The supply chain challenges that arose during the pandemic underscored the importance of resilience and flexibility. It has also become clear that new technology is not enough to bridge the challenges to meet rising customer demands for speed and reliability. To capture growth and compete you need a scalable business model that is agile, data-driven, and technology-enabled. Here, the factor of Supply Chain Network Design (SNDC), also called strategic supply chain planning, comes in. The analytic side of supply chain network design helps to locate the potential for growth and provides hard data to prepare for expansion plans. The biggest trend however is to create systems that are flexible enough so that they can stay efficient with constantly changing market needs. Usha Periasamy, Director- Brand and Operations, Classic Polo in an explorative interaction with Upamanyu Borah,elaborates on their strategic approach to designing and managing supply chains to execute distribution strategies with a range of process and technology change levers essential to building resilient, competitive advantage.
What is Classic Polo’s stance in the market in terms of demand planning and forecasting capabilities in the fast fashion industry? Where the company beats others in the competition?
At Classic Polo, supply chain and demand planning are based on detailed research from market information, ERP/SAP metrics and feedbacks. Understanding the demand and supply architectures has helped to adopt a lean, agile and data-driven approach and revealed new ways to cut costs in operations, boost revenue, and offer a greater competitive edge.
There are two approaches to demand forecasting– Unconstrained demand forecasting that focusses on raw demand potential without factoring in possible constraints such as capacity and cash flow. And constrained forecasting that takes into account the limitations of the operations part of the business. We employ both types to enable the business to facilitate client orders and give the customers the best value for money while keeping the supply cost to a minimum.
To ensure the second wave of COVID-19 does not have the same devastating effect as the first, what steps are you taking to shape and measure the effectiveness of contingency plans for manufacturing and supply chain management?
COVID-19 has challenged fashion businesses of all shapes and sizes to re-look at business practices and forced many to adopt new ways of working. Knowing that the crisis will have a long-term impact, it’s time to redesign the industry’s value chain and emphasise on the importance of becoming not just more digitally adept but digital frontrunners.
Against the above backdrop, Classic Polo's prime strength—in-house production through its state-of-the-art infrastructure offers great advantage to increase speed and supply chain efficiency. Things like materials sourcing, creative and technical design, samples, production and shipping under the same roof is a boon. We ensure that on-demand products are produced and supplied within the best possible time while all-season fashion products are produced with utmost caution and experience—in smaller batches to avoid inventory pile-up and or capital crunch.
In short, Classic Polo is getting ready for the new normal with the help of the following parameters—proactive forecasting, rapid generation of insights, responsiveness with greater transparency and visibility, more digital collaboration with stakeholders, producing closer to raw material, and financial resilience—in place.
What would you say are the hidden pitfalls in terms of India’s garment manufacturing technologies perspective? And through what measures, the industry can take to extremes?
For the Indian garment industry, the path forward requires moving up in the value chain by upgrading raw materials and innovating products through the use of technology, and producing higher value products in terms of design, fabric, and sustainability. Very few garment companies operate on a large scale because of the lack of access to technology, finance, and operational dexterity.
New manufacturing technologies enable the apparel industry to move from labour-intensive to capital intensive production. Other outcomes of new manufacturing technology include faster production, less waste, restoring the localisation of production nearer to market so as to lower carbon footprints.
Thanks to the internet, hyper-connected users with their devices have driven consumer expectations. This has created a necessity for brands and entrepreneurs to become quicker in the collection of user data, sales performance, customer feedback, identifying supply chain difficulties to better their functioning, changing the very nature of the fashion cycle.
Technologies are already available to make the garment supply chain more sustainable. However, most promising technologies require extensive R&D efforts, money and collaboration to produce actual tangible results. Unfortunately, it’s not enough just to follow trending technologies in apparel manufacturing. To ensure that we are applying the appropriate systems to our supply chain operations, we need to evaluate our production and identify which technologies will maximise efficiency, generate revenue and reduce costs.
In practice, everyone doesn’t need to use all the available technology. Even many existing garment factories don't have latest technologies in their manufacturing plants and still they run the business successfully.
Despite the noise, it is hard to analyse the true impact of AI and Big Data on fast fashion, especially in the multi-player Indian apparel sector. Does this ring true to your experience?
We all are experiencing the benefits of AI and Big Data, as technologists continue to speculate the brighter future for AI.
In recent years, brands have been using AI to enhance customer’s shopping experience, analyse data, boost sales, forecast trends and offer inventory-related guidance. Improved inventory management is possible through AI-based predictive analytics that enable fashion retailers to learn from prevailing customer behaviour—fashion trends, purchase patterns—and plan their inventory stocks accordingly.
Big Data has a key role to play throughout the fashion supply chain, starting with the way designers create, and how brands market their garments. Today, Big Data helps brands build new strategies—by tailoring the consumer experience and enabling the customer to lead the way—which is revolutionary.
Despite the several advantages that advanced technology offers, there are also disadvantages that we cannot ignore.
AI-based software programs require frequent upgrades in order to cater to the requirements of the changing environment as the machine needs to become smarter day by day. In case the software suffers a severe breakdown, then the process of recovering lost codes and reinstalling the system can give you nightmares due to the huge time and cost involved.
However, it won’t be too optimistic to believe that all these problems will probably be fixed with time, including the issue of unemployment which can be solved only with human up-skilling.
In terms of improving the quality of wearables and enhancing customer satisfaction, what type of new supply chain innovations can we expect from Class Polo for faster production to meet market demands faster?
Having an efficient supply chain means a brand can beat competitors on retail price and improve profitability. Having high performing operations means a brand will be able to meet or exceed customer expectations on delivery of its product. Effective supply chain management allows any brand to do just that.
Vendor managed inventory (VMI) hub which refers to the logistics distribution centre located near the manufacturer and used to store the raw material supplies, unlike decentralised distribution mode, supply hub changes the relationship between manufacturers and suppliers from one-to-many to one-to-one, simplifying the operational processes. Since the utilisation of supply hub has already achieved good results in enterprise management practices, Classic Polo validates the effectiveness of the new approach by comparing and analysing the flexibility in performance in a decentralised distribution mode. All of this ultimately leads to faster product roll out in a fast-moving market.
The customer expects great service every time, all the time. If a brand doesn’t deliver products quickly enough, consumers are not happy, and this means the company’s supply chain has failed. Especially in the modern climate, where a customer can blast a company publicly on social media, brand reputation is more susceptible to damage from preventable supply chain mistakes than ever before.
Classic Polo is omnichannel—accessible across online and offline—so its service goes a step further in ensuring an integrated, seamless experience across each one. Giving customers what they want, when they want at the sharpest price is key to keeping them satisfied, we are consciously following the golden rule and leaving no stone unturned to delight our customers.
What steps should India take to properly deliver upon its true potential in the textile and garments sector?
India is the largest producer of Cotton (30 per cent share of the global Cotton production), 2nd largest producer of Polyester and Silk, 3rd largest producer of Viscose, 4th largest producer of Acrylic and Nylon.
India is a rapidly growing industrial economy with availability of key resources such as land, power, water, manpower and a conductive regulatory framework for industries in textiles and apparel sector to thrive. The textile industry can capitalise on its strengths of extensive raw material base, large manufacturing infrastructure, availability of abundant workforce, and presence in all levels of manufacturing value chain (from fibre to finished goods) to achieve better growth rates than in the recent past. India is one of the few textile manufacturing countries in the world where all levels of textile value chain, i.e. from fibre/filament to garment manufacturing are present, in both natural and synthetic fibres. The presence of several large integrated players in the country, spread across its vast geography has proved to be of strategic advantage in maintaining this presence of complete manufacturing value chain.
This vast raw material base has adequately supported the development of downstream manufacturing value chain along with securing India’s position to capitalise on opportunities presented by both domestic and international markets.
Textile manufacturing is a labour-intensive industry and is cost-competitive in terms of manpower. India possesses one of the largest pools of young, trainable workforce with 62 per cent of Indian population being in the working age group of 15 to 59 years. Based on the current demographics of India, the current workforce is expected to sustain until 2055. With this abundant availability of manpower coupled with relatively lower costs, India possesses the necessary preconditions for this sector to thrive.
Programs like Skill India and Make in India, along with continuous development and growth in the management consulting firms in India for foreign companies, is working in favour of the developments in the Indian textile industry. The access to skilled manpower and a good market for textile products, the industry would become competitive in the global market.
So as you look ahead to the next decade, how do you see Hub services evolving within the domestic market?
The delivery time of order has become an important fact for customers to evaluate logistics services. Due to the diverse and large quantities of orders in the background of omnichannel presence, how to improve the flexibility of distribution hub and reduce the waiting time of customers becomes most challenging for logistics companies. Today, as the development of e-commerce drives the increase of consumer demand, improving the flexibility of distribution hub to reduce the order-to-delivery time has become the primary challenge for distribution centres. Due to the high time and financial costs, order delivery is considered an important activity of logistics distribution centres.
A stabilised transport infrastructure is an essential requirement for the movements of products, whether commodities or consumer goods. It may comprise not only roads, railroads, or waterways, but also a variety of logistics nodes that support industrial and commercial operations, promoting the flow of goods and information across local, regional, national and international borders. These allow improving logistics service levels, particularly through the reduction of lead times and transports costs.
The apparel sector seems to be split among those that provide the services themselves, those that work with outsourced service providers, and those that work within limited distribution networks, or a hybrid of some or all of these. Does Classic Fashions have a preferred approach?
Brands are in need of a supply chain network that could not only satisfy efficient distribution demand but also scalable to serve any new B2B operation intended to distribute apparel to independently-owned, smaller-footprint stores. Such new supply chain network models give fashion retailers the necessary scalability to keep stores serviced appropriately across multiple formats. The fulfilment speeds and supply chain cost reductions are expected to give each location the ability to operate at their target margins while growing the business through a quickly growing B2B network of retail customers.
Today, Classic Polo handles multiple channels of distribution to ensure the following:
We believe there are several factors driving these trends. Arguably the catalyst is that volumes shipped through non-traditional channels have grown significantly, it is now a matter of urgency that this flow is handled effectively and efficiently.
In reaction to this growth, information systems have developed and are now capable of handling multiple channels within the same system often using the same inventory. A common inventory can help reduce shipping costs and traditional shipping methods can be leveraged to facilitate, for-example, in-store pick-ups of merchandise ordered on-line at a very minimal marginal cost of freight.
With a single facility and single information system, many physical flows can be combined into common flows regardless of channel. With common flows there is now greater movement to justify higher levels of automation, which in turn can dramatically reduce labour costs. This is particularly important for the very labour intensive e-commerce distribution channel.
Classic Polo has been working on the conventional method, systematically till date. But with changing needs and demands, we foresee a transformation in practice.
The Federation of Freight Forwarders’ Associations in India (FFFAI) held its 6th EC Meeting for the term 2021-23 on May 27 and 28 in Bengaluru. The meeting was attended by the Office Bearers and 28 Member Association representative of FFFAI from across the country, there were many issues discussed and updates provided concerning customs, CBLR, EDI, Service Tax/GST, logistics, air cargo, sea cargo, skill development,importance of social media which FFFAI has expanded recently, technology developments, etc. The special focus of the 6th EC meeting was the updates on forthcoming 24th Biennial Convention of FFFAI to be held from August 12 to 14, 2022 in Chennai with the theme LOGISTICS RESHAPE, EMBRACE AND SURGE IN THE DIGITAL ERA. At this EC meeting, FFFAI also implemented Digital Learning platform for members and next generation for e-learning. It has been decided that FFFAI would initiate FIATA eFBL here in India to benefit the trade, which empowers customs brokers, freight forwarders and logistics service providers. In addition, updates on the recently held FIATA HQ Meet was also provided by the concerned members of FFFAI. FFFAI members present at this EC meeting stressed upon enhancing productivity on ICEGATE for trade facilitation and Ease of Doing Business. The FFFAI members also urged for creating a dedicated portal for LSP integration. As regard to skill development initiatives, IIFF’s (training arm of FFFAI) past and forthcoming training programmes (both online and classroom/physical) for the entire logistics industry were presented at the EC meeting. In addition, FFFAI’s various initiatives on capacity building through technology/IT also discussed withadequate importance. Recent activities of FFFAI Women’s Wing including organising interactive meetings with Government of India officials and industry experts were highlighted at this meeting which drew huge appreciation from the members. The members committed to expand the activities of the Women’s Wing in all the 28 member association locations to empower/encourage the women logistics practitioners. At this EC meeting FFFAI has signed an MoU with the National Institute of Industrial Engineering (NITIE) with an objective of skilling the aspiring candidates looking for opportunities in the logistics sector. Notably, a special session was organised at this 6th EC Meeting where N Sivasailam, former Special Secretary (Logistics), Ministry of Commerce, Government of India was present to address the FFFAI members and highlight the recent initiatives of the government in strengthening the logistics infrastructure, thereby leading in increase of international trade through multimodal connectivity and faster cargo clearance. He projected the ambitious growth potential of the logistics industry in India with a strong collaboration between government and industry people. Also speaking on the occasion was Bani Bhattacharya, IRS, who interacted with members of FFFAI on various initiatives of CBIC for the trade facilitation without human intervention. FFFAI Chairman Shankar Shinde thanked all the 28 associations for their support and appreciated the contribution of CBIC/DG systems trade facilitation measures. FFFAI Member Associations are: 1. Ahmedabad Custom Brokers' Association2. Aurangabad Customs House Agents Association3. Association of Custom House Agents Thiruvanthapuram4. Bangalore Custom House Agents Association5. Brihnamumbai Custom Brokers Association6. Calcutta Customs House Agents Association7. Chennai Customs House Agents Association8. Cochin Customs Brokers' Association9. Coimbatore Customs House and Steamer Agents Association10. Custom Brokers Association Hyderabad11. Delhi Customs Brokers Association12. Goa Custom Brokers Association13.Indore Customs House Agents Association14. The Kakinada Customs Brokers Association15. Kandla Custom Brokers Association16. Kanpur Customs Brokers Association17. Ludhiana Customs House Agents Association18. Mangalore Customs House Agents Association19. Mundra Customs Brokers Association20. Nagpur Customs House Agents Association21. Nashik Customs House Agents Association22. Nadia Custom Brokers Association23. Pipavav Custom Brokers Association24. Pune Customs House Agents Association25. Rajasthan Customs House Agents Association26.Tuticorin Custom Brokers Association27.Visakhapatnam Cusotms Brokers' Association28.West Bengal Custom House Agents Society FFFAI welcomes Women in Logistics/Youth in Logistics to participate on FFFAI forums and also invites membership application form logistics service providers in industry as this is a big national and international forum to network.
Ecom Express Limited, India’s sole pure-play B2C e-commerce logistics provider as of the Financial Year 2024, has introduced a new brand identity, underscoring its commitment to customer-centricity. This rebranding reflects a focus on addressing specific customer needs, prioritising customer-facing metrics, and integrating innovative technology across its nationwide express logistics network. The goal is to enhance speed, agility, and network reach, ensuring a customer-focused approach. The rebranding includes a dynamic logo and a refreshed visual identity, symbolising Ecom Express’s pursuit of excellence. The new logo features a forward-moving arrow within a square, representing the company’s dedication to delivery. The letter "E" in the logo stands for Expression, Innovation, and Progress, while the bold magenta colour signifies bravery, self-expression, and strength. This vibrant magenta reintroduction reflects Ecom Express's renewed commitment to customers, partners, and team members, as the company aims to simplify and democratise logistics for all. Ajay Chitkara, CEO and MD of Ecom Express, elaborated on the transformation, stating, “Our refreshed brand identity reaffirms our customer-first approach as we continue to integrate technology and innovation to provide reliable, high-speed services with the widest network reach. This transformation also underscores our commitment to our employees and delivery partners, who are essential to our business.” The new logo embodies Ecom Express’s dedication to its core values, focusing on customer welfare and fostering a diverse, inclusive environment. This rebranding signifies a promise to redefine logistics through advanced technology, making life easier for all types of customers.
ESR India, the largest APAC focused industrial and logistics real estate platform, has inked a Memorandum of Understanding (MoU) with the Government of Tamil Nadu for a potential investment of INR 550 crores. The MOU is signed for the launch of two industrial parks in Kancheepuram and Krishnagiri districts of the state over the next five years. Once fully operational, the two projects have the potential to create over 4,400 jobs in the facility, that shall boost the overall socio-economic growth in the region. The MoU was signed at the Investment Conclave 2021 conference held today. It will facilitate ESR India’s proposed investment at Kancheepuram and Krishnagiri industrial parks by helping in streamlining land acquisition, approvals, clearances, and administrative processes as per existing policies, rules, and regulations of the Government of Tamil Nadu. The policy and regulatory reforms unveiled in recent times has accentuated the entry of international institutional players and has set new benchmarks for industrial developments in the country. Commenting on the development, Abhijit Malkani, CEO and Country Head, ESR India said, “We are delighted to announce our affiliation with the state government. The Government of Tamil Nadu has been very supportive in encouraging industrial developments in the state by creating a favourable business climate for industrial players. The MoU will see ESR invest INR 550 crores to develop industrial parks in Tamil Nadu, offering 1,800 direct and 2,600 indirect job opportunities in the facility.” “Our goals are aligned with the vision of the Tamil Nadu government, to create avenues to increase business and trade inclusion opportunities and employment towards garnering better economic growth in the region,” he further stated. ESR India is currently present across 9 cities and 15 locations with a total GFA of 18 mn sq ft. These state-of-the-art facilities will be developed upholding the best practices for ESG and sustainability.
Delmos Aviation has transported the second lot of 300 units of oxygen concentrators from Russia to New Delhi for the Rajasthan state government. The consignment was airborne on an Aeroflot A333 aircraft (SU 232) and reached at 10:10 AM in New Delhi. The shipments were shipped by road and sent back to Swasthya Bhawan, Jaipur, Rajasthan Medical Services Corporation (RMSCL). RMSCL obtained oxygen concentrators from Russian companies together with Delmos Aviation. Delmos Aviation is procuring, transporting and supplying COVID-relied materials to the Rajasthan Medical Services Corporation with the mandate signed with the Rajasthan Government. There will shortly be two consignments with the remaining 800 oxygen concentrators. "We are ready to assist governments in the provision and delivery of any type of essential medical supplies, oxygen concentration and equipment as quickly as possible," said Dr Naveen Rao, Director, Delmos Aviation. "At this juncture, time-based deliveries are paramount. We can handle the airlift and deliver the shipment to the last point." In four lots, 100, 300, 450 and 400 units, a total of 1250 oxygen concentrations are ordered and continue to reach New Delhi in batches of shipments. On 14 and 16 May 2021, the remaining lots will arrive. Oxygen concentrators of Single flowmeter (0.5-10LPM Adjustable) and double flowmeter (0-5LPM Adjustable) are included in the delivery. The models are JAY-10A & LFY-I-5A. "The government of Rajasthan is working hard in this raging second wave of the pandemic to provide basic medical equipment to head Minister Ashok Gehlot and Minister of Health, Raghu Sharma. The government plans to import 1250 oxygen concentrators from Moscow, Russia, in partnership with Delmos Aviation, as part of its efforts to enhance medical oxygen in the state," said a spokesperson.
Singapore’s Changi Airport is sharpening its focus on pharmaceuticals and e-commerce shipments to navigate constrained cargo capacity until planned expansion in the 2030s. According to Lim Ching Kiat, Executive Vice President of Air Hub and Cargo Development at Changi Airport Group, current facilities face mounting pressure due to growing regional demand, necessitating strategic tenant and cargo type management. E-commerce continues to be a key growth driver for air cargo globally, fueled by major players like Shein, Temu, and TikTok Shop. At the same time, Singapore is solidifying its position as Southeast Asia’s preferred pharmaceutical hub, attracting investments from global biopharma giants such as Thermo Fisher, Sanofi, BioNTech, and MSD. Looking ahead, Changi Airport plans to launch a second logistics park by the 2030s, aiming to increase its annual cargo capacity from 3 million tons to 5.4 million tons. The new free trade zone will further expedite cargo handling and redistribution. In 2024, Changi Airport reported handling 1.99 million tons of airfreight, a 14.6% rise from 2023, driven by robust cross-border e-commerce demand, improved trade routes with China and the U.S., and recovering electronics exports. Top air cargo markets included China, Australia, the U.S., Hong Kong, and India.
As we all know, supply chain management encompasses a multifaceted approach to streamline operations, optimise resources, and meet customer demands efficiently. Integrating the entire supply chain involves aligning and synchronising all components, processes, and stakeholders involved—from suppliers to end consumers. Most importantly, an integrated supply chain leverages technology and standardised processes to achieve seamless coordination, visibility, and data sharing across the entire value chain. As businesses navigate the complexities of today’s global marketplace, harnessing the power of an innovative supply chain through enabling technological advancements and process improvements is crucial for establishing resilient, responsive, and future-ready supply chain ecosystems. These aspects are brought together by three crucial elements: technology as the backbone of innovative supply chains, continuous improvement throughout the entire supply chain, and network structures driven by transparent communication and end-to-end visibility. Harish Singh, Head – Supply Chain, Burgerama talks about the amalgamation of these key elements that enable organisations like Burgerama to stay ahead in a rapidly evolving business landscape, fostering innovation and sustainable growth in the realm of supply chain management features. Excerpts by UPAMANYU BORAH from a recent interaction. Genesis and Operations Founded in 2018 by Kabir, Viraaj, and Vivek, Burgerama is a flavour-packed tale of the juiciest cheeseburgers in India. Starting strong in Sushant Lok in October 2018, not even a global pandemic could halt this culinary sensation. What sets Burgerama apart? It's the explosion of taste in every bite, achieved through meticulous ingredient selection and an unwavering commitment to authenticity. Beyond just a food joint, Burgerama is a narrative of enduring friendship and an unyielding quest to craft the perfect burger experience. Now operating 14 delivery outlets across Delhi NCR, Chandigarh, and Bangalore, Burgerama has come to be known for its passionate team, true-to-form flavours and genuinely delicious products, creating a truly unique burger experience for all. Adapting to Macro Challenges In recent times, our burger brand has experienced both positive and negative impacts from the macro environment. A shift towards healthier eating habits has inspired us to innovate our menu, offering diverse options with high-quality, nutritious ingredients, expanding our appeal. Embracing sustainability, we've adopted eco-friendly packaging and responsible sourcing, aligning with evolving consumer values. However, challenges persist. Fluctuating commodity prices and supply chain disruptions occasionally affect our quality and pricing consistency. To address this, we've prioritised supply chain flexibility. Technological investments and strategic partnerships enable swift responses to unforeseen circumstances. Building relationships with multiple suppliers and agile inventory management mitigate localised disruptions. Our logistics infrastructure, designed for agility, includes contingency plans and alternative routes, ensuring seamless operations. Despite macro challenges, our commitment to a flexible supply chain empowers us to navigate obstacles effectively, ensuring consistent delivery of quality burgers to our customers under any circumstances. Global Benchmarks, Local Adaptations Our burger brand prioritises a consistent supply through tech-driven forecasting, strategic partnerships, and global benchmarking. Leveraging predictive analytics, we adjust production to minimise shortages or overstocking. Long-term relationships with suppliers ensure transparent operations, from sourcing to delivery. We adapt successful global practices through benchmarking and continually improve through audits, adopting new technologies or optimising routes. Our commitment to agility and learning from global benchmarks ensures a reliable supply chain, meeting dynamic customer demands. Cost Management Methods In the face of escalating input costs, especially in a landscape where our primary business operates through Zomato and Swiggy, our commitment remains to shield end consumers from additional financial burdens. Our strategy is multi-faceted, emphasising cost management without compromising quality or transferring extra expenses to the customer. Internally, we relentlessly optimise operations, streamlining processes from sourcing to distribution to enhance efficiency and minimise wastage throughout the supply chain. Furthermore, we are resolute in absorbing a certain degree of these cost increases within our operations, ensuring that the quality, value, and experience associated with our brand remain uncompromised. Collaborating closely with our suppliers and distributors, we navigate peak input costs by absorbing some of the financial pressures internally, ultimately ensuring that the end consumer is spared from additional financial strains. Automation advancements in Operations Harnessing advanced information technology has been transformative for our supply chain. Integration of cutting-edge solutions has significantly boosted efficiency, agility, and responsiveness. A key initiative involves implementing robust inventory management systems driven by machine learning algorithms. These systems enhance demand forecasting, optimise inventory levels, and predict supply chain disruptions. This proactive approach ensures balanced stock levels at both outlet and warehouse, preventing excesses or shortages. Automation further streamlines operations, with an indent planning tool seamlessly integrated into our inventory management for more precise order fulfillment planning. Strong Partnerships: Key to minimising disruptions In India's supply chain landscape, seamless coordination among suppliers, distributors, and logistics partners is crucial. Our approach emphasises robust communication channels, fostering transparency, strategy alignment, and quick problem-solving. During crises, like recent disruptions, our coordination becomes even more vital. Swift adaptations, such as diversifying supply channels and optimising stock, help us navigate challenges. Strong partner relationships minimise disruptions. Despite widespread implications, our focus stays on fostering collaborations and open communication to navigate challenges effectively and deliver quality service in alignment with the dynamic Indian market. Logistics: Enabling Our Burger Success In our burger brand's success story in India, logistics plays a vital role, serving as the backbone of our operations. Entrusting specific functions to external partners, such as transportation and warehousing, ensures efficient delivery routes and streamlined distribution. While external partners handle certain tasks, the majority of logistics operations, including inventory management and strategic planning, are internally controlled. This internal control is crucial for optimising inventory, anticipating market demands, and maintaining a smooth product flow. With approximately 90 per cent of logistics operations managed internally, we strike a balance, leveraging external expertise while retaining control over core functions. This collaborative strategy ensures the benefits of specialised skills from partners, coupled with the agility needed to adapt to India's unique market demands. Win-Win Partnerships In selecting logistics partners for our Indian operations, we prioritise reliability, scalability, and technological proficiency. Timely and consistent deliveries are crucial, requiring partners adaptable to India's dynamic landscape. We emphasise technology-driven solutions, favoring partners with advanced tracking systems and route optimisation. Cost-effectiveness is key, seeking competitive pricing without compromising service quality. Transparency, compliance with regulations, and a customer-centric approach are foundational criteria. Thorough evaluations and trial periods ensure compatibility and strong partnerships, ensuring a smooth and efficient logistics operation for our burger brand in India. Efficient Transportation Strategies In response to the evolving logistics landscape in India, our policies and strategies pivot towards embracing alternative transport modes and optimising routes for efficient outsourcing of logistics services. We advocate for multimodal transport, acknowledging the strengths of various modes like road and rail to optimise cost, time, and environmental impact. Prioritising route optimisation through advanced technologies enables us to minimise transit times and costs, leveraging data-driven analytics to assess traffic patterns and road conditions. Collaboration with specialised 3PL service providers in alternative transport modes enhances our network efficiency. Recognising the last-mile delivery challenge in India, our policies explore innovative solutions, including partnerships with local services and micro-warehousing strategies. The emphasis on adaptability and agility allows us to respond dynamically to market dynamics, embracing new transport modes for enhanced efficiency or reduced environmental impact. Continuous evaluation and improvement are ingrained in our policies, fostering a diversified and adaptable logistics framework that ensures efficient supply chain operations for our business. Warehousing strategies that alleviates the bottom-line To optimise our operations, we strategically position warehouses for proximity to major consumption centers, minimising transportation costs and reducing delivery times across India. Leveraging technology, we implement warehouse management systems and plan to introduce barcode systems for enhanced accuracy. Embracing lean principles, we focus on continuous improvement, eliminating non-value-added activities, and maintaining efficient layouts. Anticipating seasonal or peak demand, we implement inventory strategies for optimal preparation without excess costs during quieter periods. Collaboration with 3PLs allows scalability and access to specialised facilities. Utilising data analytics, we continuously analyse warehouse efficiency, facilitating data-driven decisions for ongoing process improvements. Through these strategies, we aim for efficient, agile, and customer-centric operations, ensuring timely product delivery across India while optimising costs and resources. Distinct capabilities with a strategic Innovation Approach Maximising the efficiency of our logistics and backend operations involves a multifaceted approach focussed on continuous improvement and innovation. Leveraging advanced analytics, we prioritise accurate demand forecasting for optimised inventory levels, balancing meeting customer demands with minimising excess stock. Building strong relationships with suppliers and implementing lean supply chain principles help in reducing lead times, cutting costs, and maintaining a responsive supply chain. Constantly exploring and integrating emerging technologies such as AI and Bar Coding enhances visibility and transparency across the supply chain. Sustainability initiatives, including eco-friendly packaging and optimised delivery routes, align with our commitment to environmental responsibility. Regular assessments and adaptation to market changes, whether regulatory shifts or consumer preferences, ensure operational agility. Our ultimate goal is to create a responsive, cost-effective, and sustainable supply chain that meets customer demands across diverse cities. Megatrends changing the face of Supply Chain Executives In the dynamic landscape of India's supply chain and logistics, several pivotal megatrends are set to reshape the roles of managers in these domains. Technology integration, including AI and machine learning, will revolutionise operations, requiring managers to harness these tools for enhanced visibility and data-driven decision-making. Building resilience against disruptions and diversifying sourcing channels will be imperative. Leveraging data analytics for predictive insights will be essential for optimising inventory and enhancing overall efficiency. Collaborative partnerships across the supply chain ecosystem will strengthen, necessitating closer ties with suppliers, distributors, and technology providers. Adapting to evolving regulations, upskilling the workforce for increased automation, and prioritising customer-centric logistics experiences are paramount. Striking the right balance between globalisation benefits and localised strategies will be a key challenge. Managers who adeptly navigate and capitalise on these megatrends will build agile, sustainable, and technologically advanced operations, meeting the evolving demands of the market. Advice for budding professionals To young supply chain professionals entering the industry in India, here's some invaluable advices for navigating the evolving landscape. Embrace continuous learning by staying updated on technological advancements and industry trends, and seek certifications and mentorship. Develop a holistic understanding of the supply chain spectrum, acknowledging the interconnections between procurement, logistics, operations, and customer relations. Cultivate adaptability and flexibility to navigate the fast-paced and disruptive nature of the industry. Focus on data literacy, particularly proficiency in analytics tools like Excel, for making informed decisions. Hone communication and collaboration skills to effectively coordinate with diverse teams and stakeholders. Embrace ethical and sustainable practices, recognising their growing importance in supply chains. Lastly, foster a problem-solving mindset, as the ability to address challenges efficiently is highly valued in the dynamic field of supply chain management.
Fabindia embarked on a journey that evolved from exporting home furnishings to establishing over 350 retail stores across India. This expansion wasn't merely about market presence but a deep-rooted commitment to sustaining traditional craftsmanship and empowering rural artisans. Nitin Joshi, Head Warehousing and Logistics, Fab India, in a recent tête-à-tête takes us through the 64-year-old legacy and most recognisable retail brand’ resilient supply chain strategies, balancing fulfilment across various channels, and effectively managing diverse demand patterns, weaved into the ethos of collaboration and innovation. With a combination of practical knowledge, solution-oriented mindsets, technological advancements, and a dedicated focus on customer satisfaction, Fabindia consistently sets industry benchmarks while promoting sustainable practices and preserving India's cultural heritage. It is, therefore, affirmable that Fabindia's supply chain model stands to provide valuable insights for managers navigating the complexities of modern-day fashion fulfilment and SCM mandates. Natural, Craft-Based Products with Community Collaboration Established in 1960 by John Bissell with the aim of promoting India's rich craft traditions, Fabindia initially focussed on exporting home furnishings. Its first retail store opened in Greater Kailash, New Delhi, fifteen years later. By the early 1980s, Fabindia had gained recognition for its handwoven and hand-printed fabric garments. In 2000, the company expanded its offerings to include non-textile products. Today, with over 350 stores across India, Fabindia stands as the largest private platform showcasing traditional crafts and knowledge. A significant portion of its products originates from villages nationwide, where Fabindia collaborates closely with artisans, providing support in design, quality control, financing, and sourcing raw materials. Fabindia's mission is to provide customers with a range of natural, craft-based products and a lifestyle that champions alternatives to mass-produced goods, all while fostering sustainable livelihoods in rural areas. Lessons Learned: Building an Adaptive and Resilient Supply Chain The COVID-19 pandemic disrupted our supply chain, particularly impacting our core apparel business despite an uptick in home sales. However, thanks to our enduring partnerships with all our suppliers, we chose not to cancel orders and remained committed to our agreements. These relationships, cultivated over decades, are built on mutual understanding and trust, transcending mere transactions. This bond of trust between Fabindia and its suppliers proved invaluable in navigating the pandemic's challenges. Consequently, our performance now exceeds pre-COVID levels, highlighting the robustness and adaptability of our supply chain in facing future adversities. Seamless B2B, B2C, and D2C Operations Over the last six decades, Fabindia has nurtured and expanded its ecosystem. Artisans from diverse regions of India meticulously craft our products, which are then transported to our warehouses and retail outlets. Our longstanding relationships with craft-based vendors, developed over many years, have enabled us to implement Closer to Trend (CTT) buying practices. This includes strategic planning for seasonal purchases and maintaining an Ideal Stock Quantity (Perennials) well in advance. We closely monitor On-Time-In-Full (OTIF) performance throughout the supply chain to ensure the freshness of products across all sales channels. Our seamless omni-channel fulfillment covers Business-to-Business (B2B), Business-to-Consumer (B2C), and Direct-to-Consumer (D2C) channels, facilitated by Warehouse Management Systems (WMS), Order Management Systems (OMS), and a robust Transportation Management System (TMS). Omni-Channel strategies for Growth Whether catering to internal customers (B2B) or external customers (B2C/D2C), our warehouse and logistics team collaborates closely with the business teams to ensure an exceptional overall customer experience. We continuously identify areas for improvement and diligently work to enhance them. Central to our efforts is maintaining efficient dispatch to delivery Turnaround Times (TATs), providing transparent delivery timelines to customers, and ensuring a superior last-mile delivery experience. Our omni-channel fulfilment capabilities have been honed through meticulous operational and infrastructure preparations tailored to the specific requirements of each channel. Our focus on inventory management, fulfilment processes, and customer service standards has enabled us to effectively manage growth across all channels. We've established omni-channel fulfillment capabilities that allow customers to place orders through in-store tablets, as well as via the website and app. Fulfilment for B2B, B2C, and D2C orders is managed through best-in-class Warehouse Management System (WMS) and Order Management System (OMS), supported by a robust Transportation Management System (TMS). Nevertheless, challenges arise in managing fulfilment TATs that differ among channels. Maintaining optimal inventory levels across multiple channels, without excess or shortages, is especially challenging due to the diverse demand patterns observed in each channel. Cost Optimisation Strategies: Balancing Quality and Services To tackle the challenge of increasing input costs, we've put in place several strategies. First, we're optimising our internal processes to cut costs without compromising quality. Second, we're working closely with our logistics partners to lessen the impact of these rising costs. Our partners are key in helping us streamline operations and come up with creative solutions during tough times. We've found success in reducing transportation expenses by consolidating shipments at our warehouses, optimising routes, and negotiating with suppliers. Our logistics partners ensure on-time delivery and minimising disruptions, which improves overall efficiency and cost-effectiveness. Our goal is to shield consumers from extra financial burdens while maintaining the quality and reliability of our products and services. This proactive approach to cost management, combined with our strong partnership with logistics experts, helps us achieve these goals. Enhancing Efficiency in Supply Chain The Fashion Supply Chain's complexity stems from managing a wide range of unique product variations (SKUs). To tackle this, technology and automation have become crucial for enhancing efficiency. Product Lifecycle Management (PLM) software offers detailed insights into each stage of a product's life, optimising development processes. Vendor portals, like Advance Shipping Notice (ASN) systems, improve inbound visibility from vendors to warehouses, speeding up receiving processes. WMS tracks inventory in real time, guiding storage and retrieval for efficient omni-channel fulfilment. Automated sortation systems rapidly sort large inventories based on various attributes like size and shipping speeds. TMS provides complete visibility of in-transit stocks, automating shipping processes for cost savings, visibility, and faster deliveries. Merchandise planning tools aid in precise stock planning, boosting sales and reducing markdowns. OMS consolidate orders from multiple platforms and automate their fulfilment. These technologies, integrated into our omni-channel supply chain, have optimised warehousing and logistics, enhancing efficiency, accuracy, and agility with comprehensive visibility across the process chain. Integrated Systems for enhanced Visibility Implementing a WMS, Put-to-Wall sortation system, and robust TMS has strengthened our ability to consistently achieve OTIF performance across our omni-channel fulfilment operations. Seamless inventory visibility throughout the supply chain enables us to optimise operations and anticipate potential delays. As our volumes grow and our domestic and international presence expands, we actively collaborate with new automation and technology vendors to stay ahead of industry advancements. In our omni-channel supply chain, we've leveraged technology across various areas to enhance warehousing and logistics, leading to improved efficiency, accuracy, and flexibility. Integration of WMS, sortation systems, OMS, and TMS with our Enterprise Resource Planning (ERP) solution has provided complete visibility throughout the process chain. Continuous Improvement Culture: Collaborative Solutions Efficient logistics management is critical for ensuring timely and cost-effective operations, directly impacting customer satisfaction. Our logistics partners oversee a range of functions, including transportation, warehousing, inventory management, order fulfilment, and distribution. Third-party Logistics (3PL) providers come into the picture as strategic partners that offer benefits such as optimising supply chains, cost efficiency, and improving customer satisfaction. Through close collaboration, we align with our 3PL partners to understand warehouse processes and pursue shared strategic objectives. Our company fosters a culture of continuous improvement, actively seeking feedback and collaborating on innovative solutions. Key performance metrics with our 3PL partners include order and inventory accuracy, productivity per person, and space utilisation. Similarly, with transportation partners, metrics like on-time delivery and accuracy are crucial. We regularly monitor carrier performance scorecards to ensure customer satisfaction. Collaborating with 3PL partners indeed allows us to leverage their expertise, network, and resources, optimizing our logistics operations. To efficiently manage omni-channel (B2B, B2C and D2C) fulfilment, we strategically utilise diverse transportation modes such as containerised Full Truck Load (FTL), Express Cargo (Surface), Air Cargo, and various last-mile delivery options for Same Day Delivery (SDD) and Next Day Delivery (NDD). Foundations for Renewed Success In today's business landscape, supply chain management is pivotal due to factors like Customer Satisfaction, Innovation, Strategic alignment, and Cost Efficiency. These elements underscore the importance and value of a well-managed supply chain in modern businesses. My two cents of advice for new and aspiring supply chain professionals are: Gain practical knowledge: Seek hands-on experience in Procurement, Warehousing and Logistics through internships or entry-level roles to understand supply chain operations better. Foster a solution-oriented mindset: Develop problem-solving skills to tackle complex challenges in the supply chain effectively. Strengthen interpersonal skills: Effective communication and collaboration with cross-functional teams are crucial for success in supply chain management. Embrace technology and automation: Stay updated on new technologies and automation to optimise supply chain processes and improve efficiency. Prioritise sustainability: Focus on integrating sustainable practices into the supply chain and explore ways to implement best practices.
To remain profitable and create value for customers, the air freight supply chain has to effectively build on criteria such as quality, innovation, efficiency, speed, reliability with the vision to be open to all sectors and offer innovative products, services and operations that can help the industry flourish. The explosive growth of on-line shopping alone will keep the air cargo sector very healthy in 2022 and beyond, and carriers like Turkish Cargo are starting to use big data research in creative ways to increase cargo yields and introduce more velocity into shipper’s supply chains. While economies of scope are characterised by efficiencies formed by variety, economies of scale are instead characterised by volume. Economies of scale, for instance, helped Turkish Cargo maintain sustainable success within its air cargo operations conducted to all over the world. According to Fatih Ciğal, the airline’s Senior Vice President of Cargo Marketing, they continue to script success with more effective solutions by developing and using new technologies and innovative approaches. One of the significant examples of these approaches, he says will be the SmartIST, one of the biggest and most modern air cargo facilities in the world. Excerpts from an insider with Upamanyu Borah. CARGO AVIATION IN A POST-PANDEMIC WORLD Air cargo capacity has become even more valuable, since half of the world’s capacity was supplied by passenger aircraft. From the data point of view, difference between the growth rates of demand and supply kept the rates higher. In 2020, this difference was roughly 10 percentage points, but now it increased to 15 percentage points. We expect this situation to continue until mid-2022. The past years have resulted in a modal shift from sea to air, and the entire aviation industry stakeholders are taking advantage of the conveniences air mobility offers to customers. In this context, Turkish Cargo had come up with new strategies and took necessary actions during the pandemic. Our operations worldwide have provided a global air bridge via our cargo facilities at Istanbul Airport. We have been carrying time- and temperature-sensitive products such as medical supplies and other essentials to meet the needs of the market and customers with offering faster and reliable shipping across a worldwide network. Today, we boast a huge cargo fleet comprising 24 freighters further supported by belly and PaxFre flights in order to meet the increasing demand with efficiency in network management. CRISIS OFTEN SPAWNS THE BEST INTERVENTIONS THROUGH DISTORTIONS The issues, experienced currently by the air cargo industry can be listed under a few main topics. These are digitalisation, capacity, security and safety, liberalisation, sustainability and intra-industry cooperation. I consider one of the most important challenges to be digitalisation. In the last five years, the industry has been involved with virtual integrations due to digital developments. Within this framework, even Turkish Cargo has been adapting activities to the new market dynamics in terms of network and fleet. We have been enhancing the overall service and network coverage offered to customers. MAKING TECHNOLOGY WORK HARDER FOR OWNSELF The future of air cargo is based on technological developments and digital transformation, and Turkish Cargo has been attaching great importance to digitalisation which has enabled the company to overcome challenges during the pandemic and adapt operations and services. Within this framework, Turkish Cargo took good steps towards digitalisation with a WhatsApp Chatbot called ‘Cargy’ which is offering customers opportunity to learn about their AWB status and tariff inquiries based on O&D via WhatsApp with 24x7 access from their phones. One of the processes that we have been conducting and investing into is RPA technology, and therefore integrating software robots which we call metal collars into our business processes. Turkish Cargo has also enhanced services in partnership with WebCargo in order to provide a brand-new channel to customers for smoother, easier and faster reservation. Customers can book from anytime and anywhere and get fast responses to their inquiries. In this context, we have been receiving very positive feedbacks from our customers and sector partners. SEAMLESS MOVEMENT OF GOODS AND INFORMATION Being highly competitive, the air cargo industry requires innovative and digital solutions to meet the needs of customers for an enhanced speed and efficiency. Within this framework, digitalisation strategy is one of the key points to ensure digital transformation. Providing end-to-end digitalisation to cover all processes is both critical and essential. Significantly, Turkish Cargo's most recent investment in this development path is the new cargo terminal project at Istanbul Airport ‘SmartIST’ which will be offering smart warehouse systems, work orders integrated with the use of augmented reality and voice directed warehousing, unmanned ground vehicles, RPA robots, IoT and other technological advancements to propel Turkish Cargo to the future. A SHARP, RATIONAL AND CONSISTENT APPROACH TO REFORMS TO HELP THE INDUSTRY CRUISE What is significantly observable is that airlines have started to make use of their freighter fleet more actively and the orders for freighters have also increased worldwide. We are of the opinion that such solutions will provide significant contributions to the offerings around current needed capacity to the industry. Along with global warming, quest for clean energy prompts the search for alternative resources with respect to environmentally-hazardous fuels to curb carbon emissions. Investment in this field by companies will place significant burden into financials coupled with the Air Cargo Carbon Footprint (ACCF) programme implemented by IATA for the purpose of accomplishment of its projects under the sustainability heading. Revenue-decreasing factors may be encountered in the field, such as reduction of the tonnages being carried (due to fuel consumption) and modernisation of fleet due to the risks of sanctions by the regulatory and supervisory supranational organisations. Looking into such issues, companies have managed to reduce fuel costs further, in particular with the increase at the factory-fresh and younger freighter fleet during recent years. Two per cent of global carbon emissions are generated purely by aviation, given the fact that the share of aviation is lower as compared to that of maritime transportation which constitutes 4 per cent of global carbon emissions. However, air cargo is the only mode of transport within which carbon emission per shipment is the highest. All stakeholders of the air cargo industry have therefore set the foot forward to play a key role in the accomplishment of carbon emission targets they have set for themselves and subsequently for the aviation industry. ENOUGH SCOPE FOR OFFERINGS AND CAPACITY TO BLOOM AND GROW Turkish Cargo has been operating one of the world's largest airfreight networks and stands as the fastest growing air cargo brand in the world. We are proud to say that we transport 1 each 20 shipments transported worldwide and we further aim to adapt rapidly to the new market dynamics by acting proactively in order to take the right position in the industry. Turkish Cargo increased global market share to 5.4 per cent according to September 2021 data and reached 97 international destinations with cargo freighters. This means the world's largest network of cargo freighters. As we target to become one of the top three air bridges of the world, we continue to expand our network and fleet along with services offered to meet the needs of customers.
