We adopted a top-to-bottom approach in developing digital supply chain.

- Anoop Chauhan, Chief Operating Officer, Supply Chain, Avvashya CCI Logistics

ACCI's core strength lies in its highly-trained and dedicated teams which help in providing holistic logistics services as per the business needs. Its unmatched supply chain business process integration offers its clients scalable and customized warehousing facility. Anoop Chauhan, Chief Operating Officer - Supply Chain, Avvashya CCI Logistics shares his views on the fast-changing trends in the logistics ecosystem with Agith G Antony.

How do you assess the transformation of the Indian logistics ecosystem with the emergence of Logistics 4.0 and what are the factors driving this transformation?

Logistics 4.0 signifies the amalgamation of logistics and innovative Information and Communication Technology (ICT) to offer smart solutions and services to the end customer. A key component of the fourth industrial revolution, Logistics 4.0 holds the potential to give Indian logistics a niche global competitive edge by leveraging the power of data and machine learning to improve interoperability across the value chain.

The deployment of sensor-driven asset tracking tools will facilitate inventory control and ensure end-to-end real-time visibility for the cargo as it moves through the supply chain. With IT infrastructure protection and online user security becoming a key concern area for supply chain companies the world over and in India, logistics players will need to focus on creating technologically advanced defence measures and safeguards to protect user identities and crucial information assets.

The integration of diverse technological applications like Enterprise Resource Planning (ERP), Warehouse Management Systems, Transportation Management Systems, Intelligent Transportation Systems and Information Security into core operational processes and systems holds the potential to boost the functional competencies of the Indian logistics ecosystem.

How do you assess the emergence of supply chain as an epicentre of digital enterprise and what are the key technology requirements?

Building a fully digital supply chain is truly a complex task. However, with rapid technological advances and implementation of digital tools, we foresee a transformative impact on traditional supply chains over a period of time. We are witnessing the emergence of the integrated supply chain and are moving towards a completely digital ecosystem. In the wake of the covid-19 pandemic outbreak, disruption has become the new normal, creating demand for faster actions towards the visibility, productivity and profitability. The integration of digital tools and leveraging technology will become pivotal to bolstering supply chain functionalities and positioning the logistics sector on a high growth trajectory in the coming days. Harnessing new-age technologies like Artificial Intelligence (AI) and Internet of Things (IoT) will be pivotal to forming new-generation digital supply chain (DSC) models and improving supply chain performance.

At ACCI, how have you leveraged the advantages of such disruptive technologies in your entire ecosystem - in terms of infrastructure, processes, and people?

At ACCI we have leveraged the disruptive technologies in contract logistics, warehousing, freight forwarding and custom clearance to offer our clients superior services. For instance, in warehousing we have implemented technologies like voice picking, ring scanner, etc. to enhance the productivity of the manpower. We have installed heavy duty racks or multi-tier racking systems to optimize the space. In chemical; warehousing, we have introduced global safety standards benchmark infrastructure. In food warehousing, we have implemented technologically advanced cargo storage and handling systems like Orbiter AS/RS system, flow rack system, and deputed highly trained manpower to manage these warehouses. Our WMS is equipped with EDI integration capability which helps us in managing various data points of clients from fashion, retail and e-commerce companies that work with multiple transporters.

What are the major bottlenecks in moving towards DSC, especially in vertical integration of different processes, and how have you addressed these challenges?

We adopted a top-to-bottom approach in developing digital supply chain (DSC). Our integrated approach has aligned all the applications to the core objectives of the operations. It has also removed the isolated way of functioning and enhanced collaboration. However, while implementing DSC, in the initial phase, we faced challenges related to combining multiple data points, as our clients from the retail and e-commerce sectors work with multiple vendors. We strengthened EDI integration capabilities to address those challenges.

What do you think the strategic imperatives for the healthy growth of the Indian logistics ecosystem, including policy and reforms?

The government should place onus on the roll-out of the National Logistics Policy (NLP) on a priority basis. Its speedy implementation will not only remove inefficiencies on the supply side but also ensure cost optimization by promoting seamless cargo movement across the country. The policy remains crucial to providing an organized structure to an industry framework that has been for long been unregulated and fragmented.

A key policy agenda of the government should be to build a robust supply chain infrastructure and invest in expediting supply chain reforms. Emphasis should also be placed on building an integrated framework of large-format warehouses across the country by leveraging the resources of the private sector.

The share of India's waterways will need to be increased in the country's overall modal mix to decongest pressure on the country's overburdened road and rail networks. A robust Inland Waterways Transport (IWT) network will not only open up new coastal routes for seamless freight movement but also provide the added advantage of improved turnaround time. A world-class ports infrastructure is the need of the hour as Greenfield port projects are rolled out and corporatization of ports is encouraged by taking private sector players into confidence and giving them special incentives.

What do you think some of the top trends in warehousing?

Reforms like the Goods and Services Tax (GST) and the boom in e-commerce transactions has placed renewed global investor interest in the Indian warehousing sector. We are witnessing a large-scale consolidation wave in the warehousing sector with rising demand for centrally located, technically advanced large-format warehousing assets. With the granting of infrastructure status to the logistics sector comprising cold chains, Multi-modal logistics parks (MMLPs) and warehousing facilities, large organized players are marking their entry in the Indian warehousing sector.

What is the transformative impact of automation and digitalization on the warehousing segment?

It is estimated that going ahead, a large number of companies in the supply chain domain will integrate Artificial Intelligence (AI) and robotics into core warehousing processes. A system of interconnected technologies can create a smart warehousing model which is more scalable in terms of handling high numbers of inventory volumes and increasingly flexible in responding to changing customer needs. An integrated Warehouse Management System (WMS) in technically advanced warehouses of the future will have the potential to exercise greater control over operations and effectively monitor diverse processes across the value chain.

Brief us on the measures taken to support your customers during this crisis?

To support our customers during the pandemic, we have enabled our teams to work remotely. They adopted digital tools are technologies like ECU360 to help our customers maintain business continuity. We also offered facilities like E-Delivery Order, E-Payments, etc. to the customers. Our IT team has been working round-the-clock to ensure zero downtime for IT systems. As port and CFS operations are classified as essential services, we kept the operations running during lockdown phase. We made necessary arrangements for our employees and workers in our warehouses and CFSs so that business remained uninterrupted.

Our Projects & Equipment (P&E) division continued to take up projects. We moved ODC equipment of a Japanese engineering company such as an Ammonia Convertor weighing nearly 600 MT, a Urea Reactor weighing over 350 MT and an Ammonia Unitized Chiller weighing over 300 MT from Dahej in Gujarat to Gorakhpur in Uttar Pradesh during lockdown.

At the global level, we expanded ECU XLERATE sea-air services from 6 main base ports in China to over 35 European airports with a view to reduce cost and transit time.

How do you foresee the future trends in the logistics space?

Supply chain digitization will emerge as the new normal in the post-pandemic logistics ecosystem. However, in order to fully leverage the benefit of this trend, companies will need to rework on their supply chain strategy to make it more technologically compatible. Internet of Things (IoT) will play a key role in facilitating this digital transformation. The implementation of IoT will simplify analysis of real-time data for improving strategic decision-making capabilities. It will help in improving the efficiencies of supply chain monitoring, inventory management and automation of processes.

There will be greater integration of Artificial Intelligence (AI) into supply chain processes. The power of big data will lead to improved decision-making capabilities and optimized performance efficiencies. AI and machine learning will be instrumental in introducing automated processes to fast-pace warehousing activities and incorporate system management and control in the warehousing management system.

As we move towards an increasingly volatile global trade and industry order, logistics players will need to place onus on risk management and making their supply chains resilient and flexible. The emphasis will need to be on detecting disruptions on time and framing disaster management and response plans to minimize damage and ensure business continuity.

Use of the software-as-a-service (Saas) model in supply chain technologies will provide a streamlined approach for Warehouse Resource Management (WRM) to lower fuel costs and improve asset utilization ratios. Without adversely impacting existing business frameworks, Saas Solutions can be easily scaled to suit changing business strategies.

What do you think will be the growth drivers?

Expanding on the vision of the government for an Atmanirbhar Bharat (Self-Sufficient India) FM Nirmala Sitharaman had announced the launch of the National Infrastructure Pipeline (NIP) with a projected investment outlay of Rs 100 lakh crore for infrastructure projects over 2020-25. The government's reaffirmed commitment to boost investment in infra projects in the country is a key growth driver for the country's logistics sector. With a boom in e-commerce transactions in the wake of the covid-19 outbreak, there will be a demand for multilevel, large-format warehouses to minimize operational costs and ensure same-day delivery timelines. The Indian warehousing sector is witnessing increasing fund inflows and renewed interest from global investors.  

What are the core strengths and competencies of ACCI, and what differentiates ACCI?

ACCI's core strength lies in its highly-trained and dedicated teams which help in providing holistic logistics services as per the business needs. Its unmatched supply chain business process integration offers its clients scalable and customized implementation of warehousing facility in all times including Covid19 at unmatched speed at accuracy. What differentiates ACCI is its ability to offer total visibility of the inventory along with the assurance of safety, regular audits, quality checks and consistency in delivering KPIs and SLAs. ACCI is equipped to cater to the end-to-end logistics needs, guided by the experts and backed by robust infrastructure and technology efficiency that enable quick scalability.

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