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Lecture 19 : Trends in Logistics (Contd.) — Transcript

by NPTEL IIT Kharagpur · 6,345 words · 944 segments · language en · Watch on YouTube

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0:01[Music]
0:22[Music]
0:26so hello dear friends welcome back to uh
0:28nptl online course on on Logistics and
0:30Supply Chain management so in the last
0:32session we started discussion on your
0:35Trends in logistics industry right so uh
0:38in this session we'll continue this
0:40discussion and we discussed about some
0:43of the stakeholders in modern Logistics
0:45right and uh uh some Modern Logistics
0:49concept we discussed about so in this
0:51session we'll find out what are the
0:54factors which which we are which are
0:56forcing us to you know to go for
0:58updating your logis not only one time
1:01every day we'll find out what are the
1:03trends and then we'll find out the
1:05challenges for modern Logistics right
1:08and we'll talk about some performance
1:09measures as well and we'll end this uh
1:11discussion with the uh two or three
1:14small cases right so these are the
1:17factors we'll go through these factors
1:19one by one right so first is your supply
1:22chain agility see now we we are
1:26operating in that environment which is
1:29very very d Dynamic very very fasile
1:31right every moment it is changing so if
1:34we will stick with your old school of
1:36thought and we'll say that this is
1:38Legacy we are carrying so that will not
1:41work right anymore so how constantly you
1:45are coming up with the technological
1:47advancements and in that way how quickly
1:49your supply chains your distribution
1:52networks are updating will Define your
1:54agility right so this is required
1:57because if you will not change your
1:59approach your competitor will change so
2:01obviously when your competitor will
2:03change they will be providing the same
2:05services at lesser cost problem is not
2:08with the services or the product for the
2:10moment the product quality may not
2:12change right but how they are delivering
2:16the product that experienced customer is
2:18getting extra right and then they are
2:21taking away the whole market share from
2:23you because both are still providing the
2:26same product but how they are adding
2:28experience into that so those that
2:31basket you need to take care what are
2:33those uh positive points the customer is
2:37clicking in his mind space whenever he's
2:40evaluating any uh you know e-commerce
2:42website or even the local uh supply
2:45chain
2:46right so uh then if you are talking
2:49about agility so this can be more
2:52insured when you are having self-managed
2:56see this is something I'm talking about
2:59little you know in in uh contradiction
3:02with with what we discussed for
3:04outsourcing let's say if uh very simple
3:08example uh if you just go through you
3:12want to on on Google you just search you
3:15want to install Tata sky at your home
3:17right this is new installation new
3:20connection you just record how quickly
3:23they are responding and then the another
3:26request is you at the same time you put
3:29another request that your tataa Sky
3:31installed earlier not working properly
3:33signal is not working properly then you
3:35see how how much time they are taking to
3:38respond to your uh request right so when
3:42you are Outsourcing this to let's say to
3:45third person so now if the new request
3:49is coming or you are uh complaining for
3:53the old uh connection right because this
3:57is now also to third person he will just
4:00generate the token numbers who came
4:02first will be processed first who came
4:04second will be processed second third
4:06fourth like this right so that means
4:08that much attention is not given which
4:10is required when you are on wording the
4:13new uh client right so special care
4:16initially you need to give that so
4:19another very very good example if you
4:21just in your WhatsApp you just connect
4:24with the goo right and you just type one
4:27message one line that I want to import
4:30my connection from one other player to
4:33goo withinin 20 minutes they will
4:35deliver your they will come to your uh
4:37home and then we'll take with within 2
4:40minutes they will process every document
4:42take your picture and then process the
4:44document and then within two days it
4:46will be ensured that your thing is done
4:48right so if that platform how
4:51responsiveness they are how quickly they
4:54are doing that right but if you talk
4:55about Geo fivr you are facing some
4:57issues maybe because you are old
4:59customer so that much immediate
5:02attention because this is a part of
5:03strategy right so when new uh customer
5:06is coming so that welcoming you know uh
5:10we should give that welcoming note to
5:12that uh new client right so that he
5:14should feel that now he he's connected
5:17to some you know really responsive
5:19player in that industry right so the
5:22another thing is GL Global labor
5:25shortage right this is uh in the modern
5:29uh Logistics industry we are facing this
5:31issue of global labor shortage right so
5:35third party Logistics there are uh now
5:38uh if you talk about we we need it's not
5:41that anyone can work on that right we
5:43need special skills to you know to
5:46ensure the proper packaging proper
5:48handling of the products right in that
5:51particular industry right so if you are
5:53training people and then the other day
5:55they are leaving because of maybe any
5:57reason there can be so many reasons
5:59right so so that is another very big
6:01problem so this factor is forcing us to
6:04go for automation right let us remove
6:07the human intervention but then if now
6:10we are going for human uh complete
6:12automation but still some human
6:14intervention is required so now the
6:16skills required are at different level
6:20to operate your automated Warehouse to
6:22operate your softwares to keep the
6:25digital uh track of the transactions
6:28digital track of the invent
6:30so everything so that expertise now
6:33required maybe very earlier you were
6:35working with 100 man power now maybe
6:37only 10 are required right so but
6:41companies are now uh moving with that uh
6:44uh you know uh perception in their mind
6:47that now we want to completely cut down
6:49this because we will be more efficient
6:52and in that way we can avoid all those
6:54lab related problems so they are coming
6:56with a driverless truck now initially
6:58what they are doing they are connecting
7:00two trucks first truck is manually
7:02operated right the second truck will
7:04mimic the first one right so second
7:07truck can uh track the pattern and
7:10accordingly will take the decision uh on
7:13the road right so another uh factor
7:16which is forcing is you know the
7:19complexity we are generating through
7:21automation that is clear because
7:24now we have different platforms for
7:26maintaining suppliers we have one
7:28software which is is dealing with the
7:30negotiation with dealing with the
7:32quality of incoming dealing with the
7:33quantity of incoming assigning different
7:36vendors one software is there then
7:38Transportation handling we have another
7:41software platform technology which is
7:43you know on the road or intermodel it is
7:47deciding
7:48automatically uh deciding the best route
7:51deciding the best mode of transportation
7:54as per the requirement of the shipments
7:56units size deciding the containers SI
7:59everything another software in the
8:01manufacturing within the manufacturing
8:03we have another software to keep the
8:05track of the inventory how it is moving
8:06on the production floor in the warehouse
8:09again in the Distribution Center we are
8:11again having another warehouse
8:12management software so these many
8:14different platforms we are having right
8:17so can be this is complex Network now so
8:20if I'm always always you know uh in
8:25going from one software to other package
8:27to other platform to third platform for
8:29platform so it will be very difficult to
8:32you know uh uh to get that uh last
8:36information which is decision driven so
8:39how I can get that uh platform which can
8:43integrate all these different platforms
8:45right and then will give me one option
8:48one uh Alternatives right so that I can
8:52just click on that and we go with that
8:54and that information should be passed to
8:56every player in the distribution Network
8:58right so that quick information sharing
9:00will also be there right so it's not
9:02that on policy document you are
9:04preparing and then what you are
9:06communicating that may take some uh the
9:08vendor may take another way right so
9:10that information same information
9:13without any uh your uh uh manipulation
9:17in that information right so that should
9:19not uh any bull weip effect should not
9:22be there right so another factor which
9:26is uh you know affecting the today's uh
9:29in ation in distribution logistic
9:31network is uh the what these players are
9:34saying two day delivery same day
9:36delivery within 30 minutes delivery
9:38right so how uh this is affecting this
9:42is affecting the expectations from the
9:44customer right and then we can only do
9:48this if we are using those uh you know
9:51updated software which will help us to
9:54track where the product is right now and
9:56how long it will take and what are the
9:59Alternatives if that is not reaching on
10:01time can be uh sourced from somewhere
10:03else any other vendor is ready with the
10:05final delivery so those all things we
10:08can take care so warehouse management
10:10system kind of Erp platform also we are
10:13using sometimes you know to create that
10:15visibility platform uh we have some
10:17project like project 44 four kites these
10:20These are kind of another platform which
10:22are helping us to you know keep the
10:23track of your uh uh uh every every
10:27activity you are doing uh with the
10:29shipment with the tracking of the return
10:32then then also information to the uh
10:35customer that your return is accepted
10:38your uh free fund is processed today the
10:41refund will be credited all those
10:44information should be shared supply
10:46chain transparency and collaboration
10:48mandate now this is no mandatory to
10:52every player to if you are part of that
10:54supply chain you should be integrated
10:56through that Network right and this we
10:58can do either by electronic data
11:00interchange or we can have apis kind of
11:03application uh platforms right so
11:06programming interface where we can share
11:10this information without having any wbe
11:14effect right so if I'm saying the order
11:18is required at the retailer end is for
11:2010 units so that should not be
11:22replicated as 15 units in the retail uh
11:26distributor and that should not be go
11:29like 20 units for the wholesaler 25 for
11:33the manufacturer and 35 for the raw
11:36material supplier that should not happen
11:38this is known
11:40as W whip effect so throughout your
11:43supply
11:44chain this
11:46information is this is how it
11:49is inflated so whatever information is
11:53there 10 that should pass to the raw
11:55material supplier that only can happen
11:58if you are having e
11:59API
12:01platform so then less than truckload is
12:04another factor which is very important I
12:06told you if you you are a you know very
12:09small player right you just you are just
12:12starting so whatever you are uh uh
12:17career partner you are using you are not
12:19able to utilize the full capacity of
12:21that uh container the career partner is
12:24providing you that container right so
12:27what you can do you can consolidate the
12:30orders from other players in the same
12:32industry or maybe other industry right
12:34and when you will be doing that
12:36obviously you will cut down the cost
12:38because now you are paying only for the
12:42capacity you are using this is the
12:44capacity you are using in that container
12:46you will pay only for this capacity so
12:48in that way you will be cost efficient
12:50maybe the rest of the capacity this
12:52capacity will be shared by someone else
12:54maybe this capacity will be shared by
12:56someone else right so you can cons cons
12:59solidate so uh if you talk about
13:02e-commerce so they can efficiently use
13:05this less than truck load if is there
13:08maybe in the cities or uh major cities
13:12you you are able to generate that much
13:13demand so then you can exhaust the
13:16complete facil uh capacity but in if you
13:19are going for your urban area uh rural
13:22areas semi-urban area so there may be
13:24the question of uh uh you know utilizing
13:27less capacity than a aable so how you
13:30can use that this is this approach is
13:32very useful for small business because
13:35small business are not having that much
13:38uh demand so they can collaborate with
13:40other players and then they can reduce
13:42the transportation cost and then in the
13:46uh in that process you will be
13:48environmental conscious as well how
13:50because now earlier you were only
13:52shipping this this much quantity using
13:55that much big container so that means
13:57per unit cost will be high higher in
13:59that way and then you are using extra
14:02fuel you are not using the full capacity
14:04using extra fuel per unit transportation
14:08is producing more carbon footprint
14:10instead of transporting 10 items if I'll
14:13transport 50 items in the same container
14:15so per unit contribution of that uh to
14:19the carbon footprint you are generating
14:21will be lesser in that way right so this
14:23is another factor which is forcing us to
14:25go for the automation then persisting
14:27with the digital transformation
14:30is uh required uh throughout your
14:33distribution Network right so either you
14:36are talking about uh sharing your uh
14:38electronic records from the customer to
14:41the warehouse to the distribution
14:42Network while you are recording the
14:44order how you are uh completing that
14:47cycle whatever steps are required if it
14:50is not ready with the inventory you will
14:52place order immediately with your
14:54manufacturing facility so that
14:56information should be uh shared
14:58immediately with the raw material
15:00supplier that this much raw material is
15:01required because New Order has arrived
15:03so then immediately it will be processed
15:06will be packed career partner will be
15:08getting the alert that now we need to
15:11make the emergency delivery so that kind
15:13of digital transformation is required we
15:16have then API based integration so that
15:19you can process the real time
15:21information it's not that one batch you
15:23will process fully and will be shifted
15:26to the next stage that should not happen
15:29even if you are producing one unit that
15:31should be shared with the next stage so
15:34that so batch processing kind of concept
15:37will not work so even if you have
15:38produced one item that should be
15:40distributed right this is the concept
15:43right so same should go with the uh when
15:46we are sharing the information if any
15:48information you are you have generated
15:50that should be shared throughout this
15:52network immediately using
15:54your uh API Network right so then uh
15:59logistic demand forecasting so uh when
16:02you are designing the demand function
16:04right so you need to do the Predictive
16:08Analytics right we talked about
16:10Predictive Analytics how you can use the
16:12big data right so that you can plan your
16:14production your storage your inventories
16:16in that way so designing demand maybe
16:19what you will be looking for some of the
16:21factors maybe historical data you are
16:23looking for seasonal whether now the
16:27summer season is there there is huge
16:28demand demand for coolers water coolers
16:31ACS refrigerators so that is seasonality
16:34seasonal demand economy even season is
16:38there sometimes maybe the economic
16:40condition of that particular country or
16:42maybe reason is not like that that they
16:44can go for purchasing right so then
16:47market trends pricing competition how
16:50other players are coming with so you
16:52need to track earlier demand function we
16:55were saying how much money I'm having in
16:56my pocket if you can track that
16:59somewhere you can find out how much I
17:00will buy in the market right and then
17:03price of the complimentary goods and
17:05then price of the competitor these many
17:07things we were tracking right but now
17:09it's not enough right if it is not only
17:13to you know to uh provide the product to
17:16the customer it is that information is
17:18being shared throughout your network to
17:21the raw material supplier as well how
17:23much raw material he needs to produce
17:25right if you'll keep on producing the
17:26raw material unnecessarily you keep on
17:29producing the production uh products
17:32final products so maybe then you will be
17:34keeping that in your inventory or
17:36sometimes maybe you are coming with the
17:38seasonal offers That season off then you
17:40are selling those inventory at 50%
17:43lesser price or sometimes it is going
17:46obsolete in the inventory itself right
17:48so that you can uh avoid using your
17:51designing this uh uh your uh demand
17:55function in in that specific very
17:57precise way right then digital fright
18:01marketplaces now uh we have these kind
18:06of uh platforms as well right we earlier
18:10what now what we were doing if you need
18:12any product you are going to uh Amazon
18:14and you buying it so let's talk about if
18:17you are talking about the transportation
18:19industry if you need any transportation
18:22services right now maybe you are
18:24shifting from kakur to Kolkata so you
18:26need to transport your uh household
18:29items to Kolkata right so what you will
18:31do you will search online what are the
18:33you know those players who are providing
18:36you these Packers and movers kind of
18:38services and then you will get the
18:40quotations and then you'll process that
18:42maybe four five days you will take it to
18:44just collect the information then one
18:46day those people will come will do whole
18:48packaging in the evening they will load
18:50that full day activity next day they
18:53will ship that next day maybe evening it
18:55will reach Kolkata so Kolkata then again
18:58people will come we'll unload that
19:00remove the packaging we'll set again so
19:03this is and then maybe after one day
19:05that container will be free for
19:08utilizing for the next thing and then
19:11again maybe that container because of
19:12the Union kind of things restrictions
19:15cannot load from the same point maybe
19:18has to come back to the base location
19:20and then again go for the so this is how
19:22we are not utilizing the capacity even
19:24if they are doing it illegally so even
19:27then how much their cap capacity they
19:29are utilizing so just loading unloading
19:31transporting we are maybe only 6 or
19:34seven hours are required we are taking
19:35minimum 3 days and then why that
19:40platform we like Ola or Uber they are
19:42doing so anywhere taxi is available you
19:45can just login and within 2 minutes
19:47whosoever is nearby will take that why
19:50can't this happen in Fright industry as
19:53well right so anyone near to that
19:55container can utilize that capacity if
19:58unloaded is taking time maybe customer
20:00requires maybe you need to unload after
20:022 days that is their requirement they
20:04are paying for it so let us drop the
20:06container there only we'll get the new
20:07container at the site location and we'll
20:09pick that container and we'll go for why
20:12manually unloading is required automatic
20:14container we have seen many videos where
20:17it is within 2 minutes full container is
20:20unloaded right so these kind of uh
20:23systems we need to
20:26develop ecosystem only can we create
20:30when all stakeholders are involved
20:32internal external disperate systems
20:35right you need to integrate all those
20:38players only then this ecosystem can be
20:40cre it cannot be that only Distributing
20:43partner is digitally strong and rest of
20:46the players they are avoiding to go for
20:49that initial investment in terms of
20:51money in terms of training their
20:53Manpower in terms of installing new
20:55systems so that will be unsuccessful ful
20:59activity right if you're going for
21:00digitalization it should be digitalized
21:03throughout your distribution Network
21:05only then you can you know uh make the
21:08realtime decisions in a better way and
21:11then you can reduce the cost drastically
21:14this is this is for sure because you
21:16will be utilizing the full capacity
21:18where the resources are lying idle in
21:20terms of capacity in the container in
21:23terms of unutilized capacity in the
21:25warehouse in terms of unutilized robot
21:28in the warehouse in terms of unutilized
21:30shelves in the warehouse in terms of uh
21:34uh you are taking long route in uh
21:37during Transportation right in terms of
21:40assigning the order to particular vendor
21:43because you picked a vendor which is
21:45taking more time because he is not near
21:47to your manufacturing facility right so
21:50these all ecosystem uh you need to
21:53create and integrate all the uh things
21:57so talking about technological
21:59advancement in India so obviously uh
22:03it's not that Indian market uh it is
22:06away from uh these variation dynamics of
22:09uh the environment so because whole
22:12world is One Market so you have to
22:14ensure the digital
22:16transformation and through the uh that
22:19how you can ensure the Fleet Management
22:22proper uh capacity utilization right so
22:26that the overall vehicle performance you
22:27can uh uh increase and reduce the fuel
22:30consumption because instead of taking 10
22:33items you are taking 20 so per unit cost
22:36will be reduced and even then driver
22:39Behavior also you can record even if he
22:42is not see now in the trucks itself the
22:45technology is coming if driver is
22:48driving rashly or driving uh in a wrong
22:52way which is you know uh which is having
22:55more bear and tiar of the vehicle which
22:57is consum more fuel right and maybe
23:01accident rates are increasing the way
23:03the driver is doing behaving on the road
23:06right so that also you can record right
23:08so you just imagine uh how uh much
23:13potential is there in that industry we
23:15can improve in that way and the overall
23:17you know it's not that we want to
23:19restrict the driver but that their
23:21quality of life will also improve in
23:23that way so when they have the
23:25technology related decision making while
23:27they are moving the inventories from one
23:28place to other
23:29place then last mile delivery already
23:33Flipkart is doing in some of the areas
23:36using drones right where they want to
23:38you know avoid a traffics bottlenecks
23:41right so maybe uh in 1 kilometer area
23:45they can just fly the drones and uh
23:47because it is thickly populated so you
23:50need not to go for that and then you can
23:52drop the packet using your drones so
23:55crowd shipping model is also very famous
23:57these days not not only flip cart but
24:00your other players are also doing that
24:01ecart also doing that and delivery is
24:04also doing that sui is doing that we are
24:07you are you know partnering with the
24:09local service providers and local career
24:12Partners local restaurant local career
24:14partner right so that is last mild
24:17delivery sustainable practice how we can
24:20go for electrical Vehicles bicycles and
24:23then we can address the customer points
24:26also where customer wants to go
24:29uh uh maybe in a sustainable manner
24:32sustainable customer also they want
24:34sustainable consumption of the product
24:36so if you can this happen that on the
24:38package we are mentioning from raw
24:41material supplier to manufacturer this
24:43much carbon footprint this packet
24:45created from man in manufacturing this
24:48much carbon footprint to distribute your
24:51uh product to your doorstep this much
24:53carbon footprint uh is produced right so
24:57maybe customer will be more aware in
25:00that case and then instead of you know
25:02doing multiple deliveries they will be
25:04more responsible when they are placing
25:06the order so that they can reduce the
25:08returns also right so that how we can
25:11ensure that so Amazon is having that uh
25:15uh this uh uh objective that they will
25:19Electrify the vehicles 100% by 2030
25:23right so this is how they are uh
25:25addressing the sustainable
25:27practices where Warehouse automation
25:29when DHL is very prominent player which
25:32is doing this and uh in uh Delhi they
25:36are having this automation sortation
25:37Center where they are handling 6,000
25:40shipments per hour but you just you just
25:44imagine the DHL main house warehouse in
25:47us or where they are operating China
25:50they they are handling their record is
25:52they are handling more than
25:5440,000 shipments per hour but because
25:57that much demand should be there and
25:59only then that much capacity will be
26:01generated but this is again they are
26:04starting initiating the process in the
26:06Indian market as well but yes once it
26:08will be implemented commercialized fully
26:11because Indian or Chinese market are
26:13like that huge customer potential is
26:15there anything you will start selling
26:17you will generate something out of that
26:19right so how quickly you can sort the
26:22product pick the product and pack the
26:23product in the inventory and can be
26:25shipped to the customer right so here I
26:29have included some uh video links you
26:31guys can just quickly go through these
26:34videos and then we'll uh continue our uh
26:37discussion on the topic so you can see
26:39it's not quickly they are doing that it
26:41is that that we are getting that quality
26:44of services as well we we can ensure
26:47that uh nothing should happen to our
26:49inventory to our stock while we are
26:51handling those products right then
26:54Predictive Analytics demand forecasting
26:56how accurately we can predict that so
26:59those many services delivery is doing
27:01very very good in that area using their
27:04Predictive Analytics big data analytics
27:06cloud computing they are using they are
27:08tracking the uh patterns in the market
27:12uh your forward supply chain patterns as
27:15well as your backward supply chain
27:16pattern which is starting from your raw
27:18material suppliers to your manufacturing
27:20house and back forward supply chain
27:23which is starting from your
27:24manufacturing to your uh End customer
27:26right so they are using Predictive
27:28Analytics to optimize the delivery
27:30routes and uh uh so that they should
27:33cover the minimum distance they should
27:35avoid the traffic jam in the uh
27:37populated area Urban cities and then it
27:39will be cost effective as well so uh
27:43they're providing services to many
27:45players right then collaboration and
27:48integration this is another advancement
27:51now see for all these functional area we
27:55are getting the expertise Services it is
27:57not that collaboration and integration
27:59within the within house we can generate
28:02something and we can collaborate with
28:04the so because we have done every effort
28:07to ensure the collaboration but still it
28:10is not happening can someone else do for
28:12us yes black uh a digital fight platform
28:17will help you to do that and where all
28:19the shippers and talkers can be
28:21connected through platform that platform
28:23I was talking about can we have that
28:25platform where I want one container of
28:2810 10 capacity and I can just search on
28:30app and anyone who is near to me we can
28:33quickly use that right so in that way
28:35maximum that's why many taxi drivers are
28:39attached to Ola Uber only thing is the
28:41number of rides have increased right for
28:44them when see if earlier they were
28:46making only 10 rides now they are making
28:48100 rides right maybe they are charging
28:51a little lesser because this Ola and
28:53Uber also taking their share maybe 25%
28:56or something like that right but still
28:58it is win-win situation for both because
29:00that much traffic footfall is there
29:03right so the it is kind of economies of
29:06scale right so that much you can utilize
29:08Your Capacity if you are just standing
29:11waiting for the next ride that also you
29:13are you know uh waiting means is kind of
29:17one waste we defined under
29:19muda e-commerce logistic Focus so this
29:23industry now uh we need to find out how
29:28quickly we can deliver the products what
29:30is the nature of the product how we need
29:32to deliver the product and return supply
29:35chain also equally important right ecart
29:38which is you know uh the official
29:40partner with the flip cart providing all
29:42the hasslefree returns and seamless
29:46shopping experience today you place the
29:48order by evening grocery items you will
29:50get or evening you place the order by
29:52morning you'll get the grocery items but
29:54yes because they are working they have
29:56initiated on this but they are working
29:58how they can still you know generate
30:01that much uh orders that so that they
30:04can be uh you know efficient always so
30:07these are some of the challenges our
30:09modern day Logistics are facing supply
30:11chain disruptions whatever are happening
30:13we'll quickly go through these
30:15challenges supply chain unforeseen
30:17Global events covid-19 so then all of
30:21sudden shutdown is there how you'll
30:23handle that Russia Ukraine war how the
30:26other Industries are affective the crude
30:28oil supplies are coming from that so
30:31then also obviously we'll raise the
30:32price of petrol and Diesel and other
30:35natural gases we are using right so how
30:38it will impact the supply chain
30:40efficiency obviously the cost will rise
30:42up when the fuel cost is G uh rising up
30:44right so in that way how our supply
30:46chain can be resilient if anything is
30:48happening in uh outside the environment
30:52of our supply chain or distribution
30:54Network so how resilient how quickly we
30:57can find out some Alternatives if that
31:00our vendor is affected by this natural
31:02disaster of flood so how other vendor
31:05can respond quickly and can supply the
31:07raw material so that the smooth
31:09production can be ensured our 500
31:12workers who are working on that
31:13production line should not sit idle just
31:16because our one of the Bender uh hit by
31:20uh your natural disaster right so that
31:24ecosystem integration
31:26software we can handle these kind of
31:28disruptions where we can find out uh
31:32when disruption can happen right another
31:35thing is the another challenge is the
31:37trading partners this is report that
31:39they're saying that 80% of the companies
31:42they they are having trading partners
31:44who are failing to make their promises
31:46right 27% respondents are saying that 11
31:50or more trading partners fail and then
31:53these many are still looking to set up
31:55new Business Partnership see business
31:58partnership is not like something that
32:00overnight you are you know uh just uh
32:05you firing any your business partner and
32:08next day you are hiring this is a
32:09long-term strategic decision and it is
32:12the responsibility of the main
32:14manufacturer to take care of your uh you
32:16know all the raw material suppliers to
32:18train them to you know equip them with
32:21the latest technology because if they
32:23are efficient only then you can be
32:25efficient okay so how we can develop
32:28more reliable trading partners so we
32:31need to equip them only then our
32:33logistic distribution network will be
32:35ensured properly this is another very
32:38big problem with Indian Logistics
32:40distribution because we talked about
32:42around 60 to
32:4365% we are going through Road
32:46transportation and that is the reason
32:48why we are you know adding 14% as
32:52Logistics cost and if you talk about the
32:55developed Nation it is somewhere 7 to 8%
32:57% of the cost right so that means this
33:00much extra you are paying how we can cut
33:03that logistic cost in the warehousing in
33:05the distribution in the transportation
33:07and how we talked all those measures how
33:09we can do that so ecosystem integration
33:12will ensure you right
33:14so uh this you can see 32% said they
33:18will invest heavily in that supply chain
33:21integration technology so that they can
33:23build that platform right so then
33:27sustainability targets obviously now
33:29manufacturers are moving toward the
33:30sustainability but if the sustainability
33:33measures are rapidly changing so
33:35initially uh uh maybe sometimes
33:38government is also little bit fuzzy
33:40about taking the decision making the
33:42policy they are uh putting firstly uh
33:46maybe heavy taxes on using those kind of
33:49uh plastic packaging and then they
33:52realize that suddenly that now we need
33:54to phase out this packaging completely
33:56so then if things are changing uh so
34:00quickly randomly so then it is difficult
34:02for all the logistic players to you know
34:04cope up with those kind of challenges so
34:07obviously uh sustainability there are so
34:10many performance indicators for
34:12sustainability if you can be efficient
34:15so obviously if you are efficient you
34:18can be cost effic uh you can reduce your
34:21cost as well when you are reducing the
34:23cost that means you are using less
34:25resources when you are using less
34:28resources that means you are adding to
34:29the sustainability targets right so this
34:32is how you can be uh more
34:36sustainable these performance measures
34:38like I talked about efficiency how
34:41quickly you are fulfilling the order
34:42cycle time packaging cycle time how
34:45quickly you are packaging uh
34:47manufacturing cycle time how quickly you
34:49are starting the manufacturing ending
34:50the manufacturing resource utilization
34:52rate how many times you are 100% you are
34:55utilizing all all your resources lying
34:57in the warehouse all your distribution
34:59network resources right cost effective
35:02when you are utilizing that properly so
35:04operation cost when you are transporting
35:07the product first is your raw material
35:10cost how you can cut down that cost
35:12second is your transportation cost how
35:14you can minimize that using proper
35:16rooting system then your manufacturing
35:19cost then your warehousing cost then
35:20your last mild delivery cost right so
35:23then also if returns are coming that is
35:25also cost to the company customer
35:28satisfaction how you can uh you know
35:31provide ontime services and that basket
35:35of services hasslefree returns quick
35:37deliveries right and then the same
35:39quality customer demanded for right so
35:42then more customer inspection will be
35:44there and if customer is satisfied you
35:47are doing cost effective deliveries
35:50obviously you can reduce the carbon
35:51footprint because now you are not indul
35:54into the based activities which is not
35:57generating any value for you right
35:59flexibility and Agility so to the
36:02changing environment how quickly you can
36:04change how if demand is lesser how
36:07quickly you can manage your resources
36:09and if demand is high how quickly you
36:11can change adapt to the uh that uh
36:15Dynamic environment so Innovation
36:17adoption uh how quickly you are
36:19implementing the new technology adoption
36:22rate and uh whether you are able to you
36:26know recover that initi cost or not that
36:28is also very important point so you
36:31cannot just go randomly for any
36:33technological uh you know upgradation
36:35which which which may not be able to
36:38ensure that minimum returns where you
36:40can you know recover the cost of
36:42implementing that technology then supply
36:45chain visibility uh how you can track
36:47the order that information not only as a
36:50stakeholder you want that information
36:52but your customer also demanding that
36:54information when my product is shipped
36:57when it is packed how it is packed and
36:59when it is reaching it is out for
37:02delivery right so these are the some of
37:04the cases you can see how they are doing
37:07uh digitalization their uh this uh
37:10records and integrating all the
37:12stakeholders DHL this much investment
37:15they have made and still they are doing
37:17this investment to just create a central
37:20nerve system for its operation
37:22optimizing resource allocation
37:24automating workflows and dynamic dyn
37:27dynamically adapting to the real time
37:29changes right in the business
37:31environment whatever demands are coming
37:33from the customer if you see Amazon they
37:36are using Predictive Analytics when
37:39where and which items are required right
37:41so that they can find out whether that
37:44item is available in the nearby Hub or
37:46not if it is available so quickly they
37:48can meet that demand from the customer
37:51in a very short lead time right so they
37:54are picking uh ensuring those orders
37:57which are near to that customer right so
37:59that that efficient delivery can be
38:01ensured and last mile delivery can be
38:03ensured efficiently if you talk about
38:06swiigy swiigy is you know using hyper
38:09local delivery Network and uh they have
38:12utilized this concept they are
38:14collaborating with the local restaurants
38:17and local delivery Partners so that
38:19ontime delivery Fresh Food hygiene can
38:22be ensured minimum time it is taking in
38:24the transportation because from the
38:27local restaurant you know where is that
38:29restaurant you know the hygiene of that
38:31restaurant so in that way you will feel
38:33uh more connected in that way flip cart
38:36again partnering partnering with the
38:39local uh vendors for efficient delivery
38:42right so they are ensuring the faster
38:45delivery increased coverage and deeper
38:48penetration into remote areas as well
38:50where they are you know uh selling the
38:53local items as well and they are
38:55collaborating with the local vendor so
38:57this this is how the wide coverage uh if
38:59you talk about uh geographically also
39:02they are ensuring and F Flipkart in that
39:04way has enjoyed this uh uh parameter and
39:08uh they're enjoying almost 60 to 65%
39:11share in Indian market so in conclusion
39:14we can conclude here these three things
39:17digitalization Innovation and
39:18sustainability are the key parameters
39:21forcing us to go for your innovating
39:24your uh next age uh decades your
39:27distribution Network we should be more
39:29informed distribution Network and agile
39:32if something goes wrong in the external
39:34environment how quickly we can adapt
39:36that we can switch to the next uh
39:39alternative and switching next
39:41alternative should not be with very high
39:43cost right it should be cost efficient
39:46and resilience should be provided so
39:49only we can tap the disruptions in a
39:52better way when we know when those
39:54disruptions are going to happen right so
39:56that will only happen when the complete
39:58integration of all the stakeholders are
40:00there and you have that ecosystem where
40:03you can quickly share the information
40:06with the stakeholders so that's all from
40:09the logistics in the next uh session
40:12we'll start discussion your uh on your
40:15Supply Chain management so these are
40:17some of the references you can go for
40:19further
40:21reading so thank you very much

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