Logistique Magazine - III Edition 1...pers, quiz and photography in order to engage ... ish bungalow of Bollywood's first superstar Rajesh Khanna named Ashirwad for Rs. 95 crores -

Logistique Magazine - III Edition 1

Department Of Commerce, Manipal University, Manipal

EDITORIALS

Hello Readers,

I am extremely

delighted to take

initiative in leading

a talented and en-

thusiastic team com-

prising of BBA,

B.Com and M.Com

students from the

Department of Commerce. In the third edition,

we exclusively focus on the role of logistics in

modern business strategy and the effect it has

on the functioning of operations and supply

chain processes. As always, we bring an assort-

ment of pieces from articles and research pa-

pers, quiz and photography in order to engage

the reader with a new and fresh perspective.

The effort we put in selecting the material to be

featured is an extensive process which involves

the ongoing commitment of all the team mem-

bers in discovering content which is relevant. I

wish to congratulate and thank the new mem-

bers who work zealously behind the scenes in

bringing ‘Logistique’ to the fore.

Sonal Nayak

Magazine Head

Hello Dearest Readers,

It’s my pleas-

ure to be writing

the editorial for

the first time as

the Assistant

Magazine Head of

our ‘Logistique’

Magazine. We are

on our toes to

make this a better and successful one. With

a team of aiming at great accomplishments,

I’m sure the magazine would grow by leaps

and bounds.

The third edition and the upcoming

editions of ‘Logistique’ will certainly give

an interesting insight about the vast field of

logistics and supply chain management at

the national and international level.

I am delighted to be a part of the new

team and look forward to more editions in

the coming days.

Shwetha

Assistant Magazine Head

Dear Readers,

It is with much joy and anticipation that we celebrate the third

edition of Logistique Magazine. On behalf of the Logistique editorial

team, I would like to extend a very warm welcome to the readership

of Logistique. I take this opportunity to thank our authors, editors

and all of whom have volunteered to contribute to the success of the

magazine. Logistique is based on the management of the flow of

things between the point of origin and the point of consumption in

order to meet requirements of customers or corporation. I hope read-

ing this magazine helps the reader to understand on how to manage his or her consumption.

Finally we wish to encourage more contribution from the students to ensure a continued suc-

cess of the magazine. Thank You, we hope you will find Logistique informative.

Daniel

Asst. Magazine Head



Production Team:

1. Noushad, 2nd

Year M.Com

2. Pratima Ranjan, 1st Year M.Com

3. Bhushan, 1st Year M.Com

4. Saumya Anand Singh, 1st Year BBA

Editorial Team:

1. Sagar, 1st Year M.Com

2. Greeshma Nair, 3rd

Year BBM

3. Siddharth Rajput, 2nd

Year BBM

4. Veena Koti, 2nd

Year BBM

Design Team:

1. Alwyn Lobo, 2nd

Year M.Com

2. Dinesh Nayak, 1st Year M.Com

3. Shrisharaj Bhat, 1st Year M.Com

4. Nagaraj Hegde, 1st Year M.Com



THINK LOGISTICS

1. Logistics has been playing a fundamental role in global development for

almost 5,000 years now, so precisely you can take back logistics to the

time of the construction of the pyramids.

2. Logistics is made of six industry sectors: road, rail, aviation, maritime,

warehouse and storage. It is one of the largest industries.

3. The US Economy depends on trucks to deliver nearly 70% of all freight

transported annually.

4. The percentage of consumers who are willing to wait a full week for free

delivery has dropped from 50% in 2012 to 35% in 2014, all thanks to the

logistics management!

5. The industry will need 450,000 new people over the next 5years

(80% of those to just replace people leaving the industry).

Shwetha

1st

Year M.Com

JUST WATCH IT

Vision Picking at DHL - Augmented Reality in Logistics

https://www.youtube.com/watch?v=I8vYrAUb0BQ

DHL INTERNATIONAL SUPPLY CHAIN

https://www.youtube.com/watch?v=lfDceytNAZ0

What is Supply Chain Management

https://www.youtube.com/watch?v=_SPNu_il7eI

SAP Logistics Execution & Warehouse Management

https://www.youtube.com/watch?v=LaARpRaYq9w

Dinesh Nayak

1st

Year M.Com

https://www.youtube.com/watch?v=I8vYrAUb0BQ

https://www.youtube.com/watch?v=lfDceytNAZ0

https://www.youtube.com/watch?v=_SPNu_il7eI

https://www.youtube.com/watch?v=LaARpRaYq9w



MARS – A Supply Chain Treat

About MARS

Mars knows chocolate sales are nothing to snicker at. This pun is quite often used to refer to their man-

agement process, especially their strategy for supply chain, as

the title of this article rightly mentions, is nothing short of a de-

lectable treat.

Mars‘ portfolio boasts of M&M's, Snickers, and the Mars

bar. Apart from other confections such as Dove, Milky Way,

Skittles, and Twix, the product mix of the compny also includes

organic food, beverage systems, snacks, pet food. Mars owns

the world's largest chewing gum maker, Wm. Wrigley Jr. Com-

pany, as well. The Mars family -- including siblings and chair-

man John Franklyn Mars, VP Jacqueline Badger Mars, and for-

mer CEO Forrest Mars Jr. -- owns the highly

secretive company, making the family one of the wealthiest in the US.

The company website states: ―Providing affordable and nutritious food for a growing global population is

one of the great challenges of our time. Society must find ways of producing food more sustainably, so that

future generations are also provided for.‖

In order to combat this, Mars has committed to a global, green and sustainable supply chain program. It is

sustainable for the following reasons:

It supports and improves the livelihood of farmers through higher yield, quality and income

It procures from its suppliers and encourages lower greenhouse gas emissions including less

water and less energy

It helps boost economic activity all over the world by creating employment to rural parts of

Africa, Asia and South America.

SUPPLIERS :

The process begins with the global Responsible Sourcing which ensures that there is consistency in

adhering to their framework, which in turn helps in assess, monitor and train their supply chain partners.

Apart from consistency and adhering standards of conduct,

the factors considered for compatibility

include capacity, quality and cost when selecting companies to

buy from. The suppliers range from small farming cooperatives

to multinational corporations. This ensures that like in

financial portfolio management, ―all eggs are not kept in the one

basket‖.

Selecting suppliers involves a procedure from analyzing the location of the supplier and

associated risks to inclusion of responsible sourcing metrics in commodity scorecards. Suppliers must demon-

http://www.mars.com/global/about-mars/responsible-sourcing.aspx



strate compliance with specific expectations and labor codes in order to be a qualifier. Suppliers must not use

subcontractors or assign to any other party its contractual obligations to Mars, without prior written approval.

Mars evaluates the inherent risks associated

with operating in different geographies and purchas-

ing the commodities and services central to the busi-

ness. This is done through evaluating and working

with suppliers to assess and improve how well they

manage these risks.

For example, Mars tracks the number of work-

ers in Tier 1 of its supply chains. When Mars is in-

formed of violations of our Code or any other griev-

ances, the Responsible Sourcing team addresses

these at the supplier factory level.

One of the ways to manage risk is through the Supplier Ethical Data Exchange (Sedex), a secure data-

base where suppliers can record their ability to manage ethical, social and environmental risks. Suppliers that

may pose a risk are required to complete a self-assessment, and the results help us evaluate whether an inde-

pendent audit is needed. Suppliers may be selected for auditing because of their strategic significance to our

business, or because they use practices that may cause concern, such as temporary labor. All raw material and

packaging suppliers to Mars Chocolate and Wrigley have been risk-assessed using this system.

Suppliers with outstanding responsible sourcing

performance and notable accomplishments are recog-

nized through awards and acknowledged at regular sup-

plier events hosted by Mars.

Building internal accountability

Supplier codes and standards provide little assur-

ance unless they are integrated into day-to-day supply

chain management. A global sourcing team with repre-

sentatives in key locations: Africa, Asia Pacific, Europe

and the Americas. Associates on this team work alongside buyers and suppliers to ensure a consistent and cen-

tralized approach to responsible sourcing across Mars.

Each purchasing organization in every Mars business and every region has established annual targets re-

garding completion of responsible sourcing activities by suppliers. Purchasing teams are held accountable to

established targets through regular reporting at all levels of the organization, including providing updates to

Mars‘ senior leaders.

Mars University has developed several responsible sourcing courses that Associates in relevant roles are

required to take. A ―buyers‘ toolkit‖ explains the tools available to help buyers make the best possible sourc-

ing decisions.

Saumya Anand,

1st BBA (Logistics and Supply)

http://www.sedex.org.uk/

http://www.mars.com/global/about-mars/mars-pia/working-at-mars/learning-and-development.aspx



The inspiring story behind India's largest logistics company Allcargo Logistics founded in 1993

which is a part of the Avvashya group is India's largest publicly listed logistic company. It operates across 90

countries and has over 200 offices all over the world.

Mr. Shashi Kiran Shetty the founder & executive chairman of

Allcargo logistics who was in news recently for purchasing the lav-

ish bungalow of Bollywood's first superstar Rajesh Khanna named

Ashirwad for Rs. 95 crores - wasn't exactly born with silver spoon in

his mouth. Born into a middle-class joint family in Bantwal near

Mangalore, Mr. Shetty had to work his way to the top.

After having completed college with a degree in commerce he

left Bantwal and landed in the city of dreams Mumbai, seeking a job.

He got into a shipping company and worked there for a couple of

years before finally venturing into his first company transIndia

freight services. After realising that the liberalisation is gaining momentum in India he entered the shipping

business opening Allcargo global ltd company.

The company which was started with just Rs. 25,000 has a turnover of Rs.56.18 billion as of March

2015. Allcargo logistics headquartered in Mumbai, Maharashtra has over 8000 employees working for them.

They have acquisitioned a number of companies like Belgium based ECU line,

Hindustan Cargo Ltd, MHTC Logistics Pvt Ltd, Econocaribe consolidations, FCL marine agencies etc.

They have also received various awards and recognitions for their services in the field of logistics like

outstanding contribution award from port of Antwerp(2012), Global Indian maritime personality award from

Maharashtra chamber of commerce, industry & agriculture (MACCIA)-(2013), leadership & innovation

award from international women leadership forum(IWLF)-

(2013).

The story of a middle-class guy from humble beginnings,

starting a business from scratch & making it the country's larg-

est logistics company is awe inspiring.

Mr. Shashikiran Shetty the billionaire founder of Allcargo logis-

tics is an inspiration to the youth and budding entrepreneurs of

the country.

Given below are the mantras of success from the man him-

self:

Risk is an important factor in business, & without risk, hardly will you have gained.

Be sincere in what you do, you surely will achieve success.

Be transparent always, be accountable to whatever you do. Transparency brings the confidence

and it will help you to grow.

Sagar Kalmady

1st Year M.Com



Impact of GST on Logistics Sector

Introduction to taxation in India:

The tax structure in India is divided into two types i.e. Direct tax (Income Tax) and Indirect tax (central

and state level). Let us also understand who levies taxes on what kind of duties. Central Government levies

on the following 1.Income Tax (Tax on income earned by a person), 2. Custom duties (Duties on Import and

export of goods) 3. Central Excise (Manufacturing of dutiable goods) 4. Service tax (taxes on provision of

services).

State Government can levy the following taxes 1. Value Added Tax (VAT) 2. Stamp duties and land

revenue 3. State Excise.

Goods and Services Tax (GST)

The Government of India proposed that indirect taxes levied by both central and state governments will

be replaced by Goods and Services act, it would come into existence from April 2016. It is a comprehensive

direct tax which is levied on manufacturing, sale and consumption of goods as including services at national

level. It creates a huge impact on business operations within the country such as product pricing, supply chain

optimization, IT, accounting and many other systems. The existing tax system as cascading effect which will

have negative impact on system.

Impact of GST on Logistics Sector:

India spends 13% of its GDP on logistics, whereas developed countries spend only 8-9% on an average

this shows how unorganized our logistics industry is functioning. The opportunities are huge for both custom-

ers and corporations, it gives new look to their entire distribution and supply chain systems. We have 29

States at present and goods move across the countries border at different tax rates. Due to this, freight move-

ment which happens with in the country is taxed multiple times. Moreover, there long at queues interstate

check post, as the authorities examine the freight which is moved and levy taxes which are applicable. Truck

delays amounts to 6-7 hours wait time interstate check posts which includes lot of manual work by the au-

thorities. Since 65% freight in India moves by road ways, it is a fact which leads to see the logistics experts to

look into the GST as a crucial area of concern in India.

According to the World Bank estimations, Indian companies could save up to 30-40% logistics cost on

the higher side, having the delays due to unforeseen roadblocks, tolls and unplanned stoppages can reduce the

freight time. This impact can give boost to have more productivity in the manufacturing sector. As experts are



saying that introducing GST is the largest indirect tax reforms ever since independence. Which is a very good

gesture to logistics sector.

Once GST comes into existence it will free the decisions on distribution and warehousing from availing

tax considerations. Which in turn would give rise to operational efficiency and logistics transparency. Even

the small logistics players would benefit from major tax reforms. To conclude GST would equally benefit

other sectors so as logistics sector.

Neelakanta Rao

2nd

year M.Com

Artwork: Sandesh,

2nd Year M.Com



Emerging Mega Trends in Logistics in India

A. Changing demographics

As India continues its transformation into a manufacturing and services-led economy, growing migration

toward urban areas is expected. It is anticipated that more than 60 percent of India‘s urban population will be

concentrated in 20–25 urban clusters by 2030.

Against this backdrop, logistics support infrastructure in India‘s metros is inadequate for serving existing

trade needs. Challenges range from the availability of assets to congestion, regulation and monitoring. In fu-

ture, industrial clusters will need dedicated freight corridors (DFCs) such as the Delhi-Mumbai Industrial Cor-

ridor with high-speed connectivity to key ports and urban centers. These corridors and access routes will

likely help keep the cost of supplying goods and services to these urban centers either low or manageable.

B. Evolving Requirements of Trade

It is anticipated that the surge in trade will demand enhanced sophistication in logistics infrastructure and

services across modes. As international standards are introduced in a competitive, service-oriented environ-

ment, existing infrastructure will likely become obsolete:

• Growth in the domestic manufacturingand retail segments has given impetus to the demand for efficient

warehouse-management services. However, warehousing continues to see little investment. Current spending

on organized warehousing in India constitutes 9 percent of total logistics spending, as against 25 percent in

the US.

• Existing small warehouses need to be replaced by large, modern warehouses that incorporate global stan-

dards such as tall designs, modular racking systems, palletization, and the use of automation and IT.• The

growth of niche industries will likely necessitate value-added services such as cold-chain warehousing, pack-

aging and track-and-trace services.

Existing infrastructure needs to be upgraded to increase throughput. For example, average containers

handled per ship per hour is 18 in India as compared to 28 internationally. Further, the average distance

traveled per truck per day is 200 kilometers, which is halfthe international standard.



Trade would require commodity- and geography-specific storage andtransportation assets. Without these,

the industry‘s investment potential in other parts of the economy is likely to face roadblocks.

C. Increasingly skewed modal mix

India‘s logistics sector is currently not only constrained by lack of infrastructure; it is perhaps even more

restricted by the misuse of transportation modes for certain types of commodity, as well as limits on the free

use of transportation modes for others. In terms of volumes involved, cargo in India can be classified in a

pyramid-like fashion, with each category entailing distinct logistical considerations:

The optimal movement of freight by matching cargo categories with transportation modes will be crucial

for expanding volumes across categories. The lopsided utilization of transportation infrastructure such as

roads and railways (as is the case currently) stresses networks and adds to inflating costs and turnaround

times. Deriving the best possible selection of modes to lower congestion and facilitate the smooth movement

of cargo is the need of the hour.

The desired ‗to be‘ state would be an overlay of transportation networks, allowing for the efficient trans-

portation of each commodity type as well as a natural handover point — where networks intersect and where

large quantities are broken down into smaller volumes for last-mile transportation into urban centers.

[Article Adapted from KPMG Report ―Logistics Game Changers, Transforming India‘s Logistics Industry‖, 2013.]

Mr. Ruchir Anand,

Asst. Professor,

Department of Commerce, Manipal University



Case Studies in Supply Chain

There are several ways to gain insights into the working of a supply chain. The one most popular means

as a commerce and management student is through analysing case studies. It helps us understand how profes-

sionals in supply chain management make use of various methods to recognize best practices to improve

the operations. In order to accelerate the learning, this article has gathered 2 most sought-after supply chain

case studies, analysed as per the industry and the findings are presented accordingly.

Aerospace Industry

Aerospace Industry is characterized by high material costs (about 65-80%). Manufacturing systems

and regulatory compliances are considered to be highly complex, accompaniedby the limited number of suppli-

ers due to the high barriers to entry. Further, the aircraft manufacturers are required to win the order in advance

before the commencement of production.

There are two things Boeing and Airbus have in common - utilization of lean manufacturing system and

strategic sourcing concept. However, the overall execution of strategic sourcing is a bit different between the

two companies.

Boeing intends to encourage more flight frequency and direct route by making use of an aircraft having a

smaller capacity. Then they decide to outsource many things such as the design, testing and production of key

components to key industrial partners and try to reduce the number of components that go to assembly. They

aim to finish the final production process within 3 days.

Airbus takes a comparatively different marketing approach. They intend to utilize high capacity airplane

to help airlines drive down the operating cost. They decide to outsource the production of parts on selective ba-

sis and keep the design and production of key components in-house.

Fashion Industry

The supply chain strategy for a fashion industry involves a high level of responsiveness. Many customers

have the unique product needs but a competition is very intense because of the low barriers of entry. Many new

players try to offer specialized products to customers all the time. This section features the supply chain case

studies of H&M, Benetton, Zara and Adidas.

H&M aims to be the leader in terms of pricing in the fashion market. In order to materialize its vision,

H&M tries to eliminate the middlemen in various stages of supply chain and strengthen the buying volumes.

Product design constitutes the vital part of its strategies. They don't try to follow the high fashion designs but

try to adopt the street trends which are easier to produce. They never invest in production facility because they

make use of a network of consisting of nearly 700 suppliers located in Asia and Europe. They also don't own

any stores because they choose to rent the space.

http://www.supplychainopz.com/2014/07/operations-management.html

http://dspace.mit.edu/handle/1721.1/38579

https://gupea.ub.gu.se/handle/2077/23882

http://3.bp.blogspot.com/-BaEtlvz-lp0/UKmptB_vBKI/AAAAAAAADEw/34tJLZa7Moo/s1600/Boeing+and+Airbus+Supply+Chain+Strategy.png



Benetton, in contrast, chooses to have a full control of its production but allows its licensees to operate

the stores so that they can focus on production and towards quality control. The reason is, they like to create

awareness about their brand worldwide. For fast moving products, Benetton make use of the production fa-

cilities available in Europe. Asian suppliers perform the work of production for the standardized products.

Zara is quite popular for its time based strategy. In order to launch a new product within 15 days, Zara

makes use of a small lot of production. A new product will be tested in pilot stores. If product sales are good,

a larger batch will be ordered. Otherwise, remaining products will be removed from the shelves and will be

sold as mark-down in other stores. This way, Zara creates perception among customers that Zara's products

are unique and the customers have to take itwhile the stock lasts. The success of Zara can be attributed to its

vertical contribution; they own the majority of its production facilities and stores. To be highlighted strategi-

cally, Zara‘s automated distribution centres are located between the centres of populations so that the setup

promotes faster delivery of the products to the stores. In order to coordinate directly with the airlines, Zara

works in coordination with Air France, KLM Cargo and Emirates and makes the outbound shipments to its

stores and brings back some raw materials and semi-finished materials with return legs.

Adidas deals with the changing scenario of demand by the customers through adopting a mass customi-

zation strategy. The idea behind this is to develop, to market and deliver the variety of the product that most

customers desire and to help the customers in finding find what they want. The first step towards mass cus-

tomization is that of strategically offering the product choices. Too few alternatives will disappoint a cus-

tomer, while at the same time, if there are too many alternatives; the customer is likely to postpone his buying

decision. After that, Adidas requests the same key suppliers to produce the custom components in order to

achieve the economy of scale. In order to compensate a long waiting time, Adidas uses air freight or courier

service. The reason behind them doing this is that customized products tend to be sold directly to customers in

order to have a higher profit margin to compensate for the higher cost of transportation.

Bhushan

1st Year M.Com

http://upcommons.upc.edu/handle/2099.1/9620

http://upcommons.upc.edu/handle/2099.1/9620

http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1994981

http://2.bp.blogspot.com/-NPLbhqldnVA/UKnJtGRcPrI/AAAAAAAADFY/yT9ZpB3olkk/s1600/Supply+Chain+Strategy+Fashion+Retailing.png



An Exploratory Study on Warehousing Act in the Seafood Industry

with special reference to Udupi District

Abstract: This paper seeks to explore the consumption pattern of seafood in Udupi District because of the estab-

lishment of regulated Warehouses under the Warehousing Act, 2007. The study uses secondary data collected

from Government agency publications.

Objectives: 1. To explore whether consumption of seafood has increased in the District because of establishment of Ware-

houses

2. To inquire whether efficiency has improved in logistics and supply chain management, including distribu-

tion networks because of the creation of Warehouses

Introduction: The rapid economic growth in the coastal district of Udupi, and the setting up of registered warehouses

for seafood industry near the Malpe Fish Harbour, has ensured preservation of fish for a longer duration of

time, and reduced the cost, both in turn has lead to increase in consumption of seafood. In the past, before the

establishment of special refrigerated warehouses, the fragmented and unorganized industry had a limited

scope. The consumption was limited to the consumers who lived in the neighbouring areas close by to the har-

bor and the sea. As a result of lack of regulated storage facility, there was inefficiency in the logistics and sup-

ply chain. To overcome these challenges, the Government of India under the Constitution has enacted the

Warehousing Act, 2007.

This paper is divided into 3 sections. First it discusses the Warehousing Act, 2007, in order to understand the

implications of the Act on the area of research study. Secondly, analysis and interpretation of data. Lastly, ar-

eas for further research are established.

Warehousing Act: The Warehousing (Development and Regulation) Act, 2007 has come into force with effect from 25th

October, 2010. The Government has also decided to constitute Warehousing Development and Regulatory Au-

thority (WDRA) under the Act with effect from 26th October, 2010 with the publication of the relevant notifi-

cation in the official Gazette.

The Authority shall consist of a Chairperson and not more than two members. The Regulatory Authority will

register and accredit warehouses intending to issue negotiable warehouse receipts and put in place a system of

quality certification and grading of commodities with a view to protecting the interests of holders of ware-

house receipts against negligence, malpractices and fraud. The introduction of negotiable warehouse receipt

system in the country will not only help farmers avail better credit facilities and avoid distress sale but will

also safeguard financial institutions by mitigating risks inherent in credit extension to farmers. The pledging/

collaterization of agricultural produce with a legal backing in the form of negotiable warehouse receipts will

lead to increase in flow of credit to rural areas, reduce cost of credit and will spur related activities like stan-

dardization grading, packaging and insurance and in development of chain of quality warehouses.

Implications of Warehousing in Seafood Industry in Udupi: With the improvement of roads and transport facilities, fresh fish can reach interior parts and hence, over

a period of years the fresh fish consumption may have increased. Over the years, seafood consumption has

rapidly increased. The maximum quantity is sold in the unorganised sector in the fresh form. In the organized

sector, frozen seafood utilizes the maximum quantity.



The above graph indicates the production of seafood between the years 1980-81 to

1998-99. In 1980-81 the total production (both marine and inland) was 2, 07,355 tonnes,

while 1998-1999 the number had increased to 2, 79,046 tonnes. While marine had a

greater production, inland is progressively nearing that of marine. As evident, there is a positive sloping curve,

displaying a trend to increase in the further years as well.

Supply Chain Network – Warehousing and Distribution There has been a significant improvement in the physical infrastructure for landing facilities in Karna-

taka. There are seven harbours/landing jetties in the state, including; Mangalore, Hejamady jetty, Malpe, Han-

garkatta jetty, Gangolli, Honnavara and Tadri. Most of the fishing harbours are equipped with auction halls,

fuel bunks, internal roads and water supplies. The landing and berthing facilities have been increased from

time to time to accommodate the increasing number of mechanised fishing boats, which grew from 600 in

1994-95 to 2150 in 2000 (Department of Fisheries, Government of Karnataka).

Furthermore, statistics show that ice factories are most widely used with 73 ice factories in the district,

followed by cold storage, a mere 9 facilities, freezing plant (5), and frozen storage (4). (Department of Agri-

culture Cooperation and Farmer‘s Welfare, Government of India), There is a great discrepancy between the

utilization of ice factories compared to other storage facilities, which calls for further research study.

Distribution Network Channels

A typical distribution network comprises in the following manner. Fresh fish are moved to wholesale

markets and then through fish distributors to the consumers. Among the participants in the distribution sys-

tem, wholesalers who obtain fish from brokers are important. In the fish markets closer to ports where mecha-

nized boat landings occur, the size of the landings is large,

varying from one tonne to two tonnes per day. This is re-

flected in the existence of a large- scale distribution system,

composed of a few large buyers, transporting fish in trucks to

Kerala and other large urban markets located around 350 to

450 km away, such as Bangalore, Hassan etc.

The chart depicts a standard distribution network in Karna-

taka. Except for local-region and export market, the whole-

salers in each of the region scarcely utilize warehouses be-

fore further distribution process. Most of the storage facility

utilized in the region is non-organized and fragmented. The organized, although grown

over the years, comprises of a small percentage. The chart below illustrates the make-up

of various distribution channels.

Source: Department for

International Development

(DFID), UK

Source: Department for

International Development

(DFID), UK



There is a large discrepancy between the unorganized sec-

tor, which accounts for a majority of 92.5% and the unor-

ganized sector, hardly 7.49%. Because of the underutiliza-

tion of organized the organized sector, there is a heavy loss

in supply in seafood resources in the region. As a result,

fish is being imported from other parts of the country. A

field research [conducted by DFID, UK] indicated that,

currently, each major market centre such as Malpe or Man-

galore receives 3-4 truckloads of fresh fish daily from Rat-

nagiri and Goa for local distribution and onward transporta-

tion to interior markets. However, it was not possible to as-

certain the total quantities of fish entering the state from

various sources. These numbers are a cause for concern,

indicating an unreliable and unsustainable supply chain

model adopted in the District.

Causes for Concern: Lack of proper storage facility leads to attacks by pests and other organisms. The damage caused

through such infestations leads to a reduction in market value depending upon the extent of damage. Due to

the lack storage capacity, in case of any unforeseen disease prevailing, then the whole stock of seafood goes

to waste. Fifty percent of fish supplies come from developing countries where market infrastructure facilities

are minimal. Huge post-harvest losses and poor infrastructure contributes to the inferior quality of fish and its

export earnings. Therefore to sustain the livelihoods of the fisher folk and to continue reducing costs for the

end consumers, the establishment and utilization of warehouses is required and standard operations practices

to monitor and control the maintenance of warehouses.

Areas for further Research: There is little or no research so far carried out in the area of Warehousing in the seafood industry. The

research which has been conducted is generic in nature and based on estimates. Consequently, it does not con-

sider all forms of data and therefore does not present a true and accurate picture of the population. As an area

for suggestion and improvement on this paper, researchers can ascertain the reasons for the discrepancies in

the types of storage facility and in the make-up for utilization of fish. The research can pinpoint the factors

which are having an influence on the supply, whether it is cost factor, convenience, or ease of doing business.

Conclusion: This paper has discussed the implications of the Warehousing Act on the supply chain network in the

seafood industry in Udupi District. There is conclusive evidence to suggest that production of fish in the

coastal district, both inland and marine, has rapidly increased from the 1980s to 2011, and will continue to

grow in the coming years. Consequently, it is vital to establish and utilize regulated warehousing facilities to

support the supply in the distribution networks. The infrastructure implemented can support the sustainable

development process from production to end consumer. This will assist in improving the livelihood of fisher-

men and women employed in this industry, while also ensuring customers are satisfied with their choice of

consumption. Seafood, a fast deleting marine resource, and also one with adequate nutrients and vitamins to

improve dietary deficiencies, is a staple for most in the coastal region, and hence requires utmost care and

diligence.

Suvin Aippal, et.al

2nd

Year M.Com



This seminar was held on 23rd September, 2015 at the T.M.A Pai

Hall, Manipal. The Chief Guest was Mr. V Balaji, Chief Operating Of-

ficer, Allcargo Logistics, Mumbai. The Guest of honor was Dr. H. Vi-

nod Bhat, Vice-Chancellor, Manipal University. Mr. Sandeep Shenoy,

Head of Department of Commerce, Manipal University welcomed the

gathering during the inauguration.

The executive seminar, in association with Institute of Logistics, Confederation of Indian Industries,

Chennai, on supply chain innovation took place over five sessions and two panel discussions.

The first session of the seminar was commenced by Mr.V.Balaji of

Allcargo Logistics, Mumbai, who spoke about the growing trend in lo-

gistics and supply chain in all over the world. He also spoke about the

chemical industries –growing 8% globally, about the chemical and agro

chemical, about cold storage and container processing. He discussed

about the various technologically advanced gadgets used in operations

including:

1) Put to Light (PTL)

2) Pick to Light (PPTL)

3) Put to voice and pick voice

The second session was headed by Mrs. Uma Maheshwari, from the Institute of Logistics, CII, Chenai

who spoke about opportunities and challenges in challenges in manu-

facturing supply chain. She spoke on the challenges being:

1) Vendor Management

2) Competitor Pricing

3) Reducing Lead time supplier

4) Inventory i.e. EOQ

5) Distribution center i.e. Location

6) Transportation

7) Indirect Tax Structure

The metrics to measure manufacturing performance include:

1) Capacity utilization

2) Space Utilization

3) Customer order fulfillment

In the third session M. Vishwanath Pai, Professor and Head of the

Department of Commerce, MGM College, Udupi discussed an exclu-

sive application he is working on in the realms of cloud technology in

logistics. Through this application, distribution channels can be better

enabled to connect with various networks with up-to-date information.

Then there was a panel discussion between Dr. HG Joshi, Faculty

of Commerce; Mrs. Uma Maheshwari and Mr.Vishwanath Pai. It was

headed by Dr. HG Joshi, where they discussed about various practical problems involved in supply chain and

their solutions.

In the afternoon, the fourth session was presided by Mr. Naveen Kumar, Logistics Manager at Manipal

Global Education (MaGE) who spoke about outbound and logistics in supply chain management. He dis-

cussed about the process and procedure of delivery of products and services in a manner that maximizes the

value to the customers.

NATIONAL SEMINAR ON ‘GLOBAL TRENDS IN SUPPLY CHAIN INNOVATION’



During the fifth and final session by Dr.Sreedhar,

Head of the Department of Pharmacy Management,

Manipal College of Pharmaceutical Sciences, Ma-

nipal articulated on logistics and supply chain

management in the pharmaceutical sector.

A current analyses of Indian pharmaceutical

industry

reveals the following:

1) Complex

2) Number of players(manufacturing)

3) Risk and expensive

4) API (Active Pharmaceutical Ingredient )

5) Branded and generic medicine

The facts attributed to this industry are:

1) $30 billion in 2015 (in this 73% share Indian

holder)

2) It is expected to reach a target $84.9 billion by

2020

3) $16.4 billion domestic pharmaceutical market

4)$15.6 billion is exported

Basic members of the pharmacy sector:

1) Manufacturer

2) C&F agent /distributor

3) The physician to test the medicine

4) Retalier

5) Consumer/patient

In pharmacy sector there are basically 3 mar-

kets:

1) Primary market

2) Secondary market i.e. distributor to retailer

3) Tertiary sale market

The modes of transport of medicine:

1) Road

2) Air

3) Rail

The challenges include:

1) Time to market

2) Stringent Regulations

3) Complex Manufacturing Process

4) Huge Investment

Managing pharmacy:

1) Perishable i.e. expiry date and temperature

conditions.

2) No incentives for reducing inventory

3) Counterfeit i.e. Fake of Medicines

4) Crisis in Management

5) Controlling temperature – increase cost.

Last but not the least, there was a panel dis-

cussion moderated by Mr. Ruchir Anand, Assistant

Professor at the Department of Commerce, Manipal

University, Manipal. The panelist included Dr.

Raghunath Rudran, Dean (Administration),

TAPMI; Mr. Naveen Kumar, and Dr. Sreedhar.

After the completion of the entire session Ab-

hishek Rao, faculty coordinator, shared his remarks

on the success of the seminar and guests from cor-

porate and outside colleges gave their feedback on

the day.

Pratima Ranjan,

1st

Year M.Com



Answer Key to Previous Edition

Contributed By :-

Olga Lewis, Alumnus,

M.Com (Logistics and Supply Chain)

b

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e b r a

i a m b u l a n c e m

g l i c a

h e l i c o p t e r

o y o

c o a c h r a f t

n l u

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m r h u p

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h e a r s e



LOGISTICS QUIZ

Q1) A logistics network can best be described as:

a) The choice of rail, marine, or truck transport

b) The warehouses, production facilities, retailers,

and inventory that flows between them

c) The routes taken to move goods

d) The least cost route from producer to retailer

Q2) Reverse logistics refers to:

a) Returning trucks from deliveries

b) Backward scheduling deliveries

c) Movement of goods from customers back to the

producer

d) Transport from the producer directly to the re-

tailer

e)

Q3) FTL stands for:

a) Fair transportation laws

b) Freight tax levy

c) Fixed transport lane

d) Full truck load

Q4) When compared to truck transport, rail transport

is:

a) Less flexible but cheaper

b) Less flexible and more expensive

c) More flexible but more expensive

d) More flexible and cheaper

Q5) The use of two or more different modes of trans-

port in moving goods from origin to destination is

known as:

a) Container shipping

b) LTL shipping

c) Double-stacking

d) Intermodal transport

Q6) Consolidation warehousing refers to:

a) Shipping directly from manufacturer to retailers

b) Holding inventory received from suppliers in

warehouses until needed

c) Continuous shipment from suppliers to ware-

houses where goods are redirected and shipped to

retailers

d) Storage of full trailers in locked lots

Q7) Cross-docking refers to:






retailers


Q8) Direct shipment refers to:






retailers


Q9) C-TPAT refers to:

a) The costs incurred to ship goods from origin to

destination

b) The use of satellite systems to maintain contact

with transport vehicles

c) A voluntary program to increase supply chain se-

curity

d) The next generation of bar coding

Q10)Radio frequency identification technology is ex-

pected to be used:

a) To track trucks across the country

b) To enhance the ability to keep accurate inventory

counts in warehouses

c) To eliminate the need for reverse logistics

d) To lower the cost of direct shipments.

Source: Operations Now: Supply Chain Profitability and Per-

formance, 3rd edition; Byron J. Finch, Miami University of Ohio-

Oxford

Answers will be published in the next edition



Department Of Commerce

Manipal University, Manipal

New Management Block

Near 9th Block

Manipal, India.

For any queries and feedback

[email protected]

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