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WHAT. WHEN. WHERE-HOUSE - IndoSpace
SUPPLYCHAINTRIBE.COM
                                                       March - April 2020
                                                       Volume 4 Issue 2

                                                       For private circulation only

PERSPECTIVE
Insightful learnings from
sustainability crusaders
who are leading the pack
                             WHAT. WHEN.
                            WHERE-HOUSE.
                               The art & science behind designing and
                             developing new age warehouses suited to
                                          meet the needs of tomorrow
WHAT. WHEN. WHERE-HOUSE - IndoSpace
WHAT. WHEN. WHERE-HOUSE - IndoSpace
PUBLISHER’S NOTE

    The Action doesn’t
    stop in Supply Chain
    Dear Readers,

    Coronavirus has taken over conversations between global supply chain managers. China accounts for

    approximately 27% of the world’s manufacturing output. The impact has shaken the manufacturing world. The

    counter-trend to the globalization of supply chains will most probably speed up. Industry 4.0 is bringing down

    costs of production in major economies of the world due to which the gaps in cost of producing in China vis-

    à-vis in-shoring is coming down. So, countries like USA and Germany could keep manufacturing back in their

    countries.

    In India, action continues on the Infrastructure front. Major large Real Estate developers are creating Grade

    A facilities with defined parameters using global best practices. Sustainability is also getting imbibed at the

    design stage itself. The gaps in understanding between the developers, landowners, policy makers and financial

    institutions need to be addressed for ease of land acquisitions, financial resources and optimal use of space.

    Given the transformational phase of our supply chains, the demand for Built-to-Suit facilities is only set to rise.

    Another very interesting phase in the life of a Supply Chain Head is the transformational journey to Supply

    Chain 4.0. Where does one start the journey from? Once the budgets get approved from the board, the actual

    challenges begin. Giving way to new technologies such as artificial intelligence (AI), machine learning (ML), the

    Internet of Things (IoT) and robotics with real-time data from current traditional models is not a smooth ride.
    The ground realities are very different. From data management to buy-in from vendors, suppliers, employees,

    etc., change management is required across the organization. Read our Roundtable section to understand how

    these problems can be overcome in real life.

    The start of 2020 has been extremely challenging globally and in India. As we progress into the next Financial

    Year here, here’s looking forward to getting back some stability in our economy.

    Charulata Bansal
    Publisher

    Charulata.bansal@celerityin.com
    www.supplychaintribe.com

      Published by Charulata Bansal on behalf of Celerity India Marketing Services
      Edited by: Prerna Lodaya • e-mail: prerna.lodaya@celerityin.com
      Designed by: Lakshminarayanan G • e-mail: lakshdesign@gmail.com
      Printed by: Xposures, A 210, Byculla Service Industrial Estate, D K Cross Road, Byculla, Mumbai- 400027.
      Logistics Partner: Blue Dart Express Limited

supplychaintribe.com                                                                                                      3
WHAT. WHEN. WHERE-HOUSE - IndoSpace
CONTENTS                                                                March - April 2020
                                                                        Volume 4 Issue 2

                                                                                                                         14
                                                                                                                         COVER STORY
                                                                                                                         WHAT. WHY.
                                                                                                                         WHERE-HOUSE.
                                                                                                                         Demand for efficient logistics space
                                                                                                                         that facilitates quick movement of
                                                                                                                         goods to consumers has necessitated
                                                                                                                         the design of new warehouses that are
                                                                                                                         larger in size and height. But how these
                                                                                                                         new age warehouses are developed in
                                                                                                                         accordance to 3Ss – Safety, Security
                                                                                                                         and Sustainability; will be what drives
                                                                                                                         the market share of developers in the
                                                                                                                         country. Our experts in the space offer
                                                                                                                         their expert insights into this very critical
                                                                                                                         subject that needs attention from the
                                                                                                                         developers, occupiers and policy makers
                                                                                                                         alike…

5 REPORT                                                                                      24 Smartly Sustainable
                                                                                              “We manage energy consumption & increase sustainability
Future Proof your Supply Chain
                                                                                              through EcoStruxure™ Power Deployment,” quips Javed
As the coronavirus outbreak spreads rapidly, supply chain
                                                                                              Ahmad, Senior Vice President – Global Supply Chain,
leaders must mitigate instant disruption and plan for future
                                                                                              Schneider Electric India.
incidents, states a Gartner report…

10 ROUNDTABLE                                                                                 30 Grooming In Style
                                                                                              “While designing a product, globalization is the alpha
Supply Chain 4.0                                                                              parameter; gauging the need, a product gets localization
Digitization, Digitalization, Digital Transformation – all these                              touch, which drives through the flow of regional demands,”
words are being used inter-changeably and very often. At a                                    shares Ponraj Periswami, Head – Supply Chain at an MNC.
recent Samiksha event at NITIE, expert panelists shared their
experiences in implementing the same.                                                         27 PERSPECTIVE
                                                                                              Sustainability for Sustenance
INTERVIEWS
                                                                                              Insightful learnings from early adopters of sustainability and
6 The Era of Digital Natives                                                                  how they are leading the pack…
“The key pillars for supply chain growth in the coming
times are most definitely going to be People,” affirms Mukta                                  32 RECAP
Khanna, Partner & Chief Supply Chain Officer, i2V Cinergy.
                                                                                              News and views trending globally

Editor: Prerna Lodaya

DISCLAIMER: This magazine is being published on the condition and understanding that the information, comments and views it contains are merely for guidance and
reference and must not be taken as having the authority of, or being binding in any way on, the author, editors, publishers who do not take any responsibility whatsoever for
any loss, damage or distress to any person on account of any action taken or not taken on the basis of this publication. Despite all the care taken, errors or omissions may
have crept inadvertently into this publication. The publisher shall be obliged if any such error or omission is brought to her notice for possible correction in the next edition.

The views expressed here are solely those of the author in his private/professional capacity and do not in any way represent the views of the publisher. All trademarks,
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No part of this publication can be reproduced or transmitted in any form or by any means, without prior permission of the publisher. All disputes are subject to the exclusive
jurisdiction of competent courts and forums in Mumbai only.

4 CELERITY March - April 2020
WHAT. WHEN. WHERE-HOUSE - IndoSpace
REPORT

Future proof your
SUPPLY CHAIN
As the coronavirus outbreak spreads rapidly, supply chain leaders must mitigate
instant disruption and plan for future incidents, states a Gartner report…

O
        N December 31, 2019, the           guidelines or illness.                      Do it now
        World Health Organization                                                      Develop a high risk for supply chain
        (WHO) learned of several cases     SOURCING: Travel may be restricted          disruption monitoring and response
of severe pneumonia in the Chinese         to certain areas, limiting the ability      programs for countries impacted by
city of Wuhan. As global leaders and       to discover, qualify and certify new        the virus and potential supply chain
health officials track the strain and      business or programs and to transact        exposure from tier I and below. If
make decisions regarding containment,      business.                                   lower tier transparency is missing, start
supply chain leaders need to assess                                                    building up the program and prioritize
and plan for how the virus will impact     LOGISTICS: Established hubs and supply      discovery to get a full picture rapidly.
global supply chains. The full impact of   networks may experience limitations in      It’s also important to assess how
coronavirus on supply chains might not     capacity and availability so that even      customer spending might be affected.
become obvious until sometime in the       if materials are available, they would           The next step is to make sure all
next few months and beyond.                be stuck elsewhere. Finding alternative     inventory is within reach and outside
                                           routes and means of transportation will     impacted areas and logistical hubs.
The challenge of                           become difficult.                           Additionally, supply chain leaders
globalization                                                                          should work with their legal and HR
Although the outbreak is being             CONSUMERS: Consumers may be more            departments to understand any financial
compared to the 2003 SARS outbreak,        cautious in their purchasing habits         implications of not being able to
China is now much more developed and       due to fears about being in public and      deliver supply to customers and provide
integrated with the global economy, and    potential exposure to the virus. Many       guidance to employees located in the
the country has significantly improved     may turn to online sales, challenging       impacted areas.
its transportation networks. This means    logistics networks.
the supply chain implications go beyond                                                MID-TERM ACTIONS: Do it this quarter
regional concerns. Travel restrictions,    Preparing supply chains for                 In the midterm, the focus should be
shortages in labor and materials, as       disruption                                  on balancing supply and demand as
well as logistical challenges through      Disruptions happen. Leading supply          well as building buffer stock. Assess
tightened controls, and hub and border     chain organizations utilize enhanced risk   opportunities to diversify the supplier
closures will cascade and augment the      management processes. They include a        ecosystem and review or create the
impact much further today than it did      framework to continuously measure key       organization’s overall risk management
17 years ago. Indeed, the coronavirus      risk indicators and to prepare scenarios    approach. Work with internal
outbreak has already eclipsed SARS.        for controllable and foreseeable            stakeholders and strategic and critical
                                           uncertainties such as compliance, labor,    suppliers to establish a congruent risk
How coronavirus could                      material, capacity and financial issues.    management approach to monitor
impact supply chain                            Epidemics and pandemics present         and prepare for potential material and
Though it is difficult to predict the      a different scenario. The main impact       manufacturing capacity shortages.
exact consequences of coronavirus,         is a lack of access to staff, decreased
organizations might begin to see           productivity and a change in public         LONG-TERM ACTIONS: Do it this year
impacts across the supply chain,           behavior in terms of shopping practices     Once the initial impacts of the crisis are
including:                                 and spending. “The full impact of           mitigated, it’s all about foreseeing the
                                           coronavirus on supply chains might not      next “when.” Supply chain leaders and
MATERIALS: Supply shortages of             become obvious until sometime in the        their teams can, for example, conduct a
materials or finished goods coming from    next few months and beyond,” Köse           scenario planning exercise and develop
or routed through logistical hubs in       says. “However, supply chain leaders        action plans. This is the time to discover
impacted areas.                            should take initial steps now to monitor    or develop alternative sources and
                                           and prepare for the impact on their         diversify value chains.
LABOR: White- and blue-collar labor        value chain.”
may not be available due to quarantine                                                                               Source: Gartner

                                                                                                                                 5
WHAT. WHEN. WHERE-HOUSE - IndoSpace
INTERVIEW                                                                                                                                                                                                                                                  INTERVIEW

The Era of
                                                                                                                                            the more complex ones like digitization
                                                                                                                                            of supply chain, integrated planning and
                                                                                                                                            to the next steps in artificial intelligence
                                                                                                                                                                                                          Every supply chain has faced

DIGITAL
                                                                                                                                            for innovation launch, product                                impacts of inaccuracy, leading to
                                                                                                                                            changeovers and so on.
                                                                                                                                                                                                          understocking of some goods that
                                                                                                                                            What are your views on revamping                              are desired, while over-building and
                                                                                                                                            end-to-end supply chain with
                                                                                                                                                                                                          stocking of some that don’t end

NATIVES
                                                                                                                                            innovative strategies?
                                                                                                                                            Supply chain, as the name itself,
                                                                                                                                            talks about chain of activities and
                                                                                                                                                                                           up selling. Innovative strategies from business
                                                                                                                                            consequences which are influenced              to business are required for each phase so that
                                                                                       Mukta Khanna is an accomplished professional
                                                                                                                                            by each other. All this while in last
                                                                                                                                            several years, supply chain has had
                                                                                                                                                                                           the impacts of variations leading to business loss
                                                                                       with recognized proficiency in spearheading
                                                                                       different business models to achieve corporate
                                                                                                                                            multifold limitations being generated          get plugged. With the current situation where
                                                                                                                                                                                           majority of the companies have very little room
                                                                                       goals. Having worked for diverse globally leading    from different stages of finished goods
“The key pillars for supply chain growth in the coming                                 companies like PepsiCo, Reliance, Lafarge, Mayur,    forecasting to raw material sourcing

times are most definitely going to be People who are
                                                                                       she has more than 27 years of experience
                                                                                       driving centrally integrated supply chain, global
                                                                                                                                            & planning, to manufacturing to                to absorb losses, and sustenance is depending
                                                                                       procurement & operations, strategic sourcing,        generating finished goods to logistics
fearless to accept and adopt changes, working on the                                   and, business; coupled with commercial, logistics,   and transport and final retail. Every          on revamping the supply chain with innovative
                                                                                       EXIM, Transformation & Process Excellence,
right processes, imbibing the ever-evolving technology,                                Automation & Digitization. She is one of the very
                                                                                                                                            supply chain has faced impacts of
                                                                                                                                            inaccuracy, leading to understocking of
                                                                                                                                                                                           strategies, the key is creating optimization and
                                                                                       few Industry women leaders in the country who
while ensuring Sustainability” affirms Mukta Khanna,                                   has unique equal business experience. She has also
                                                                                       largely contributed in the Digital Transformation
                                                                                                                                            some goods that are actually desired,          removing multiple buffers.
Partner & Chief Supply Chain Officer, i2V Cinergy.                                     journey for PepsiCo and Reliance. At the same
                                                                                                                                            while over-building and stocking of
                                                                                       time, coaching being her passion, she has trained    some of those that do not end up
                                                                                       for more than 10000 manhours of professionals        selling leading to write-offs of both          organization, leading to impacts on          chain, starting from demand planning
                                                                                       undertaking change management. She is parallelly
                                                                                                                                            finished goods and raw materials.              bargaining, etc. While all other forecasts   to supply planning, manufacturing,
                                                                                       associated with NMIMS since 2018.
What have been the transformations                                                                                                          Innovative strategies are required for         impact the internal management in            and logistics. Data is now truly turning
over the years in the FMCG sector?                                                                                                          each phase so that the impacts of              an organization, it is the procurement       into information and to decision
FMCG has always been perceived as                                                                                                           forecast vs actual variations, which are       which has to communicate and rectify         making tools. This is helping control
one of the most demanding sectors to       shelf placed ones and still lose out.       •   Partner with consolidators as an                 leading to business loss opportunity           the impacts with external parties            wastages at different levels and increase
work with, since this is a sector which    I remember many times seeing the                intermediate between distributors                get plugged. With the current situation        and which at times also has legal            responsiveness to the customer. In
is directly impacted by the consumer       Kurkure Namkeens kept in the highest            and retailers to service low volumes             where majority of the companies have           implications. According to Deloitte's        1997, when world chess champion Garry
moods, fan followings, reactions,          shelf where I could never pick them,        •   Adhere to compliance norms; and                  very little room to absorb losses, and         survey, only one-third of procurement        Kasparov lost against IBM's Deep Blue
loyalties, besides environmental           despite they being better Namkeens          •   Train the staff to handle consumers              sustenance is depending on revamping           managers use advanced analytics and          Supercomputer, he spoke that the real
conditions and seasons, making it quite    in taste vs the more known brands!              in a personalized manner.                        the supply chain with innovative               other modern technologies to guide           challenge is not to determine who is
unpredictable, forcing supply chain        Besides this, challenges ranging from                                                            strategies, be it by digitization and          their procurement and inventory              superior — man or machine — but to
managers to shift gears to alternate       fast-changing technology, shifting retail   What have been the supply chain                      technology usage, or machine learning          management policies. This may possibly       achieve the right combination of man
plans. This sector has also now evolved    formats, overabundance of consumer          best practices implemented by you?                   or IOT, or controlling raw materials           explain why inventory levels are still       and machine. This insight also applies
to a certain degree and there is a         choice, greater focus on quality and        Fortunately, I have worked in different              or logistics, the key is creating              climbing. The truth is that the pace of      to supply chain operations. The fact
method to the madness, which is now        price, and a tough economic climate         industry types and sectors be it                     optimization and removing multiple             business is such that few organizations      is that people and their experience
helping the organizations get into a       also tend to add complexities in the        manufacturing or services and at each                buffers.                                       can succeed if they persist with manual      and sound judgment are necessary to
certain degree of predictability. Also,    supply chain, if not given due attention    one of them I have had the opportunity                                                              and legacy inventory optimization            make the right decisions, but at the
there are more qualified people in         at the right time. The challenges are       to contribute, starting with ISO 9000                What are the procurement obstacles             practices. However, procurement has          same time, understanding how supply
supply chain, who are taught subjects      leading to dropping profit margins,         systems in my first organization,                    for procurement professionals in               now started gaining importance within        chain software can complement and
like forecasting and planning, for         operational complexities, ever-changing     supporting TQM, and using Lean Six                   the country? What is the impact of             the organizations and also gaining           extend human abilities, will improve
coming times, new developments             regulatory compliances, disassociated       Sigma concepts in creating process                   procurement on supply chain?                   technological support.                       performance and achieve maximum
such as artificial intelligence, machine   omni-channel integration, etc. To deal      excellence. I have largely worked on                 Procurement is a critical aspect of                                                         profitability. The right combination of
learning are now coming in the supply      with these challenges, in the coming        digital transformations and automation               supply chain, and so is inbound                How is technology evolving for the           technology and human brain power
chain of FMCG too, making them             times, retailers are expected to be         in supply chain for creation of direct               supply chain. Being the last leg of            continuous growth of supply chain in         leads to the most informed decisions
predictable to a reasonable degree.        undertaking the following steps:            decision tools. But, I have also worked              supply chain in terms of receiving             the country?                                 and best results.
                                           • Invest in faster and more convenient      from the basics. My journey, both in                 forecast, and the first leg for supply to      Technology is the key impactor in
How complex is the retail supply               ways to tackle final-mile delivery in   Reliance and PepsiCo, fortunately gave               ensure that goods get manufactured,            the supply chain. Organizations,             In times of Omni-channel markets,
chain? What are the challenges and             2020 plus                               me scope to build from scratch, hence                procurement professionals face multiple        about 15-20 years back in India, were        the pressure is huge on SCM
how to deal with them?                     • Select future-compatible technology,      pushing me to work on fundamentals                   pressures, which include pressures             getting into SAP and the journey for         professionals. What are those and
Retail supply chains are complex               which seamlessly integrates with        and creating industry suiting processes              from the marketing teams to deliver            technology adoption had started.             how to best manage them?
because here the consumer expectations         self, vendor and customer tech base,    like working on TCO concepts in                      even if their forecasts were quite             The cultural change was critical at          Omni-channel markets have a common
actually meet the availability.                enhancing presence in the virtual       procurement, capex-opex tradeoffs,                   wrong, external global risks, changing         that stage because teams were used           issue which is “Inventory- OVER
Consumers are flooded with far                 world                                   process streamlining, ensuring ethical               customer preferences, pressures to             to mammoth manual workings. Last             OR UNDER”. There are two types of
more relative choices; hence all good      • Create omni-channel inventory             sourcing, working capital improvement,               bring cost productivity year on year,          couple of years have seen remarkable         approaches different organizations are
products have competition from better          pools                                   cost optimization, and then build upon               manage crisis, financial risks of the          developments in all the facets of supply     taking for it-

6 CELERITY March - April 2020                                                                                                               supplychaintribe.com                                                                                                               7
WHAT. WHEN. WHERE-HOUSE - IndoSpace
INTERVIEW                                                                                                                                                                                                                                            INTERVIEW

               In 1997, when world chess champion Garry Kasparov lost                                                                often ends up being paid less and being         making working scenarios better for all,    always be ready with more than one
                                                                                                                                     subjected to side remarks like “Madam           especially women.                           backup plan, and the planning needs to
               against IBM’s Deep Blue Supercomputer, he spoke that                                                                  ko toh kaam ki zaroorat nahi hogi, her                                                      be adverse consequential planning too.

               the real challenge is not to determine who is superior —                                                              husband is there after all”. There is still a
                                                                                                                                     lot that needs to be done, and it is very
                                                                                                                                                                                     How do you foresee supply chain
                                                                                                                                                                                     landscape going ahead? What are
                                                                                                                                                                                                                                 However, if unable to handle, for an
                                                                                                                                                                                                                                 unforeseen supply chain solution, the
               man or machine — but to achieve the right combination                                                                 important that senior leaders of the            the major developments?                     biggest tool is transparency, confession

               of man and machine. This insight also applies to supply                                                               industry start working towards it. The
                                                                                                                                     ratio of women to men in supply chain
                                                                                                                                                                                     The coming era is surely going to be the
                                                                                                                                                                                     era of Digital Natives who are the first
                                                                                                                                                                                                                                 of the issue, intent to rectify, seeking
                                                                                                                                                                                                                                 help, and actions to supplement that
chain operations. The fact is that people and their experience and sound                                                             are still less than 15% at senior CXO           generation born and brought up in the       the issue is fixed at the earliest in all

judgment are necessary to make the right decisions, but at the same
                                                                                                                                     levels, and at various places even lesser.      Internet era. This will lead to a major     honesty. Let’s face it, problems will
                                                                                                                                                                                     expectation and emphasis on using           come, however if one is honest with
time, understanding how supply chain software can complement and                                                                     What would be your advice to                    technology as a given base of supply        the stakeholders, generally support and
                                                                                                                                     next gen supply chain managers to               chain. Like many other functions that       time will be given to amend, and the
extend human abilities, will improve performance and achieve maximum                                                                 achieve the unprecedented?                      are getting outsourced, even supply         situation will pass.

profitability.                                                                                                                       No one can achieve the unprecedented
                                                                                                                                     if they do not have the skillset,
                                                                                                                                                                                     chain is expected to move in that
                                                                                                                                                                                     direction with a backing of technologies    What are the changes we are about
                                                                                                                                     willingness to slog, faith in themselves        like the IoT, Robotics, etc. Supply chain   to witness in times to come?
•   Serving omni-channel needs by           is the most helpful method, which can       challenging work in 26 plants. However,      and the universe, and being genuine             of Indirect/MRO items is also expected      The “Data World” will merge with
    different teams like traditional        help streamline inventory and create        the journey will never be a cake walk. I     in the purpose and making efforts for           to change where 3D printing will make       “Interpreting Technologies” leading to
    trade team, modern trade team,          fulfillment on common omni-channel          have had my share of feeling dejected        the same. Hence, if you wish to wear            more inroads and supply chain will          – in-your-home targeted & focused
    e-commerce team, etc.                   depots rather than separate inventory       and humiliated as I have had for             the gown and crown, be ready to make            involve transmission of CAD/CAM files       marketing, reduction of system waste,
•   Omni-channel needs being serviced       for e-commerce, modern trade and            celebrations and acknowledgements, but       the effort into the areas where others          rather than products. IoT will impact       and adaptive distribution. All these will
    from common inventory                   traditional trade. Not just that, it can    I am thankful for the faith showered in      are less comfortable. I often advise            the ordering cycles and clustering too,     have an impact on the social thread,
                                            also help fulfill demand gaps in various    me.                                          young women professionals to think              where goods will start talking to each      improving lifestyles and increasing
    Both scenarios are driving different    regions.                                                                                 about entering logistics, transport and         other. The trends, such as a customer       work life cohesiveness. However, the
types of pressures on supply chain                                                      What have been your learnings                warehouse if one needs to taste success         getting reminders on his reordering         skillset needs will be ever changing,
professionals. While in the former case,    What are the key pillars of supply          during this journey?                         in supply chain, and not treat them as          needs based on earlier purchase date,       which will need to be integrated with
there is always a stress of under or over   chain growth in the country?                Being updated with the latest and            fields not good enough for women. Also,         have already started.                       the education system, else it will
inventory due to demand variability and     The key pillars for supply chain growth     foreseeing the issues ahead is an            today’s scenarios are quite different                                                       start creating a bigger “intelligence
prioritization given by the organization    in the coming times are most definitely     important step to handle crisis.             from what they were a decade back,              Please share with us a retail supply        obsolescence”!
to service. On the other hand, in           going to be People, Technology, Process     It is very important for a supply            and I must say that now they are better         chain manager’s quick fix solution to
the latter type, there are challenges       and Sustainability, combined with the       chain professional to develop this           for women. I call Technology becoming           an unforeseen supply chain issue…
to service, lack of understanding of        approach and fearlessness to adopt          power. Success only comes with an            the first partner today (jokingly!), and        Ideally, a supply chain person should
types of customers and storages. Also,      changes, and the new…or to say… “The        entrepreneurial behavior and belief.
the need for organizations being not        key pillars for supply chain growth in      Willingness to take challenges and being
just digitally literate but embracing       the coming times are most definitely        fearless in taking initiative is equally
technologies and knowing them in time       going to be People who are fearless to      important.
is important. With changing market          accept and adopt changes to reach a
dynamics, it’s important that SCM           new, working on the right processes,        How embracing is the supply chain
professionals upgrade skills in time.       imbibing the ever-evolving technology,      fraternity now for women?
                                            while ensuring Sustainability”.             Supply chain fraternity is becoming
How can next level inventory                                                            more inclusive for women now, right
optimization achieve successful Omni        You have been one of the few women          from a level of a “night shift in-charge”
Channel fulfillment?                        supply chain leaders in the country.        in the plant to a truck driver and
Irrespective of whether it is a retail      How has been the journey?                   corporate offices. However, there are
or an online customer, end of the           Well, the journey has been a mixed          still inhibitions and assumptions about
day, it is the same customer which is       bag to be very honest. It has been          women. While organizations talk about
targeted. So, while earlier the chain       very good when I expected it the least.     an interest in women taking on senior
was traditional trade, followed by          I followed a mantra, “Never consider        roles, however finally taking them and
addition of modern trade, which has         yourself as under or over privileged.       a willingness to lend a hand to make
now matured into e-commerce and             Work and behave at par!” I worked in        them walk the last mile where they
other facets too. The consumer research     international marketing, commercial         are falling short is hardly there. This
methods have also now evolved with          and domestic sales before I entered core    aspect is the most important thing to
the advent of technology, leading to        fields of supply chain, and I am thankful   look into. As such this is a fact that all
intent for an informed buy, where a         to each of the companies in helping         said and done, women have to work
consumer researches about product and       me grow and understand different a          much more in profession on both
options on the Internet, takes views        aspects of business. Coming to supply       psychological and performance levels
from friends as well as reviews, visits     chain & procurement, it was Reliance        much more cautiously so as to gain
a store for a high cost product and         that gave me the opportunity and a          respect and carry the image where
then orders. Understanding demand           free hand to prove my mettle, and I am      she is taken seriously, along with her
patterns using potential consumer data      glad that I did, followed by PepsiCo with   above-excellence performance. She still

8 CELERITY March - April 2020                                                                                                        supplychaintribe.com                                                                                                                9
WHAT. WHEN. WHERE-HOUSE - IndoSpace
ROUND TABLE                                                                                                                                                                                                                  ROUND TABLE

Supply Chain 4.0:                                                                                                                                  Technology has become the
                                                                                                                                                   key driver in Supply Chain
                                                                                                                                                   transformation.
                                                                                                                                                                                                       distinction between a Statistician, a Machine
                                                                                                                                                                                                       Learning expert and a Data Scientist – the

OVERCOMING
                                                                                                                                                                                                       Statistician will talk about data, Machine
                                                                                                                                                                                                       Learning expert will talk about algorithms and
                                                                                                                                                   Alibaba wants to predict what the customers         the Data Scientist would be the guy who would
                                                                                                                                                   want to buy while Amazon wants to deliver           derive inspiration and tell stories from data.
                                                                                                                                                   when the customer is thinking about the                 Blockchain is futuristic. It is getting clear

OBSTACLES IN
                                                                                                                                                   product. So, this is what is going to happen in     that Blockchain is not a disruptive but a
                                                                                                                                                   Artificial Intelligence.                            foundation technology. AI with a combination
                                                                                                                                                       Are we prepared for 4.0? No, it is going to     of IoT has a lot of potential. Some of the
                                                                                                                                                   take more time as the technology penetration        heavy manufacturing industries are already

DIGITIZATION
                                                                                                                       Venkatesh Seshadri,         in Indian Supply Chain has just started gaining     using IoT, e.g. if some of the machines are
                                                                                                                       Head – Supply Chain         traction. Startup Technology solutions in India     idle, it triggers an alert. 3D printing has
                                                                                                                       Consulting, CII Institute   are extremely promising.                            also caught up, especially in new product
                                                                                                                       of Logistics                    Skillsets are going to be really important in   development and spare parts management.
                                                                                                                                                   the days to come. I came across an interesting

Supply Chain 4.0 has become a hot topic with little understanding of the term as well
as the challenges which lie ahead when an organization starts a digital transformation
process. The recent Samiksha which is a corporate panel discussion, at NITIE, dwelled
upon this. Here is what the panelists had to share on the topic…                                                                                    With new technologies, new skill                        We have set up a Fashion Research Lab in
                                                                                                                                                    sets are required.                                 India- an innovation lab with IBM and we’re
                                                                                                                                                                                                       working with them to create and co-create
                                                                                                                                                    Being a fast-fashion player, we need to            a lot of solutions. We’ve in fact just launched
                                                                                                                                                    be high on trend, we need to bring in new          a product recently called Fabric.ai. The
                                                                                                                                                    fashion to the stores much faster. We start        idea is- how do you get insights when the
                           Supply Chain 4.0 regime is very much here to stay.                                                                       our design process which includes sampling         designer starts designing when he gets the
                                                                                                                                                    across multiple countries more than a year         inspiration? From the inspiration, how quickly
                           Investments in 4.0 will increase over the next decade. Recently, Pentagon awarded                                        back. And if you are designing so far back for     can he figure out if it even makes sense to go
                           a $10 billion cloud computing deal to Microsoft in the US. These are going to                                            trends a year later, chances are that mistakes     with that inspiration? Or is there something
                           percolate down to India also and India is at the cusp of it. So, one of the challenges                                   will be made. The idea is how to minimize          that’s been in the past from our existing
                           is skill sets. Building skills in the areas of Machine Learning, Artificial Intelligence,   Ranjan Sharma, CIO &         those risks.                                       data? Then it could also come from some
                           Robotics, etc., is going to be rewarding. At Deloitte, we feel that skills need to be       Head-SCM, Bestseller             So, one of the projects that we embarked       trend data which is already available in the
                           refreshed every year to be able to stay relevant. Business graduates stepping into          India                        on was digitizing the whole process of             industry. In the first phase we have gone live
                           the corporate world need to understand technology and will have to get their hands                                       sampling and bring that down to the number         with internal data. This data will give us the
                           dirty in ML coding etc., if they want a 4.0 career. This is a huge challenge we face                                     of samples that we were creating for each          capability to predict what is going to sell and
                           as campus recruiters. Freshers need to have skills that are complementary, both on                                       of these brands. How do we at least in the         if the designer feels that there is something
Akash Srivastava,          technology and management.                                                                                               next three years bring that down by half? We       that he can change and figure out the right
Partner, Deloitte Touche        A second challenge for senior management is to decide on how much to invest                                         introduced a technology called 3D Designing,       pattern or shade that will make sense, will the
Tohmatsu India             and where? Whether data should be put onto cloud first and then develop analytics                                        which was much more collaborative across           saleability get impacted? So that’s how we are
                           or start work on pilot somewhere? As we get into the next couple of years, more                                          the whole value chain, across our suppliers,       harnessing data to bring in speed from design
                           clarity is emerging on this. Another is availability and interpretation of data, how is                                  and across our own design organizations. One       to store.
                           it structured and engineered? Interpretation of data should be multi-dimensional so                                      of the other challenges also was- designers             I would also like to mention that with new
                           that one can take experiential decisions. To replicate this into a machine learning                                      always think from their own perspective. How       technologies, new skill sets are required. So,
                           program is not an easy task. The data itself should be multi-dimensional and able                                        do we ensure that whatever is designed is also     this is my request for institutions to be able
                           to talk to each other. Data engineering will become a very important skill. Another                                      saleable? There might be cases where it is far     to churn out talent for newer technologies.
                           important thing is that when we talk about digital from a supply chain standpoint,                                       ahead of the time. So, how do you identify         For stable technologies like SAP, there may
                           we talk about a warehouse executive or a trucker or an operator. Most of them                                            when you need to make and what? Therefore,         be an abundance of people, but we are going
                           have basic schooling and so their interaction with digital needs to be made very                                         you need to be much closer to the time when        to create a differentiation with the new
                           simple. So, to make them adopt it, the user experience must be like child’s play.                                        the product is actually getting launched. So       technologies. And for that differentiation, if
                                The third important thing, and it is a moving goal post, are the technologies                                       how do you reduce that cycle of design, then       we are totally dependent on an IBM or anyone
                           and the players. There are a variety of technologies out there with many players                                         sampling and getting it on the shop floor?         else, it becomes too expensive- that’s not a
                           and deciding which technology and by whom has become a very complex decision                                             And we are also now talking about creating         model that we can sustain. We will have to
                           to make.                                                                                                                 different buckets of products. We are looking      create our own capabilities because it is not
                                                                                                                                                    at how we can make products that could be          about one-time AI solutions, the solutions
                                                                                                                                                    designed and delivered at the stores in 60         will have to change and adapt as per new
                                                                                                                                                    days. We’ve reached that stage as well.            business challenges.

10 CELERITY March - April 2020                                                                                         supplychaintribe.com                                                                                                          11
WHAT. WHEN. WHERE-HOUSE - IndoSpace
ROUND TABLE                                                                                                                                                                                                                                      ROUND TABLE

                                             Data Analytics and AI. But if the clarity      model. The oft repeated success story is     a robust change management becomes          holds true today more than ever. It is       under 35 years old.
                                             is missing on why an organization              that of Amazon. The fact that Amazon         important.                                  the customer who is driving the change.          The availability of digital applications
                                             is doing this, it will not lead to a           has been able to bring down delivery              Choosing the technology or the tool    Availability of information has increased    combined with customer expectations
                                             successful digital transformation. Many        time from two days to two hours is           or the implementation partner, I believe    and cost of processors have decreased.       are making disruptions in every industry
                                             organizations lack the end goal clarity.       remarkable. Now they are talking of a        is a simpler problem to resolve. What           India as a nation is poised for          a reality. So, watch out, a 21-year-old
                                             I believe that this is a key challenge         promise that if you are in an Amazon         is critical though is being clear on the    making disruptions. According to a           founder of a startup might be disrupting
                                             that needs to be overcome in Supply            store, and if you as a customer are on       problem we are trying to solve. If at the   NASSCOM study, we are slowly but             your industry as we speak. Accept the
                                             Chain Digitization. Organizations which        your mobile, and have placed an order,       end of all this digital transformation,     steadily moving up and are now in third      challenge and digitally transform your
                                             are successful in digital transformation       within two minutes they will deliver the     you are improving the customer              position in the number of technology-        organization.
                                             keep the customer in mind and use              ordered item to you in that store – this     experience, then I think the effort and     based start-ups worldwide. India is
                                             technology to serve the end customer.          is truly all about digital transformation.   pain to go through this exercise is worth   also the youngest start-up nation in
Raghavan Santhanam, Senior                        If you look at how supply chains               In terms of challenges, one can look    it. “Customer is King” an old saying        the world and 72% of the founders are
Consultant, Stratadigm                       are being disrupted in every industry          at it from the Organization, People,
                                             (Banking, Retail readily come to mind)         Process and Technology prism. One of
Accept the challenge and                     whether an organization should digitally       the biggest challenges I think is getting
digitally transform your                     transform itself, is now no more a             funding in an organization for these
organization.                                question. What the organizations               projects. There are many departments                                           Change management is the                              transparent barricade, splitting the shark
                                             should be focusing more is on the              within an Organization vying for funds                                         most challenging problem we                           and the small fish. What the shark does
When the word Digitization is used,          pace and speed of innovation to                and SCM needs to build a robust                                                face in today’s organization.                         is it keeps hitting the strong barricade.
we need to make a clear distinction          solve specific use case scenarios. IOT         alliance of end using departments                                                                                                    It keeps thinking it can reach the fish
between what is Digitization,                (Internet of things), Analytics and            to get the funds or ally with other                                            Digital transformation starts from data. 1.           but fails multiple times. After months,
Digitalization and Digital                   Artificial intelligence are drivers that are   transformation projects. Benefits                                              Organisations get the customer data from              they take out the barrier and put in a
Transformation. People use these words       spawning new applications impacting            related to risk mitigation of these                                            the from the Amazons and Flipkarts. 2. Then           barrier made up of thin transparent film.
interchangeably, but each of these are       the future of supply chain. There are          projects cannot be ignored and can be                                          supply chain operation generates a lot of             But by this time, the shark thinks it
different.                                   several digital opportunities that are         used to overcome challenges in funding.                                        data- from suppliers, suppliers’ suppliers,           cannot go through the barrier and never
     Simply put Digitization is converting   enabling transformations in every node              Organizations sometimes tend to                                           logistics partners, external manufacturing            attempts to. The same way organizational
analog information to the digital            (Develop, Plan, Source, Make, Deliver,         have a very myopic view and they want                                          partners etc. 3. The data generated by the            barriers are man-made. There is little
form e.g. Converting handwritten             Support) of the supply chain today.            results quickly. So, breaking the digital    Murugan Pugalenthi,               Employees through the information systems             collaboration between departments
or typewritten text into digital form             For example, in case of                   transformation project into phases           Director- Global Planning         of your own organization- your ERP systems,           because of the organizational barriers
is an example of Digitization. For           development of a product, previously           and prioritizing low hanging fruits /        Excellence, Johnson &             legacy systems- you transact millions of              and this is a big challenge I face every
instance, in an organization that has        you used to stop a manufacturing line,         smaller projects first thereby delivering    Johnson                           records in a day. 4. Data generated by IoT-           day. This makes such programs very
2,000 Vendor Partners, every time the        to get a new product or sample done.           immediate results might be the smarter                                         manufacturing lines, trucks, RFID, etc. Can           expensive. This is a big gap when you are
Supply Chain Operations team wants to        You needed a minimum run. Now you              way to go about the exercise.                                                  we capture all of the data and use it for the         getting into any big digital transformation
enroll a vendor partner into their eco       have 3D printing, a process of building              Another practical challenge that                                         betterment of the organization? All this data         project. Proving ROI of this sort of
system, the vendor is asked to provide       an object one thin layer at a time. It         needs to be overcome is legacy. if                                             needs to be put to intelligent use. I have            investment is also very difficult.
a certificate of registration and other      is fundamentally additive in nature.           you are an organization, which is a                                            a simple analogy; we can eat simple bread         -   This is a story about Guruji who teaches
documents for verification purposes.         Many organizations have used crowd             hundred years old, you have different                                          or choose from the 150 odd varieties in a             his students in a Gurukul. One day,
There are lot of mechanisms like (EDI)       sourcing of ideas to develop a product.        legacy systems for transactions. The                                           Sandwich shop. Your own bread is your own             when he came to the class, he found
Electronic Data Interchange to convert       In planning: demand analytics, In              question is, ‘How do you make them                                             enterprise data, but it is not going to give          a cat playing around which was really
that paper information into digital. So,     Sourcing: smart scheduling, In Making:         interconnected?’ One cannot suddenly                                           you that much of value. A lot of companies            distracting. He asked a student to tie the
in essence, it’s the information you’re      exoskeletons, in delivering: Big data /        throw out all the old systems and bring                                        in India are trying to do this but doing it           cat to a pole. The student obliged. This
digitizing, not the processes.               RFID, In Support: social media. There          in a new one.                                                                  globally makes much more sense. That is the           happened every day for years together.
     Digitalization is about not just        are many technologies which have                    Organization structure is another                                         kind of digital ecosystem especially in supply        One day, the Guruji passed away and
changing the technology, but also            come up now. The point is that there is        challenge that needs to be overcome.                                           chain. The moment you build that data                 his follower took his place. The cat also
the processes from old to new. Use           no question that digital transformation        Sometimes the SCM departments                                                  intelligence asset, you can do anything on            passed away. The follower started the
of digital technologies is done to           should be a priority for Organizations.        do not pay attention to their own                                              it- planning, optimization, analytics platform,       class and said, “I can’t start this class
change a business model and provide          If they don’t do it, some other nimble         internal organization structure. They                                          etc.                                                  without having a cat tied to this pole.
new revenue and value-producing              company will do it, and one will be out        are so focused in looking at other                                                                                                   Can you go get a cat from outside
opportunities. It would normally involve     of business.                                   departments, that they ignore their                                            Now, what are the challenges? I will tell you         somewhere?” How do we make people
automation which means shifting of                New digital applications are              own. This is easier said than done.                                            two stories and cover the aspects:                    realize that a certain thing is done for a
work roles or transforming processes.        enabling a truly integrated Supply Chain       When a department has functioned in                                            - The first story is the Shark Syndrome.              specific purpose? Change management is
     Lastly, Digital Transformation          ecosystem. Traditional supply chain            a particular way for the last ten years,                                          It is an experiment done by scientists             the most challenging problem we face in
is a series of digitalization projects,      operated in Silos and every department         it becomes difficult to change. The                                               where they kept a shark in a tank with             today’s organization, especially to a global
automating processes and re-training         had their own TATs (turn around                old structure of having for example a                                             many small fish. We all know that the              audience.
workers to use computers. Digital            times). That model is being transformed        country sourcing, regional sourcing or a                                          shark eats the fish in no time. As the
transformation is about the customer.        into a control tower, track and trace          global sourcing model may need to be                                              next step, they put a very strong and
It involves transforming the business        model, where irrespective of one being         relooked. Human beings by nature are
model and organizations strategy.            a customer, supplier, distributor or a         creatures who love comfort and habits.
      Organizations tend to implement        manufacturer, one is always connected.         For example, we love to sit at the same
the latest technologies and one can do       All supply chain activities are now            desk every day. The world is moving
umpteen number of things using IoT,          moving from linear to non-linear               to a flexi desk or hoteling concept. So,

12 CELERITY March - April 2020                                                                                                           supplychaintribe.com                                                                                                             13
WHAT. WHEN. WHERE-HOUSE - IndoSpace
COVER STORY                                                                                                        COVER STORY

WHAT. WHY.

                                                                                                                                 PIC COURTESY: INDOSPACE
WHERE-HOUSE.

Demand for efficient logistics space that facilitates quick movement of goods to
consumers has necessitated the design of new warehouses that are larger in size and
height. In order to meet the increasing demand for quality warehousing spaces, a recent
CBRE analysis predicted that most of Grade B warehouses located in close proximity
to leading cities would undergo redevelopments as per occupiers’ specifications. This
will provide dual benefits to both – developers who can gain from the rental increase
and occupiers who will gain from the improved infrastructure. But how these new age
warehouses are developed in accordance to 3Ss – Safety, Security and Sustainability; will
be what drives the market share of developers in the country. Our experts in the space
offer their expert insights into this very critical subject that needs attention from the
developers, occupiers and policy makers alike…

14 CELERITY March - April 2020                                                              supplychaintribe.com            15
COVER STORY                                                                                                                                                                                                                                          COVER STORY

                                                                                                                                        processes. This also created the need        Welspun One Logistics Parks: The                of GST have all transformed the
                                                                                                                                        for large Grade A warehouses with 10-        last few years have seen a sea- change          warehousing market in India.
                                                                                                                                        12 m clear height, as the only way to        in the evolution of the ‘warehouse’.            Especially with GST, companies have
                                                                                                                                        optimize the fixed cost efficiently was      From the erstwhile ‘godown’ that were           either consolidated or in the process
                                                                                                                                        to go vertical. This created opportunities   basic storage facilities in marginal            of reducing the number of small
                                                                                                                                        for large players to step into the           locations to sophisticated, compliant,          distributed warehousing setups in
                                                                                                                                        warehouse infrastructure creation,           large, efficient and strategically located      their network and move towards large
                                                                                                                                        which was previously dominated by            storage solutions equipped to service           warehouses in strategic locations across
                                                                                                                                        local real estate construction. The real     the growing logistics demand for the            the country.
                                                                                                                                        fill-up has come since 2017, once the        country. Consistently the landscape
                                                                                                                                        decks for GST implementation were            is transforming into one with more
                                                                                                                                        cleared by the government. Almost all        organized players for whom compliance           THE GROWING DEMAND
                                  RAVIRAJ RODRIGUES,                             ALVIS LAZARUS,                                         large manufacturing companies with           and quality is at the heart of developing       FOR BUILT-TO-SUIT
                                Director Supply Chain-India,                    CEO, Hesol Consulting                                   national presence saw the benefits of        effective warehouse infrastructure.             WAREHOUSES
                                 Alstom Transport India Ltd
                                                                                                                                        consolidation, which meant bigger and                                                        For any built-to-suit warehouse, the
                                                                                                                                        better warehouses with more efficient        Rajesh Jaggi, Vice Chairman,                    companies must take a longer-term view
                                                                                                                                        lighting and power consumptions.             Real Estate, Everstone Group:                   and ensure meticulous planning before
                                                                                                                                        Today, many of the warehouses in             The warehousing sector is growing               embarking on any investments, as one will
                                                                                                                                        India are at par with global standards       at a very rapid pace. According to a            have to live with the consequences if not
                                                                                                                                        for warehousing. We are seeing a             recent report by Savills, warehousing           planned well.
                                                                                                                                        20% y-o-y demand for warehousing             sector is expected to add 40 mn. sqft.
                                                                                                                                        infrastructure in the country and my         space across top 8 cities this year.            Raviraj Rodrigues: The large
                                                                                                                                        estimate is that close to 200 million        This indicates a growing demand and             e-commerce companies saw efficiencies
                                                                                                                                        sqft of warehousing space will be added      expansion of space allocated to our             in managing the warehouses using
                                                                                                                                        in the next 5 years.                         industry. Demand continues to be                technology. They came in with a clear
                                                                                                                                                                                     strong particularly in the warehousing          plan for large and energy efficient
                                                                                                                                        Alvis Lazarus, CEO, Hesol                    segment specially for Grade A space.            warehouses, with clear height 10- 12
                                                                                                                                        Consulting: The Warehousing industry’s       Top consumption and industrial centers          meters at eaves. They saw this as
                                    JASMINE SINGH,                            ANSHUL SINGHAL,                                           progress is good for the past three years    such as Mumbai, Delhi-NCR, Pune,                the only way to optimize the fixed
                           Nation Head– Industrial & Logistics            Managing Director, Welspun One                                starting early 2017. Currently the y-o-y     Bengaluru and Chennai, are expected to          cost efficiently. Also, the fire safety
                           Services & Senior Executive Director                  Logistics Parks                                        growth is between 15-21%. The initial        drive growth of the warehousing sector.         requirements for such large warehouses
                          Advisory & Transactions Services, CBRE                                                                        boom is fueled by the e-commerce             In addition, tier II and tier III centers are   were way higher than normal
                                    South Asia Pvt. Ltd                                                                                 businesses. Typically, the fulfillment by    emerging as warehousing destinations            warehouses and called for Advanced
                                                                                                                                        the online players has direct impact on      due to increased consumption and rise           Sprinkler Systems complying with
                                                                                                                                        space requirement.                           in e-commerce transactions. We feel             NFPA13 guidelines. This has created a
                                                                                                                                                                                     the Indian warehousing market is still          demand for Built to Suit warehouses
                                                                                                                                        Jasmine Singh, Nation Head–                  at an early stage in terms of its overall       across the country. While there will
                                                                                                                                        Industrial & Logistics Services &            potential.                                      be some standardization for Grade A
                                                                                                                                        Senior Executive Director Advisory &                                                         structures, it will still take time before
                                                                                                                                        Transactions Services, CBRE South            Aditya Virwani, spokesperson                    we have uniform specifications for
                                                                                                                                        Asia Pvt. Ltd: As India’s prominence         Embassy Industrial Parks and COO                warehouse construction. The need to
                                                                                                                                        as a global logistics hub grows, the         Embassy Group: The warehouse sector             reduce CO2 emissions means that more
                                                                                                                                        segment is witnessing the entry of           is on the path to becoming an integral          and more organizations would prefer
                                                                                                                                        several global players and increasing        part of the logistics matrix due to             green solutions to lighting and power.
                                                                                                                                        awareness of domestic players to             the swift advancement in technology             This will create unique needs like solar
                                                         ADITYA VIRWANI,                            RAJAN EKAMBARAM,                    enhance the quality of offerings. This is    and the reform-led policy measures.             panels for power generation, further
            RAJESH JAGGI,
                                                 Spokesperson Embassy Industrial Parks                Partner, Qwixpert                 resulting in the demand of warehousing       Dynamics like the growth in the                 mandating a BTS warehouse model.
       Vice Chairman, Real Estate,
                                                       and COO Embassy Group                                                            that are in line with global standards.      manufacturing sector, rising consumer           Finally, the product confidentiality and
            Everstone Group
                                                                                                                                        With the increasing demand, developers       demand, a boost in international                safety controls will be the uppermost on
                                                                                                                                        have also started focusing on large-         relations, the emergence of organized           the minds of larger MNCs, necessitating
THE PERFORMANCE REPORT                         this segment to the overall growth of the    steady increase in capacities and quality   scale developments in the logistics          retail in the country, increasing private       the need for a separate warehouse
The warehousing and logistics landscape        economy, the government aims at enacting     of infrastructure in the last 5 years,      sector and are offering quality and          and international investments in                infrastructure and not a common pool
is going through a paradigm shift and          several structural reforms to improve        corresponding with the surge in online      technology compliant space to the            infrastructure along with the dynamic           warehouse.
transformation in India. From an increasing    physical connectivity and infrastructure     retail. The e-commerce companies            occupiers. The increasing interests from     growth in e-commerce is ought to
number of policy incentives to tech-           developments, thereby attracting             were constantly looking at increasing       foreign players has also led to opening-     maintain prosperity in the sector in the        Alvis Lazarus: BTS warehouses
enhanced warehouses, the sector is now         investments.                                 scale and presence across the country       up of new avenues for various private        next few years.                                 contribute between 22-25%. BTS
seeing a change in every aspect of its                                                      and this brought about a need for large     equity firms and foreign players to                                                          demand is specifically driven by
operation. The continued growth of the         Raviraj Rodrigues, Director Supply           consolidated space. Also, the large         seize the opportunity and invest in the      Rajan Ekambaram, Partner,                       organizations, which have green
e-commerce sector in India is leading to       Chain-India, Alstom Transport India          e-commerce companies brought with           development of high-quality assets.          Qwixpert: The recent trends in the              initiatives as part of their strategy
increasing demand for effective supply chain   Ltd: The warehousing infrastructure          them the need and technology for                                                         logistics landscape, the advent of              and also organizations, which require
systems. Recognizing the contribution of       creation in the country has seen a           automatic/semi-automatic warehousing        Anshul Singhal, Managing Director,           e-commerce and the implementation               customized warehouse design

16 CELERITY March - April 2020                                                                                                          supplychaintribe.com                                                                                                                 17
COVER STORY                                                                                                                                                                                                                                                        COVER STORY
PIC COURTESY: EMBASSY INDUSTRIAL PARKS

                                                                                                                              built-to-suit projects as it complies with   to 2X expandability.                            stages considering all the critical factors,   A modern Grade A warehouse has to be
                                                                                                                              needs of the developers and occupiers                                                        developers can implement effective             well-positioned and connected closely
                                                                                                                              along with the market demands.               Rajan Ekambaram: The extent of                  usage of space management.                     with the cities. This makes business
                                                                                                                                                                           economic efficiencies demanded by                                                              convenient and benefits our end users.
                                                                                                                              Anshul Singhal: The demand for built-        present-day businesses coupled with             Anshul Singhal: The modern warehouse
                                                                                                                              to-suit warehouses has gone up over          increasing customer expectations on             is a concept that has filtered down            Rajan Ekambaram: It is essential to
                                                                                                                              the years since the maturing market          the delivery speed (mainly influenced           from the more developed economies              understand the role of the warehouse
                                                                                                                              needs more bespoke solutions. This           by e-commerce), have made                       into India. Principally the prerequisites      in the supply chain and establish a
                                                                                                                              involves structural requirements to suit     warehousing operations extremely                include 100% compliance to                     design basis for the time horizon. The
                                                                                                                              their operational needs. However, since      important for organizations. Companies          government norms and regulations,              design basis must be in terms of SKU
                                                                                                                              Grade A warehouses with high quality         are often looking at automation                 specifications that align with Indian and      profiles, storage, throughput, order
                                                                                                                              PEB structures with associated specs         to cope with these circumstances.               global standards, safety and security          profile, value-added services, packaging,
                                                                                                                              like FM2/ high grade flooring already        However, most of the standard                   measures that ensure that manpower             returns, etc., that the warehouse will
                                                                                                                              provide many of the requirements for         warehousing infrastructures available           and goods are out of harm’s way and            handle. The design basis and land
                                                                                                                              BTS customers, the quantum of BTS            in the market today, across cities,             where throughput is efficient and time         availability will determine the material
                                                                                                                              modifications have become smaller.           do not meet some of these specific              sensitive. These pre-requisites mandate        handling systems, automation needs,
                                                                                                                              Even speculative Grade A buildings can       requirements. So, companies are                 the entire planning and design process         processes and technologies that will
                                                                                                                              meet almost 80% of the requirements          going for built-to-suit warehouses              of the Warehouse: Secure developments,         be required to design and run the
                                                                                                                              of ‘BTS’ customers.                          in selected locations, of a particular          a high degree of traffic planning for          warehouse efficiently. Also, safety is one
                                                                                                                                                                           size and infrastructure to meet their           peak traffic scenarios, design measures        of the crucial elements most warehouse
                                                                                                                              Rajesh Jaggi: Demand for built-to-           business needs. However, there are              for large transport, effective docking         designs do not consider. It is imperative
                                                                                                                              suit warehouses is undoubtedly on a          only a handful of such cases across             measures, provision of optimal storage         to build-in engineering controls to
                                                                                                                              rise, owing to the full-fledged smooth       industries and standard warehousing             heights, structural integrity, buildings       ensure a safe working environment for
                                                                                                                              customer experience that the facility        will suffice a high percentage of needs.        designed to withstand fire risks, FM2/         people inside the facility.
                                                                                                                              provides. According to a recent JLL          In a nutshell, I wouldn’t say there is a        high grade flooring, amongst others.               Alongside, companies need to fix
                                                                                                                              report, Built-to-Suit accounts for           massive requirement for built-to-suit                                                          the overall supply chain and distribution
                                                                                                                              almost 40% of the warehousing                warehouses in India; however, there is          Rajesh Jaggi: Warehouses have                  strategy for the foreseeable future.
                                                                                                                              absorption in 2019. These warehouses         undoubtedly an uptick, and it is bound          transformed to modern facilities               Their distribution strategy will broadly
                                                                                                                              are automated and tech-led spaces            to increase as the economy improves.            with advanced, real-time tracking              define the warehousing needs to
                                                                                                                              with a key motive of fulfilling individual                                                   mechanisms, and other tech-led                 be met – in terms of customers to
                                                                                                                              client requirements. These facilities are    BUILDING NEW AGE                                advances that could ease the processes         service, throughput to deliver, inventory
                                                                                                                              the need of the hour especially when we      WAREHOUSE                                       for both the supplier as well as               levels, value-added services and any
                                                                                                                              are living in a transformational phase       A few of the essential prerequisites that       the client. A few of the essential             other special requirements. Modern
                                                                                                                              of supply chains blurring the needs of       go into building a modern warehouse             prerequisites that go into building a          warehouses should meet this specific
                                                                                                                              retailers. We have observed a rising         are land banks at suitable locations,           modern warehouse are undoubtedly –             requirement. The level of automation
                                                                                                                              interest for built-to-suit warehouses for    financial investments to fulfill the capital    land bank at suitable locations, financial     will vary depending on complexity.
                                                                                                                              companies that want their facilities to      requirements, quality infrastructure,           investments to fulfill the capital             Imagine a warehouse that has to
                                                                                                                              be completely customized as per global       sustainable design and layout with focus on     requirements, quality infrastructure,          process 5,000 orders/day, 40,000
                                                                                                                              specifications, including warehouses         increasing logistics efficiency, tech-enabled   sustainable design and layout with             order- lines /day with 1 lacs SKU in
                                                                                                                              with refrigeration rooms, automation,        machinery development partners and a            focus on increasing logistics efficiency,      their portfolio with a warehouse that
                                                                                                                              etc.                                         skilled workforce that is the backbone of any   tech-enabled machinery development             has to process 200 orders, 3,500 order-
                                                                                                                                                                           industry to meet the set objective.             partners and a skilled workforce that is       lines, 1,500 SKUs in their portfolio – the
                                  (traditional warehouse won't suit their      supply, and will focus on understanding        Aditya Virwani: At EIP, we are                                                               the backbone of any industry to meet           design, technology deployment and
                                  businesses); for example, B2C sorting        the occupiers needs, thereby offering          constantly upgrading ourselves and           Jasmine Singh: With India evolving as           the set objective.                             construction will be drastically different.
                                  and distribution warehouses. The only        modernization of supply chains,                knowing the business requirement,            one of the largest consumption markets,
                                  reason the BTS pie is small is TIME.         optimization of delivery networks and          we ensure our parks are enhanced             it is imperative for regional supply            Aditya Virwani: The growth of                  Raviraj Rodrigues: To have the
                                  Most organizations don’t have a reliable     greater synergy between retail and             technologically. Today built-to-             chain operators as well as industrial           e-commerce as a mode of purchase               capability to understand our business
                                  space forecasting model or tool, thereby     logistics networks. With models such           suit warehouses are evidently larger         and logistics landlords to future-proof         by the consumer across the country             model and design warehouses with
                                  in many circumstances, warehouses            as built-to-suit (BTS), occupiers can          compared to the standard warehouse           their assets in preparation for this            has caused a revolution and caused a           minimal waste of surface area, optimal
                                  are needed overnight and due to this         specify the details in line with their         to about 60—70%. We can proudly              new era. Besides cost, speed, reliability       positive influence on the warehousing          LXB ratio (2:1 preferred), developers
                                  shortage of time, BTS is often ignored.      needs, thereby allowing developers to          say that built-to-suit warehouses            and connectivity, modern supply chain           business. India is enduring a massive          need to have the capability to build
                                                                               implement their requirements on the            offered by Embassy Industrial Parks          model has resilience, sustainability and        development and demographic                    warehouses with minimum height of 10
                                  Jasmine Singh: We anticipate that            back of financial security. With more          have helped our clients largely because      agility to attain long-term continuity          transformation igniting a huge wave            meters. For yet to construct warehouses,
                                  warehouse leasing is expected to rise        ecommerce players wanting to own and           every business comes with their specific     and growth. Rise in diverse needs of            of consumer demand over the next               the warehouse should be ready for
                                  going forward. This will largely be fueled   operate their own facilities, it will result   requirements and our effort is to cater      supply and logistics, warehouses now            decade. “Next Generation” warehousing          fit-outs within 12 months from signing
                                  by an anticipated rise in product sizes,     in more built-to-suit facilities, thereby      to their needs efficiently. We ensure        play a crucial role and require efficient       and logistics solution brings an               the agreement and they should plan
                                  continued demand from etailers, policy       taking off some “pure” leasing from the        we meet the need of our clients and          planning streamlined with its flexibility       effective solution to the problem. This        for technology enhancements like cable
                                  impetus to both sectors and higher           market. BTS warehouses come with a             give them exactly what they need so          and functionality like never before.            has been possible for us by being an           provisions for wireless routers, cameras
                                  demand from tier II cities. As the sector    benefit of expediting the project’s time       that they can focus on their business.       Through modern warehousing, with                efficient and fully compliant warehouse        and they should have the capability to
                                  evolves, we believe that developers will     frame and reduce the effort as well.           We provide built-to-suit industrial and      strategic planning of pre-empting all           management system that helps align             install the latest Fire-safety systems.
                                  move beyond meeting the demand and           Players are anticipating a boom in the         logistics parks where clients can have up    warehouse requirements needed at all            their client’s pathway towards success.            The material throughput measured

                                  18 CELERITY March - April 2020                                                                                                           supplychaintribe.com                                                                                                                  19
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