Technology Implementation Is Key To Optimizing Logistics Operations
Vivek Arya is the Managing Director at Rhenus Logistics India and a well-known figure in the Logistics Industry. He has now been involved in the business for over 36 years and has transformed the family trucking business into a full-fledged Integrated Logistics Company. His flagship Company Rhenus Logistics India of which he is a Managing Director is a Joint Venture with Rhenus, a large Multi Billion German based Group. He is also responsible for the Global Warehousing business of the Intercontinental region including SEAPAC, Oceania, MEA, Americas & Greater China. Rhenus as a Group has an annual turnover of over Euro 8.6 Billion with more than 39,000 employees catering to various Logistics needs of the companies globally. The Indian operations are spread across 70 locations in the country and employs more than 2000 people offering world class services customized to suit every customer need. Arya is a renowned figure in the industry. He has been on the advisory board of several projects for the industry and has led from the front. He currently also chairs the Industry Sectoral Council: Logistics of the Indo German Chamber of Commerce. Under the leadership of Arya, Rhenus India has been a recipient of several awards and recognitions from the Government of India, Industry, and several Customers, including the ‘Pride of India’ Award by the Ministry of Transport. He is an avid reader and travels extensively
In conversation with Charulatha, Correspondent, Silicon india Magazine.Where in, Vivek shared his insights on the current logistics industry in India and various other related topics. Below are the excerpts from the exclusive interview
What are your thoughts on the impact of latest technologies on the logistics space?
In this VUCA world today, customers expect to have real time visibility for real time decision making. This has been the major driver for businesses across all industries to leverage technology. There is a wide range of technology tools available in the market today for business to offer such services to their customers. Warehouse Automation & Management, along with inventory optimization solutions, enable businesses to achieve increased operational efficiency, reduced labour costs, improved inventory management, and enhanced customer satisfaction through streamlined workflows, accurate order fulfillment and real time visibility into warehouse operations.
How can logistics companies leverage modern day tools & technologies to optimize their core business functions?
With the advancements in technology, there are various tools available in the market today for the logistics companies to optimize their operations. For instance, companies can utilize transport planning solutions to optimize their truck usage in such a way that they are able to make multiple deliveries along the same route in a single run. Warehouse Automation & Management and inventory optimization solutions enable the logistics company to find the desired product at the right time and place. These tools also help in streamlining the entire processright from pickup to delivery, thus resulting in enhanced productivity and process efficiency. Through Track & Trace systems, customers are now able to get real time updates about the status of their package and even keep an eye on whether the driver is following all the necessary safety measures while the goods are in transit.
Tell us about a few aspects logistics companies must consider while implementing new technologies or software solutions.
When implementing new technologies or software solutions, logistics companies must consider aspects such as compatibility with existing systems, scalability to accommodate future growth, training and support for employees, data security and privacy, integration capabilities with partners or suppliers, and the potential impact on operational processes and workflows. Compliance related factors such as GDPR compliance, ISO certification, platform architecture and many others should be considered.
In your experience, what are some of the potential risks and drawbacks of over reliance on technology in logistics?
The challenges and risks associated with technology implementation are same across all industries. Power, data theft, data quality, infrastructure and IT security are some of the major areas where we get to see a variety of challenges and risks in any organization. However, there are a lot of tech advancements currently happening in the logistics space. The main purpose of implementing these technologies is to reduce human touchpoints and have a complete API-linked transfer of information and data that will result in be equally beneficial to all industry stakeholders.
What are some of the steps logistics companies must take to ensure the success of new tech implementation within their process?
Automation and robotics are witnessing widespread adoption across the globe in recent times. Since the cost of manpower especially in countries like Singapore and Hong Kong is very high, the payback time is much lesser compared to emerging markets like India. For these technologies to be successful, there must be a good partnership model between customer and service provider. In India, despite the easy availability of technology, people still aren’t ready to invest in a service provider because the contractual obligation between the customer and service provider is never on a longterm basis. For any technology to be used optimally, businesses need to review the ways in which it operates and accordingly plan long term contracts, investments, and other critical aspects.
Collaborative and Integrated Logistics is the key to efficient supply chain. It will take a lot from both sides, the service users and service providers to collaborate and establish world class logistics back bone for any business. Most of the engagement today takes place at an operational level. There is an immediate need to evolve from vendor based relationships to Partnerships with Logistics Service Providers (LSP) to invest and create efficient solutions by investing into the logistics needs. From our experience we can say that we need to “spend more to save more”. The industry requires investments from a long-term perspective. There is a need to invest in specific types of trucks, warehouses and material handling equipment, IT Systems, training etc. This can be achieved only with a long term view. Efficiencies must be created in the system to lower the “per unit cost” on a continuous basis. IT integration of the systems at both ends leads achieving maximum efficiencies.
In conversation with Charulatha, Correspondent, Silicon india Magazine.Where in, Vivek shared his insights on the current logistics industry in India and various other related topics. Below are the excerpts from the exclusive interview
What are your thoughts on the impact of latest technologies on the logistics space?
In this VUCA world today, customers expect to have real time visibility for real time decision making. This has been the major driver for businesses across all industries to leverage technology. There is a wide range of technology tools available in the market today for business to offer such services to their customers. Warehouse Automation & Management, along with inventory optimization solutions, enable businesses to achieve increased operational efficiency, reduced labour costs, improved inventory management, and enhanced customer satisfaction through streamlined workflows, accurate order fulfillment and real time visibility into warehouse operations.
Collaborative and Integrated Logistics is the key to efficient supply chain. It will take a lot from both sides, the service users and service providers to collaborate and establish world class logistics back bone for any business
How can logistics companies leverage modern day tools & technologies to optimize their core business functions?
With the advancements in technology, there are various tools available in the market today for the logistics companies to optimize their operations. For instance, companies can utilize transport planning solutions to optimize their truck usage in such a way that they are able to make multiple deliveries along the same route in a single run. Warehouse Automation & Management and inventory optimization solutions enable the logistics company to find the desired product at the right time and place. These tools also help in streamlining the entire processright from pickup to delivery, thus resulting in enhanced productivity and process efficiency. Through Track & Trace systems, customers are now able to get real time updates about the status of their package and even keep an eye on whether the driver is following all the necessary safety measures while the goods are in transit.
Tell us about a few aspects logistics companies must consider while implementing new technologies or software solutions.
When implementing new technologies or software solutions, logistics companies must consider aspects such as compatibility with existing systems, scalability to accommodate future growth, training and support for employees, data security and privacy, integration capabilities with partners or suppliers, and the potential impact on operational processes and workflows. Compliance related factors such as GDPR compliance, ISO certification, platform architecture and many others should be considered.
In your experience, what are some of the potential risks and drawbacks of over reliance on technology in logistics?
The challenges and risks associated with technology implementation are same across all industries. Power, data theft, data quality, infrastructure and IT security are some of the major areas where we get to see a variety of challenges and risks in any organization. However, there are a lot of tech advancements currently happening in the logistics space. The main purpose of implementing these technologies is to reduce human touchpoints and have a complete API-linked transfer of information and data that will result in be equally beneficial to all industry stakeholders.
What are some of the steps logistics companies must take to ensure the success of new tech implementation within their process?
Automation and robotics are witnessing widespread adoption across the globe in recent times. Since the cost of manpower especially in countries like Singapore and Hong Kong is very high, the payback time is much lesser compared to emerging markets like India. For these technologies to be successful, there must be a good partnership model between customer and service provider. In India, despite the easy availability of technology, people still aren’t ready to invest in a service provider because the contractual obligation between the customer and service provider is never on a longterm basis. For any technology to be used optimally, businesses need to review the ways in which it operates and accordingly plan long term contracts, investments, and other critical aspects.
Collaborative and Integrated Logistics is the key to efficient supply chain. It will take a lot from both sides, the service users and service providers to collaborate and establish world class logistics back bone for any business. Most of the engagement today takes place at an operational level. There is an immediate need to evolve from vendor based relationships to Partnerships with Logistics Service Providers (LSP) to invest and create efficient solutions by investing into the logistics needs. From our experience we can say that we need to “spend more to save more”. The industry requires investments from a long-term perspective. There is a need to invest in specific types of trucks, warehouses and material handling equipment, IT Systems, training etc. This can be achieved only with a long term view. Efficiencies must be created in the system to lower the “per unit cost” on a continuous basis. IT integration of the systems at both ends leads achieving maximum efficiencies.
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