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MOMENTUM SEPT -2017
KJ Somaiya Institute of Management Studies and Research is known
for its ability to produce excellent managers and leaders in various
fields year after year. This comes not only from a robust academic
curriculum and faculty expertise but also from student driven
initiatives. FORSE, the operations committee is spearheading such
initiatives in the field of operations to help students develop
understanding in this field. Momentum is one such initiative that has
been taken by our students to enrich that learning. The magazine is an
attempt to engage readers’ on state of the art trends in field of
Operations and Supply Chain Management
My Heartiest congratulations to the team on bringing out this initiative
of momentum. I hope that the readers will enjoy this first issue and
supplement their knowledge and learning.
Dr. J S Lamba
Faculty In-charge - FORSE
Area Chairperson (Operations)
KJ SIMSR, Mumbai
Chairperson’sNote
MOMENTUM SEPT -2017
Dear Readers,
We at FORSE strongly believe in equipping Management study learners
with the field of Business Excellence and Process Improvement
through various events, workshops and conferences in operations.
FORSE recently embarked upon its journey for this academic year
2017-2018 with a very insightful event – INTERN DIARIES. Details of
the event with few glimpses through pictures have been shared in this
issue. FORSE has been organizing Six Sigma Green Belt Certification
Course in collaboration with KPMG since past three years. This year
hundred plus learners successfully completed the certification course.
We, as a part of FORSE Team, strongly encouraged learners to attend
this course to get profound insights and in-depth knowledge of Process
Improvement and Lean Review. As we progress ahead this year, we
would be coming up with various events and simulation games to give
an experiential learning to the students. We also await Global Supply
Chain Management (GSCM) Conference, flagship Event of Operations
Department organized by FORSE that will be held in December, 2017.
MOMENTUM - The Official Operations Magazine of SIMSR released its
maiden issue earlier this year in March 2017. With each release, it
embodies various articles and learnings of different themes shared by
students of SIMSR. While the first release revolved around 3D Printing
and Technology as its theme, our second volume speaks about Green
Logistics and Supply Chain. Also, amaze yourself with the lesser known
facts and Brand Success Stories of various companies shared in this
issue.
Stay tuned for upcoming issues with similar interesting themes.
Happy Reading! Happy Learning!
Dheera Varandani
Convener - FORSE
Convener’sNote
MOMENTUM SEPT -2017
Dear Readers,
“The future is green energy, sustainability and renewable energy”
We are living in tough and dangerous times where the world as we
know it is crumbling day by day. Global warming is posing a serious
threat to the very existence of mankind and every industry is under
the gun to optimise their operations and prevent further irreparable
damage.
With our second edition of Momentum, we wish to bring about
awareness regarding green logistics and how supply chain is fast
evolving to ensure that we leave lesser scars over our planet. We have
also included articles on how to improve our ecosystem and Carbon
Credits. These articles will help you budding managers realise the
burning environmental issues that industries are facing nowadays. and
They will also enlighten you on policies that are in place to control and
curb further damage.
Staying true to our field of Supply Chain and Operations, we have also
included an article on the success stories of famous brands and how
innovations in Supply Chain have made these brands worldwide
leaders in their own fields.
Last but not the least, we would like to thank everyone who has
contributed to the magazine and wish for enthusiastic participation in
the future as well. We hope we are successful in sharing knowledge
and also in sensitizing everyone towards the need to GO GREEN.
Happy Learning,
Team Momentum
Editor’sNote
MOMENTUM SEPT -2017
Table of Contents
Recent Events: Intern Dairies
Pg - 24
A Systematic Approach towards a Better Ecosystem
Pg - 20
Knowing Carbon Credit
Pg - 9
The role of IT in Logistics
Pg - 11
Brand Success Stories
Pg - 16
Green Logistics- A PESTEL Analysis
Pg - 6
Did you Know?
Pg- 23
Upcoming Events: GSCM Conference
Pg - 26
MOMENTUM SEPT -2017 6
GREEN LOGISTICS - A PESTEL Analysis
Article by
Kaustubh Ashturkar
Suhas Shinde
PGDM -2017-19
Since decades, Green has been the awe-
inspiring catchphrase used by policy
makers and businesses to show their
commitment towards protecting the
environment. Logistics sector is not an
exception and in fact a dark horse. What
we mean by that is logistics is going to
make a large contribution in drastic
reduction in CO2 emissions that will be
required by 2050 to contain global
temperature increase within 2 degree C.
Green logistics in simplest terms
describes all attempts to measure and
minimize the ecological impact of logistics
activities. So broadly speaking, it’s an
environmental issue.
We are going to make a PESTEL analysis
for green logistics as we are going to
throw light on Political, Economic, Social,
Technological, Legal, Environmental
aspects which will have a direct or
indirect impact on green logistics in
coming future. Environmental aspect will
be there with every other aspect
Politics and green logistics:
Political willpower is always required to
implement good things. With the
implementation of GST from July, Logistics
sector is going to gain the most as costs
will come down by 20% as said by
Road Transport and Shipping Minister,
Nitin Gadkari. The important prospect of
green logistics is efficient transportation.
Trucks had to wait long in queues on inter-
state borders to pay taxes. The check posts
on state borders have been removed
already and truck movement will be faster
reducing the slow movement period that
was affecting both the operational
efficiency and environment.
MOMENTUM SEPT -2017 7
Economy and green logistics:
There are companies comes that separate
themselves from the herd and
differentiates themselves through
leadership, vision, innovation, and a
capacity to change the marketplace.
Walmart is one of those companies.
In a marketing and consumption-driven
world, where taking care of the
environment is always cumbersome in
terms of finance, Walmart broke the mold
by rolling back prices and preconceptions
in the interest of both the environment
and economy. It has created a role model
for sustainability that transcends all facets
of its organization—and extends to
suppliers and customers, as well.
Elizabeth Fretheim, Walmart's director of
business strategy and sustainability,
believes in green logistics to achieve
golden mean between environment and
economy."Within the transportation
function, for example, we want to
accomplish three goals: fill every trailer to
capacity; drive those trailers the fewest
miles possible, and use the most efficient
equipment," she explains. "All these
efforts drive sustainability, as well as
operational efficiency.”
Social viewpoint:
With so many dangerous repercussions of
global warming that we are dealing with,
we simply cannot ignore the
environmental challenges that freight
transport poses.
The environmental impact is much beyond
the oft-maligned GHG emissions from
freight and passenger transport:
warehouses pose a threat to safety of the
neighborhood, more so, if stocked with
hazardous goods; terminals at ports,
airports and stations add to noise pollution
as vehicles and cranes move; discarded
packaging sullies the landscape; improper
waste disposal contaminates land and
water.
Over the years, the share of
rail transport has decreased drastically by
more than two-thirds from 89 % in 1951,
while the share of road transport has
increased seven-times from 10 % within
the same period. Restoring rail as a
primary mode of transport, in particular
for freight, would be essential, as rail
emissions (per tonne km) are at least five
times lesser than road emissions.
MOMENTUM SEPT -2017 8
Technological improvements aiding green logistics:
Skoda Automobiles is one of the big players in the automobile sector. We are
fortunate enough to get a chance to work with them as interns. ŠKODA AUTO has
developed an innovative 4-in-1 packaging system in cooperation with the packaging
supplier company Pilous for shipping painted bodies from the main plant in Mladá
Boleslav to the Indian plant in Aurangabad. The clever carrier systems arrange two
bodies horizontally on the floor and two others diagonally above in the limited space.
Manufacturing parts can also be fitted into appropriate gaps in the wooden
construction and secured for transport. The 4-in-1-loading technology reduces the
number of containers by a quarter. This saves ŠKODA AUTO well over 800 tonnes of
CO2 per year on the 13,270-kilometre transport route. Nearly all materials used can
be recycled
Legal framework necessary:
For resuscitating and implementing green logistics in India, we need to address the
issue at three levels: public policy, business, and individual—these three tiers interact
with and influence one another. But no cut-and-dried or easy solutions are in sight. In
any case, government intervention for right pricing, incentivizing, laying down
regulations and enforcing them is imperative.
MOMENTUM SEPT -2017 9
Knowing Carbon Credits
Article By
Shikha Agrawal
PGDM - 2017-19
With environmental conditions
deteriorating day by day, growing
awareness about harmful levels of
Greenhouse Gases (GHG) and the resulting
Worldwide Warming phenomena have
forced the government authorities and
even the private organizations to
implement systems that would help in
reducing the amount of carbon dioxide in
the atmosphere.
Out of the several initiatives taken to
protect the environment, the carbon credit
is one method to discourage businesses
from emitting greenhouse gases beyond a
certain limit and reward those who have
their emissions under check. Carbon
credits is an incentive given to an industrial
undertaking, usually an energy company,
for keeping the emission of greenhouse
gases including carbon dioxide to within
one ton. Credits are awarded to countries
or groups that have reduced their
greenhouse gases below their emission
quota.
This can be done by switching to
alternative renewable resources such as
the wind and solar energy or installation
of energy-efficient machinery.
Carbon credits can be legally traded in the
international market at their current
market price. In this system of carbon
trading, controls are imposed on Green
House Gas (GHG) emissions under the
Kyoto Protocol, and the pre decided
emission limits are then allocated across
countries, which have to control the
greenhouse gas emissions from the
various industries and commercial units
operating within them.
MOMENTUM SEPT -2017 10
The Kyoto Protocol was initiated by the United Nations Framework Convention on
Climate Change and ratified by 181 countries and the European Union as a whole,
individual entity in 1997. It was put into effect in 2005. The protocol was proposed by
the international community to address and reduce greenhouse gas emissions that have
led to global climate change. The Protocol makes it mandatory for commercial entities
emitting above the permitted limit of carbon dioxide to cut down their emissions to
prescribed levels, or they should buy carbon credits certificates which can be transacted
in the market, or alternatively pay a charge for the emissions, which is referred to as
carbon tax.
Businesses that find it hard to comply with the carbon emissions, purchase carbon
credits to offset their emissions by making finance availability easy for any kind of
renewable energy projects, forest protection and reforestation projects around the
world. These renewable energy and energy efficiency projects replace fossil fuel and
industrial processes. This all helps businesses in mitigating their emissions and comply
with the global standards.
MOMENTUM SEPT -2017 11
Role Of IT in Logistics
Article by
Alok Jani
MIM - 2015-18
Introduction
A Supply chain is the combination of
various stages such as customers, retailers,
distributors, manufacturer and raw
material suppliers. Purchasing, Operation,
Distribution, and Integration are the major
Figure (i): Supply Chain where goods are transported from Manufacturers (M1, M2 .. Mn) to
Distribution Centers (D1, .. Dn) to Retailers (R1, R2,..,Rn). The National Headquarters is
responsible for the management of Logistical Operations.
elements of supply chain management.
Information Systems such as ERP
packages help manage the acquisition,
manufacturing and distributing of
products to the correct place and in the
correct quantities. Providing Electronic
Data Interfaces (EDI) along with SCM-
CRM integrations not only help provide
optimal delivery of material but also
provide the ability to track status in real-
time by providing a unified view to the
enterprise.
MOMENTUM SEPT -2017 12
IT in Logistics Operations
Inventory Management System
Inventory control systems (ICS) are
applications for tracking inventory levels,
orders, and deliveries. It is used
extensively for production planning so as
to avoid stock outs or overstocking. Using
ERP in combination with Scanners and
barcode can help quickly update inventory.
Manufacturers can create updated multi-
level work orders and bill-of-material
(BOM) based on inventory levels which can
help give better estimates of timelines.
Seasonal Forecasting is critical for efficient
inventory planning.
We shall identify areas of application &
sample KPI captured by IT Systems in the
Logistics Industry.(Fig.1)
Sample KPI for Inventory Management
Systems are:
1.Inventory Value & Inventory
Obsolescence
2.Supplier on time.
3.Stock turnover for finished goods and
raw materials.
4.Inventory holding costs. Finished Goods
count.
elements of supply chain management.
Information Systems such as ERP packages
help manage the acquisition,
manufacturing and distributing of
products to the correct place and in the
correct quantities.
Providing Electronic Data Interfaces (EDI)
along with SCM-CRM integrations not
only help provide optimal delivery of
material but also provide the ability to
track status in real-time by providing a
unified view to the enterprise.
Warehouse Management System
Warehouse Management Systems (WMS)
are applications for planning material
storage and movement. Additionally,
WMS provide services like Kit Assembly
(given the BOM of kit), Quality Control
and Inspection.
Warehouses use RFID to track inbound
and outbound shipments. Common
processes that can be automated include
Goods Receipt, Storage, Slotting/efficient
placement, Picking/select for the delivery
order, Packaging/Labelling, etc.
MOMENTUM SEPT -2017 13
Sensors can also help track space
utilization in real-time.
Sample KPI for WMS are:
1.Orders processed per day
2.Order Picking accuracy rate
3.Average Lead time
4.Inventory items incorrectly located
5.Turn around time for availability after
receipt of Sales Order
Fleet Management System
Fleet Management System (FMS) are
vehicular tracking & control systems that
are used for diagnostic, driver, speed
and fuel management of trucks, trailers,
aircraft, ships and rail cars. Fleet
Management makes use of GPS (Global
Positioning Systems), telecom cellular
triangulation or satellite communication
to track the exact location of a vehicle.
Advanced FMS can help provide benefits
of visibility on oceanic routes along with
over-the-air security to track goods in
transit. Sample KPI are Number of
Vehicular Breakdowns. Mileage. Fuel
Consumption.
Shipment Loading and Slotting System
Shipment Loading is the process of distributing large consignments over delivery
schedules and transportation fleet. Transport Management Systems (TMS) help model
the level of LTL (Less than Truckload) and FTL (Full Truck Load). IT applications can
ensure that trucks are loaded optimally so that they’re not empty.
Slotting is the process of intelligent placement of products in the warehouse/
distribution centre for optimal material handling efficiency. IT applications and Sensors
can be used for proposing placement location within a distribution centre for optimal
material handling efficiency. IT applications and Sensors can be used for proposing
placement location within a distribution centre based on factors such as shelf life,
quantity, etc.
MOMENTUM SEPT -2017 14
Sample KPI are:
Timeslotting.
Number of Barcodes and scanners used
Product pairing together (stored and
retrieved together)
Percent time of FTL
Transport Route Optimization
Transport Management Systems (TMS) in
combination with Cartographic
Information can be used for calculating the
shortest path across multiple drop points.
Real-time traffic data when integrated with
transport management systems (TMS) can
help set up supporting routes/backup
routes for the driver in advance.
Sample KPI are: deliveries on-time, average
delivery cost
Automated Payment Settlement and
Document Processing
Transport Management Systems report
real time status of shipment and
deliveries. When combined with EDI
(Electronic Data Interfaces) integrated
with suppliers’ banks, these applications
can support faster freight settlement to
provide a consolidated view of pending
payments.
Sample KPI are:
Accounts Receivables from Customers,
Resellers et. al.
Accounts Payable to Supplier, transporters
et. al.
Customer Service
Vehicle Tracking and POD (Proof of
Delivery) Systems are used for real-time
delivery information like arrival time,
location, etc. By offering the ability to
track shipments/deliveries, the customer
is more informed which helps reduce
support calls.
Sample KPI are: Orders dispatched per
day, Deliveries on time.
Production Performance Benchmarking
A company may choose to benchmark
their processes for purpose of
Measurement, Comparison, Learning or
Improvement.
ERP databases hold a wealth of
transactional information which when
combined with Business Intelligence
MOMENTUM SEPT -2017 15
and Machine learning tools can be used for Industry and Competitive analysis.
Other Common KPI are:
Number of Customers
Customer Order per day
Percent of Product Returns
Percent of Product Damaged
Deliveries in Full / day
Deliveries on time / day
Cash to Cash Cycle Time
Procurement and Supplier Management System
Procurement and Supplier Management System (PSMS) is used to maintain records of
purchase related information. These IT systems are used to capture details such as
Purchase Request, Contract Documentation and Management. Vendor related
information such as past performance, bank account details, contact details are also
captured in the system.
Common KPI are :
Cost per Invoice
Time of payment
Discounts Captured
Number of Suppliers
Spend under purchase order
Payment Outstanding Days
Count of PO Modified
From the above, it can be concluded that Information Systems for Inventory
Management, Procurement & Supplier Management,, CRM are critical for and play a
major role in Logistics Operations & Management.
MOMENTUM SEPT -2017 16
Brand Success Stories
Article by
Arushi Joshi
PGDM -2017-19
Key list of characteristics defines the
success of best-in-class supply chains and
set them apart with exemplary
management. These characteristics include
a proactive use of big data, highly
optimized inventory management,
flexibility and speed with order fulfilment,
customization with process
implementation, energy sustainability.
As listed by research and advisory
company, Gartner, Inc., the following
companies exemplify excellence with these
characteristics, setting the mark high for
the demand-driven supply chains of today. As a result of this it developed an
extensive range of product categories
under each business segment. Unilever
found itself becoming inflexible due to
its huge operation and other
inefficiencies. To come out of this mess it
decided to restructure its strategy.
At the beginning of 2000, Unilever began
a five-year growth strategy. This
initiative was named as “Path to Growth
Strategy”. It announced a comprehensive
restructuring in their operation and
business and their SCM, which included
a significant restructuring of their supply
chain management.
UNILEVER –
British-Dutch consumer goods company
Unilever is the second-largest FMCG
player, and offers food, beverages,
personal care products, and cleaning
agents. Unilever was formed in 1930
with the merger of British soap company
Lever brothers and Dutch Margarine
company Margarine Unie. During 1960’s
and 1970’s it expanded by horizontal and
vertical integration emerging as a
diversified conglomerate. In 1980’s it
decided to have a more focused
approach and referred to it as “core
strategy” and focused on four industries
– Food, Personal care, health care and
specialty industry, this decision involved
acquisition and divestiture of brands.
MOMENTUM SEPT -2017 17
They focused on organization, global procurement processes, supply chain executives,
supplier involvement, and technology. Unilever decided to cut down its vast brand
portfolio from 1600 to 400 and make significant changes to its supply chain of 380
manufacturing plants across the world, by focusing on 150 key factories, in order to
enable its complete focus. Unilever decided to. The major thrust areas were:
1.Implementing executive purchasing
2.Attracting, developing and retaining world class supply management executives
3.Professionalizing the purchase of non-production items
4.Enabling e-sourcing in all worldwide facilities
5.Accelerating and leveraging simplification of supply chain
6.Driving information and management
As a result, they achieved $14.24 billion in savings in 2003 from its initiatives, and
Unilever became a leader in the consumer-packaged industry for technology adoption.
.
Since the company has its operations in
various regions across the globe, it is of
immense importance to have a well-
integrated system that will help in efficient
and quick exchange of valuable data and
information.
Initially, Colgate-Palmolive had a
decentralized structure that was creating
many issues in its business operations
especially in Supply Chain Management
(SCM). In November 1999, the
management team of the company decided
to revamp its IT infrastructure by
implementing a unique and innovative
system that ensured integration of every
function throughout the organization
across all its operational activities on
international level. This new system is
based on the order flow of the customers
and driven by the distribution centres of
Colgate around the globe as the suppliers
are now directly supplying the products.
COLGATE-PALMOLIVE –
Colgate-Palmolive is a top ranked leading
Multinational Corporation in the
consumer products category.
Headquartered at New York, it is
believed to have an asset of $94 billion
that comprises of all its products that it
is selling in more than two hundred
countries. Colgate-Palmolive is involved
in the business of manufacturing and
selling of various consumer products
that comprise of cleaning products,
soaps, toothpastes and pet supplies.
MOMENTUM SEPT -2017 18
organization is well-aware of the supply
chain statistics; the IT system has
enhanced the company's SCM system
which has helped in utilizing the supply
chain information with accuracy so that
the consumers always had easy access to
the products and the shortage problems
was reduced by 50% in the first three
months of the new ERP software
implementation.
With the help of the latest SCM system,
the suppliers had developed direct links
with the company's production unit and
they were responsible for effective
management of resources at the
distribution centres for supplementing
Colgate-Palmolive business operations.
In order to solve the main issue of
Colgate-Palmolive, a global supply chain
system was developed.
Three key supply chain strategies were
formed as the basis of this system:
1.Introduction of the Vendor Inventory
Control (VMI) product so that there was
a decline in the inventory channel and
timing of the cycle.
2.Implementation of a resource planning
system at cross-border level so that
regional models were developed for the
international patterns; it ensured that
the company had adequate pool of
assets so that there was a balance with
the company's business strategy.
3. Implementation of a collaborative
program that ensured there was a well-
balanced downstream business system
for effective management of the market
demand of supply chain along with
effective coordination of the system's
activities. With the help of new system,
everyone in the
NIKE
Nike is a multinational company and one
of the most widely-known brands of
athletic wear. In 1991 reports about poor
working conditions and media
uncovered claims of child labor and
underpaid workers in several Asian
countries at the Nike factories started
surfacing. Nike denied responsibility for
monitoring malpractice at supplier
locations and responded without
MOMENTUM SEPT -2017 19
changing practices. In no time Nike was
targeted by campaigners, and a global
boycott campaign began. This campaign
had a huge impact on the demand for
Nike products. Finally, in 1996 Nike
started addressing the issue in a
productive manner. Nike started working
on improving social and environmental
conditions in its global supply chain to
evolve it through integrated
management of sustainability and
innovation, increased supplier
incentives, and systems innovations
intended to prevent problems before
they arise.
In 2009, Nike launched project “Rewire”.
It made several changes in the company
to achieve supply chain sustainability:
1.Transition to a more integrated
organization structure
2.Deliver lean manufacturing training to
build and improve workers’ skills and
efficiency
3.Develop a new supplier incentive
scheme
4.Promote innovation to engage all
relevant stakeholders in creating the
environment needed for systemic
change to take place
Nike believes in the three key aspects of
responsible supply chain management
which will influence the performance
going forward: Integration, incentives,
and innovation.
Rewire strategy showed how the
company is now pursuing a more holistic
approach to improving supply chain
sustainability. Nike has embraced a long-
term perspective. Improving
sustainability performance often
involves heavy investment initially, with
benefits being realized over a longer
term.
MOMENTUM SEPT -2017 20
Article by
Saharsh Bhanawat
Hiral Shah
PGDM -2017-19
Unlike the traditional humanitarian
definition of logistics, Green Logistics is more
concerned in considering the impact of
human actions on environment and
surroundings. Thanks to Industrial Revolution
in the 20th century, which gave a rise to
rapid industrialization in every corner of the
world, which eventually made the life of
human much easier and convenient. In the
increasing arena of manufacturing
enterprises, tech parks, and special
economic zones, it is really incredible that
India today is considered as the fastest
growing economy in the world.
But there is a harsh reality hidden in the
story of shining India. Today, we are one of
the top carbon emitters in the world. Among
the 100 most polluted cities of the world, 33
are Indian. Our CO2 emissions are on all time
high and our global warming levels are
increasing exponentially.
Though changing climatic conditions due to
excessive emission of Green House Gas is not
only a story of India, but it is the pain of the
entire world and every country is looking for
innovations that can reduce pollution.
Though changing climatic conditions due to
excessive emission of Green House Gases is
not only a story of India, but it is the pain of
entire world and every country is
looking for innovations that can
reduce pollution.
This alarming state has made
everyone crazy for becoming eco-
friendly, and logistics sector is no
exception to this; after all, it is one of
the major contributors to
environmental despoliation. Around
15 percent of the total Green House
Gas emission is due to fossil fuels
burnt by transportation and logistics
sector.
Though Logistics and in that matters,
Energy, Industry and Agriculture are 4
pillars of economic development, it is
rightly said that environment and
growth are often understood in
mutually incompatible terms,
A Systematic Approach towards a Better
Ecosystem
MOMENTUM SEPT -2017 21
especially in India, which is in a great hurry to catch up the economic development.
Though Thermal Power is the major source of CO2 emissions but it is impractical to
drive without it as it contributes to 59.2% of India’s total electricity production.
Agriculture on other hand is undergoing a deep crisis and in this situation,
technological advancements in agriculture are the major need to make India self-
sustainable. Unfortunately, all major technological innovations impact environment
to some extent and thus Agriculture again cannot be touched to renovate harmful
emissions.
The only sector that can become a game changer in this race is Transportation and
here comes into picture the concept of Green Logistics.
Green logistics, in the context of humanitarian logistics, encourages all stakeholders
to consider the impact of their actions on the environment. It is often
misunderstood that Green logistics is confined to Transportation, but it includes
Warehousing, Packaging, and Disposal.
Green Logistics in Transportation
No doubt that Transportation is the major contributor in Green House Emission.
Experts believe that if we could take control over emissions from transport alone,
there can be a lot of improvement in the quality of the air we breathe.
MOMENTUM SEPT -2017 22
For achieving these feet, there is a need to
revive Transportation mechanism. By
achieving optimal fuel consumption, we
can hit the bull's eye. It is very important
to choose the best route to reach a
destination in the least time and minimal
fuel. Intermodal Transport i.e using more
than one mode in single delivery is yet
another option that could be used for
long-distance shipments.
After the e-commerce industry took over,
the logistic industry got a revival but now
there is a need to take a control over
freight vehicles and the emissions caused
by them. One solution here could be the
use of efficient fuel vehicles. Apart from
that, a technological solution such as
Route Planning and Mapping System
(RPMS) can be a big booster to organize to
and fro trips.
Green Logistics in Packaging and
Warehousing
Packaging is yet another aspect which can
undergo major changes in order to keep a
check on the environment. Use of eco-
friendly material with minimum use of
Plastic is the elementary requirement. The
design of packages must be changed in
order to optimize the material used. Less
material means less waste and this can be
a game changer in the logistic industry.
Moreover, the lighter the packages will be,
lower will be the fuel required. As far as
Warehouses are concerned, the efficiency
of warehouse increases by arranging the
most frequently picked items closest to the
shipping area. Minimizing the travel time
between picking locations can boost up
productivity. Logistic parks contribute to
reducing logistic costs. Companies with
logistic parks have reduced the supply
chain cost by as much as 50%. Apart from
that, Solar Lit Warehouses can also add
multiple advantages.
Adoption of Green Logistics is a long
journey and destination is still far away.
But this path cannot bet taken by one or
two players. Everyone should join hands
to achieve the achievable. Before
planning a freight, companies should have
answers to following questions: What
kind of vehicles we are going to use and
what kind of vehicle shall we use? Is it
going uphill or downhill? Once they will
have confined answers to these
questions, proper calculations could be
done to optimize the travel from the
environmental point of view.
MOMENTUM SEPT -2017 23
Did You Know?
Article by
Kartik Iyer
Akshay Nagpal
PGDM - 2017-19
•In India, roadways constitute up to 60% of
freight movement while railways account
for 32% of the cargo movement.
•Of the total warehousing space of about
1,800 million sq ft, the industrial and
agricultural segments constitute about 86
per cent and 14 per cent, respectively.
•GST has boosted the logistics industry
annual growth rate from 12-15% to 20-
22%
•Indian logistics industry is currently worth
more than $300 billion.
•The first road-worthy cars used a lever
instead of a steering wheel to steer. It had
a design and functioning like that of a joy
stick. Volkswagen named several of its cars
after wind. Passat - a German word for
trade wind; Golf - Gulf stream; Polo - polar
winds; Jetta - jet stream.
•The most expensive car ever sold at a
public auction was a 1954 Mercedes-Benz
W196R Formula 1 race car, which went for
a staggering $30 million at Bonhams in July
2013. The record was previously held by a
1957 Ferrari Testa Rossa Prototype, sold in
California at an auction for $16.4 million.
FedEx Facts:
•Federal Express was created because of
founder Fred Smith's belief in emerging
technology in the early 1970's, and his
recognition of the importance of being able
to get components to manufactures, as
well as products to consumers, quickly. He
was an avid believer that time is money,
and was willing to put his own financial
resources, as well as elbow grease, behind
his budding idea to prove just that point.
•The first FedEx shipment consisted of 186
boxes, sorted by hand on a card table, then
shuffled onto one of 14 jets. Now the
company has over 684 aircraft, including 11
Boeing 777's that can carry 178,000 lbs of
payroll.
•To continue their "better service through
better technology" trend, in the early '80's
FedEx began buying up the 800MHz
spectrum in North America. They built
towers and created a nationwide wireless
data and communications network tied into
a FedEx mainframe so that drivers could
share tracking information from devices
inside their trucks. Keep in mind that this
was way before mobile carriers offered a
cellular data network!
MOMENTUM SEPT -2017 24
Recent Events: Intern Dairies
Article by
Deyasini Sanyal
PGDM - 2017-19
Intern Diaries is an event that was
introduced for the first time in the
academic year 2016 – 2017. The inception
of the event came about from the need to
equip the incoming junior batch with
information regarding summer placements
from the horse’s mouth so that students
do not have to go by hearsay. As a part of
our endeavour to help first year students
clear their doubts and queries regarding
the summer placement process and gain
insight into what to expect from their
internships, Intern Diaries was held on
09.08.2017.
We invited guest speakers, currently
second year students at SIMSR, who
bagged internships in reputed companies.
The seniors walked all the attendees
through the various stages of the interview
and shortlisting process that they went
through. They also gave in depth
explanations regarding the roles that they
worked on in the companies and what was
expected from them. This worked as a one
stop shop for query resolution and helped
in making the resolution process a
personalised and one on one interaction.
This also helped juniors as they got the
chance to interact and get their doubts
resolved.
Our speakers were from a wide range of
specialisations, including but not limited
to operations and marketing. They gave
many inputs to the audience and stressed
heavily on knowing the core values of the
company that one is sitting for and also
making sure that the facts quoted in GDs
are correct and to the point.
With a footfall of over 120 students, we
were happy that the event Intern Diaries
was a success and glad that we could help
provide the necessary inputs for the
internship process. We hope and
encourage similar overwhelming
participation in all future events.
MOMENTUM SEPT -2017 25
Intern Dairies Moments
Speakers (Clockwise from the left): Jishnu R - Tommy Hilfiger, Manish Pandey – Daimler, Vinit
Parikh- Thermo Fisher, Vipul Varkar – Amazon, Sumeetesh Kanjani – ABRL, Saurabh Butala –
Excel Industry, Gaurav Syal – Henkel, Apoorva Pathak – Godrej Interio, Piyush Banarkar – GEP,
Sarthak Shukla –Amazon, Raunak Sharma – Thermofisher and our hosts – Hiral and Saharash
Team FORSE at Intern Dairies
MOMENTUM SEPT -2017 26
Upcoming Event : GSCM Conference
MOMENTUM SEPT -2017 27
We are glad to announce the SIMSR Global Supply Chain Management Conference
(GSCM) will be held on Saturday, 16th December, 2017 at K. J. Somaiya Institute of
Management Studies & Research, Mumbai.
Supply chain management is the art of providing the Right Product, at the Right Time,
Right Place and Right Cost to the consumers. Technology, digitization and automation
are dramatically changing the supply chain. Supply chain managers must not only
create and maintain efficient and effective supply chains but also adapt new
strategies to match the fast paced environment prevailing in today’s markets in order
to gain a sustained competitive advantage.
With this background the Supply Chain management conference with the theme
Managing the Supply Chain…..
Driving into the future…..
is being organized by the faculty and students of KJSIMSR. We aim to provide an
interdisciplinary forum for industry professionals, researchers and academicians and
students to present and discuss latest developments and applications in the
comprehensive areas of Supply Chain Management. It would be interesting to
understand the technology and trends that will shape the supply chain in the coming
years. The conference presents you with ample opportunities to learn from industry
experts and network with the delegates, academic professionals and students.
There will be paper presentation sessions based on the following topics:
• Internet of Things and SCM
• Analytics in Supply Chain
• Automation of Supply Chain
• Sustainable/Green Supply Chain
• Supply Chain for Retail
• Infrastructure Logistics
• Supply chain Management in Services
• Innovations in Supply Chain
However papers are invited from other related areas/topics of supply chain as well.
Please visit http://simsr.somaiya.edu/simsr/scm/opsconf/ for further details regarding
the registration and other information about the conference.
MOMENTUM SEPT -2017
Faculty In-Charge
Dr. J S Lamba
Area Chairperson
Operations
Designer
Ajay Yadav
Editor
Hiral Shah
Senior Team
Shikhar Sodhani | Shashank Jain
Rohit Soneji | Dheera Varandani | Rohit Radhakrishnan
TeamMomentum
Promotions
Team FORSE
Contributors
Kartik Iyer | Deyasini Sanyal | Saharash Bhanawat
Akshay Nagpal | Shikha Agrawal
Arushi Joshi | Karan Jaidka
MOMENTUM SEPT -2017
Website
www.forsesimsr.com
Facebook Page
www.fb.com/simsr.forse
LinkedIn
www.linkdin.com/in/forsesimsr
Know us more
Keep writing to us
Send in your subject related entries to
forse.simsr@somaiya.edu

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KJ SIMSR Operations Magazine Highlights Green Logistics Initiatives

  • 1.
  • 2. MOMENTUM SEPT -2017 KJ Somaiya Institute of Management Studies and Research is known for its ability to produce excellent managers and leaders in various fields year after year. This comes not only from a robust academic curriculum and faculty expertise but also from student driven initiatives. FORSE, the operations committee is spearheading such initiatives in the field of operations to help students develop understanding in this field. Momentum is one such initiative that has been taken by our students to enrich that learning. The magazine is an attempt to engage readers’ on state of the art trends in field of Operations and Supply Chain Management My Heartiest congratulations to the team on bringing out this initiative of momentum. I hope that the readers will enjoy this first issue and supplement their knowledge and learning. Dr. J S Lamba Faculty In-charge - FORSE Area Chairperson (Operations) KJ SIMSR, Mumbai Chairperson’sNote
  • 3. MOMENTUM SEPT -2017 Dear Readers, We at FORSE strongly believe in equipping Management study learners with the field of Business Excellence and Process Improvement through various events, workshops and conferences in operations. FORSE recently embarked upon its journey for this academic year 2017-2018 with a very insightful event – INTERN DIARIES. Details of the event with few glimpses through pictures have been shared in this issue. FORSE has been organizing Six Sigma Green Belt Certification Course in collaboration with KPMG since past three years. This year hundred plus learners successfully completed the certification course. We, as a part of FORSE Team, strongly encouraged learners to attend this course to get profound insights and in-depth knowledge of Process Improvement and Lean Review. As we progress ahead this year, we would be coming up with various events and simulation games to give an experiential learning to the students. We also await Global Supply Chain Management (GSCM) Conference, flagship Event of Operations Department organized by FORSE that will be held in December, 2017. MOMENTUM - The Official Operations Magazine of SIMSR released its maiden issue earlier this year in March 2017. With each release, it embodies various articles and learnings of different themes shared by students of SIMSR. While the first release revolved around 3D Printing and Technology as its theme, our second volume speaks about Green Logistics and Supply Chain. Also, amaze yourself with the lesser known facts and Brand Success Stories of various companies shared in this issue. Stay tuned for upcoming issues with similar interesting themes. Happy Reading! Happy Learning! Dheera Varandani Convener - FORSE Convener’sNote
  • 4. MOMENTUM SEPT -2017 Dear Readers, “The future is green energy, sustainability and renewable energy” We are living in tough and dangerous times where the world as we know it is crumbling day by day. Global warming is posing a serious threat to the very existence of mankind and every industry is under the gun to optimise their operations and prevent further irreparable damage. With our second edition of Momentum, we wish to bring about awareness regarding green logistics and how supply chain is fast evolving to ensure that we leave lesser scars over our planet. We have also included articles on how to improve our ecosystem and Carbon Credits. These articles will help you budding managers realise the burning environmental issues that industries are facing nowadays. and They will also enlighten you on policies that are in place to control and curb further damage. Staying true to our field of Supply Chain and Operations, we have also included an article on the success stories of famous brands and how innovations in Supply Chain have made these brands worldwide leaders in their own fields. Last but not the least, we would like to thank everyone who has contributed to the magazine and wish for enthusiastic participation in the future as well. We hope we are successful in sharing knowledge and also in sensitizing everyone towards the need to GO GREEN. Happy Learning, Team Momentum Editor’sNote
  • 5. MOMENTUM SEPT -2017 Table of Contents Recent Events: Intern Dairies Pg - 24 A Systematic Approach towards a Better Ecosystem Pg - 20 Knowing Carbon Credit Pg - 9 The role of IT in Logistics Pg - 11 Brand Success Stories Pg - 16 Green Logistics- A PESTEL Analysis Pg - 6 Did you Know? Pg- 23 Upcoming Events: GSCM Conference Pg - 26
  • 6. MOMENTUM SEPT -2017 6 GREEN LOGISTICS - A PESTEL Analysis Article by Kaustubh Ashturkar Suhas Shinde PGDM -2017-19 Since decades, Green has been the awe- inspiring catchphrase used by policy makers and businesses to show their commitment towards protecting the environment. Logistics sector is not an exception and in fact a dark horse. What we mean by that is logistics is going to make a large contribution in drastic reduction in CO2 emissions that will be required by 2050 to contain global temperature increase within 2 degree C. Green logistics in simplest terms describes all attempts to measure and minimize the ecological impact of logistics activities. So broadly speaking, it’s an environmental issue. We are going to make a PESTEL analysis for green logistics as we are going to throw light on Political, Economic, Social, Technological, Legal, Environmental aspects which will have a direct or indirect impact on green logistics in coming future. Environmental aspect will be there with every other aspect Politics and green logistics: Political willpower is always required to implement good things. With the implementation of GST from July, Logistics sector is going to gain the most as costs will come down by 20% as said by Road Transport and Shipping Minister, Nitin Gadkari. The important prospect of green logistics is efficient transportation. Trucks had to wait long in queues on inter- state borders to pay taxes. The check posts on state borders have been removed already and truck movement will be faster reducing the slow movement period that was affecting both the operational efficiency and environment.
  • 7. MOMENTUM SEPT -2017 7 Economy and green logistics: There are companies comes that separate themselves from the herd and differentiates themselves through leadership, vision, innovation, and a capacity to change the marketplace. Walmart is one of those companies. In a marketing and consumption-driven world, where taking care of the environment is always cumbersome in terms of finance, Walmart broke the mold by rolling back prices and preconceptions in the interest of both the environment and economy. It has created a role model for sustainability that transcends all facets of its organization—and extends to suppliers and customers, as well. Elizabeth Fretheim, Walmart's director of business strategy and sustainability, believes in green logistics to achieve golden mean between environment and economy."Within the transportation function, for example, we want to accomplish three goals: fill every trailer to capacity; drive those trailers the fewest miles possible, and use the most efficient equipment," she explains. "All these efforts drive sustainability, as well as operational efficiency.” Social viewpoint: With so many dangerous repercussions of global warming that we are dealing with, we simply cannot ignore the environmental challenges that freight transport poses. The environmental impact is much beyond the oft-maligned GHG emissions from freight and passenger transport: warehouses pose a threat to safety of the neighborhood, more so, if stocked with hazardous goods; terminals at ports, airports and stations add to noise pollution as vehicles and cranes move; discarded packaging sullies the landscape; improper waste disposal contaminates land and water. Over the years, the share of rail transport has decreased drastically by more than two-thirds from 89 % in 1951, while the share of road transport has increased seven-times from 10 % within the same period. Restoring rail as a primary mode of transport, in particular for freight, would be essential, as rail emissions (per tonne km) are at least five times lesser than road emissions.
  • 8. MOMENTUM SEPT -2017 8 Technological improvements aiding green logistics: Skoda Automobiles is one of the big players in the automobile sector. We are fortunate enough to get a chance to work with them as interns. ŠKODA AUTO has developed an innovative 4-in-1 packaging system in cooperation with the packaging supplier company Pilous for shipping painted bodies from the main plant in Mladá Boleslav to the Indian plant in Aurangabad. The clever carrier systems arrange two bodies horizontally on the floor and two others diagonally above in the limited space. Manufacturing parts can also be fitted into appropriate gaps in the wooden construction and secured for transport. The 4-in-1-loading technology reduces the number of containers by a quarter. This saves ŠKODA AUTO well over 800 tonnes of CO2 per year on the 13,270-kilometre transport route. Nearly all materials used can be recycled Legal framework necessary: For resuscitating and implementing green logistics in India, we need to address the issue at three levels: public policy, business, and individual—these three tiers interact with and influence one another. But no cut-and-dried or easy solutions are in sight. In any case, government intervention for right pricing, incentivizing, laying down regulations and enforcing them is imperative.
  • 9. MOMENTUM SEPT -2017 9 Knowing Carbon Credits Article By Shikha Agrawal PGDM - 2017-19 With environmental conditions deteriorating day by day, growing awareness about harmful levels of Greenhouse Gases (GHG) and the resulting Worldwide Warming phenomena have forced the government authorities and even the private organizations to implement systems that would help in reducing the amount of carbon dioxide in the atmosphere. Out of the several initiatives taken to protect the environment, the carbon credit is one method to discourage businesses from emitting greenhouse gases beyond a certain limit and reward those who have their emissions under check. Carbon credits is an incentive given to an industrial undertaking, usually an energy company, for keeping the emission of greenhouse gases including carbon dioxide to within one ton. Credits are awarded to countries or groups that have reduced their greenhouse gases below their emission quota. This can be done by switching to alternative renewable resources such as the wind and solar energy or installation of energy-efficient machinery. Carbon credits can be legally traded in the international market at their current market price. In this system of carbon trading, controls are imposed on Green House Gas (GHG) emissions under the Kyoto Protocol, and the pre decided emission limits are then allocated across countries, which have to control the greenhouse gas emissions from the various industries and commercial units operating within them.
  • 10. MOMENTUM SEPT -2017 10 The Kyoto Protocol was initiated by the United Nations Framework Convention on Climate Change and ratified by 181 countries and the European Union as a whole, individual entity in 1997. It was put into effect in 2005. The protocol was proposed by the international community to address and reduce greenhouse gas emissions that have led to global climate change. The Protocol makes it mandatory for commercial entities emitting above the permitted limit of carbon dioxide to cut down their emissions to prescribed levels, or they should buy carbon credits certificates which can be transacted in the market, or alternatively pay a charge for the emissions, which is referred to as carbon tax. Businesses that find it hard to comply with the carbon emissions, purchase carbon credits to offset their emissions by making finance availability easy for any kind of renewable energy projects, forest protection and reforestation projects around the world. These renewable energy and energy efficiency projects replace fossil fuel and industrial processes. This all helps businesses in mitigating their emissions and comply with the global standards.
  • 11. MOMENTUM SEPT -2017 11 Role Of IT in Logistics Article by Alok Jani MIM - 2015-18 Introduction A Supply chain is the combination of various stages such as customers, retailers, distributors, manufacturer and raw material suppliers. Purchasing, Operation, Distribution, and Integration are the major Figure (i): Supply Chain where goods are transported from Manufacturers (M1, M2 .. Mn) to Distribution Centers (D1, .. Dn) to Retailers (R1, R2,..,Rn). The National Headquarters is responsible for the management of Logistical Operations. elements of supply chain management. Information Systems such as ERP packages help manage the acquisition, manufacturing and distributing of products to the correct place and in the correct quantities. Providing Electronic Data Interfaces (EDI) along with SCM- CRM integrations not only help provide optimal delivery of material but also provide the ability to track status in real- time by providing a unified view to the enterprise.
  • 12. MOMENTUM SEPT -2017 12 IT in Logistics Operations Inventory Management System Inventory control systems (ICS) are applications for tracking inventory levels, orders, and deliveries. It is used extensively for production planning so as to avoid stock outs or overstocking. Using ERP in combination with Scanners and barcode can help quickly update inventory. Manufacturers can create updated multi- level work orders and bill-of-material (BOM) based on inventory levels which can help give better estimates of timelines. Seasonal Forecasting is critical for efficient inventory planning. We shall identify areas of application & sample KPI captured by IT Systems in the Logistics Industry.(Fig.1) Sample KPI for Inventory Management Systems are: 1.Inventory Value & Inventory Obsolescence 2.Supplier on time. 3.Stock turnover for finished goods and raw materials. 4.Inventory holding costs. Finished Goods count. elements of supply chain management. Information Systems such as ERP packages help manage the acquisition, manufacturing and distributing of products to the correct place and in the correct quantities. Providing Electronic Data Interfaces (EDI) along with SCM-CRM integrations not only help provide optimal delivery of material but also provide the ability to track status in real-time by providing a unified view to the enterprise. Warehouse Management System Warehouse Management Systems (WMS) are applications for planning material storage and movement. Additionally, WMS provide services like Kit Assembly (given the BOM of kit), Quality Control and Inspection. Warehouses use RFID to track inbound and outbound shipments. Common processes that can be automated include Goods Receipt, Storage, Slotting/efficient placement, Picking/select for the delivery order, Packaging/Labelling, etc.
  • 13. MOMENTUM SEPT -2017 13 Sensors can also help track space utilization in real-time. Sample KPI for WMS are: 1.Orders processed per day 2.Order Picking accuracy rate 3.Average Lead time 4.Inventory items incorrectly located 5.Turn around time for availability after receipt of Sales Order Fleet Management System Fleet Management System (FMS) are vehicular tracking & control systems that are used for diagnostic, driver, speed and fuel management of trucks, trailers, aircraft, ships and rail cars. Fleet Management makes use of GPS (Global Positioning Systems), telecom cellular triangulation or satellite communication to track the exact location of a vehicle. Advanced FMS can help provide benefits of visibility on oceanic routes along with over-the-air security to track goods in transit. Sample KPI are Number of Vehicular Breakdowns. Mileage. Fuel Consumption. Shipment Loading and Slotting System Shipment Loading is the process of distributing large consignments over delivery schedules and transportation fleet. Transport Management Systems (TMS) help model the level of LTL (Less than Truckload) and FTL (Full Truck Load). IT applications can ensure that trucks are loaded optimally so that they’re not empty. Slotting is the process of intelligent placement of products in the warehouse/ distribution centre for optimal material handling efficiency. IT applications and Sensors can be used for proposing placement location within a distribution centre for optimal material handling efficiency. IT applications and Sensors can be used for proposing placement location within a distribution centre based on factors such as shelf life, quantity, etc.
  • 14. MOMENTUM SEPT -2017 14 Sample KPI are: Timeslotting. Number of Barcodes and scanners used Product pairing together (stored and retrieved together) Percent time of FTL Transport Route Optimization Transport Management Systems (TMS) in combination with Cartographic Information can be used for calculating the shortest path across multiple drop points. Real-time traffic data when integrated with transport management systems (TMS) can help set up supporting routes/backup routes for the driver in advance. Sample KPI are: deliveries on-time, average delivery cost Automated Payment Settlement and Document Processing Transport Management Systems report real time status of shipment and deliveries. When combined with EDI (Electronic Data Interfaces) integrated with suppliers’ banks, these applications can support faster freight settlement to provide a consolidated view of pending payments. Sample KPI are: Accounts Receivables from Customers, Resellers et. al. Accounts Payable to Supplier, transporters et. al. Customer Service Vehicle Tracking and POD (Proof of Delivery) Systems are used for real-time delivery information like arrival time, location, etc. By offering the ability to track shipments/deliveries, the customer is more informed which helps reduce support calls. Sample KPI are: Orders dispatched per day, Deliveries on time. Production Performance Benchmarking A company may choose to benchmark their processes for purpose of Measurement, Comparison, Learning or Improvement. ERP databases hold a wealth of transactional information which when combined with Business Intelligence
  • 15. MOMENTUM SEPT -2017 15 and Machine learning tools can be used for Industry and Competitive analysis. Other Common KPI are: Number of Customers Customer Order per day Percent of Product Returns Percent of Product Damaged Deliveries in Full / day Deliveries on time / day Cash to Cash Cycle Time Procurement and Supplier Management System Procurement and Supplier Management System (PSMS) is used to maintain records of purchase related information. These IT systems are used to capture details such as Purchase Request, Contract Documentation and Management. Vendor related information such as past performance, bank account details, contact details are also captured in the system. Common KPI are : Cost per Invoice Time of payment Discounts Captured Number of Suppliers Spend under purchase order Payment Outstanding Days Count of PO Modified From the above, it can be concluded that Information Systems for Inventory Management, Procurement & Supplier Management,, CRM are critical for and play a major role in Logistics Operations & Management.
  • 16. MOMENTUM SEPT -2017 16 Brand Success Stories Article by Arushi Joshi PGDM -2017-19 Key list of characteristics defines the success of best-in-class supply chains and set them apart with exemplary management. These characteristics include a proactive use of big data, highly optimized inventory management, flexibility and speed with order fulfilment, customization with process implementation, energy sustainability. As listed by research and advisory company, Gartner, Inc., the following companies exemplify excellence with these characteristics, setting the mark high for the demand-driven supply chains of today. As a result of this it developed an extensive range of product categories under each business segment. Unilever found itself becoming inflexible due to its huge operation and other inefficiencies. To come out of this mess it decided to restructure its strategy. At the beginning of 2000, Unilever began a five-year growth strategy. This initiative was named as “Path to Growth Strategy”. It announced a comprehensive restructuring in their operation and business and their SCM, which included a significant restructuring of their supply chain management. UNILEVER – British-Dutch consumer goods company Unilever is the second-largest FMCG player, and offers food, beverages, personal care products, and cleaning agents. Unilever was formed in 1930 with the merger of British soap company Lever brothers and Dutch Margarine company Margarine Unie. During 1960’s and 1970’s it expanded by horizontal and vertical integration emerging as a diversified conglomerate. In 1980’s it decided to have a more focused approach and referred to it as “core strategy” and focused on four industries – Food, Personal care, health care and specialty industry, this decision involved acquisition and divestiture of brands.
  • 17. MOMENTUM SEPT -2017 17 They focused on organization, global procurement processes, supply chain executives, supplier involvement, and technology. Unilever decided to cut down its vast brand portfolio from 1600 to 400 and make significant changes to its supply chain of 380 manufacturing plants across the world, by focusing on 150 key factories, in order to enable its complete focus. Unilever decided to. The major thrust areas were: 1.Implementing executive purchasing 2.Attracting, developing and retaining world class supply management executives 3.Professionalizing the purchase of non-production items 4.Enabling e-sourcing in all worldwide facilities 5.Accelerating and leveraging simplification of supply chain 6.Driving information and management As a result, they achieved $14.24 billion in savings in 2003 from its initiatives, and Unilever became a leader in the consumer-packaged industry for technology adoption. . Since the company has its operations in various regions across the globe, it is of immense importance to have a well- integrated system that will help in efficient and quick exchange of valuable data and information. Initially, Colgate-Palmolive had a decentralized structure that was creating many issues in its business operations especially in Supply Chain Management (SCM). In November 1999, the management team of the company decided to revamp its IT infrastructure by implementing a unique and innovative system that ensured integration of every function throughout the organization across all its operational activities on international level. This new system is based on the order flow of the customers and driven by the distribution centres of Colgate around the globe as the suppliers are now directly supplying the products. COLGATE-PALMOLIVE – Colgate-Palmolive is a top ranked leading Multinational Corporation in the consumer products category. Headquartered at New York, it is believed to have an asset of $94 billion that comprises of all its products that it is selling in more than two hundred countries. Colgate-Palmolive is involved in the business of manufacturing and selling of various consumer products that comprise of cleaning products, soaps, toothpastes and pet supplies.
  • 18. MOMENTUM SEPT -2017 18 organization is well-aware of the supply chain statistics; the IT system has enhanced the company's SCM system which has helped in utilizing the supply chain information with accuracy so that the consumers always had easy access to the products and the shortage problems was reduced by 50% in the first three months of the new ERP software implementation. With the help of the latest SCM system, the suppliers had developed direct links with the company's production unit and they were responsible for effective management of resources at the distribution centres for supplementing Colgate-Palmolive business operations. In order to solve the main issue of Colgate-Palmolive, a global supply chain system was developed. Three key supply chain strategies were formed as the basis of this system: 1.Introduction of the Vendor Inventory Control (VMI) product so that there was a decline in the inventory channel and timing of the cycle. 2.Implementation of a resource planning system at cross-border level so that regional models were developed for the international patterns; it ensured that the company had adequate pool of assets so that there was a balance with the company's business strategy. 3. Implementation of a collaborative program that ensured there was a well- balanced downstream business system for effective management of the market demand of supply chain along with effective coordination of the system's activities. With the help of new system, everyone in the NIKE Nike is a multinational company and one of the most widely-known brands of athletic wear. In 1991 reports about poor working conditions and media uncovered claims of child labor and underpaid workers in several Asian countries at the Nike factories started surfacing. Nike denied responsibility for monitoring malpractice at supplier locations and responded without
  • 19. MOMENTUM SEPT -2017 19 changing practices. In no time Nike was targeted by campaigners, and a global boycott campaign began. This campaign had a huge impact on the demand for Nike products. Finally, in 1996 Nike started addressing the issue in a productive manner. Nike started working on improving social and environmental conditions in its global supply chain to evolve it through integrated management of sustainability and innovation, increased supplier incentives, and systems innovations intended to prevent problems before they arise. In 2009, Nike launched project “Rewire”. It made several changes in the company to achieve supply chain sustainability: 1.Transition to a more integrated organization structure 2.Deliver lean manufacturing training to build and improve workers’ skills and efficiency 3.Develop a new supplier incentive scheme 4.Promote innovation to engage all relevant stakeholders in creating the environment needed for systemic change to take place Nike believes in the three key aspects of responsible supply chain management which will influence the performance going forward: Integration, incentives, and innovation. Rewire strategy showed how the company is now pursuing a more holistic approach to improving supply chain sustainability. Nike has embraced a long- term perspective. Improving sustainability performance often involves heavy investment initially, with benefits being realized over a longer term.
  • 20. MOMENTUM SEPT -2017 20 Article by Saharsh Bhanawat Hiral Shah PGDM -2017-19 Unlike the traditional humanitarian definition of logistics, Green Logistics is more concerned in considering the impact of human actions on environment and surroundings. Thanks to Industrial Revolution in the 20th century, which gave a rise to rapid industrialization in every corner of the world, which eventually made the life of human much easier and convenient. In the increasing arena of manufacturing enterprises, tech parks, and special economic zones, it is really incredible that India today is considered as the fastest growing economy in the world. But there is a harsh reality hidden in the story of shining India. Today, we are one of the top carbon emitters in the world. Among the 100 most polluted cities of the world, 33 are Indian. Our CO2 emissions are on all time high and our global warming levels are increasing exponentially. Though changing climatic conditions due to excessive emission of Green House Gas is not only a story of India, but it is the pain of the entire world and every country is looking for innovations that can reduce pollution. Though changing climatic conditions due to excessive emission of Green House Gases is not only a story of India, but it is the pain of entire world and every country is looking for innovations that can reduce pollution. This alarming state has made everyone crazy for becoming eco- friendly, and logistics sector is no exception to this; after all, it is one of the major contributors to environmental despoliation. Around 15 percent of the total Green House Gas emission is due to fossil fuels burnt by transportation and logistics sector. Though Logistics and in that matters, Energy, Industry and Agriculture are 4 pillars of economic development, it is rightly said that environment and growth are often understood in mutually incompatible terms, A Systematic Approach towards a Better Ecosystem
  • 21. MOMENTUM SEPT -2017 21 especially in India, which is in a great hurry to catch up the economic development. Though Thermal Power is the major source of CO2 emissions but it is impractical to drive without it as it contributes to 59.2% of India’s total electricity production. Agriculture on other hand is undergoing a deep crisis and in this situation, technological advancements in agriculture are the major need to make India self- sustainable. Unfortunately, all major technological innovations impact environment to some extent and thus Agriculture again cannot be touched to renovate harmful emissions. The only sector that can become a game changer in this race is Transportation and here comes into picture the concept of Green Logistics. Green logistics, in the context of humanitarian logistics, encourages all stakeholders to consider the impact of their actions on the environment. It is often misunderstood that Green logistics is confined to Transportation, but it includes Warehousing, Packaging, and Disposal. Green Logistics in Transportation No doubt that Transportation is the major contributor in Green House Emission. Experts believe that if we could take control over emissions from transport alone, there can be a lot of improvement in the quality of the air we breathe.
  • 22. MOMENTUM SEPT -2017 22 For achieving these feet, there is a need to revive Transportation mechanism. By achieving optimal fuel consumption, we can hit the bull's eye. It is very important to choose the best route to reach a destination in the least time and minimal fuel. Intermodal Transport i.e using more than one mode in single delivery is yet another option that could be used for long-distance shipments. After the e-commerce industry took over, the logistic industry got a revival but now there is a need to take a control over freight vehicles and the emissions caused by them. One solution here could be the use of efficient fuel vehicles. Apart from that, a technological solution such as Route Planning and Mapping System (RPMS) can be a big booster to organize to and fro trips. Green Logistics in Packaging and Warehousing Packaging is yet another aspect which can undergo major changes in order to keep a check on the environment. Use of eco- friendly material with minimum use of Plastic is the elementary requirement. The design of packages must be changed in order to optimize the material used. Less material means less waste and this can be a game changer in the logistic industry. Moreover, the lighter the packages will be, lower will be the fuel required. As far as Warehouses are concerned, the efficiency of warehouse increases by arranging the most frequently picked items closest to the shipping area. Minimizing the travel time between picking locations can boost up productivity. Logistic parks contribute to reducing logistic costs. Companies with logistic parks have reduced the supply chain cost by as much as 50%. Apart from that, Solar Lit Warehouses can also add multiple advantages. Adoption of Green Logistics is a long journey and destination is still far away. But this path cannot bet taken by one or two players. Everyone should join hands to achieve the achievable. Before planning a freight, companies should have answers to following questions: What kind of vehicles we are going to use and what kind of vehicle shall we use? Is it going uphill or downhill? Once they will have confined answers to these questions, proper calculations could be done to optimize the travel from the environmental point of view.
  • 23. MOMENTUM SEPT -2017 23 Did You Know? Article by Kartik Iyer Akshay Nagpal PGDM - 2017-19 •In India, roadways constitute up to 60% of freight movement while railways account for 32% of the cargo movement. •Of the total warehousing space of about 1,800 million sq ft, the industrial and agricultural segments constitute about 86 per cent and 14 per cent, respectively. •GST has boosted the logistics industry annual growth rate from 12-15% to 20- 22% •Indian logistics industry is currently worth more than $300 billion. •The first road-worthy cars used a lever instead of a steering wheel to steer. It had a design and functioning like that of a joy stick. Volkswagen named several of its cars after wind. Passat - a German word for trade wind; Golf - Gulf stream; Polo - polar winds; Jetta - jet stream. •The most expensive car ever sold at a public auction was a 1954 Mercedes-Benz W196R Formula 1 race car, which went for a staggering $30 million at Bonhams in July 2013. The record was previously held by a 1957 Ferrari Testa Rossa Prototype, sold in California at an auction for $16.4 million. FedEx Facts: •Federal Express was created because of founder Fred Smith's belief in emerging technology in the early 1970's, and his recognition of the importance of being able to get components to manufactures, as well as products to consumers, quickly. He was an avid believer that time is money, and was willing to put his own financial resources, as well as elbow grease, behind his budding idea to prove just that point. •The first FedEx shipment consisted of 186 boxes, sorted by hand on a card table, then shuffled onto one of 14 jets. Now the company has over 684 aircraft, including 11 Boeing 777's that can carry 178,000 lbs of payroll. •To continue their "better service through better technology" trend, in the early '80's FedEx began buying up the 800MHz spectrum in North America. They built towers and created a nationwide wireless data and communications network tied into a FedEx mainframe so that drivers could share tracking information from devices inside their trucks. Keep in mind that this was way before mobile carriers offered a cellular data network!
  • 24. MOMENTUM SEPT -2017 24 Recent Events: Intern Dairies Article by Deyasini Sanyal PGDM - 2017-19 Intern Diaries is an event that was introduced for the first time in the academic year 2016 – 2017. The inception of the event came about from the need to equip the incoming junior batch with information regarding summer placements from the horse’s mouth so that students do not have to go by hearsay. As a part of our endeavour to help first year students clear their doubts and queries regarding the summer placement process and gain insight into what to expect from their internships, Intern Diaries was held on 09.08.2017. We invited guest speakers, currently second year students at SIMSR, who bagged internships in reputed companies. The seniors walked all the attendees through the various stages of the interview and shortlisting process that they went through. They also gave in depth explanations regarding the roles that they worked on in the companies and what was expected from them. This worked as a one stop shop for query resolution and helped in making the resolution process a personalised and one on one interaction. This also helped juniors as they got the chance to interact and get their doubts resolved. Our speakers were from a wide range of specialisations, including but not limited to operations and marketing. They gave many inputs to the audience and stressed heavily on knowing the core values of the company that one is sitting for and also making sure that the facts quoted in GDs are correct and to the point. With a footfall of over 120 students, we were happy that the event Intern Diaries was a success and glad that we could help provide the necessary inputs for the internship process. We hope and encourage similar overwhelming participation in all future events.
  • 25. MOMENTUM SEPT -2017 25 Intern Dairies Moments Speakers (Clockwise from the left): Jishnu R - Tommy Hilfiger, Manish Pandey – Daimler, Vinit Parikh- Thermo Fisher, Vipul Varkar – Amazon, Sumeetesh Kanjani – ABRL, Saurabh Butala – Excel Industry, Gaurav Syal – Henkel, Apoorva Pathak – Godrej Interio, Piyush Banarkar – GEP, Sarthak Shukla –Amazon, Raunak Sharma – Thermofisher and our hosts – Hiral and Saharash Team FORSE at Intern Dairies
  • 26. MOMENTUM SEPT -2017 26 Upcoming Event : GSCM Conference
  • 27. MOMENTUM SEPT -2017 27 We are glad to announce the SIMSR Global Supply Chain Management Conference (GSCM) will be held on Saturday, 16th December, 2017 at K. J. Somaiya Institute of Management Studies & Research, Mumbai. Supply chain management is the art of providing the Right Product, at the Right Time, Right Place and Right Cost to the consumers. Technology, digitization and automation are dramatically changing the supply chain. Supply chain managers must not only create and maintain efficient and effective supply chains but also adapt new strategies to match the fast paced environment prevailing in today’s markets in order to gain a sustained competitive advantage. With this background the Supply Chain management conference with the theme Managing the Supply Chain….. Driving into the future….. is being organized by the faculty and students of KJSIMSR. We aim to provide an interdisciplinary forum for industry professionals, researchers and academicians and students to present and discuss latest developments and applications in the comprehensive areas of Supply Chain Management. It would be interesting to understand the technology and trends that will shape the supply chain in the coming years. The conference presents you with ample opportunities to learn from industry experts and network with the delegates, academic professionals and students. There will be paper presentation sessions based on the following topics: • Internet of Things and SCM • Analytics in Supply Chain • Automation of Supply Chain • Sustainable/Green Supply Chain • Supply Chain for Retail • Infrastructure Logistics • Supply chain Management in Services • Innovations in Supply Chain However papers are invited from other related areas/topics of supply chain as well. Please visit http://simsr.somaiya.edu/simsr/scm/opsconf/ for further details regarding the registration and other information about the conference.
  • 28. MOMENTUM SEPT -2017 Faculty In-Charge Dr. J S Lamba Area Chairperson Operations Designer Ajay Yadav Editor Hiral Shah Senior Team Shikhar Sodhani | Shashank Jain Rohit Soneji | Dheera Varandani | Rohit Radhakrishnan TeamMomentum Promotions Team FORSE Contributors Kartik Iyer | Deyasini Sanyal | Saharash Bhanawat Akshay Nagpal | Shikha Agrawal Arushi Joshi | Karan Jaidka
  • 29. MOMENTUM SEPT -2017 Website www.forsesimsr.com Facebook Page www.fb.com/simsr.forse LinkedIn www.linkdin.com/in/forsesimsr Know us more Keep writing to us Send in your subject related entries to forse.simsr@somaiya.edu