1. CargoConnect - july 201680
Emergence of CSCO in
Bi-Modal Logistics era
CSCO! These managers were expected
to control the transportation cost of the
products as told to be delivered; perhaps
3 to 6 per cent of the product cost and
saving 20 per cent, which is 0.6 and 1.2
per cent of the product cost.
In the Last Thirty Years
It was realized that the cost of movement
of cargo can be controlled. But, disrup-
tion and inefficiencies of the supply
chain would cause greater damage, how-
ever what would be the cost of disrup-
tion when a manufacturing unit is lying
idle for few hours, days or even weeks?
Well, then the CEO started thinking
about “Material Manager, Purchase
Manager, etc.” Still, there was no sign of
CSCO! But, this is the beginning of ac-
ceptance of contribution and creativity
of these managers.
Supply Disruption
We, Jayem Logistics, controlled the
cost of transportation while working
on eliminating supply chain disruption.
Thereafter, a new factor emerged. When
billion dollars’ worth input or output
material of a manufacturing unit is not
put to use right away, the manufactur-
ing is an unviable. Then, there came in
JIT and other equivalent concepts. The
subject “Supply Chain” turned out to be
complex, global in scale and encompass-
ing all functions within a manufacturing
unit. Well, this is the time of emergence
of Supply Chain Manager (SCM); but
still a position of CSCO is far away!
Cost of Inventory
We have covered three parameters till
now. But, what about the inefficien-
cies of the movement of material within
the manufacturing unit? Production
Planning / Industrial Engineers were
given the task. But, their focus is on man
/ machines’ efficiency and not over the
movement of material. Then, the Supply
Chain Manager needed to transform
himself to understand the manufacturing
process. This was the time for CSCO, the
beginning of continual dialogue between
CEO and CSCO.
Production Line
With IT in hand, the supply chain moved
to order fulfilment and government com-
pliance with respect to material move-
ment as well. Now, the CSCO is first
among its equals; being a constant com-
panion to CEO. Hence, the perception
of CEO and CSCO merges. But, when
the perception differs, perhaps, the right
thing to do is to make CSCO as CEO,
which Apple has well implemented.
Thereafter Came the New
Animal: E-Commerce
E-commerce IT Platform headed towards
consumption and the conventional distribu-
tion model. Overall, e-commerce is primar-
ily B to C, but still holds a small percentage
in conventional B to C trade. At its infancy
stage, B to B business is yet to emerge.
What will be the role of CEO / CSCO in
E-Commerce as of now and in the next de-
cade? That is another story altogether.
guest column
CargoConnect - july 201680
(The writer is the Group General Manager- Corporate Planning, Jayem Logistics)
By Raman Kaul
Primarily, there were two kinds of material
movement. One was bulk for process in-
dustry and another for inputs / outputs of
manufacturing unit. Taking up the manu-
facturing industries aspect, we can see that
initially, manufacturing and consumption
were local. With European industrial up-
lift, some long distance movement was
commenced. Perhaps, at this point of time
the CEO performed as CSCO.
A Century Ago
The movement of inputs and outputs of a
manufacturing unit turned out to be glob-
al. During the global movement, the CEO
found the cost of movement comprising a
large proportion and in some cases even
equivalent to the cost of input. So, the
focus of the CEO shifted to cost synergy
and there walked in “Transportation
Manager, Materials Manager, Freight
Forwarder, etc.” There was no sign of