase activities such as
reconstruction and distributing supplies are
essential for restoring the lives of affected
people and require significant logisticsupport.
Mitigation: Mitigation involves increasing
the resilience of communities to natural
physical aid to beneficiary throughout the
disaster management cycle. Although these
activities differ in volume, variety of
supplies and urgency, there is enough
commonality that standard processes and
systems can be used by logistics units
throughout the disaster management cycle.
This avoids the overhead of developing
multiple standards and implementing new
systems when transitioning between phases.
It is therefore important to consider
humanitarian logistics as operating in each
of the phases of the disaster management
cycle.
hazards to reduce the impact of disasters
they cause. According to the specificHumanitarian Logistics
Response Phase
beyond the
vulnerability of the community these
activities may include planting mangroves to
protect coastlines against cyclones,
constructing dams and reinforcing buildings.Humanitarian organizations implementing
these activities will require logistics support,
although not typically at as large a scale as
in the other phases. How Information
Systems Can Improve Humanitarian
organizations are required to provide
A large amount of literature on humanitarian
logistics and supply chain management
focuses on the response phase of a disaster
and pre-positioning of supplies done in the
preparedness phase. This could be
influenced by a number of factors:
This is the phase in which logistics plays
the largest role in proportion to the
humanitarian operation.
8/6/2019 LogisticsXpress Vol2 Issue 4
38/57
The key focus of the response phase is the
preservation of lives therefore improved
logistics can be directly linked to lives
saved. During other phases of disaster
management, the outputs become more
varied, such as providing trainings to
teachers and medical professionals.
Therefore impacts, such as better education
levels and healthcare in communities are
harder to measure.
The disaster response is the phase that
creates the most media coverage, therefore
may be the phase which experts outside of
the humanitarian domain get the most
exposure to and are most familiar with.
Media coverage could also create a
perception of more status with disaster
response.
This paper has shown that the field of
humanitarian logistics is more broadly
focused than just disaster response.
recovery and mitigation phases of disaster
management. It could be argued that
humanitarian organizations already have a
higher capacity for disaster response than for
disaster recovery. E.g. In Indonesia the
Reconstruction and Rehabilitation Agency
(BRR) claimed that in the response to the
2004 Indian Ocean Tsunami: No one died
of starvation, there were no deaths due to a
lack of medical care or disease, law and
order was maintained and major
infrastructure including telecommunications
and electricity was restored within a few
weeks time. In contrast during the recovery
phase there have been delays,underperformance and corruption.
Humanitarian logistics information systems
can improve logistics activities in each of
the phases of disaster management and also
help to provide continuity to logistics
operations throughout the disaster
management.
More focus needs to be placed on the role of
humanitarian logistics in the transition,
References:
http://www.humanitarianlogistics.org
http://ctl.mit.edu/research/humanitarian
http://www.emeraldinsight.com/products/journals/journals.htm?id=jhlscm
http://www.logcluster.org/
8/6/2019 LogisticsXpress Vol2 Issue 4
39/57
8/6/2019 LogisticsXpress Vol2 Issue 4
40/57
5 Tier Transportation Plan for Commonwealth Games
Priyanka Rawat MBA-LSCM (Sem I, 2010-12)
The Commonwealth Games, 2010officially known as the XIX Commonwealth
Games, were held in Delhi, India, from 3rd
to 14th October 2010. A total of 6,081
athletes from 71 Commonwealth nations and
dependencies competed in 21 sports and 272
events. It was the largest international multi-
sport event to be staged in Delhi and India,
eclipsing Asian Games in 1951 and 1982.
Logistics have traditionally been a weak
point in any event in India. Even after the
1982 Asian Games, which gave a dramatic
boost to sports facilities in the country,
logistics remained a problem. Even small
marriages and local functions suffer from
bad organization and insufficient control
over the logistics. There is a reason for this.The various components in the whole
system rarely function as one unit. In India,
every logistical component like a taxi, truck
or even a local courier boy - does not work
in an organized manner with less regard to
time and schedule responsibilities.
One of the main reasons is that people are
usually underpaid and overworked. They
usually do not own the vehicles they
operate. All this adds up to low wages and
no job security. The people who operate
these sets of taxis and trucks are also less
educated and usually come from the
uneducated rural class.
The Commonwealth Games Organizing
Committee (OC) stated its plan for thetransportation of its athletes, officials, their
family members, media persons, VIPs and
Technical officials. For that purpose, they
had dedicated five-tier transport system.
T1 and T2 were car services. While, the first
one was for top Games officials, T2 services
could be availed by officials and their family
members through a 24/7 call centre. The
transportation services were carried outjointly by the Delhi Transport Corporation
(DTC) and Tata Motors. The latter ensured
supply of a fleet of brand new 1,800 cars
and SUVs, back-up services, 3,000 drivers
and supporting staff, deployed at venues and
depots.
Transport is the backbone of the Games
and we had to put in place a huge network
comprising of buses and cars, OC secretary
general Lalit Bhanot told the media after the
closing ceremony, stressing on the
importance of transportation.
8/6/2019 LogisticsXpress Vol2 Issue 4
41/57
The T3 and T4 categories consisted of fully
air-conditioned buses from the DTC. Under
T3, 349 buses were used to ferry the athletes
to and from the venues during the event,
including the days of opening and closing
ceremonies.
Media persons and technical teams were
used for the T4 services, there were three
depots, one at Vinay Marg, one near
Akshardham Mandir and the third at
Ravindra Rangshala, close to Talkatora
The Games Village had three separate sets
of lanes the committee had enough
provisions to handle any untoward incident
like car breakdowns. Besides, all drivers
were given instructions about, what to do in
case of any eventuality, including a terror
attack. Other public transport systems,
including DTC and special Metro services
came under the last category. All drivers
were given communication radio sets, while
every car was fitted with Global Positioning
Systems
Stadium.
References:http://timesofindia.indiatimes.com/
http://www.thehindubusinessline.com/2000/02/14/stories/091471vn.html
http://www.defence.pk/forums/world-affairs/76702-indias-games-fall-short-lofty-ambitions.html
http://www.ccsindia.org/ccsindia/interns2006/Common%20Wealth%20Games%20-
%20Vinayak.pdf
8/6/2019 LogisticsXpress Vol2 Issue 4
42/57
Mega Events - Logistical Challenges
PankajTiwari, MBA-LSCM (Sem I, 2010-12)
Mega events pose a number ofspecial problems in terms of transportationlogistics and traffic management for three
essential reasons: the convergence of heavy
flows of spectators, players and logistical
personnel at one or several sites; a
temporary concentration of traffic flows
causing hyper-points of congestion for
automobile traffic, public transportation and
pedestrians; and a high proportion of
unusual and non-repetitive trips, giving rise
to problems of orientation, information and
communication, signaling and ticketing. The
transport logistics and mobility management
play a critical role in the successful delivery
There is an extensive and intensive planning
and preparation required for mega and
exceptional public events. Transportation
strategy, organization, management and
costs grow exponentially with the magnitude
and complexity of very large events.
of world mega-events. Only high
performance public transport systems can
deliver high mega-event traffic loads
concentrated in time and space. Mega-events
are the best catalysts for innovative mobilityschemes and public transport developments
targeted to a prestigious Opening Day
deadline. Some of the world mega events are
Olympics, Asian Games, Commonwealth
Games, Continental Football Cups, Cricket
World Cup and FIFA-Football World Cup
etc.
The basic issues concerning large-scale
transportation are mostly characterized by:
the unusual magnitude and volume of
spectators, activities, visitors, and logistical
flows; the geographical and spatial
concentration of traffic flows; traffic flow
time-concentration due to event scheduling;
the superposition of various categories of
transport and traffic flows; the
development of innovative
temporary transport and traffic
management as well as ticketing
schemes; the definition of
appropriate agreement between
mega-event organizers and public
8/6/2019 LogisticsXpress Vol2 Issue 4
43/57
authorities; and the systematic development
of security schemes for crowd control and
specific traffic management.
Events such as Olympics, World Cups and
Commonwealth Games require planning for
not just the hundreds of thousands of
participants and tourists but for traffic
control and management to and from the
events. Event planners must take into
account the geographical and spatial
concentration of traffic, traffic patterns
related to individual event scheduling, the
impact of mega event traffic on normal
urban traffic flow, and maintain very closecooperation between event organizers and
sponsors and local public authorities in
charge of transport operations.
Following are the main points which must
be kept in mind while planning for Mega
Events:-
Event Accessibility 100% by free public
transport
To reduce road traffics, no car parking
should be provided at any of the event
venues. Rather the ticketed spectators,
accredited event workforce and volunteers
should commute through 100% free public
transport. This will again ensure a smooth
flow of traffic without any major
Multi-modal Centralized Transportdisruptions.
Organization
To face the huge Mega Event, A centralized
Road and Transport Authority should be
established for real time traffic management
and permanent coordination with security.
This Authority should be a fully multimodal
public agency in charge of planning and
delivering all the event transport services.
Major Event and Venue Clustering
The clustering of venues and events ensureslow infrastructure requirements and lesser
traffic congestion. Moreover dedicated
transport lines can be created in case the
venues are clustered.
OFF events to spread traffic loads.
To allow people without event tickets to
enjoy the Games, live sites with huge
screens should be provided in various
pedestrian sites well served by public
transport. This will enable traffic pressures
to be eased away from event venues.
8/6/2019 LogisticsXpress Vol2 Issue 4
44/57
more sustainable urban and regional
Traffic Demand Management
The Government should use all the available
techniques to cut Event time traffic demand
e.g. declaring holidays in schools and
colleges, shifting central business activities
to outlying areas and by pre-empting the
freight deliveries.
mobility developments. From risk oriented
planning, mega event transport can
increasingly be considered as a unique
opportunity to bolster sustainable transport
developments at a comprehensive scale as
currently shown by massive road and metro
rail transport rehabilitation and extension
projects in New Delhi for Common Wealth
Games.In the past, mega event transport has mostly
been considered as a serious major
operational risk. But with proper planning
and management, the global transport and
traffic policies developed for mega events
such as the Commonwealth Games have
shown to be strong catalysts for accelerating
public transport projects and for promoting
Reference:
Transportation Research Board; Mega Sports Event Transportation And Main Mobility
Management Issues; Extracted from: http://tris.trb.org/view.aspx?type=CO&id=735412;Extracted on 23.11.2010
Transportation Research Board; Mobility And The Euro 2000 Football Championship;
Extracted from: http://tris.trb.org/view.aspx?type=CO&id=735409; Extracted on
23.11.2010
Transportation Research Board;Transport And Mega-Events: Trends, Developmental
Impacts And Typological Analysis; Extracted from
http://tris.trb.org/view.aspx?type=CO&id=735410
Solving outstanding mega-event transportchallenges: the Olympic experience by Philippe
Bovy, Prof. emeritus Swiss Federal Institute of Technology at Lausanne, IOC transport
expert, Switzerland
8/6/2019 LogisticsXpress Vol2 Issue 4
45/57
8/6/2019 LogisticsXpress Vol2 Issue 4
46/57
Supply Chain Risks
Akash Mishra,Rupal Kadian MBA-LSCM (Sem I, 2010-12)
When internal inspectors at GeorgiaNut Co. discovered salmonella in thecompanys pistachio products in March,
they immediately instigated a product recall
downstream to their customersincluding
Back to Nature Foods, a Wisconsin firm
owned by Kraft Foods Inc. that used the nuts
in trail mixand launched an inquisition to
locate and eradicate the source of the
contamination.
Consumer confidence is a delicate issue,
especially considering the recent spate of
similar recalls affecting a variety of
products, and executives understood the
rapidly identified and recalled suspect
shipments, and traced the contamination toits source a supplier in California.
As part of our food safety program, we
have systems in place at both Kraft plants
and external manufacturers that help identify
potential issues before they become
problems, says Adrienne Dimopoulos, a
spokesperson for Northfield, Ill.-based Kraft
Foods. We require extensive monitoring
and quality testing throughout the
production process, and we require that each
supplier and external manufacturer have a
food safety plan in place.
potential damage such an incident would doBecause Kraft caught the problem early, it
was able to avert the potential damage to the
companys brand. However, other
companies havent been as diligent about
their supply chain practices, or as fortunatewhen issues arise.
More recently, Peanut Corp. of America
(PCA), Lynchburg, Va., filed for bankruptcy
under Chapter 7 in a Virginia court after
salmonella in its products led to 600 people
falling ill, and as many as eight deaths in the
United States. Some 1,800 products were
stripped from retail shelves in one of the
largest recalls in U.S. history. Theto the companys brand.
However, Kraft was prepared and had the
ability to track and trace ingredients and
products both downstream to retailers and
upstream through its supply chain, and
contaminant was traced to irrigation water at
a Mexican farm that supplied the company.
Risk Exposure
These are just a few examples of risks that
manufacturers are exposed to through their
8/6/2019 LogisticsXpress Vol2 Issue 4
47/57
supply chains. Others include pathogenic
outbreaks such as H1N1 flu (originally
referred to as swine flu) closing factories
oreven worse borders; Somali pirates
seizing the ship transporting your materials;
earthquakes and hurricanes; wildly
fluctuating transport and commodity prices;
and, last but not nearly least, the economy.
The survivability of one of your key
component suppliers has become more than
another what-if scenario in too many
cases. And these are just the acute factors,
the headline grabbers. Risk management
has become a tremendous issue for theglobal supply chain, says Bob Ferrari, an
independent supply chain analyst and
blogger. [A severe incident] could literally
take down your brand. The economic crisis
has been particularly bad for manufacturers,
says Ferrari. In the age of Just-In-Time, a
lot of companies really embraced Lean
Manufacturing processes.
When the downturn hit in the late part of2008, production literally just stopped all
over the globe. So now, basically, supply
chains are sitting there without inventory,
waiting for signs of recovery. In China,
there are reports of thousands of factories
that have shut down. This started in low-
margin businesses like toys and apparel, and
has spread to more robust industries like
consumer electronics.
Analyst Noha Tohamy at analyst firm AMR
Research Inc., in Boston, agrees. Supply
Chain Risk (SCR) has become one of her
primary focus areas, and she conducts a
quarterly survey of procurement executives
to see what risks are on the top-of-mind and
what strategies they are implementing to
make them happen. A lot of companies
have seen a lot of their suppliers file for
bankruptcy, she says. For example, Toyota
has more than 100 suppliers at risk of
becoming financially insolvent.
The results of the most recent AMR survey,
conducted in February, showed that reduced
consumer spending had become the top risk.
In December, this issue was a distant sixth,
following rising fuel costs, rising
transportation costs, commodity price
volatility, intellectual property infringement
and supplier product quality failures. This
was the first time a demand issue became
the top concern. Its usually on the supply
side. [Supply chain managers] dont know
what demand is going to look like post-
recovery. They need to plan for the recovery
and dont know how to change their
manufacturing or sourcing because they
dont know whats going to come next.
Risk Management
According to Robert J. Schneider, managing
principal, Risk Management, International
Organization for Standardization (ISO), in
Geneva, Switzerland, risk managers should
8/6/2019 LogisticsXpress Vol2 Issue 4
48/57
8/6/2019 LogisticsXpress Vol2 Issue 4
49/57
8/6/2019 LogisticsXpress Vol2 Issue 4
50/57
GUEST LECTURES
Date: September 03, 2010
INAUGURAL SESS
Recommended