What is the future drone delivery in India?

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post!

    India is gearing up for the new normal to meet the rising demand for timely delivery of healthcare and other supplies. Delivery of vaccines, medical necessities and equipment being the most immediate need, the industry is looking to expand faster than it may have imagined. With constant innovation going hand-in-hand, drones are becoming the future of last-mile delivery. 

Drones in healthcare supply chain:

Funded by US start-up accelerator TechStars, Bengaluru-based start-up Redwing Labs is one of the many Indian companies exploring the most viable options to use the drone technology. They aim to automate aerial logistics as well as design, build and deploy drone logistics infrastructure for delivering medical and critical supplies efficiently. 

Delhi-based Indian Robotics Solutions is not far behind. They research, invent and equip the defense intelligence forces with robotic solutions. They develop a penta-performer drone named thermal Corona Combat drone (CCD) which can be used for sanitization, thermal screening and surveillance. 

While these Indian companies are working on drone delivery services, US-based drone services company Zipline is trying to enter the Indian skies with the aim of improving healthcare accessibility anywhere in the world. 

 

Regulations and flying in India:

Though the drone operators are ready to fly their drones, the major challenge is the regulations in India. Incidentally, the government's response to the use of drones has grown by leaps and bounds in the last few years, as they have also been actively developing the Digital Sky platform for drone operators, while also building a framework and fast track the process of approvals. 

Amber Dubey, Joint Secretary, Ministry of Civil Aviation, Government of India, says they don't need to worry as the regulatory framework is ready for the approval. According to him, all they have to do is "simply focus on making the best drones in the world" which would supersede drones by foreign companies that are entering India, if they wish to make an impact in the world. 

Using drones for cargo:

It is also important to see if drones can be converted into cargo drones as well. Mrinal Pai, co-founder of Bengaluru-based company Skylark Drones says it is possible but has several limitations. He believes that there are three parts to enabling cargo drones: technology, the regulatory environment and the demand in itself. Though the technology is available, the demand and regulations have been challenges. 

Smit Shah, Director of Partnerships, Drone Federation of India, says “there are three things to keep in mind with cargo drones - whether you are dropping it or delivering it, whether you're flying in a rural, semi-rural semi urban area, or a very high density urban area, and whether you're going to use segregated airspace, which is a dedicated airspace or whether you're going to use mixed airspace. The need for quick experiments, data collection to help incremental policy making which focuses on rural-first and then urban approach, while also looking at commercial viability of the deliveries are also on the top of the agenda.”

Drones for the future:

Drones being the future of delivery, there is no doubt that there will be a huge amount of work that will go into it. According to the industry experts, focus should be on to conduct as many experiments and tests to improve its usage and help create a better policy. Looking at automation to reduce the cost for every single delivery is another aspect. Maintaining safety standards is also important. Drones will become a fundamental part of the supply chain system for the future as there will be a huge demand for medical supplies and vitals. 

With quick actions, India already appears to take on the world by using drones.

Which type of logistic transportation mode is right for your business?

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post!

    In a world where fast shipping is a must have, choosing the right type of logistics transportation for your business is critical for the success, the safety of your product and the customer satisfaction. In this post, let's analyse pros and cons of choosing a particular logistics transportation business.

Factors which needs to be considered while selecting mode of transportation:

*Nature of your product: hazardous, perishable or challenging to handle? dimensions of the shipping container?

*Location: shipping origin and shipping destination, border restrictions/clearance and the cost involved, consumer requirements such as fast/normal delivery

*Time:  time of year you’re moving your product? Festival, holiday etc.

*Urgency: How urgent is your shipment?

*Budget: transportation budget considering all the costs involved.

*Existing relationships: shipping and logistics companies with which you have relationship already.

Here is a breakdown of each transportation method and its pros and cons:

1. Truck Freight — Road Transportation

Pros:

*Implements fewer restrictions

*Costs less than air and ship transportation

*Allows for more accessibility

*Offers more options:  Depending on the shipping company, you can choose from things like parcel, full truck and less than truckload(LTL) shipping

*Allows for door-to-door shipment

Cons:

*Time involved: Truck freight can take longer due to problems like road closures, bad weather or heavy traffic 

*Control: you do not have as much control over how your products are handled.

2. Ship — Marine Transportation

Pros:

*Accommodates more space and weight

*Costs less than air transportation

*Enhances the safety of the shipment

Cons:

*Cost: may not always be the most economical

*Speed: maritime shipping takes much longer

3. Train — Rail Transportation

Pros:

*Offers more carrying capacity

*Reduces the chances of delays

*Minimizes its environmental impact

Cons:

*Transit time: Rail transport is slower than truck and air freight

*Accessibility is less based on geographic constraints

4. Plane — Air Transportation

Pros:

*Allows for speedy deliveries

*Offers enhanced security

Cons:

*Cost: Air transport is more expensive

*Limitations: Airplanes have a set weight capacity

Choosing the right mode of logistics is important for any business to satisfy it’s customer and balance it’s expenses.

Role of blockchain in SC sustainability during pandemic

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post!

    With the onset of Coronavirus pandemic, hospitals struggled to procure quality and essential personal protective equipment (PPE) required for the frontline battle. Uncertainity in avalability, questionable quality of products and eroding trust in suppliers became the serious challenges.

Blockchain played a substantial role in SC sustainability during the pandemic. Blockchain technology can be most simply defined as a decentralized, distributed ledger that records the provenance of a digital asset.

This is how blockchain helped when the supply chain disruption hit:

1. Trust to survive the pandemic.

When the supply chain was hit by pandemic, the resulting shortages and quality distortions started to affect customer's trust. Blockchain ensured the trust among customers through third-party verifiers, immutable data, immutable logic and audit trail of supplier information. Participaton of trusted industry players and their contribution as validators, verifiers and solution providers boosted the confidence in supply chain.

2. Acceleration of on-time delivery with the help of better inventory visibility and transparency.

Inventory visibility and transparency into delivery timetables became the buyers biggest need from suppliers during supply shortages . The blockchain solved this problem by providing real time visibility and transparency across procurement, manufacturing, transportation and distribution. During pandemic, critical supply delivery lead time misinformation could even result in significant loss including lives.

3. Simple solutions to solve pain points has to be swift to the market.

One cannot build these solutions overnight when a pandemic hits as blockchain solutions for supply chain can be very complex. In order to be swift in the market, solutions that are proven and available in the market being used by suppliers over the years has to be re-used.  

4. Trusted digital identities bridged the trust gap between reality and the digital world.

Blockchain-based digital identity created trust by linking real-world identities and the digital world. Each physical object’s digital replica (called digital twin) is created in a way that prevents or reveals any human interference that alters information. For any digital business transaction on supply chain, it is substantially important to prove the authenticity of one’s own identity and that of the transaction partner.

    Blockchain also contributed to supply chain resiliency through data privacy, confidentiality of shared data, and innovative business models that glued together stakeholders in the ecosystem. With rising blockchain supply chain solutions, and interoperability actively being addressed, our world will have quicker resilience when we encounter the next pandemic.

How would future of warehouse, fulfilment and distribution look like?

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post!

    Ever wondered how warehousing and distribution would look like in coming years? Warehousing and logistics transformations are happening than ever before. Businesses like Amazon are investing huge amounts on smart warehousing facilities as it could improvise supply chain activities. Following are the latest technologies in warehousing and it's benefits.

Managing critical information

Radio-frequency identification tracking (RFID) and temperature sensors can be used to manage critical information on a real time basis. Using real-time sensing technology helps the warehouse managers to attain better operational visibility.  Bluetooth® Low Energy (BLE) beacons can be used to report and enforce proximity events thereby enabling contact tracing of employees and verification of outbound shipments automatically. To track high value assets, Ultra-wideband (UWB) which is a short-range wireless communication protocol can be used.

These technologies help to maximize better visibility into warehouse assets, improve inventory management, locate items easier and faster and reduce loss of shipments. RFID and RTLS solutions integrated with temperature sensors can help to closely monitor temperature requirements of perishable goods such as vaccines, pharmaceuticals etc. It also alerts workers when temperature thresholds are reached and improves thier health and safety.

Help workers complete tasks with augmented reality

Combining mobility with augmented reality (AR) could elevate warehousing efficiency levels. Imagine a worker walking down a warehouse aisle with an enterprise heads-up display. With the help of AR, the area lights up with the product’s picture, providing the worker with informarmation regarding the quantity to pick and where to place it on the cart. It could further help the worker with smartest way to reach next item location. It can also be installed on vehicle windshields such as on forklift trucks to perform the same function.

Optimize workflow by combining workers and AMRs

Autonomous mobile robots (AMRs) can work side-by-side with people and lead to increased productivity by reducing idle and travel time associated with movement of items.

Improvising operations with AI, machine learning and automation

With the help of IOT,Artificial intelligence and Machine learning can be integrated for intelligent automation. 

Examples of potential developments are:

*Use of self-driving vehicles in warehouses for shuttle services.

*Use of machine vision for inspections could increase returns management efficiency 

*Use of AI and automation for faster put-away and accessibility of high-turnover goods by streamlining warehouse operational workflows.

Future technologies open a realm of possibilities in warehouse automation which would improvise supply chain operational efficiency.

How companies are leveraging agility to stand out during a crisis?

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post!

    Being in the midst of IPL season, you would have probably wondered how well some players perform exhibiting various important characteristics. There exists the idea of agility in their performances, where they maintain and control their body movements in order to respond quickly to the situation.

    Agility in business is similar. Businesses need to respond quickly by adapting to the environment and supply chain is an area where agility is particularly important, as products must be produced and delivered without any delay. The goal is to respond quickly to uncertainties in demand and supply, as well as to flexibly manage introduction of new products. 

Supply chain agility can be of two types: structural and operational agility. 

Structural agility is the ability to change supply based on network and organization design. To attain structural agility, an organization needs to understand the supply chain volatility and build supply chain assets or additional facilities in order to meet varying demands.

Operational agility is the ability to change supply based on operations decisions. To attain operational agility, an organization must make quick decisions to adjust utilization of existing supply chain assets in order to handle fluctuating demand.

How agility is helping various companies to handle varying demand during uncertain business environments?

    Two companies illustrates the efficient use of agility to respond to crisis. Issinnova is an Italian start up which manufactures recreational snorkelling masks by using 3D printing technology. Identifying the acute shortage of respiratory ventilators, they leveraged   the flexibility inherent in its 3D printing capabilities in order to produce ventilator masks instead of snorkeling masks.

    Similarly, when General Motors was required to manufacture respiratory ventillators made a contract with Ventec Life Systems. Using their extensive supply chain, they shipped parts common to ventilators and autos to Kokomo, Indiana, plant for assembly. GM already having technological capabilities in automobile electronics, switched to ventilators easily by adjusting its supply chain.

    Speed and agility are interdependent factors and integrating the ability to make quick decisions to utilize supply chain assets with structural agility could enable businesses to sail through various crisis.

Prescriptive analytics to make well informed SC decisions

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post!

        Digitization has enabled businesses to gather humongous amount of data on real-time basis.Still, if businesses fails to process this data efficiently in order to gain valuable insights, it becomes a bane instead of boon. For the same reason, businesses nowadays are relying heavily on analytics to take well informed SC decisions.

        Though predictive analytics has opened the door to futuristic insights, what really matters is how we could act on this foreseen insight. Prescriptive analytics could play a key role in finding solutions to upcoming problems. Integration of prescriptive analytics to digital SC could considerably improve the decision making process.

        Prescriptive analytics makes use of machine learning to help businesses decide a course of action based on a computer program's predictions. It gives us insights on how the company should  operate in order to achieve desired outcomes. For example, it could help us to determine the optimal warehouse locations, minimize delivery time and costs across its supply chain etc. 

 

 

Advantages of Prescriptive SC Analytics in SCM:

• When businesses fail to connect various internal and external data points, they are forced to make inappropriate decisions based on their gut feelings. Prescriptive analytics enables the businesses to analyse a multitude of data on a much wider scale and evaluate multiple scenarios before making a decision.
• With access to necessary information, prescriptive analytics can help businesses to make strategic decisions at a minimum cost. It gives a variety of possible choices by considering factors like business risks, external weather factors etc. 
• Implementation of prescriptive analytics could result in major cost savings for the company and it enables the businesses to gain extra clarity into their operations.

       With increased digitization, the need for a well reliable and supportive analytics would become inevitable.

Circular Supply Chain – path to sustainability

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post! 

        The increasing demand for products are forcing businesses to expand the production and capacity in order to meet the rise in demand. But how could businesses increase capacity in a static world where resources are limited? Businesses nowadays realizes that the only solution to this particular problem is to work on sustainability and circular SC is the path to a sustainable SC.

         A circular SC is the model in which traditional linear SC (in which products are made, used and thrown away) is replaced with a more holistic supply chain where products are reused, restored and regenerated. The objective is to attain zero wastage. Uber is a classic example for circular economic model where a family no longer require a costly vehicle for their limited travel requirements.

 

Need for a circular economy 

A circular SC can be made possible only through the implementation of a circular economy where wastage is reduced and output is increased through recycling process, thus minimizing the carbon footprint. It involves mainly 3 steps: Recycle, Re-manufacture, Reuse/Resell

 

Ways to attain a circular SC:

Technology - the key enabler

Adapting to new technologies such as 3D printing, big data, IOT etc. could help to accelerate the process by reducing wastage of time and money involved. 

Green procurement

Sustainable procurement methods such as relying on biologically regenerative or raw materials could help us to manage during SC disruptions.

Cleaner production

Green manufacturing in which resources and energy are used efficiently along with the minimization of wastage could help to achieve better material efficiency by reducing industrial waste generated.

Green logistics

Focusing on sustainable reverse logistics methods can give considerable positive changes towards sustainable SC. Reverse logistics is the management of moving goods from their final destination, back to the distributor or manufacturer for rework, replacement, or disposal. 

 

        Adaptation of sustainable SC is the only way to drive business sustainability and investing in greener channels could be the new competitive advantage in future.

Ready to digitise supply chain? Advantages and challenges of supply chain digitisation

     Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post!

        As the world is moving towards digitalisation process, paper documents and face-to-face interactions are decreasing day by day. With the adoption of industry 4.0, businesses are getting online with help of software and digital services. But how could digitisation impact your SC processes?

        Digitisation is the process through which information are converted into digital format. Digitisation in SC can be achieved by integrating technologies such as Artificial intelligence, workflow automation and internet of things.

 

Advantages of having a digitised SC 

§  Increased operational efficiency:

Digitisation of SC can reasonably increase the speed with which the product/service is delivered and reduce the cost involved in the process with the help of workflow automation. Faster operations could enable business to take strategic decisions quicker and increase operational efficiency. 

§  Complete transparency:

Better visibility of all the activities involved in the SC results in complete end-to-end transparency in SC operations. It enables us to get necessary information from anywhere across the globe resulting in real-time insights and complete control over SC. 

§  Increased performance:

With the help of AI predictions, decision makers are equipped to take informed decisions using predictive analytics. Efficient AI could process the gathered datasets easily and provide beneficial insights whenever required.

Possible challenges 

§  Different companies operate in different ways and making it difficult to build a single clear strategy for digitisation. 

§  Cyber attack is one of the major upcoming challenges that has to be taken care of, by selecting the right team to work on the digitisation process. 

        However, it is no longer a choice for businesses to stay out of a digitised SC if they wish to thrive in this fast growing competitive business environment.

    

The Next Big Thing in The US Retail Market: Direct Sales to Customers

    Retailers have come to understand now that e-commerce is the most secure anchor to hang on to and that omnichannel is the industry's future. Among the other developments that have emerged in retail since the COVID-19 outbreak is the increasing change from retail firms, consumer goods companies, fashion brands and even farmers across the country to direct-to-consumer sales.

    Mom-and - pop retail stores began to lose sales as millions of Americans remained confined in their homes to practice social distancing and the government closed down all but necessary retail outlets as a pandemic-prevention measure. The increase in online shopping for consumer products, grocery, food and beverages; and the increasing demand for home delivery services are driving retailers out of the shell and trying out creative sustainability business models.

    As the United States continues to be COVID-19's epicenter with over 5.44 million positive events, the economy of the nation is significantly impacted and the burden on companies to get it back on track is immense. All the country's 50 states have been getting back on their feet in the past few months. Yet a lot has changed.

    The pandemic hit the retail industry in America hard, particularly brick-and-mortar retailers, throwing a bunch of tough fight challenges at them, and some fast-emerging market trends to keep up with. At the same time, though, it has also opened up some huge opportunities for retailers to grab and stay competitive amid COVID-19's market effect.

    Manufacturers or retailers sell directly to the customer in a direct-to-consumer model without the intervention of intermediaries such as third-party distributors, wholesalers, and retail outlets for distribution. This is usually achieved by creating an online marketplace, or even a social media profile, from which customers can search and place orders. The company then ships goods directly to customer markets, using an in-house logistics facility or third-party transporters.

    Direct-to - consumer sales have been a steadily growing development for quite a while now. Web traffic to D2C pages has doubled over the last two years according to an eMarketer survey. But the pandemic has provided retailers and consumer goods firms a huge drive to sell directly to customers, triggering a massive rise in the industry.

    Fashion and clothing companies such as Levi's, Nike, and Adidas are going high on D2C sales, reinventing their online sites, launching new products on a daily basis, and offering their customers customized product choices. Top supermarkets with existing retail chains like Walmart and Publix also exploit this opportunity and sell online to meet the demands of millions of people in quarantine.

    The greatest advantage of using e-commerce to go directly to customers is that it helps companies to establish a partnership with their end-users. It also gives manufacturers and retail brands a cost-effective sale choice. At the same time, though, there is some significant competition from major online retailers like Amazon.

    Manufacturers and retailers must also consider the logistical difficulties that may occur when selling directly to customers. Not all brands have the best transport management system in place and will need to rely on logistics companies from third parties to ensure successful last-mile deliveries.

    For those with an in-house logistics system, ensuring quick and timely delivery is a must, combined with excellent customer service. Retail brands do not forget that they have set out to please the consumer 'I want it ASAP' and 'Where is my order.'

    Coronavirus has shown us that the next big thing in retail is direct-to-consumer selling, but to make it huge success brands need to strategically implement this business model. Efficient logistics is a must-have to ensure two-day and the same-day deliveries, and technology such as fleet management, order tracking, and live status updates will play a crucial role in boosting customer experience in D2C selling.

Happy Learning.. !!😊😊

Online grocery war: where Omnichannel SC takes the lead

Hello, readers! I'm Mathews currently pursuing 2nd year MBA at Amrita School of Business, Coimbatore.   Here's my new blog post!

    Quick delivery has always proven to be a robust strategy that could elevate and retain market share of businesses. Speed being one of the key factors for successful supply chain management, it is vital for businesses to deliver the right product to the right location at the right time. When it comes to perishable products like groceries, along with attractive prices the speed at which products are being delivered could be the real order winner. Let us see the emergence of new online grocery businesses in India during COVID-19 period and how their supply chain activities contribute to their success.

    During the Pre-COVID period, Radhakrishanan Damani led Avenue Supermarts (D-Mart) performed exceptionally well with its splendid business model. Lowest prices offered to customers being its key strategy, D-mart continued to increase its market share and customer loyalty with the help of its massive bargaining power to grab the least prices from its suppliers. However, the supply chain disruptions due to pandemic did enable new businesses to emerge in the online grocery market. Jiomart owned by Mukesh Ambani led Reliance Industries is one such successful entrant that challenges the robust growth of D-Mart.

    Jiomart after its successful piloting in several areas of Navi Mumbai, expanded to 200 cities across India within a short span of 3 months. With aggressive pricing strategies and technological adaptation (Android, iOS apps and whatsapp integration), Jiomart is likely to reach 5 lakh daily orders by September. The question now is, how do they ensure the smooth and quick flow of personal care products and online groceries across the country?

The O2O business model with the integration of Kirana stores

    With the coronavirus lockdown in place, the local mom-and-pop stores or kirana stores have become the go-to stores. E-commerce giants have tapped in to this opportunity to work with Kirana stores across the country for their online-to-offline (O2O) business model, where orders placed through online are being delivered at nearest local retail stores. Enriching shopping experience by sending invoices via whatsapp and increasing the credit limit turned out to be an added incentive to the online shoppers.

    Thus omnichannel SC has become the best bet for e-commerce giants like Jiomart, Flipkart, Big Basket and Amazon to ensure quick delivery of groceries that could help them stay ahead in operations with respect to their competitors.