“International Supply Chain &

Conference on
Logistics
Transportation
System Studies – 2008” Management

Rajkiran Kanagala
Regional Head – West
Supply Chain Division-TCI

11th Jan 08
Integrated Supply Chain Solutions 1
Supply Chain & Logistics Management
Emerging Trends
Group TCI- Moving Together ;Growing Together

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 Logistics Management ……..

• Logistics Management is that part of Supply

Chain Management that plans,
implements, and controls the efficient,
effective forward and reverse flow and
storage of goods, services and related
information between the point of origin
and the point of consumption in order to
meet customers' requirements.

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… while Supply Chain Management

• Supply Chain Management encompasses the

planning and management of all activities involved
in sourcing and procurement, conversion, and all
Logistics Management activities.
• Importantly, it also includes coordination and
collaboration with channel partners, which can be
suppliers, intermediaries, third-party service
providers, and customers.
• In essence, Supply Chain Management integrates
supply and demand management within and
across companies.

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 Logistics v/s Supply Chain

Logistics processes BRIDGE the gap between

market needs
Market Demands
•When a Product is desired
•Where a product is desired
•How much is desired
• Mix of products desired
& supply capabilities…
Supply Capabilities
•When a Product is made
•Where a product is made
•How much is made
• Mix of products made

Warehousing Transportation
Inventory Management Scheduling
Customer Service Information Systems

….while Supply Chain Integration is the management strategy /

process for Shrinking the gaps .

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 INDIA LOGISTICS SCENARIO
• A significant yet lesser-noticed activity that forms the backbone of almost all
sectors is the Logistics and Supply Chain sector.
• With India's gross domestic profit growing at over 9% per year the Indian logistics
industry is expected to reach a market size of over $125 billion in year 2010.
• Logistics Industry
– 13% of Indian GDP
– Highly Fragmented
– Origin of 3PL industry after MNC’s stepping in 90’s & rapid growth after year 2000
• Factors driving 3PL
– VAT
– Increased focus of Government on improving Infrastructure
– Increasing MNC’s & Indian companies realizing logistics functions

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 INDIA SUPPLY CHAIN TRENDS
• Organizations are in various stages of maturity, however by
majority they can be clubbed in the following phases and time
zones :
• Phase 1: Concept Stage
– Till 2003 the logistics was still a concept with a majority of
Indian companies. It was a good “concept” but could not be
applied to “us”
• Phase 2 : The Acceptance
– In the last 2 years , the logistics has moved into the board
room and CEO’s are “concerned”. The bottlenecks are : lack
of clarity induced by the knowledge-gap in the service users ;
the “transport” mindset of service providers.
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• Phase 3: The Understanding
– With a mix of outsourced consulting, in-house strategizing
coupled with a dose of VAT and Service tax , the next 12
months will see a firm plan developing in the Industry
leaders.
• Phase 4 : The Implementation
– The most critical part …is also likely to the most hurried
part ! The first movers will have an advantage of time
which is the luxury ill afforded in globally competitive
markets.

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INDIA : SUPPLY CHAIN STRATEGY

• Four factors will determine the Indian Supply

Chain : Supply Chain
Cost
Rail Network
The Road /

VAT /
CST
DISTRIBUTION
STRATEGY

Closeness to
Customer
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 SUPPLY CHAIN COST

The target is to
arrive at this
figure
Costs (Rs)

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Logistics & Supply Chain Management

Emerging Trends
Group TCI- Moving Together ;Growing Together

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 LOGISTICS COMPONENTS
• Movement
– Road
– Rail
– Sea
– Air
• Storage
– Mother Warehouses
– State Depots
– Bonded Stores

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EMERGING TRENDS-HUB & SPOKE
• Multi Modal / Hub-Spoke
– Synchronized modes
– Policy framework
• GST Regime
– CST – 0%
– VAT – on All India Level
• Computerized and connected
– State / country borders
– Check posts
– RTO’s
– All Stakeholders

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 EMERGING TRENDS
WAREHOUSING

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 MONITORING OF FLEETS &
ROLE OF TECHNOLOGY
Traffic controllers / timekeepers at various highway points.

Changes and technology advancements
Swipe cards
Petro / fleet cards
Mobile phones
GPS Tracking (Latest, Real-time & most advantageous)
CCV Camera Systems

Still a long way to go
Costly technological systems
Resistance from drivers
Less awareness in the market

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 SERVICES TO CUSTOMER

 Online Tracking Simply log on to the website.

 Tracking your consignment is just a click away.
 SMS Updates Messages on your mobile
 Call Free Number A 24 x 7 service

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 EMERGING TRENDS- 3 PL

• “Transport” mindset of
service providers
• Alignment with customer’s
business objectives
• Supplier v/s Partnership
• Quality manpower , fresh
blood
• Kaizen for shared benefits
• Move up the value chain
• Go global.

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 EMERGING TRENDS- 3 PL

• “Transport” mindset of service

providers
• Alignment with customer’s
business objectives
• Supplier v/s Partnership
• Quality manpower , fresh blood
• Kaizen for shared benefits
• Move up the value chain
• Go global.

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 EMERGING TRENDS –
OUTSOURCING SCM
• Given birth to new breed of suppliers who drive you up
the value chain
– Thru adoption of global practices
– By making you concentrate on your core competencies
– By making each service accountable and measurable and
delivering value thru the smallest of cost components
– Leaving you with a larger capital by making you asset light
(no investment in logistics infrastructure)
– Lower costs as there is an effort to make the logistics cost
variable
– By making you compete better in the market in terms of
lowering of inventories and ensuring you have the right
product at the right place at the right time.

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 TYPICAL CASE STUDIES

• AUTO VERTICAL –END TO END

• TELECOM VERTICAL –DISTRIBUTION

FOCUS

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Logistics & Supply Chain Management
Emerging Trends
Group TCI- Moving Together ;Growing Together

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 VISION & HERITAGE
1958 Founded in Calcutta

1968 First branch computerized

1974 Became a Public Limited company

1996 Launch of XPS Services

Launch of Logistics Solutions Wing

1997
(Now TCI Supply Chain Solutions)

1999 Launch of Transystem, a JV with Mitsui & Co for Toyota

Established Road Frieght Index for tracking the volatile Indian

2000
Road Freight

2001 Launch of Key Account Management System

2002 Started GPS Tracking on Prime Movers, a first in India

Obtained ISO 9001 : 2000 , the first company in Logistics in

2002
India
Reached a Milestone of 1000 vehicles and 5 mn Square Feet of
2003
Warehouse Area

2004 Patented a 3 Deck Trailer in India

2005 Crossed Revenue of INR 10 Billion

2006 Reached Global

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 INFRASTRUCTURE
Reach
• Network of over 1100 company owned
branches
• One booking station within every 100 sq. kms.
Assets
• 6.5 Million sq. ft. of warehousing space
• High mobile asset base of owned vehicles and
dedicated vendors : At any point 7000 trucks are
carrying TCI shipments.
People
• 6,000 professionally trained personnel
• 20,000 outsourced hands.
Technology
• VPN based ERP for TMS, WMS, FMS &
HRMS
• Advanced Vehicle Tracking System through
GPS
• Web based Track and Trace

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 CREDIBILITY
• India Footprint :
• The group moves more than 2.5% of National GDP
by value
• Revenues of Rs 12 Bn in FY 2006-07
• Rated and Certified
• Bank Approved by IBA
• A+ credit rating by ICRA
• IATA Approved
• ISO 9001:2000 certified (First in India)
• Listed Entity :
• Traded on National Stock Exchanges
• Corporate Social Responsibility :
• Involved in education, health care & a key beneficiary
of Bill & Melinda Gates Foundation running AIDS
Intervention Programs.

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 CREDIBILITY

Awards in 2007
• Best 3PL Service Provider
Indiatimes and Miebach Logistics

• Best Supply Chain in Knowledge

Series
CII

• Best IT Implementation Award

PC Quest and e-pod

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 SERVICES & SBU’s

A Single-window solutions
Supply Chain Management enabler providing customized
services.
Logistics Warehousing
Road / Rail / Sea / Air
Over Dim.Cargo
Courier & Cargo

Cross Docks
Cold Chain

FTL/FCL, LTL &

LTL & FTL

India’s fastest growing

Bonded
DC's

Over Dimensional Cargo express company for door

services through Road, to door, time sensitive
Rail & Sea needs

Clearing and Freight Forwarding

A TCI-Mitsui JV, Reefer logistics – Specialized in

the sole from Flowers, coastal
logistics partner Food, Pharma to shipping
of Toyota specialty chemicals

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 KEY VERTICALS
TCI is focused on Six Industry verticals with a separate dedicated team for each of
them :
AUTO RETAIL & CP E&E CHEMICALS PHARMA TELECOM

• OEM Solutions • Supplier • Inbound Logistics

• Supplier Management • Supplier
• Line feeding Management • Supplier
• Primary Movement Management • Tower Installation
Management
• Spares Distribution • Multi-Modal
• CFA management • Multi-Modal • Handset
Movement • Multi-Modal
• CBU Distribution Movement Distribution
• Spares management Movement
• Mother Depot
• Reverse Logistics • Express Movement • Warehousing
• Warehousing • Warehousing
• Distribution
• Customized Fleet • Cold Chain • Multi-Modal
Centers • Reverse Logistics • Reverse
Movement
• Warehousing Logistics • CFA management
• Last mile
• Express Movement
distribution • Reverse Logistics
• Reverse Logistics

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 GROUP SERVICES
4PL
Integrated IT Solution

Inbound 3PL 3PL 3PL

Manufacturing Storage Customer

Supply Chain
4PL Provides Integrated, Process Oriented Co-ordination,
Control and Planning of Entire Supply Chains

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