The document discusses the future of logistics in the Indian cosmetics industry and strategies for Nivea India's supply chain. It contains an interview with Arjun Varma, Supply Chain Director of Nivea India, who discusses bottlenecks faced by the logistics sector in India like inconsistent infrastructure. Varma notes that Nivea outsources a major portion of its logistics work and focuses on building relationships with partners. The company aims to drive efficiency through innovation and collaboration within the organization and with channels partners to enhance output while reducing costs.

1. SHIPPER’STALK26 CARGOTALK JULY 2015
Efficiencies & innovation in supply chain
QHow do you see the
future of logistics
with respect to the Indian
cosmetics industry?
The cosmetic industry's front-
end logistics will see relevant customi-
sation, based on both trade customer
and end consumer needs.On a similar
front, at the back-end, significant man-
ufacturing localisation is underway
with increasing recognition of India as
a critical growth market. Moreover,
with ‘Make in India’ initiative, this
should see increased momentum,
which will lead to increased localised
inbound versus imports.
How important is
efficient logistics for
your overall growth?
We have grown at a fast pace
in the last few years due to strong
brand heritage. Investment in infra-
structure in the Indian market will
help make the enhanced range
of Nivea products available to
the end consumer.
QWhat bottlenecks are
faced by the logistics
sector?
We have to overcome inconsis-
tent road infrastructure, fragmenta-
tion of transportation industry, less
than adequately skilled manpower,
multiplicity of tolls and increasing
transit times amongst others.IT relat-
ed bandwidth and viable track and
trace mechanisms are also troubling.
GST would be a big enabler in the
medium term.
QIs there any specific
strategy for better
supply of products?
Segmentation of supply chain
on delivery-basis channel and cus-
tomer profile is essential to provide
the right service. We have worked
towards ensuring the same, while
optimising cost to serve.
QHow do you create a
balance between
internal operation and
supply chain needs?
An integrated supply chain and
seamless information flow right up to
the raw material source vendor is crit-
ical to enable cost-effective speed of
response.It is one of my critical focus
areas to ensure we get better at this
end-to-end visibility, coupled with
external and internal customer prior-
ities being proactively addressed.
QWhat percentage of
your logistics work is
outsourced?
A major portion of our logistics
work is outsourced.We believe in the
philosophy of building long-term
relationships with channel partners
who share our value systems and
work ethics.
QWhat supply chain
strategies are in place
to manage costs and help
protect margins?
We do not compromise on
our product quality as it is one of
the key reasons consumers love
and buy Nivea.We believe in driving
efficiency and innovation in
the supply chain by working
both within the organisation and
with our channel partners to
get enhanced output at sustainable
lower costs.
CT BUREAU
An efficient and flexible supply chain is crucial to the flow of goods and related information from the point of origin to
the point of consumption. Arjun Varma, Supply Chain Director, Nivea India (affiliate of Beiersdorf) opines on the
constantly changing face of the logistics sector and highlights the supply chain strategies the company follows.
Arjun Varma
Supply Chain Director
Nivea India (affiliate of Beiersdorf)