#Lessonsfromthebest : Quality & Performance

 

Author’s Note: Over the last few weeks, I have been using this space to write about the lessons I learn from organizations with respect to their supply chain management, but not limited to it. I have also been attempting to convey my learnings as a narrative, and a story of sorts. So, if you want to learn something informative whilst having some entertainment, go ahead and read away! If you want to read my previous blog posts, click here! 😊

Shanmugeshwari, MBA '21

Amrita School of Business, Coimbatore

 

TIMEKEEPING AT OLYMPICS

When I was entering my teenage years, I religiously followed sports – all kinds of sports, any kind of sports. I remember watching the 2008 Beijing Olympics, carefully scheduling the time slots of my favorite sports along with my school timing. If there is one event that took the world by storm that year, it must be the Swimming! The year Michael Phelps made history winning 8 gold medals. I could still vividly remember how his 7^th race happened when Milorad Cavic almost grabbed that gold medal. But, suddenly, Phelps made a mini-stroke, propelling his upper body out of the water, and slamming the wall with his hands on the follow-through. Nobody could tell who finished first, because while one glided with big strokes, the other stroked shorter and faster. Even with the slow-motion replays, the reviewers could not decide.

So, how did they conclude who won the race?

How did they prove the protesting Serbian committee of Milorad wrong?

Luckily for the Olympics committee, they used high-tech timekeeping touchpad systems by Omega. Omega’s touchpad determined that Phelps won by one 1/100th of a second i.e., Phelps' time was 50.58 seconds while Milorad finished at 50.59 seconds!

Why did they choose Omega for this responsibility and not any other brand?

The Swiss Time Company has maintained its reputation for precision for over 150 years now and has introduced new technologies to enhance the timekeeping process.

The Mexico City Games of 1968 represented the first time that all Olympic sports, including the touchpad system for swimming, used electronic timekeeping. Omega and its subsidiary Swatch developed and introduced 20 new ways of timekeeping technology at the 1996 Summer Olympic Games in Atlanta, including the use of the Global Positioning System (GPS) to record the performances of 10,318 competitors, a record in itself. One hundred and ninety-six engineers and technicians came from Switzerland to support this hi-tech effort carrying 100 tons of equipment. Omega mobilized the aid of 450 engineers and technicians and 420 tonnes of equipment during the 2008 Beijing Olympic Games. While this support may seem unnecessary, preserving the reputation of Omega goods and services is a critical part of it.

In its line of personal timepieces, Omega applies the same degree of commitment. The Department of Quality Assurance puts every part of the timepiece through rigorous testing to ensure that it meets strict quality standards.

Four quality tests for Omega timepieces include:

• To analyse the accuracy of the piece, the movement of the internal structures of the timepieces is examined through stringent testing. In order to ensure that each watch retains an acceptable degree of temperature resistance, vibration resistance, and shock resistance, the Technical Development Department also performs laboratory tests.

• In the concept stage, the exterior casing of each piece must be approved even before it enters the production stage. Before it advances to the next level, a series of checks, such as its ability to withstand water, is tested.

• Omega ensures that all facets of the timepieces can hold up against the toughest conditions in the world, meaning that each dial and hand is exposed to an ultraviolet examination to ensure that the timepiece stays intact following exposure to intense sunlight or humidity.
• While it may not be the most technical feature of the Omega timepiece, the strap of each piece must still uphold certain consistency requirements. To prove its durability, each one is put through rigorous mechanical tests.

The commitment of Omega to quality is what makes the firm so respected. Omega strives to offer a premium product that has withstood several tests of time, whether its watches that are used to help a person be on time for a business dinner or to assess the outcomes of Olympic performances.

 

Future Logistics 4: Electric Road System – The Road of the Future

Electric Road System – The Road of the Future

 

 Hi, I’m Priyanka Sunil- A final year MBA student from Amrita School Of Business majoring in Operations and Marketing. Welcome to my progressive learning space for Logistics and Supply Chain Management.

 

 PIC : insideevs.com

Until some years ago, there was a belief that electric cars, buses and trucks, both in terms of efficiency and driving range, were inferior to fuel-powered vehicles. Development in autonomous technology and related infrastructure has evolved soo much in ways unimaginable in a span of 20 years. In this autonomous-driving revolution, the road of the future is likely to become the central nervous system.

The worldwide Green House Gas emissions must be decreased by 40 percent-70 percent in order to sustain the global temperature increase below 2 percent and prevent extreme climate change. As road transport is a big GHG contributor, we will need to rely on anything other than fossil fuels for our transport needs in several years. One possible alternative is for our vehicles to run on electricity supplied along the road. According to the report of the Intergovernmental Panel on Climate Change, 72% of the 23% of the global transport sector's total energy-related CO2 emissions are due to road transport, which is expected to rise by 59% by 2030

 

Electric Road System-Types

The road freight transport can be made more sustainable by the implementation of an electric road system (ERS) which provides electric power to trucks equipped with an electromotor by the use of an external power source. Electric road systems (ERS) provide a way of powering and charging a vehicle as it is driving along a road.

There are three main types of ERS:

·        Overhead lines: Two conductive lines are suspended over the road at a height of approximately 5meters to power heavy commercial vehicles.

·        Conductive track: These are simply conductive metal tracks installed in or on the surface of a road or sometimes along the side of the road.

·        Inductive track: These are buried conductive coils below the surface of the road. An electric current is induced in a coil on the bottom of the car.

Hybrid trucks consisting of an electromotor taking energy from an external source, as well as an on-board power source (fuel or energy-based), are used in these methods to ensure that the trucks have a continuous power source while they are not connected to the external grid. If the hybrid truck is fitted with a battery, the ERS and the regenerative braking system will then charge it.

This does not necessitate electrification of all highways. Rather, on long stretches of highways and in busy areas of urban road networks, charging zones will be included. Since 2016, these systems have been in trial service in Sweden and Germany on public highways.

 

Sweden is leading our way…..!!!

Road transport accounts for one-third of Sweden's carbon emissions, one-fourth of which is due to heavy freight transport. Sweden has committed to making a transport sector independent of fossil-fuel vehicles by 2030 as part of its climate protection strategy.

 

Sweden debuted the world’s first electrified road near Stockholm. South Korea and China also have been investing in solar-powered electromagnetic roads that recharge cars and trucks wirelessly to charge of EV batteries and reduce carbon emissions.

The world's first electrified road that uses a flexible arm to charge the batteries of moving vehicles recently debuted in Sweden. Two kilometers of the rail is embedded in a road near Stockholm. The road recharges vehicles' batteries as they move down it. It operates by using a movable arm that transfers the power from the rails to the vehicle battery by linking the vehicles to two electrified rails. The ERS decreases emissions of carbon dioxide by up to 90 percent. Even though The electrification of a kilometre of road costs around $1 million, it is 50 times less costly than the installation of an urban tram line. The strategy is to expand throughout Sweden to help minimise transport using fossil fuels by 70 percent by 2030 

There are a few other eco-sustainable solutions being used across the globe. South Korea developed a 12-kilometer asphalt roadway with electric cables in 2013, to build an electromagnetic field for wireless charging of moving passenger buses, China is testing a "intelligent highway" to produce electricity using solar panels to minimise transportation sector emissions. 

Over 100 years of electric vehicles

It was over 100 years ago, that the first electric cars were produced in US and they controlled the roads until around 1915. There are two methods for powering vehicles with electricity : stored battery power and direct feeds when in motion. Both of these techniques are more than 100 years old.

The challenges of using battery power

Even the best batteries could only store a fraction of the energy compared with the energy content of diesel, for example. This makes driving longer distances more difficult.

Is ERS a better economic solution?

Current infrastructure can be exploited by the electrification of roads to reduce energy use and carbon emissions. Electrified-road transport eliminates fossil emissions by 80 to 90 percent and is a cost-effective, climate-smart way of combining the benefits of rail with truck versatility. Due to substantial reductions in energy usage resulting from the use of powerful electric engines, operating costs would be minimal. Electricity is also a cleaner, quieter and less expensive source of energy, compared with diesel.

Reference

https://eroadarlanda.com/need-electrified-roads/

https://www.vti.se/en/news/electric-roads-a-solution-for-the-future/

https://www.engineering.com/AdvancedManufacturing/ArticleID/20157/Electric-Road-Systems.aspx

https://www.mckinsey.com/industries/capital-projects-and-infrastructure/our-insights/electric-road-systems-the-future-of-freight-transport

https://learningenglish.voanews.com/a/electrified-road-can-charge-vehicles-as-they-drive/4406280.html

https://www.sia-partners.com/en/news-and-publications/from-our-experts/electrified-road-freight-transport

H&M - Successful Retail Clothing!

 

Hi, I'm Saradha Preethi. A final year MBA student from Amrita School of Business. Welcome back to my Logistics & Supply chain learning space.😇 

H&M stands out for selling fashionable, trendy types of clothes and quick-change accessories. H&M guarantees the best consumer offering in every market by holding the right pieces of stock in every store that you want. Best tailored to the needs of the consumer. H&M aims to offer a wide selection of products that inspires consumers to browse and buy passionately.

H&M manages every stage of its supply chain as an importer, wholesaler and retailer. The ongoing production of IT provides excellent support for H&M logistics. Transportation is subject to a deal with third parties, while H&M manages stock control manually. The bulk of the flow of goods is diverted and transmitted through its terminal in Hamburg, Germany, and then distributed to various distribution centres in different countries. When products arrive at these sites, they are inspected and assigned either to the store or to a centralised storage room called "call off warehouse".

H&M fosters close and successful interaction with its suppliers by strategically positioning 30 production oversight offices as a mediating role and fostering contact with partner companies on the latest fashion trends and internal issues of the business. This helps to ensure that the products are delivered at an accurate price and quality and that the suppliers comply with the company's code of conduct. These production offices have a major role to play in the inspection and examination of sample apparel.

H&M - Design

• The collection is designed centrally by the purchasing design department.
• Trying to find the balance between viable and latest deisgns.
• Inspiration of designs came from the trends.
• The collection in collaboration with renewed designer.
• Analysis of styles and designer of previous year.

H&M - Production

• 60% of the items are produced in Asia.
• European suppliers are for fashion sensitive clothes.
• The suppliers are selected on efficiency and working conditions.
• Flexible purchasing.
• Economy of scale.

H&M - Distribution

• Cost - effective mode of transportation (ships, trains).
• Central and local distribution centers.
• Best available location for stores.
• Huge number of stores around the world.

So, you got it there! A short but potentially very informative tour of one of the world's largest fashion retailers' strategic backend systems. If you're ever trying to conquer the fashion retail industry (or maybe just set up a cosy e-commerce retail store), it may be ideal for you to follow in the footsteps of the popular H&M.

Reference:

https://www.ukessays.com/essays/international-business/global-logistics-supply-chain-management-of-hm.php

http://ijariie.com/AdminUploadPdf/Fast_Moving_H_M__An_Analysis_Of_Supply_Chain_Management_ijariie10784.pdf

Happy Learning with Sara :)

Innovation in Yard Automation

In the recent days there has been a trend of increasing demand for Digital Yard Management System. The reason for that is quite phenomenal as in Yard Management System (YMS) involves a lot of human work needed to keep a track of goods in the stock place, warehouse and manual entry of the trucks travel location which the drivers may sometimes find it difficult or cause of double entry and takes a lot of time which in turn results in huge loss for the companies when summed up together.

This is the place where the introduction of Digital Yard Management System (DYMS) plays a huge role in eliminating all the problems, difficulties and saves a lot of money for the companies and in-turn provides accuracy, precision and on time delivery. This introduction of DYMS is having an increasing demand now-a-days because of the efficiencies that it provides to the consumers or clients or the companies. 

YMS - A Yard Management System (YMS) is a software system designed to oversee the movement of trucks and trailers in the yard of a manufacturing facility, warehouse, or distribution center. YMS's provide real-time information on location for trailers in the yard. It allows yard employees to move from staging to docks, to fill orders in an efficient way.

Driving Greater Yard Efficiency

To attain a greater efficiency for the yard and better collaboration with carriers, vendors are focusing more on yard collaborated automation capabilities as part of their offerings. Companies have put a lot of effort into optimizing their processes in the warehouse and transportation. Shorter transportation lead times and increasing transportation costs always push the companies to increase their efficiencies in the yard, because the time spent on the yard can be unproductive and costly.

More regulated hours of service and an increasing driver shortage have a negative impact on the total number of hours trucks are on the road at any given point. Consequently, it becomes even more critical for shippers to find time savings elsewhere in their supply chains. Boosting throughput by using a YMS means trucks spend more minutes with their wheels turning.

Closing the Gaps

• Finding and assigning trailer assets and associated loads automatically through their life cycle, and optimizing their movement between gates, yard, and docks.

• Minimizing the operational footprint (people and assets) required to operate the facility effectively.

• Improving sustainability by reducing truck idling time, eliminating excessive reefer trailer and yard spotters fuel consumption, reducing empty miles, and eliminating paper from operations.

• Supporting the management of transportation contracts and accessorial charges from a site and enterprise level.

• Optimizing driver turnaround times while becoming a Shipper-of-Choice.

• Taking advantage of all available real-time data exchanges between the RTTVPs, TMSs, and other transportation system data sources.

• Enhancing operational capabilities and providing contactless functionalities to promote social distancing during the COVID -19 pandemic.

Lately companies are looking into YMS solutions to help close all the possible supply chain gaps that are currently in existence in their own backyards such as long trailer wait times, unproductive personnel numbers, poorly synchronized movement of goods and ineffective dock planning.

Happy Learning😀. Please share your valuable comments.

Safety comes first..

 

During the unprecedented time because of the pandemic, many companies are not aware of the measures that needs to be taken in order to ensure the safety of their employees which ranges from providing personnel protection equipment, maintaining physical distance etc.

With the rapid spreading of Covid-19 and employees coming to work, many precautionary measures have been taken that has been considered as the new normal i.e checking temperature of each employee, practicing social distancing, monitoring occupancy levels, cleaning work stations. Along with this , the shifts of employees have also been adjusted in order to prevent too many people in the shop floor.

People have been looking into technology as well, for example, wristbands that vibrate to ensure social distancing, but at the same time, they are not that reliable also.

Monitoring occupancy levels:

Due to the rapid spread of Covid-19, a company called SICK has come up with a people counter sensor app using 3D sensors in order to ensure the occupancy level at workplaces are at the recommended levels.  This sensor does ensure privacy concerns are respected at the same time provide health and safety recommendations. This will help to effectively utilise space and maintain the required occupancy levels.

Maintaining physical distance:

SICK also has a method for reliable detection of people to ensure physical distance. It is with the help of LiDAR and trace and track technology from SICK, they could ensure the safety of everyone within the workplace. This helped to practise social distancing at the same time operating efficiently. This technology helped to create virtual walls  to form three-sided box around a workstation, this will be indicated by markings on the floor.

Tracking throughout the facility:

RFID tags are placed on the employees clothing or hat which will help to track where the worker is travelling. This data is later processed by the manufacturer. The tracker will help to identify and track everywhere any person went in the facility, what all they were in contact with and conduct effective contact tracing.

  

The Largest Fleet Owner of Commercial Vehicles in India - VRL Group

 

Hello ladies & gentlemen!

This week we are going to have a look at an organization, which entered into Limca book of records for having the largest fleet of commercial vehicles in the private sector in India, the VRL group.

Now if you are wondering why I chose this particular transport company is because, I was one of their regular customers for around 3 years, using both their cargo and passenger services. As my previous job involved traveling around the country, mostly it was through their Volvo multi-axle sleeper a/c buses. Also whenever I had to courier huge loads of documents weighing more than 50 kgs, I used their logistics services as they were economical. Most importantly, when it came to rest stops during travel, VRL had its own rest stops across the country, where you can have hygienic food and clean lavatory services.

So who is this VRL group? 

Formerly known as Vijayanand Roadlines Ltd is an Indian conglomerate founded in 1976 by DR. Vijay Sankeshwar in Gadag, a small town in North Karnataka with a single truck and a vision that was way ahead of its time. VRL gradually expanded its services to Bangalore, Hubli, and Belgaum. From this beginning, VRL has grown into a nationally renowned logistics and transport company which is also currently the largest fleet owner of commercial vehicles in India with a fleet of 4835 Vehicles (Including 362 Passenger Transport Vehicles & 4473 Goods Transport Vehicles amongst others).

Over the years, VRL has pioneered in providing a safe and reliable delivery network in the field of parcel service. It has spread its operations to Courier Service, Priority Cargo & Air Chartering to meet the growing demands of its burgeoning customer base.

3PL & Warehousing solutions offered by VRL are tailor-made and cater to the unique needs of its diverse customer base. With the largest goods transportation network in India, VRL parcel service is indispensable for a large number of Corporate Houses. This network spans the length and breadth of the country and is supported by strategically located transshipment hubs. They operate through a network of 931 Branches and franchisees catering to valuable customers and are now in the process of expanding their services to reach even the remotest locations of the country.

VRL is currently headquartered in Hubbali, Karnataka, and has 40 hubs and transport yards across the country. The headquarters has an effluent treatment plant (capacity=175,000 liters), a rainwater harvesting plant, a petrol bunk (allotted by Indian Oil Corporation), and a garage service complex, where VRL’s trucks pass through in the fleet, once in every two weeks.

Their cargo and courier services are now operative in 23 states across India, handling over approx 216 million cargos/year. Their travel business is the largest in Maharashtra and Karnataka having more than 80 branches and 1000 agents. They own 1550 buses (including 742 Volvo buses), covering 6 states across 350 routes in the country. VRL also offers jet aircraft charters to sectors like corporate, leisure and tourism, and also VIP category flights.

They also have a flagship entity called Vijayavani, which is currently the largest circulated newspaper in Karnataka, alongside is a Kannada news channel called Digvijaya news which is also run by them.

Though the recent pandemic has made them scrap 15% of their fleet, they are currently operating at 75% of their capacity. Pharmaceutical and Farming are the sectors that are improving whereas sectors like textile and automobile have gone weak.

Adios, Amigo!

References:

https://en.wikipedia.org/wiki/VRL_Group

-Varadharaju R

"It is a Tea story"

 

Let it be a day or evening, a celebration or mourning, meeting a friend or an alien, Indians just can’t avoid their “Tea”.  Yes, the penetration of tea is massive in the nation’s households that no matter what people take their time to enjoy their perfectly seasoned “chai”. Today, lets open to know more about “behind the scene” on how the tea comes to your hand before you slurp them off.

Let’s begin with the cultivation; Assam, West Bengal, Tamil Nadu and Kerala are the four major tea plantation hubs in India; especially in Kerala and Tamil Nadu the tea is grown and harvested throughout the year. In most cases these tea plantations are owned by small growers, large growers and in certain cases even by the MNE’s who sell them to the consumers. Exclusively we will look deeper into the tea supply chain that the small and the large growers undergo.

The cultivators begin to harvest with the process called plucking where the healthy tea leaves are collected by the plantation workers. The gathered tea leaves are withered to make it more flaccid by removing any moisture within them. Following which the leaves are rolled by machines to activate and release the locked oil and the enzymes within the leaves which is not suitable for the beverage making. At last fermentation happens followed by drying.  The dried tea leaves are sacked together and are made ready to reach the warehouses. But this isn’t the case for the small cultivators, the manufacturing process of tea requires land and machinery setup which pinches their affordability and hence they highly rely on the Bought Leaf Factories (BFL).  BLF is the third party stakeholder who do the processing of tea leaves for the small growers.

The next big step is the auction house where the auction is conducted by Tea Board India, Overall there are 9 tea auction centers located at Guwahati, Coimbatore, Coonoor(2),  Cochin, Amristar, Jalpaiguri, Siliguri and Kolkata. The major players of the auction are;

• Auction Organizers
• Seller
• Auctioneers
• Buyers
• Warehouse keepers

Auctioneers collect the sample from the warehouses and let the buyers to test and taste. Buyers are the bidders who on the other hand pick their preferred tea that suits their taste and price. At the end the highest bided buyer collect the tea from the warehouse which being accounted by the warehouse keeper. Throughout this process auction organizers are the ones who regulate the process of auction. Finally, tea undergoes branding and packaging before it reaches the primary distribution channel which initiates the steps of reaching the end consumer.    

Along with strong value chain a cup of tea never forgets to bring a humble joy with its every sip. Now it's time to watch some relaxing and beautifully captured "feel good" stories. One tells us how tea brought wings for a couple to fly while another speaks how innovative a tea kettle could be. 

#Happy_Tea_Time # Happy_Learning7

-Roobaswathiny A

Hogwarts and the supply chain magic ! 🧙🏽‍♂️🧙🏽‍♂️

Hey all, this blog on Harry Potter & the magical supply chain is based on the book of "Deadly hallows", buckle up for the Hogwarts express!!!!!!!!!!!!!!

🧙🏽‍♂️🧙🏽‍♂️🧙🏽‍♂️🧙🏽‍♂️🧙🏽‍♂️🧙🏽‍♂️🧙🏽‍♂️

To ensure the success of the launch, the publishers did some smart things. They were telling customers to pre-book. The market forecast was thus reasonably reliable and it was possible to supply enough copies of the book. They reduced stockouts. 

On sale, the distributors were pre-aligned. In the preparation of the project, they were interested early on. They arranged for more counters and called the staff early for the book to a sticker.  

Not all things are pre-bookable. But the concept is to get an estimation from manufacturers, salespeople, dealers, from the ground up. After a sample of the item is shared with the suppliers, salespeople, distributors, the estimation can be given. 

The bottom-up demand estimation is usually under-called. This is because of the assumption that a promise is the demand estimate and it is easier to under-call and then over-deliver the demand estimate. 

The demand is over-called occasionally. This is in view of 'hoard' stocks where it is expected that stocks will be restricted.

One way to solve this is to receive a demand forecast from salespeople, manufacturers, etc. Distributors can be described as the performance of a sales individual as coming between + -20% of the demand estimation [it can be any fair tolerance]. It will compensate sales-persons or dealers whose real profits fall below this tolerance. 

At launch, it is necessary to have ample supplies, so ads, media are all organized to be at full weights at launch. A customer who has seen the TV commercial, but does not see the item at the shop, would be very disappointed. And there are high risks that she will not come back for the piece. 

Around the same time, obtaining surplus supplies around the launch is a tragedy. I witnessed the bombing of product releases and lost track of the number of times I had to ruin goods when we overestimated demand and were saddled with a residual inventory.

🧙🏽‍♂️🧙🏽‍♂️🧙🏽‍♂️🧙🏽‍♂️🧙🏽‍♂️🧙🏽‍♂️

Cold chain management : Issues on supply chain of fruits and vegetables

 An apple a day keeps the doctor away : Cold chain management , Issues on supply chain of fruits and vegetables

India being in the tropics is blessed with diverse climate which is conducive to the farming of exotic ,seasonal and all round available cache of fruits and vegetables. India ranks second in the production of fruits and vegetables in the world . Increasing urbanization , nuclear families ,changing lifestyle ,more disposable income have opened up a consumerism which is highly conducive to the growth of the production of fruits and vegetables. Growth of supermarket chains ,organized retail and private label penetration have increased the demand for fresh fruits and vegetables which has been instrumental in the growth of the fruits and vegetable industry

Issues in the supply chain of fruits and vegetables :

Though blessed with conducive climatic conditions that help in the cultivation of fruits and vegetables ,the main bottleneck that stifles this industry is the fact that the cold chain supply management is not highly evolved

There are numerous intermediaries working in isolation and the infrastructure connecting them is weak

There is no yardstick to measure it quantify the demand for the products . It is estimated that less than 4 percent of products are transported by cold chain in India compared to about 90 percent in the USA ,this results in about 440 billion dollars worth of products rotting.

Major roadblocks in the growth of the fruit and vegetable industry :

*Lack of cold chain facilities , inadequate cold chain  network etc are major bottleneck that stifles the industry . This prevents the farmers and businessmen to get proper remuneration

*Lack of supply chain infrastructure  is yet another element that chokes the life line of F & V industry . Proper infrastructure ensures that the product reaches on time and in perfect condition . Lack of infrastructure leads to loss

*High cost of packaging materials is another impediment . Unless the products are properly packaged their shelf life is reduced considerable .they are highly perishable goods hence the very best in packaging material which helps them breath ,while maintaining the temperature required is very essential .the high cost of packaging materials most of the times makes the farmers opt for cheaper materials which adversely affects the quality of the produce and directly affects the earning capacity of farmers


*The farmers still rely on obsolete technology to farm , harvest and pack . Post harvest handling also requires state of the art technology which we lag behind in India

*The farmers are often ignorant on the vast scope of the F &V market . Technological awareness is almost nil which doesn't give them an overview of the global market ,the actual value of their produce which makes them fall prey to intermediaries who fleece them off their rightful profit.thid coupled with lack of awareness in management of post harvest produce , the quality of seeds etc is highly detrimental .

*The demand for organic produce is on the rise . The quality ,freshness , the method of cultivation all add to the value of the produce . The lack of infrastructure ,awareness etc most of the times results in compromising on the quality of the produce which indirectly affects not only the profit of the farmer but also the health of the consumer .India doesn't have a proper quality check or standard in place to assess the quality of the produce .this makes our produce not export worthy .

*The farmers are most often victims of the unscrupulous interventions of the intermediaries who eat up most of the profit whereby the farmers are always in a state of perpetual penury.

*Last but not the least a major roadblock is the absence of a reliable transport system . We are famous for flash strikes ,Bharath bandhs etc which halt the freight movement leading to enormous losses to F&V industry .high cost of transportation ,lack of temperature controlled vehicles , good roads etc affect the movement of goods


Next time you bite into a fresh juicy apple from Simla  , a succulent Ratnagiri  mango  or a Nagpur orange ,thank a farmer and those involved to getting it across to you fresh and juicy .

The First Global Supply Chain in the History of Mankind - The Silk Road (Part 2)

 

Welcome Readers !

I am Sheerapthi Ramiya, 2nd Year MBA from Amrita School of Business, coming back with this week's read ! Hope my readers are doing well and I hope you enjoy :)

The Silk Road - Mankind's first ever Global Supply Chain. The journey is insightful with how it came about into existence with a demand for luxury goods all across Eurasia. The journey of the Silk Road does not end here as there is a lot more to explore ! So hang on tight as things start to spice up. To those who have not gone through Part 1 of this marvelous journey of the Silk Road, I urge you to click the link below which directs you to Part 1 of the story and then come back here.

https://logisticsmatters.blogspot.com/2020/09/the-first-global-supply-chain-in.html

During the 13th century, Caravanserais (Rest houses) were strategically built along the trade routes. Caravans with their animals were able to stay in these caravanserais free up to 3 days with food, accommodation and health care services. Caravanserais appeared every 25-40km along the trade route (relatable to modern day Highway Rest areas). These Caravanserais also served as military stations, royal guest houses, prisons, refuge areas and religious meeting points. During the same period, the Mongol Empire emerged as the dominant military power. The empire covered the Chinese land in the East to the Persian Land in the west. This helped the Empire focus on intercontinental trade which gave it stability and security along the Silk Road. 

During the 16th century, the rise of the Mughal Empire in India gained power and controlled a portion of the trade along the Silk Road. During the same period, the Iberian empire controlled the sea trade from Asia. During 16th -18th century, 3 alternative routes were established that linked the Ottoman Empire to India - 2 sea routes (Persian Gulf route and Red Sea Route) and 1 land route through Anatolia. During the 18th century, the northern trade route became an alternative to the route linking China, Uyghur Region, Persia, and the Middle East. 

The Silk Road

During the 15th century, traveling from Herat in Afghanistan to Peking in China took about a year. The journey from Peking to Samarkand also took about a year. 9-10 months was the lead time from Istanbul to Central Asia. The travel time of the full length of the Silk Road was approximately 270 days (depending upon weather conditions). Considering today's scenario, we can reach those locations within hours ! 

While the trade route has expanded all over Eurasia at this point, how did Empires maintain this big Global Supply Chain network ? In my LSCM course taken by Hema Maam, I was introduced to the Risks involved when designing a global supply chain network and how to manage and mitigate them. I was surprised to know that the same concept of risk management and risk mitigation was applied back in during the existence of the Silk Road. We are talking about a centuries' old Global supply chain network. 

Here are some of the risks that were involved along the Silk Road Supply Chain:

1) The Silk Road supply chain had to manage various financial risks such as interests, tariffs and tax rate risks. During the 17th century, Parthians and Sasanians who served as middlemen tried to monopolize the Silk trade. The states of Turkey demanded high tariffs just to pass through them !

2)  The Silk Road had a great deal of supply chain security risks along the Silk Road. Various mitigation tools and methods were designed and operated at firm and across firm levels. Defenses were setup at private and international levels to protect them from banditry which also included guarding the caravans. The Seljuk Empire provided insurance policies to the traders to manage security risk across land and sea. Contracts were made between caravanners and merchants that guaranteed the delivery of the goods and reduction in transportation fees if delayed. Similar transportation contracts are carried by third party logistics in today's world. 

Bandits forcing travelers to unload their animals

3) The players along the Silk Road were exposed to supply and procurement risks in different regions for various products. For example, European merchants had more risks of procuring goods from India than from China. India did not have well supplied trade centers. Merchants had to search for goods demanded if they wanted to procure from India. Merchants also had to make sure that the goods were manufactured and shipped to Europe according to the specifications of the customers. 

4) Demand and price risks were widespread along the Silk Road. European regions saw a hike in demand levels for refined and raw sugar including silk. This resulted in the conversion of farmland to land dedicated to sugarcane and mulberry trees. Steam reeling of silk was widely operated in China and in the Mediterranean region, especially in the city of Bursa in Anatolia. Firms  purchased cocoons at low prices and sold high in the market to be profitable.

Even though some risks along the Silk Road were mitigated, integration among various empires could not hold for long. The fragmentation of the Mongol Empire loosened the political, cultural and economic unity of the Silk Road. After the fall, other great political powers along the Silk Road became economically and culturally separated. The consolidation of the Ottoman and Safavid (Refer Map below) led to the revival of overland trade but was stopped immediately as war broke between the two empires. The Silk Road trade continued to flourish but was shattered by the end  of the Safavid Empire in the 1720s.

Ottoman and Safavid Empires

Not all is lost as initiatives are being made by the countries that are along the Silk Road. A Railway line has been established in the year 1990 which connects China, Kazakhstan, Mongolia and Russia. The Eurasian Land Bridge, which connects these countries, is referred to as the "New Silk Road". The line connected the cities of Urumqi in China to Nur-Sultan in Kazakhstan during 2008. The line has been developed to provide freight services that connected Chongqing in China to Duisburg in Germany in the year 2011. This resulted in reducing the lead time from 36 days to 13 days. By the year 2017, the line expanded to London, Milan and Madrid.

The Silk Road Train Routes

A recent development to the Silk Road initiative is the "Belt and Road Initiative (BRI)" in the year 2013. It is a 1 Trillion dollar project carried out by the Chinese President Xi Jinping to connect China to Europe. The BRI includes the overland Silk Road Economic Belt and 21st century Maritime Silk Road with primary points in Urumqi, Dostyk, Nur-Sultan, Gomel, Belarussian city of Brest, and the Polish cities of Malaszewicze and Lodz. These cities will be the hubs for logistics, transportation and shipment to other countries to the rest of Europe. The BRI is considered to enhance regional connectivity between Europe and Asia and embrace economic development for participating countries. Some articles do mention that this initiative would dissolve trade relationships between Europe and USA as trade strengthens between China and Europe.

The Belt and Road Initiative

The journey of my blog on the Silk Road stops here as we have come across many interesting details and facts, sighting that the ancient trade route was complex with Supply chain risks but also a Resilient one. Moving goods in a successful way from East to West and vice versa along the Silk Road was a challenging task considering no aid from today's technology. Creating a strategy to manage performance and risks was similar to Global Supply Chain in today's world. To my readers, we can conclude that today's Global Supply Chain Network concepts and ideas were planted many centuries ago. Time has contributed to the growth and expansion of the capabilities of the 21st century Supply Chain.

I thank all my readers who took the time to come across the First Global Supply Chain in the History of Mankind. If you liked this blog and would like more blogs on the supply chains during the medieval times, check out my other blogs mentioned below!

If you like to know more on Logistics was taken care of during the age of Alexander and his great Conquest, click the link below!

https://logisticsmatters.blogspot.com/2020/09/how-did-alexander-great-conquer-largest.html (Part 1)

https://logisticsmatters.blogspot.com/2020/09/how-did-alexander-conquer-largest.html (Part 2)

If you would like to know more about the Logistics of the Kurukshetra War, click the link below !

https://logisticsmatters.blogspot.com/2020/09/the-kurukshetra-war.html

WARNING: Handling Dangerous Cargo

 Hello everyone, I am Abhirami - A final year MBA student from Amrita School Of Business majoring in Operations and Marketing. I am back with my blog , speaking about the manufacturing and supply chain behind the  handling of dangerous cargo 

we all know about the Beirut's incident. because of the carelessness that happened in the storing of dangerous cargo 163 people where killed and more than 6000 people got injured. The fact that the storage location was facing the sea is probably the only thing that saved the city of Beirut from total destruction. That shipped held there for around 6 years with the dangerous cargo inside it's due to the outstanding debts that were claimed in the Lebanese court made them held there. from this it is understood that it's a supply chain failure. But it was not because of  a single failure it was collaboration of many failures that contributed to the actual occurrence of the Beirut explosion.

• The ammonium nitrate was being stored in a large, unsecured warehouse; a highly dangerous situation given the lure of the material for terrorist groups.
• The storage building had multiple structural and condition-based issues, including a dislodged door and a hole in its southern wall.
• A significant quantity of fireworks was being stored in the same warehouse.
• Workers were called in to repair the building and re-secure the doors, but they were not supervised or warned about the contents of the building.
• Sparks from repair teams welding the hole in the wall shut are what created the fire risk. They raised the temperature in the building enough to start a fire among the fireworks, and within one hour that fire reached – and detonated – the ammonium nitrate.

we may think that this is an isolated incident but similar incidents where reported around the world

but the level of impact varies. 

for example in amazon warehouse in new jersey similar event happened a can of aerosol bear repellant fell off the shelf and 24 employees were sent to the hospital. and later amazon declarer that they will build a special warehouse just for hazardous material stocking. it takes multiple accident in amazon made them built special warehouse. Beirut incidents will take place again if the correct precautions is not taken. Knowing what materials are being stored where, under what conditions, and with what concerns is a key safety measure. As we observed in Beirut earlier this month, it can be a lifesaver as well. 

original post : https://www.allthingssupplychain.com/warning-handling-dangerous-cargo/