INDIA
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Prime Minister Shri Narendra Modi has hailed the role of the Unified Logistics Interface Platform (ULIP) in transforming India's logistics sector. Sharing a tweet by Union Minister for Trade and Commerce, Shri Piyush Goyal, the Prime Minister conveyed the message that the single-window approach to logistics has transformed goods movement in the country, saving both time and cost for the country as well as supporting the Atma Nirbhar Bharat aim.
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During the milestone 51st meeting of the Network Planning Group under PM Gati Shakti chaired by Shri Rajesh Kumar Singh, Secretary, Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, along with Smt. Sumita Dawra, Special Secretary (Logistics), DPIIT, five projects of the Ministry of Road Transport and Highways (MoRTH) worth Rs. 15,683 Cr. were evaluated, reported PIB. The objective of these projects - in the states of Mizoram, Maharashtra, Uttarakhand, and Uttar Pradesh - is to enhance connectivity to industrial clusters and social sector assets, improve the efficiency of freight traffic movement, and reduce congestion in cities.
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Mr. S Swaminathan, the CEO of GS1 India, writing for the Hindustan Times newspaper, outlined the key challenges faced by the Indian logistics sector. GS1 India is a global standards organization set up by the Ministry of Commerce and Industry with leading industry bodies such as the CII, FICCI, ASSOCHAM, and others. Mr. Swaminathan wrote that the high logistics costs adversely impact the competitiveness of Indian businesses, putting them at a disadvantage compared to their international counterparts that work with lower logistics costs. Implementing measures aimed at cutting down logistics costs can substantially improve the competitiveness and profitability of Indian businesses, he added.
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The new chairman of CII Puducherry, Mr. A. Joseph Rozario, in his first interaction with the media after assuming the role, said that the business climate in Puducherry is buoyant, reported The Hindu newspaper. Mr. Rozario added that the buoyancy witnessed in GST collection reflected the growing businesses in the Union Territory. He said that the CII is working closely with the government to formulate new industrial, EV, logistics, and IT policies.
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Business Standard reported that a number of Indian companies are engaged in "preliminary talks" with Apple to explore supply chain integration with the iPhone maker for making the phone's components and other Apple products in India as well as globally. As per the paper, these companies include leading automotive, auto components, and electronics manufacturing companies.
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Writing for the Financial Express, Nitish Rai, the CEO and Co-founder of FreightFox, stated that the automotive industry has a direct impact on the quality of health and environment. Mr. Rai noted that the Indian manufacturing and supply chain industry can boost green logistics by encouraging a modal shift from road-based transportation to more energy-efficient alternatives such as railways, inland waterways, and coastal shipping.
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INTERNATIONAL
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Logistics Management magazine's 34th Annual State of Logistics Report on the U.S. business logistics industry was released in July. Titled "The Great Reset," the report indicated a rapidly changing logistics environment which was in sharp contrast with the industry that was still reeling under the effects of the pandemic years of 2020-2021. Last year's report found that supply chains were largely still "out of sync" from the effects of the pandemic-but those days are over. It revealed that the supply chains are no longer being built around cost-reduction considerations. Instead, the attribute of resilience has assumed the central role of guiding supply chain design and strategy.
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DHL Supply Chain announced that it added 8 bio-LNG trucks to its Aston Martin fleet, resulting in a yearly reduction of approximately 800 tonnes of carbon emissions. These trucks are significantly cleaner, with 78% less pollution compared to their diesel counterparts. Currently, they are being used at DHL's Wellesbourne and St Athan sites in the UK. DHL Supply Chain, as Aston Martin's logistics partner, handles inbound supply chain services at the St Athan site, providing transportation, inventory management, and warehousing support to the Gaydon production facility. Aston Martin's Racing Green sustainability strategy, launched in 2022, set a goal of achieving net-zero manufacturing facilities by 2030 and extending that target to the entire supply chain by 2039.
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Darin Miller, the national marine manager for an American risk-management solutions company, wrote in Claims Journal that the issue of cargo theft continues to threaten supply chains in parts of North America. He identified two main types of activities as constituting these incidents. One is incidents of pilferage where thieves steal items from unmanned containers, trains trucks or warehouses. The other is organized crime, which is more sophisticated, high-value criminal activities resulting in the loss of valuable cargo like electronics and pharmaceuticals. Quoting published data, he wrote that an estimated $223 million in cargo was stolen across the U.S. and Canada in 2022.
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The Wired magazine's UK edition published a feature on how recent geopolitical events are making experts rethink defence supply chain strategies, driving innovation at a fast pace. "Amateurs talk tactics. Professionals talk logistics," an expert was quoted as saying by the magazine in relation to advancements in defence technology such as the use of data analytics and autonomous vehicles and their impact on defence -related logistics.
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According to the latest market report by property advisor Savills Ireland, strong demand for space in Ireland's capital city Dublin's industrial and logistics property market led to a significant increase in the occupancy rate during the first half of the calendar year 2023. Construction activity also reached an all-time high during this period.
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Kuehne+Nagel, the Switzerland-headquartered global logistics solutions provider, has announced that it has been appointed as the Official Freight Forwarding and Logistics Supporter for the British Olympic Association (also known as Team GB) until the end of 2026. This partnership includes a wide range of logistics services such as warehousing, coordinating domestic and international shipments, managing event projects, handling customs clearance, and ensuring timely delivery of equipment and supplies, reported the Stat Trade Times.
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Smart Cities World news reported that Paris plans to make large areas of the city car-free in 2024. Mobility data platforms Vianova and Michelin Mobility Solutions will work with the city of Paris to use data to inform planning decisions and transform how logistics vehicles move and park. The aim is to use sanitized, contextualized, and analyzed mobility data around kerb usage to enable a more accessible, faster and more robust city logistics environment, said the report.
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Puget Sound Business Journal, an American business journal, published an article stating that the golden age of logistics is here. The logistics industry is undergoing a revolution by changes in consumer behavior and the rise of new technologies. The companies that can adapt to these changes will be the ones that succeed in the new age of logistics, stated the article.
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Interview of the Month
"Our Control Tower Vastly Improves Supply Chain Decision-Making"
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Mr. Ajit Jangle, Managing Director, FM Logistic India shared with the CII-IL Newsletter his views on his company's bullish outlook of India's logistics sector, the advanced features of the newly inaugurated Control Tower facility in Pune, and the company's fast-paced growth clocked in recent years.
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In the third week of June, FM Logistic India inaugurated a Control Tower facility in Pune, which was in the news for its cutting-edge tech offerings. Can you share the main features of this control tower and the industry segments and regions you aim to serve through it?
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In India, FM Logistic is among the top contract logistics companies that offer this technology-driven supply chain service that will enable our customers to significantly optimize their logistics cost through FM's gain share mechanism. Through this new Control Tower (CT) offering, we provide our customers nationwide with centralized transportation control tower services that offer end-to-end visibility.
At FM Logistic India, we serve various clients from FMCG, Retail, Automotive, E-commerce, Engineering, Telecom, Pharma, and other sectors.
Backed by a dedicated team of experts, our control tower offers:
- An array of transportation services ranging from order management, network design, transport simulation, and vehicle management to track and-trace services
- Complete process automation to reduce duplicated efforts & optimized resources
- The CT-Integrated Logistics Platform enables EDI / API integration with the customer's ERP as well as track & trace systems to ensure seamless data transfer and 100% visibility
- Real-time performance reporting through Business Intelligence dashboards
- In the case of an exigency, predictive analysis is a crucial feature of the CT solution that aids in decision-making
Our Control Tower provides consolidation, optimization and efficiency - all theprerequisites for a robust supply chain. In today's volatile business environment, building and maintaining robust and resilient supply chains is imperative. Through thisnew service, we are certain that we will ensure the future readiness of our customers' supply chains and, in turn, delight them. Using this technology-driven solution, we will efficiently enable our customers to expand their business horizons.
Our CT aids in improving and accelerating decision-making. Ultimately, this helpsour customers to better predict disruptions, improve resiliency, manage exceptions, and respond to unplanned events.
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FM Logistic India has been bullish about the Indian market. You have announced plans to spend $20 million over the 1-2 years on top of $100 million already invested in the last seven years. What are the main reasons that have made you so highly optimistic about the contract logistics business in the Indian market?
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The main reasons are:
- Omni-channel logistics
The next generation of business requires logistics networks tailored to the needs of each channel. Omni-channel services are the need of the hour and companies are realigning supply chains to cater to omni-channel customers from the same warehouses.
FM Logistic India has successfully provided omni channel services to many customers in India. We have the required expertise and technological know-how in IT modules that enable us to offer customized warehousing solutions to our clients.
- Integrated systems
Secured, real-time access to the consumer's ecosystem of connected devices can enable a variety of innovative pick-up and delivery services, as well as improved customer service support and valuable insight generation for logistics providers.
FM Logistic India has implemented paperless operations with bar code scanning and GPS tracking at its warehouses. These are just the initial steps toward a long automation journey.
- Green Energy logistics
An increasing shift towards renewable or 'green' energy sources (solar, wind, etc.) is propelling the development of electric mobility and facility solutions for logistics. FM Logistic is a proud member of the United Nations Global Compact Network. Sustainability is at the heart of our DNA at FM Logistic.
In Europe, we created CityLogin - a collaborative and sustainable solution that creates value for all supply chain stakeholders. Through this project, we use eco-friendly trucks for distribution. These vehicles are GPS-enabled and GEO-tagged. In India, too, we are exploring this option which will help reduce our carbon footprint.
- Augmented reality
Blurring the lines between the digital and physical worlds, augmented reality (AR) will provide new perspectives in logistics planning, process execution, and transportation. By adding virtual layers of contextual information onto a heads-up display or other digital device, AR empowers workers by providing the correct information at the right time and place.
Globally, FM Logistic uses AR to train its warehouse staff on handling and operating complex processes with higher levels of detail. We use the same technology to demonstrate our capabilities to our clients.
- The Internet of Things
The Internet of Things (IoT) has the potential to connect virtually anything to the Internet and accelerate data-driven logistics. Everyday objects can now send, receive, process, and store information, and thus, actively participate in self-steering, event-driven logistics processes.
We have implemented an IOT solution in one of our warehouses for an e-commerce client where we are able to track the performance of our operators and also identify bottlenecks in our processes using the data provided by our connected scanners. We are also in the process of implementing a digital cockpit which will enable us to monitor the behaviour of our container drivers on a real-time basis.
- Robotics & automation
Driven by rapid technological advancements and greater affordability, robotics solutions are entering the logistics workforce, supporting zero-defect processes and boosting productivity.
Globally, this is a prime focus area for FM Logistic. In India, we have implemented drones for inventory control at one of our warehouses and are implementing this across all warehouses. We have also implemented a fully automated packing line for various clients across India. Globally, FM deploys AGVs and Robots for various activities like loading, unloading, picking, palletizing, etc.
FM Logistic India has been exploring various novel ideas to increase productivity & efficiency through technology. Very recently we deployed drones across warehouses for efficient Inventory control. This is its first remarkable step towards a long automation journey.
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FM Logistic has grown three times in revenue and land space since its India foray and the acquisition of Spear Logistics. What are the top reasons for the company's notable success in India?
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When we acquired Spear Logistics in 2016, the warehousing space managed by us was 2.9 million sq. ft.
Today, FM Logistic India has a presence of over 100 locations and manages more than 7.0million sq. ft. of warehousing space. We provide warehousing & distribution logistics services to FMCG, Retail, Automotive, E-commerce, Engineering, Telecom, Pharma, and other sectors. Since 2016, we have recorded a consistent YoY growth of 25%.
We believe we are ranked among the top three contract logistics providers in the country on account of the following factors:
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Flexible and agile service offerings
To keep pace with the ever-increasing customer demands, FM Logistic India offers warehousing and distribution solutions that are tailor-made to provide our customers with what they want, whenever they want it and wherever they want it. We undertake various customer-centric measures like:
- Extreme focus and action orientation to address customer concerns.
- Anticipation of possible customer concerns before and as they come up and present solutions to clients for resolutions;
- Structured MIS and monthly review meets with customers;
- Specialized team of industrial engineers to:
- Make processes leaner and more efficient;
- Systems and workflow customization;
- Manpower planning and training;
- Centralized audit team to audit inventory and processes.
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Best-in-class warehousing infrastructure
At FM Logistic India, we provide the best-in-class storage and handling equipment. All these offerings help us to increase the operational efficiency of our customers. Our Grade A Multi-Client Facilities (MCFs) in Farrukhnagar, Bhiwandi, and Bengaluru are built on par with international standards. These facilities allow up to 12m high vertical storage, which brings high cubic efficiency and better productivity, allowing competitive operational costs. Each of our facilities offers ample docking stations to enable the smooth flow of inventory without any bottlenecks.
Our Product Development goes through a value engineering process. At various stages of the product life cycle, we bring in booster changes either by a patch of technology, processes optimization or value stream mapping, the introduction of the right MHEs with the change of business needs, etc. The entire effort has one objective - achieving the defined deliverable at a minimum cost of operations. This is our DNA & our solutions & development teams continuously challenge various cost drivers to make them efficient as an ongoing process.
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Supply chain control tower
Our Control Tower, located in Pune, provides our customers based across the country an end-to-end visibility of their supply chain. Managed by domain experts, our Control Tower vastly enhances the ability of our customers to predict disruptions, increase resilience, and efficiently expand their business horizons.
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Omni-channel logistics
We have commissioned an array of WMS & IT solutions to enable Omni-Channel services for our customers, which is the need of the hour. We partner with clients to realign their supply chains to cater to their omni channel requirements (B2B and B2C flows) from the same warehouse.
FM Logistic India has successfully provided omni channel services to many customers. Our omni channel strategy synchronizes inventory, logistics, and distribution functions across all sales channels to meet customers' demands. Our state-of-the-art Multi-client Facilities, backed by our indigenous WMS and IT solutions, and our skilled and dedicated collaborators efficiently manage omni channel operations. They can support our customer's growth strategies. We have the required expertise and technological know-how in IT modules that enable us to offer customized warehousing solutions to our clients.
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Digitalization & Automation
Driven by rapid technological advancements and greater affordability, robotic solutions are entering the logistics domain significantly, supporting zero-defect processes and boosting productivity. This is a primary area of focus for FM Logistic.
In India, we have implemented drones for inventory control and are in the process of getting this implemented across all warehouses. We have also implemented fully automated packing lines for various clients across India. Globally, FM deploys AGVs and Robots for various activities like loading, unloading, picking, palletizing, etc.
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Value-added services
At FM Logistic India, we offer end-to-end warehousing services to meet the dynamic demands of our customers. We offer a range of value-added services, enabling a variety of logistics delivery models that improve customer service while mitigating inventory and transportation costs.
Value-added services include Kitting & De-kitting, Pre-packing, Co-Packing, Co-Manufacturing, Labelling & MRP Stickering, Bundling, Customized Packing and Return customization.
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Commitment to sustainability
An increasing shift towards renewable or 'green' energy sources (solar, wind, etc.) is propelling the development of electric mobility and facility solutions for logistics.
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FM Logistic is a proud United Nations Global Compact Network member. Sustainability is at the heart of our DNA at FM Logistic.
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Diversity in the organization fosters a more creative and innovative workforce. At FM Logistic India, we are consistently working towards building a diverse workforce.
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Through the FM Foundation, we support, accompany and co-build social innovation projects led by the employees of the Group in the areas of education of underprivileged children. We have partnered with a few NGOs in India to carry out various social welfare activities.
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Green loans are granted to finance projects with environmental and societal objectives only. The loan repayment rate will be defined according to the achievement of the objectives by the company. In January this year, Bati Logistics, FM Logistic's sister company, signed a 9-year green loan of EUR 222 million with a group of banks.
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Urban logistics
Public space is an increasingly scarce resource for cities, crystallizing the problems of congestion and pollution. Today, these problems have become priorities not only for cities but also for businesses. In particular, cities must ensure a good quality of life for their citizens, guaranteeing them healthy living conditions while providing them with easy access to the services and goods they aspire to.
FM Logistic is committed to the objective of de-carbonizing our distribution activities and last-mile logistics.
FM Logistic created Citylogin, an urban, sustainable, and effective solution, in 2014. The objective is to limit the impact of delivering goods (pollution, noise, congestion, etc.) in city centers by using suburb-based warehouses and small hybrid or electric vans.
We deployed our first batch of electric vehicles (EVs) in Bengaluru. These are being used to carry out intra-city deliveries for one of our customers, a leading player in the FMCG and Food segment.
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Safe and secure working environment for collaborators
The health and safety of our employees is our biggest priority. We consistently ensure that all employees have access to good working conditions in terms of a hygienic working environment, welfare facilities, enough ventilation, adequate lighting, etc. As a part of our safety-first initiative, we are running a safety campaign in India, "Project Sifar- Zero Accidents," by our strict safety and accident avoidance policy. It is committed to avoiding workplace injuries due to unsafe acts and conditions and aims for Zero Accidents at the workplace.
With the advent of new digital tools, we are transitioning into a futuristic era.
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