Vol. 2 Issue No.

04

FROM THE EDITOR

LOGISTICS NEWS (vi) INDIAN TRANSPORT NETWORK
2 Indian Transport Network at a glance

HUMANITARIAN SUPPLY CHAIN RETAIL LOGISTICS

14 Retail logistics and supply chain management in Indian & International Context. 21 Role of Humanitarian Supply Chain 24 Supply Chain through Humanitarian Logistics

LOGISTICS IN MEGA EVENTS

29 5 Tier Transportation Plan For Commonwealth Games 31 Mega Events- Logistical Challenges

REVERSE LOGISTICS
18 Reverse Logistics as the element of Enterprise Management

MULTIMODAL
7 Multimodal Transportation in India-An Overview 10 Multimodal Logistics Park An Indian Scenario

SUPPLY CHAIN RISKS

35 Supply Chain Risks

CAMPUS BUZZZ

39

LOGISTIKAS
e-Logistics Xpress is published quarterly. All Editorial correspondence and papers for publication should be addressed to the Chief Editor, Logistikas Society, UPES, Energy Acres, Bidholi, Dehradun. The submitted papers will be reviewed by members of the editorial board and external references. 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, Bidholi Dehradun-248 007 Email: nanand@ddn.upes.ac.in Advisory Body: Dr. S.J. Chopra (Chancellor) Dr.Parag Diwan (Vice Chancellor) 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)

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-Asian Fuse Gear Ltd)

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FROM THE EDITORS DESK

I feel elated in launching the current issue of volume-II of our in-house magazine LOGISTICS XPRESS .We have incorporated the current news in logistics world and the best practices that are followed in logistics and supply chain industry. This issue also covers logistics in mega events & disaster management. We look forward for contribution in the form of write ups from industry professionals for the future issues of LOGISTICS XPRESS
Dr. Neeraj Anand CHIEF EDITOR Head of Department (LSCM)

Logistics News
DHL 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 Quartered logistics 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 suggested introduction 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 Pipavav port in Gujarat and the other in Haldia port in West Bengal. Addressing newspersons on Tuesday, the Aegis Managing Director and CEO, Mr Anish Chandaria, said the company has signed an agreement with Gujarat Pipavav Port to sublease about 100 acres to set up a 6-lakh kilo litre oil terminal complex at the port. The facility will be set up over a period of three years and will attract Rs 400 crore as investment, he said.

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-financedata/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 further relaxing 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, according to analysis conducted by Armstrong & Associates, a supply chain management market research and consulting firm. Contract and public warehousing combined are expected to exceed 2008 revenues by 2% after declining in 2009. The contract and public commercial warehousing market now constitutes 45% of the total U.S. market.

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/retaildeployments-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 a fundamental role in the global economy. According to the U.S. Bureau of Customs and Border Protection, about 90% of the world's trade is transported in cargo containers, with almost half of incoming U.S. trade arriving by containers aboard ships. As terrorist organizations have increasingly turned to destroying economic infrastructure to make an impact on nations, the vulnerability of international shipping has come under scrutiny. Researchers at the University of Maryland, College Park, have developed a technique to detect use of dirty bombs. Ionization of air 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 avoid delays in commerce. Source: Logistics Today, Retrieved from: http://logisticstoday.com/global_markets/containersolution-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 Aerospace trade 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 process improvements 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

PRAGATI MAIDAN LOGISTIKA TRADE FAIR

INDIA AIDC SHOW
Venue: Pragati Maidan, New Delhi Start Date: 03-DEC-10 End Date: 06-DEC-10 Industry: 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 Articles Surveillance (EAS), Real Time Locating Systems (RTLS), Mobile Computing, Wireless & Networking Solutions etc. Highlights The 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, Card Technologies, Mobile Computing, Biometrics, Security Solutions, Real Time Locating Systems, Wireless & Networking Solutions, Other Technologies Including Contact Memory, Voice Recognition, Magnetic Ink Character Recognition, Optical Character & Optical Mark Recognition, Machine Vision.

INDIA LOGISTICS SHOW

Venue: Pragati Maidan, New Delhi Start Date: 03-DEC-10 End Date: 06-DEC-10 Industry: 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 ideas under one roof. The venue for the trade show will be at Pragati Maidan.

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 board are 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 AM 05:30 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-Brown One of the founders of the Bourton Group, currently based in Europe, with in-depth experience of international supply chain management. Pramod Athalye Based 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.

INDIAN TRANSPORT NETWORK AT A GLANCE

Pankaj Tiwari, MBA-LSCM (Sem I, 2010-12)

Introduction

Indias transport sector is large and

diverse 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 required infrastructure 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 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

become one of the worlds largest rail network 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.

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

Table 1 shows the ratio of average passenger fare to average freight rates in various countries. Table:1
Ratio of average passenger fare to average freight rates
1.60 1.40 1.20 1.00 0.80 0.60 0.40 0.20 0.00 1.40 1.30 1.20 1.10

with poor surface quality, and 40 percent of Indias villages do not have access to allweather roads. Table: 2 Indian Road Network Indian road network of 33 lakh Km.is second largest in the world and consists of : Length(In Km) Expressways 200 70,548 1,31,899 4,67,763 26,50,000 33 Lakhs Kms(Approx) National Highways State Highways Major District Roads Rural and Other Roads Total Length

0.26

Korea

France

China

India

Austria

Source: Ministry of Railways, 2010

2. Roads India 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 of National 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 network at 0.66 km of highway per square kilometer of land is 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 the transport 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 0409, in Million Tons). Inland water transportation remains largely undeveloped despite India's 14,000 kilometers of navigable rivers and canals.

Table:3
Total Traffic Handled at Indian Ports, FY 04-09, in Million Tons 800 600 400 200 0 FY04 FY05 FY06 FY07 FY08 FY09 Major Ports Non-Major Ports
115.3 344.8 137.8 383.8 145.5 423.6 186.1 463.8 203.6 207.8

attendant benefits of economic development and quality of life. This would also help rapid intervention during natural calamities and other emergencies. Major Challenges facing the Indian Transport System: 1. Roads Most of the Indian roads are two lanes, poor quality roads and their maintenance is not properly funded. Congestion on roads leads to high fuel consumption, low transportation speeds, huge pollution and high fatality rates. Almost 70% of Indian population resides in rural areas. Although there is an extensive rural road network, but most of the Northern & North-Eastern states are poorly linked to the countrys major economic centers. The problem becomes severe in Monsoon seasons when almost 40% of the villages are cut off due to lack of good access to all weather roads. There has been a dramatic growth in vehicle ownershipestimated at some 15% a year during the past decade. This has lead to an increase in road congestion during rush hours. Also, the intensive construction work to add capacity in congested areas has further added to the congestion problems. 2. Railways The rail corridors face capacity constraints. The freight costs by rails are much higher than in most countries as freight tariffs have been kept high to subsidize passenger traffic. 3. Ports Indian 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

519.2

530.4

Source: India Infrastructure Research, June 2009, India Infrastructure Summit10 4. Aviation India has 449 airfields out of which 85 are in the Commercial Air network .70% of the passenger traffic is between six metros even though air services are now operational at 85 airports. This has resulted in heavy traffic congestion, increase

in emissions and safety concerns. In addition to six metro airports, 35 other airports are also getting expanded and modernized. For economic growth, it is essential to provide air network to all Tier 1/ Tier 2 cities, industrial and Tourist/Pilgrim centres. Recent studies show that if all the existing airfields of 1 km length and above are operationalized, 2/3 rd of Indias population would be within 90 kms of an airfield. A systematic, integrated approach of networking airways with road and rail will provide the interior regions of the country fastest mode of transportation with the

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 Highway Development 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 Transportation Sector Budget 2010-11 Rs (in Cr.) NonCapital Plan Plan Total Civil 1 Aviation Roads & 2 Highways 3 Shipping 4 Railways 1429 7885 486 16752 26552 2208 33 2241 1429 10093 519 16752 28793

Revenue Civil 1 Aviation 571 885 1456 Roads & 2 Highways 12009 1977 13986 3 Shipping 137 1517 1654 4 Railways 12717 4379 17096 Grand Total 39269 6620 45889 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 Touche Tohmatsu India Private Limited National Highway Authority of India Website, http://nhai.org/roadnetwork.htm

Multimodal Transportation in India-An Overview

Prakhar Saigal, Nitin Tripathi MBA-LSCM (Sem I, 2010-12) Introduction the past decade, India has witnessed 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 not possible 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 containerization which introduced the 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 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 Monorail and Light Rail, Delhi will be first city of India to have such an integrated multi-modal transport system.

Over

The goal of these systems is to approach the service quality of rail transit while still enjoying the cost savings and flexibility of bus transit. Multimodal Transport Developments Multimodal transport is also referred to as 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 the entire 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

usually it is not so. The carriage is often performed by using sub-carriers. The carrier

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 to deliver 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 logistics and supply chain management, 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 been the so-called network principle.

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 & Opportunities As 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 on international transport got more than doubled. Growth of World GDP, trade, and expenditure on international transport

With booming expansion of international trade, global outsourcing of manufacturing,

significant growth in internet and ECommerce and increasing demand for JustIn-Time (JIT) deliveries & production system, there is a shift in the behavior of 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-todoor services, several levels of logistics services providers were created which will not only increase the demand for more frequent, more secure and more reliable multimodal 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 and integrating their sea-air transport logistics system to capture the sea-air

transhipment opportunities. While the United Arab Emirates Port of Dubai and the Malaysian Port of Tanjung Pelepas have successfully implemented this logistics 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 crucial for remaining competitive in international trade. Thus countries who wish to participate effectively in the global trade face increased challenge of having to improve 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 protects the interests of all concerned.

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.

Multimodal Logistics Parks- Indian Scenario

Krishna Shankar Pandey, Tushar Shukla MBA-LSCM (Sem I, 2010-12)

Indian Railways has planned mega

multimodal logistics parks (MLPs) or hubs providing 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 traffichandling 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 be successful, MLPs have to meet certain bare minimum requirements-the first and 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 be developed 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

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 cargo segment as well as container handling and movement to gateway ports like Jawaharlal 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 transport involves 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

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 are brought 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 is efficiency 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 the overall 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

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), the ministry of railways has invited 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 participate in the development of these MMLPs. The ministry of railways has launched its flagship project, the dedicated freight corridors (DFCs) requiring construction of approximately 3300 kilometers of mostly double, electrified, high axle load track, with liberal space envelope, fit for high capacity wagons and heavy haul freight trains at

cruising speeds of 75 km/hr and top speeds of 110 km / hr, between JNPT (Mumbai) and Tughlakabad Rewari (western route) and Dankuni (Kolkota) to Ludhiana (eastern route). Later in expansion stage, 2 more 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 and their business models are quite impressive and visionary. However, they would require to be justified by exporters using the facilities and logistics service providers through proper transportation estimates and necessary commercial viability studies. This would make setting up of the parks complete.

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

Retail Logistics and Supply Chain ManagementAn Indian and International Perspective
Vishnu Padmakumar, MBA-LSCM ( Sem I, 2010-12.)

TRANSFORMATION

Retailers were once effectively the

passive recipients of products, allocated to stores by manufacturers in anticipation of demand. Today, retailers are the active designers and controllers of product supply in reaction to known customer demand. They control, organize and manage the supply chain from production to consumption. This is the essence of the retail logistics and supply chain transformation that has taken place.

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 secondary distribution - Retailers have increased their control over secondary distribution (warehouse to shop) by channeling an increasing

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 cooperative 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

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 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

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

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 reordering systems and thus react quickly to demand. Sharing such data 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

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

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

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.

References:
http://www.supplychainstandard.com/Retail/Default.html http://www.necindia.in/solution_rs.html http://www.citeman.com/10109-retail-logistics/

Reverse Logistics As The Element Of Enterprise Management

Sawant Ninad Shivram MBA-LSCM (Sem I, 2010-12)

Nowadays, reverse logistics is a

very 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.

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 reverse logistics 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

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.

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 much greater 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 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 smaller volumes of shipments are connected with more material handling costs.

Source: http://reverselogistics.in/index/forward.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 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+l ogistics&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)

Role of Humanitarian Supply Chain

Nitin Tripathi, Sarang Rajvanshi, MBA-LSCM (Sem I, 2010-12) organizations( those type of organizations which exist as professional aid organizations within the government and also as private voluntary organization) It includes government 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 World Food Program (WFP), nongovernment 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)

Humanitarian

Humanitarian Logistics in disaster include: Procurement Warehousing Fleet Management Transportation (of both supplies & people) Asset Management Building Management Security Information Technology (IT) Radio Communications in a humanitarian supply chain refers to the network created 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 nonlogistics. Logistics units are only considered as a

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 emergency stocks 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 to program 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 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.

In literature on humanitarian organizations, there is a shift from logistics to supply chain management. Humanitarian logistics information systems can improve the flow of information with other units, in mutually constructive manner, improving the effectiveness of the humanitarian supply chain.

The Value of Information Humanitarian Supply Chain:

in

the

Flow of information plays a key role as far as humanitarian supply chain is concerned; the end receiver is delinked from the service he receives. The key decision makers in 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

network customers ask for their 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.

References: http://www.fmreview.org http://www.humanitarianlogistics.org/research http://www.humanitarianlogistics.org/about-hla/professional-resources/jobs/senegal-projectcoordinator-optimize http://www.fritzinstitute.org/PDFs/findings http://dictionary.babylon.com/humanitarian%20organization/

Supply Chain through Humanitarian Logistics

K.S. Naarayen, Deepak S, MBA-LSCM (Sem I, 2010-12)

Humanitarian logistics represents a

broad range of activities taking place within humanitarian organizations. Bulk 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 information throughout the transition of different 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. Humanitarian Logistics Management Cycle: in Disaster

Recovery Mitigation Preparedness 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

Preparedness

Transition

Mitigation

Recovery

The operations of humanitarian organizations in disaster management can be separated into five major phases: Response Transition

improve the effectiveness of logistics units throughout the disaster management cycle and can provide continuity throughout the phases. Disaster Management Cycle Preparedness: The preparedness phase involves building the capacity to respond to

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 standardize the 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 prepositioned 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 response phase 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 identifying suppliers 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 on the social, cultural, economic and geographical conditions of the affected communities. These may vary hugely between different disasters.

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 logistic support. Mitigation: Mitigation involves increasing the resilience of communities to natural hazards to reduce the impact of disasters they cause. According to the specific 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

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. Humanitarian Logistics Response Phase beyond the

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.

 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. More focus needs to be placed on the role of humanitarian logistics in the transition,

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.

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/

5 Tier Transportation Plan for Commonwealth Games

Priyanka Rawat MBA-LSCM (Sem I, 2010-12)

The Commonwealth Games, 2010

officially 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 multisport event to be staged in Delhi and India, eclipsing Asian Games in 1951 and 1982.

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 the transportation 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 out jointly 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.

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.

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 Stadium.

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

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

Mega Events - Logistical Challenges

PankajTiwari, MBA-LSCM (Sem I, 2010-12)

Mega events pose a number of

special problems in terms of transportation logistics 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 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 mobility schemes 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.

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.

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

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 close cooperation 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:Multi-modal Organization Centralized Transport 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.

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 disruptions.

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 ensures low infrastructure requirements and lesser traffic congestion. Moreover dedicated transport lines can be created in case the venues are clustered.

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. 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

more sustainable urban and regional 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.

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

Supply Chain Risks

Akash Mishra,Rupal Kadian MBA-LSCM (Sem I, 2010-12)

When internal inspectors at Georgia

Nut Co. discovered salmonella in the companys 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 potential damage such an incident would do

rapidly identified and recalled suspect shipments, and traced the contamination to its 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. Because 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 fortunate when 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. The 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

to 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

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 the global 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 of 2008, 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 lowmargin businesses like toys and apparel, and has spread to more robust industries like consumer electronics.

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 postrecovery. 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

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

According to Robert J. Schneider, managing principal, Risk Management, International Organization for Standardization (ISO), in Geneva, Switzerland, risk managers should

work with senior management to embed risk management practices into all missioncritical points along the supply chain. The process should be a continuous engagement with the supply chain process for ongoing assessment and reassessment of the constantly changing supply chain environment. Schneider identifies three key objectives of an effective supply chain risk management strategy Identifying and prioritizing critical business elements Mapping the entire supply chain to show interdependencies Identifying potential failure points along the supply chain. The ultimate goal of an effective and comprehensive SCR management strategy, says Schneider, is to embed risk awareness into all the core elements of the organization, from the C-suite through supervisors and department heads across the various supply chain functions. Adds Kinder, You need to formalize the process of identifying the risks and building

them into your plan. Build risk assessment into your day-to-day operations. Build it into the day-to-day process and make it part of everyday life. Kinder suggests four best practices for managing supply chain risk: Proactively measure performance and mitigate risk through continuous business process optimization. Make every employee a Risk Manager. Leading companies in every industry are implementing solutions that empower their executives, managers and staff to proactively manage risk and stay alert to opportunities.

Monitor and communicate corporate performance in real time. Enterprises must be equipped to quickly detect, notify and assign exceptions.

Provide a shared foundation that allows all stakeholders to collaborate to resolve risks.

References http://www.mmc.com/knowledgecenter/viewpoint/Tackling_the_Rising_Supply_Risk_Threat.p hp http://hbswk.hbs.edu/item/3442.html http://www.industryweek.com/articles/supply_chain_risks_20420.aspx http://www.mckinseyquarterly.com/Understanding_Latin_Americas_supply_chain_risks_195 8 http://www.theoutsourceblog.com/2010/09/supply-chain-security-risks-and-outsourcing/

GUEST LECTURES
Date: September 03, 2010 INAUGURAL SESSION OF MBA LSCM (BATCH 2010-12) MBA LSCM Batch 2010 was inaugurated by Mr. Samuel Samson, Head SCM & CIO and Mr. Dilip Sinha, G.M. H.R. of Future Supply Chain Solutions Limited, Mumbai on 3rd Sep 2010. Dr. Neeraj Anand, HOD LSCM made a brief Presentation about MBA LSCM Programme. The lamp lighting ceremony was done by both the guests. Further to the same, Mr. Samson inaugurated the programme by releasing the Course Curriculum of MBA LSCM Batch and Mr. Sinha released the Vol. 2 Issue 3 of Logistics Xpress of Logistikas, the on-line in-house newsletter. Mr. Samson talked about Customized Retail Formats of Future Group focusing on customer needs at local or regional levels. Mr. Sinha spoke high of three alumni of MBA LSCM first batch placed with Future Supply Chain Solutions, Mumbai. Dr. S. J. Chopra Chancellor, Prof G.C Tiwari - PVC, Ms. Sumana Mazumdar - Dy. Director Career Services, Prof H.C. Trivedi - Dean CMES, Dr. K.V.M. Mohana Rao - Associate Dean and other members of department had an interactive session with distinguished guests. Mr. R.S. Kaushik Coordinated their visit to various laboratories. Prof. Siddhartha Mathur extended vote of thanks.

Date: September 04, 2010 A Session by Mr. Nilesh Sinha, MD- PROCAM The event 3PL Day on Saturday, 4th Sept. 2010 was organized by Prof. Siddhartha Mathur, Dept. of LSCM CMES, successfully. Mr. Nilesh Sinha MD, PROCAM Logistics was the guest speaker in the event. The event was also graced by the presence of Dean & Associate Dean CMES. Mr. Sinha is a highly sought after professional in the specialized field of Project Logistics Operations in the country which encompasses logistics operations pertaining to handling over dimensional cargo. All critical aspects of operations and management requirements in terms of live shipping and ground handling examples were shared by him in his dissemination to the gathering of faculty and students of MBA (LSCM). The program proved to be of high interest and learning for all. Dr. Neeraj Anand HOD, Dept. LSCM also shared his views on the area.

The event came to an end with a presentation ceremony where Asso. Dean Dr. KV Mohana Rao presented the UPES memento to Mr. Sinha.

Date: September 06, 2010 Guest Lectures by HCL Professionals

LSCM department organized a Guest Lectures by Mr. Molayjeet Banerjee (Manager-Materials Management) and Mr. Padma Kumar (HR-Head).Mr. Padma Kumar made a Corporate Presentation of HCL and described various products and services offered by the company and emphasized on Systems Integration. Mr. Molayjeet Banerjee had an interactive session on Materials Management Practices adopted by HCL Limited at Rudrapur plant.

Date: October 24-30th, 2010 Placement Selection Improvement sessions (PSI Sessions) were held for MBA-Logistics and Supply Chain Management Semester-III students. Mock Interviews were conducted by Mr. Arun Sharma, Manager Supply Chain, M/s Apollo Tyres and Mr. Taran Marwaha, Independent Consultant. Date: November 26, 2010 Guest Lecture by Captain Bhattacharya on Shipping Lines & Global Rules

Upcoming Guest Lectures

Date: November 29-30th, 2010 Guest Lectures by Mr. Kumar Vishwas, Vice President, Business Development, M/s: RA Offshore Date: November 29-30th, 2010 Guest Lectures by Mr. Taran Marwaha, Independent Consultant on Maritime Shipping and Commercial & transportation Documentation. Date: September 03-04th, 2010 ISO INTERNAL AUDITOR TRAINING A two day training programme on Internal Audit was conducted by DNV at UPES. Prof. G.C. Tewari had declared the programme Open. Mr. Ashok Kakkar was the trainer for this programme. The programme covered Course introduction, Management systems, Internal Audits What & Why?, Audit Preparation, Audit Performance, Audit Reporting & Follow-up, Course Conclusion, reflection and personal action plan.

A written test was conducted on the last day for qualifying as Internal Auditor. Feedback was also collected by DNV and HR department of UPES from the participants. During the training, practical exercises were also conducted on how to make Audit Plan, How to make use of Body Language during Audits. An exercise on Interpersonal communication Chinese Whisper was also conducted with participants.19 members from various departments across the three colleges CMES. COES, COLS participated in the training. Dr. Neeraj Anand extended vote of thanks to the trainer and participants. Dr. Neeraj Anand (MR) and Mr. Neeraj Kataria (Dy. MR) coordinated the training programme.

EVENTS
Date: October 25-29th, 2010 Finance Week Date: October 28, 2010 An Inter University Quiz Date: November 24-26th, 2010 JUS CARNIVALLI, The Law Fest was celebrated by College of Legal Studies, UPES. Date: November 26-28th, 2010 UURJA, the Annual Fest was celebrated by the University of Petroleum and Energy Studies. Following Events were organized: 1. Inter Batch QT Quest Minerva organized by Logistics & Supply Chain QT/RM Department 2. Inception-The Business Plan 3. Fashion Shows 4. Band Competition 5. Break the Bones Dance Competition 6. Music Competitions

Pankaj Tiwari and Nitin Mishra of MBA-LSCM, Sem-I(2010-12) presented on Use of ERP in a Manufacturing Unit in an intra college event conducted by MBA-Info Systems Management Venus Chauhan and Poornima of MBA-LSCM, Sem-I(2010-12) participated in intra college dance competition in Annual Fest UURJA. Monath, Ishan Kathuria and Apurv of MBA-LSCM, Sem-I(2010-12) participated in intra college football competition. Ninad Sawant,Sujata Dumka,Vishnu Padmakumar and Venus Chauhan of MBALSCM,Sem-I(2010-12) participated in intra college Marketing Quiz.

Achievers of This Edition

BIZOLOGIC
Second prize was awarded to-Maitrayee Banerjee (INTG. MBA O&G) & Siddhant Sibal (BBA O&G) Third prize was awarded to Vishal Kumar & Bhuvan Ralhan (B. TECH INFRA ENGG.) The LOGISTIKAS TEAM was tremendously encouraged and appreciated by our honorable guests and declared BIZOLOGIC as a majestic success.

The

LOGISTIKAS

presented a quiz BIZOLOGIC ON 28TH OCTOBER, 2010 UNDER Head of the Department LSCM Dr. Neeraj Anand.

BIZOLOGIC was an open university quiz appreciated by a huge response from the students of all the academic streams. Participating teams had to pass through five eliminating rounds. The Top three teams were awarded by our esteemed guest cum faculty, Mr. Siddarth Mathur, Mr. Sunil Barthwal and Mr. Sourav Tiwari First prize awardees were Vibhanshu Dwivedi & R Arunan MBA LSCM Sem III 2009-11

With the grandiose success of BIZOLOGIC, we feel highly elated and motivated to conduct similar events in the future. EVENT TEAM LOGISTIKAS MBA LSCM SEM - I UNIVERSITY OF PETROLEUM & ENERGY STUDIES.

BIZ QUIZ
1. When was the ministry of divestment formed in India? 2. Name the CEO of Google? 3. The Striding Man is the logo of which bestselling brand of scotch whiskey? 4. What internationally famous sports apparel company was started in 1930s by a champion tennis player? 5. Which Hollywood Star & Brand Ambassador of Omega Watches came India to meet the Dalai Lama? 6. In the mesmerically popular TV game show Kaun Banega Crorepati, the prize money is issued on the cheques of which bank? 7. What wireless technology, which has almost become a buzzword, is named after an ancient Viking chief? 8. Six Sigma was first introduced by which American Company? 9. Which Airline uses the slogan Be Good to Yourself? 10. What is the name of new generation fuel car developed by GM? 11. In collaboration with which bollywood star is Emami proposing to launch a range of Ayurvedic Personal Care Products? 12. The late television star and actress, Priya Tendulkar, used to endorse which brand of biscuits? 13. Which biscuit company was associated with the TV programme, Kaun Banega Crorepati? 14. Which was the first Indian bank to open an international branch and where? 15. When were banks in India Nationalized 16. What do you call a stock market trend that is neither bullish nor bearish? 17. Who are the Bretton Woods Sisters? 18. Who is the President of IMF? 19. Which Asian nation was the first to get a World Bank loan? 20. Who is the first Asian to win the Nobel Prize for Economics?

QUANTITATIVE APTITUDE
1. You are given two candles of equal size, which can burn for 1 hour each. You have to measure 90 minutes with these candles. (There is no scale or clock). Also you are given a lighter. 2. Try the similar problem to measure 45 minutes. 3. You r given a thermometer. What can u do by this without measuring the temperature? 4. How it is possible to place four points that are equidistance from each other? OR You are a landscape designer and your boss asked u to design a landscape such that you should place 4 trees equidistance from each other. (Distance from each tree to the other must be same) 5. You are given a cake; one of its corner is broken. How will u cut the rest into two equal parts? 6. How will you recognize the magnet & magnetic material & non-magnetic material? OR Get a piece of thread and tie up with the one bar and check for poles. If it iron bar then it moves freely and if it is magnetic bar then it fix in one direction according to poles. 7. If one tyre of a car suddenly gets stolen.... and after sometime u find the tyre without the screws how will u make your journey complete? 8. How can u measure a room height using a thermometer? 9. What is the height of room if after entering the room with a watch ur head strikes a hanging bulb? 10. Color of bear.... if it falls from 1m height in 1s.

ANSWERS
(For Business Quiz)
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 1999 Eric E Schmidt Johny Walker Lacoste Pierce Brosnon ICICI Bank Bluetooth Motorola The Emirates Hydrogen Madhuri Dixit Priya Gold Britannia Industries Bank of India in London 1969 Chicken Market World Bank and IMF Domanic Strauss Kahan India on August 18, 1949 for Railway Reconstruction and Development. 20. Amartya Sen (for his studies in Wellfare Ecconomics)

Ans 4: Only 3 points can be equidistant from each other. But if u place points in the shape of a pyramid then it is possible Ans 5: Slice the cake Ans 6: Drag one piece of material over another. There is no attractive force in the middle portion of the magnet. Ans 7: Open 3 screws, 1 from each tyre and fix the tyre. Ans 8: Temp varies with height. but its dependent on various other factors like humidity, wind etc. Ans 9: Oscillate the hanging bulb. Calculate the time period for one complete oscillation by Simple Harmonic Motion (SHM) of the handing bulb. Put it in the formula T=2 * 3.14 * (L/G)1/2 where L will be the length of the hanging thread. Add the L with your height to get the height of the room. OR Ans 9: Drop it from the room and find the time at which it strikes the floor. Using physics formula s = (at2)/2 Ans 10: We get 'g' perfect 10 which is only in poles...hence polar bear...color White

Solutions of Quantitative Aptitude

Ans 1: First light up the two ends of the 1st candle. When it will burn out light up one end of the second candle. (30+60=90) Ans 2: First light-up the two ends of the 1st candle and one end of the 2nd candle. When the 1st candle will burn out, then light up the both ends of the 2nd candle (15+30=45) Ans 3: if u put thermometer into a tree it wont grow anymore, will just die off

LOGISTOON