LEFWorld aims to be a knowledge-based intermediary in the supply chain and logistics market in India. It plans to create a network of vendors, consultants, and service providers to facilitate relationships between them. LEFWorld will deliver a technology platform for business-to-business communication, transactions, process design, and value-added services. Early results show overwhelming interest from over 700 asset owners interested in joining LEFWorld's warehouse network, with the potential to provide over 5 million square feet of warehouse space across India. Going forward, LEFWorld will continue expanding its network of partners and conducting outreach programs to educate asset owners on opportunities in warehousing.

1. Introducing LEFWorld

2. About LEFWorld
• LEFWorld aims to be the leader in the warehousing
space in India
• LEFWorld’s customers are 3PLs and warehouse asset
owners
– Aqua Logistics is the anchor customer
• LEFWorld is evolving a unique market leader position as
a knowledge-based intermediary in the
logistics and supply chain market
Early results are overwhelming
Introducing LEFWorld

3. Roadmap
• Warehousing Demand in India
• Response from 3PLs
• Defining the unorganized market
• The Indian Context - our beliefs
• The LEFWorld Response
• Market response so far
• The next steps in the initiative
Introducing LEFWorld

4. Warehousing Demand in India
Global customers need high quality and sophisticated
pan-India warehouse network. They need 3PLs to
provide high quality infrastructure, core
warehouse processes, and value added
services alike.
This demand is relatively new, and the market
response is nascent right now.
Introducing LEFWorld

5. What 3PLs are doing?
• Warehousing is an unorganized market in India
right now. 3PLs are responding with capex
based approach to buy, build and run warehousing
services.
– However, most of them have hit the recession snag
Introducing LEFWorld

6. Unorganized market means
• There are small entrepreneurs, hundreds of them,
providing rudimentary warehousing services
• Standards of quality in infrastructure, processes and
services, pricing, deal structures, funding channels, HR
practices etc are not established
• No 3PL is selling pan-India network
– in a consolidated fashion
– with customer-specific solutions
– value-added services, and
– SLA guarantees
Introducing LEFWorld

7. The Indian Context - our beliefs
• India is a country of self-employed people
– > 85% of GDP is from the unorganized sector
• Culturally, India is several countries packed into one
– And that has management implications
• There are lots of people, with lots of assets, and lots of
aspirations
– They may not have the right set of capabilities, but
– Given the right proposition, they are willing to partner for business
Introducing LEFWorld

8. The LEFWorld response
• The LEFWorld initiative is designed to harness the
Indian context
– Collaborative and knowledge-based model rather than asset-based approach
– Business framework to involve asset owners and service providers
– A business framework which gives low-risk RoI in a win-win situation
• Collaboration involves asset owners and service
providers
• Customers are 3PLs
Introducing LEFWorld

9. Confidential 9
The Warehouse Asset Owner (WAO) [1]
• Availability: Large numbers pan-India
• Varied maturity in infrastructure: From bare
land, to structure, to full-fledged warehouse
– The numbers decrease exponentially as maturity increases
• Investment Capacity: Some of them have
capacity to invest
• Motivation: Are quite like investors – very RoI
driven
– In rare cases they are driven by the enterprise

10. Confidential 10
WAO [2]
• Expertise: Generally lack knowledge and capability
– To build warehouse infrastructure
– Run core warehouse services
– Run value-added services
– Various technicalities in the business, such as deal structures, pricing, etc
• Brand and Sales capability: WAOs obviously
have little market access and sales capability

11. Confidential 11
3PL Warehouse Capability
• Expertise: Generally have the wherewithal to buy
expertise
– However, commissioning projects after buying expertise has gestation
– Moreover, India has severe lack of expertise
• Sales strength: 3PL brand, and corresponding sales
and delivery capability
– Deep market penetration, and the space is growing very fast
• Investment Capacity: However, cash is costly

12. Confidential 12
Constraints with WAO
• WAO are open to collaboration to fill in their gaps.
However, they want to be independent.
• Further, they want assurance of RoI in case
investment is required for building HR, infrastructure
and processes and technology capabilities

13. Confidential 13
Constraints with 3PLs
• A 3PL needs captive-like ready network,
which is matured in terms of HR, infrastructure,
processes and technology
• A 3PL would not like to upfront invest
unless it’s a captive network
• Additionally, asset network departments within 3PLs
are a cost center

14. Confidential 14
The Conflicting Constraints
• Independence vs Captive Capacity: WAO
wants to be independent, a 3PL needs captive capacity
• Investment: WAO needs assurance of business for
investing in everything apart from the land / space. A
3PL does not want to invest unless it is captive capacity
This conflict will not go off naturally – it
needs managed action!

15. Confidential 15
Resultant of the conflicting constraints
• The Warehouse Market remains unorganized. Most
players are taking the asset-ownership route
to organize this market
• It directly affects what a 3PL can offer to
customers

16. Confidential 16
Developing a win-win situation [1]
• Build a network of WAOs
• Lend them expertise to build
– Infrastructure
– Processes and core warehouse services
– Value-added services
– Technology capabilities
– Understanding of technicalities in the business
• Build training infrastructure to train HR to
manage warehouse services

17. Confidential 17
Developing a win-win situation [2]
• Build terrific project management
capabilities, where conversion to ready-to-use
warehouse is rapid, accurate and least costly
• Design a technology-powered operational machinery
which can effectively execute this on a
continuous basis
• Standardize metrics for evaluation of
infrastructure and SLA capabilities

18. Confidential 18
Developing a win-win situation [3]
• Provide named affiliation and umbrella branding
for WAO
• Provide support to raise funds for infrastructure and
services
• Build a business framework where transactions
and contracts are standardized and pre-negotiated
• Access to sales capability of AL

19. Confidential 19
Advantages to WAO
• Becomes a premium warehouse provider
• Gets much better access to the market for sales
• Enhancement of credit rating
• Gets hand-holding
• Gets to remain independent – WAO can still sell
directly or through other channels
• And much, much more…

20. Confidential 20
Advantages to a 3PL [1]
• Gets a large network of captive-like
warehouses, with desired SLA potential
• No need for large capex
• Gets an extremely organized machinery for
building and managing the network
– Aqua Logistics has reduced time to respond to customer requests from 13 days
to about 30 mins
• And finally, Supply volume can exceed sales volume

21. Confidential 21
Power of the network
• Infrastructure procurement can be far more cost
effective
• Umbrella branding ensures visibility
• Best practice research and implementation
• Superb control on demand-supply

22. Response to LEFWorld so far
• Asset owners in the north India belt reached through a
promotion program
• Overwhelming response
– ~700 asset owners approached us to include them in our network
– Consolidated space approximately 5 million sq. ft.
• Asset owners with 5,000 sq ft, to 500,000 sq ft potential
– Entire spectrum of maturity levels
• From individuals who have investment appetite and intent to get in the warehousing
business, to bare land owners, to asset owners with rudimentary infrastructure, to
matured warehouse capacity
– 90% plus have investment capability
• Or willingness to bear the cost of investment
– The geographic spread is such that no single 3PL can build with a cap-ex
approach
Introducing LEFWorld

23. The next steps in LEFWorld [1]
• Like we are building a network of asset owners, we are
also building a network of partners and service
providers
• These partners shall bring knowledge and various set of
capabilities in
– Warehouse infrastructure
– Core services and technology
– Value added services
– Financial services
Introducing LEFWorld

24. The next steps in LEFWorld [2]
• We are conducting a large outreach program in
the next 3 weeks
– Outreach to address major warehouse capacity owners
• This outreach program shall have workshops to give
asset owners a perspective on
– Opportunity in warehousing space in India
– Global customer requirements and quality expectations
– Warehouse infrastructure design and standards
– Warehouse processes, value added services, customer-specific solutions, and
technology
Introducing LEFWorld

25. Thanks
Introducing LEFWorld

26. LEFWorld Private Limited
LEFWorld is a Project that aims to be a knowledge based intermediary in the supply chain and the global
logistics solutions provider market. LEFWorld aims to create a network of vendors, consultants,
intermediaries, and other such service providers and facilitate relationships between them.
The project aims to deliver a Technology platform for:
 Business-to-business communication
 Transaction between members of the business networks
 Design processes and shared services
 Adding value to our clients’ businesses
Products > Logistics Procurement Outsourcing
Aqua Logistics has observed that logistics rate negotiations can be loaded with inefficiencies and
inaccuracies. These unnecessarily drive up costs. Our Logistics Procurement and outsourcing solutions
offer you support for:
 Strategic decision-making
 Facilitating mutually beneficial
transportation contract
 Negotiations and management
processes.
We do this by ensuring that our database is
overhauled with our vendor community
updates. This ascertains:
 Flexible collaboration
 Streamlined visibility
 Accurate information
 Lowest feasible cost

27. We also possess contract management capabilities that complement the procurement process by
enabling multi-party collaboration on terms and conditions and on electronic storage of final
agreements.
Our logistics procurement service allows you to:
 Improve service delivery
 Achieve year-on-year Logistics savings
 Reduction operating costs
 Focus attention vendor performance management
Our category spend ensures:
 Downward driving costs long after the initial sourcing activity
 Increase in value delivery over time
Products > Logistics Procurement Outsourcing> Solutions Offering
Spend Analytics & Spend Management
Spend management allows you to buy the right services at the right price and in the right volumes.
Spend analytics provides opportunities for:
 Tier optimization
 Vendor consolidation
 Contract negotiation
 Price parity analysis
Our solutions move beyond
subjective reports that are difficult
to use in a real processes. Our reports allow our customers to set, manage and track savings and
compliance mandates through a transparent and a predictable process.
Strategic Sourcing
"Typically, RFx (RFP, RFQ, RFI) processes have been cumbersome, time consuming and labor intensive.
We understand that every new sourcing event is characterized by:
 Creation of RFx in excel/word documents with minimal collaboration
 Receipt of supplier responses in multiple diverse formats
 Tedious consolidation of supplier responses in an user friendly format

28.  Manual scoring and ranking of the suppliers
 Complex excel based analysis
 Constraints on scenarios.
The manual process is lengthy and tedious and hence, sourcing professionals often tend to invite a
small, known group of suppliers to bid for business. Hence, opportunities to include new suppliers for a
competitive bidding are few and far between.
Our Sourcing solutions manage your requirements by:
 Providing a combination of diverse, deep category expertise
 An array of tools, technologies and information
 Finely tuned and well-integrated processes
We offer a commitment to deliver long-term sustainable value and targeted outcomes for our clients.
Vendor Management
Backed by domain experts who understand the supplier collaboration requirements of your industry,
our information solutions enable:
 Rapid demand fulfillment
 Performance evaluation by presenting a single face to your suppliers
 More efficient supply operations
 Increased order accuracy
 Flexibility to respond immediately to customer demand changes
Our Supplier Relationship Managers are experts in the vendor management domain and take care of
your:
 Re-order processing
 Contracting
 Contract performance measurement
 Accounts payable processing
We work so you are doubly sure of the outflow for the services hired