Commitment towards logistics infrastructure and regulations on rationalization of tax structures is creating an environment of positive change for the warehousing and logistics sector. 3PL players like us now have the opportunity to leverage economies of scale, complemented with better infrastructure, to provide integrated logistics solutions that are more cost-effective. Rapid growth of organized business and the need to reach out to the large untapped markets around the globe are necessitating development of strong back-end and front-end supply networks. Maria R discusses the positive changes being brought about by infra development and mega projects and their impact on the Logistics industry, with Harpreet Singh Malhotra, Managing Director, Tiger Logistics.

Harpreet Singh
How is Tiger Logistics positioned in India's logistics sector?

Tiger Logistics (India) Limited is a leading 3PL company in the Indian logistics market, and the 9th Indian logistics company listed on the main board of Bombay Stock Exchange (BSE). The company has repeatedly competed with better-established and better funded companies. Its competitive edge lies in its core values of honesty, safety and hard work. Learning from experience, we now have a robust back-end, which is a vital pre-requisite for a committed logistics business.

As an ISO 9001:2008 certified company, Tiger Logistics demonstrates new heights of performance and efficiency standards in the industry by providing quality services, an integrated supply chain, and relevant solutions to consistently meet customer requirements. In the logistics arena, Japanese and Korean companies like to work with our local counterparts. With a commitment towards reliability, we now have top Asian companies like LG, Yamaha, Honda, Suzuki, Bajaj in our kitty.

Tiger Logistics India Ltd

In the tough market place of today, we have fought many wars and emerged victorious and taken the company to new heights. Our vision is to create a sustainable business with employee loyalty and satisfaction. We have delivered cargo to the Salma Dam project in war-stricken Afghanistan, and to the high crime interiors of Columbia, where no company was willing to operate. When cargo had to be delivered in the interiors of East Africa, where high poles had been commissioned, we thought out of the box, and worked with the government to get the height increased and ensured that the cargo was delivered spot on time. If there is one thing we don't know how to do is to say 'NO' to any challenge!

Which transport segment among road, rail, air, or inland waterways, is the major growth driver for the Indian logistics Industry in general, and for Tiger Logistics in particular?

All modes of transportation are equally important: what matters is time and cost-effectiveness. The mode of transportation is an important consideration when planning a shipment. Besides the costs, the urgency of the shipment, value of the goods being shipped as well as their size and weight, need to be evaluated when determining the form of transportation.

"Tiger Logistics is planning a pan-India presence and expand its domestic logistics market with warehousing, distribution and transportation. Having opened its first overseas office in Singapore, it now plans to open own offices in U.S.A, China, Mexico, and Panama."

Tiger Logistics, a leading logistic service provider, is involved in MTO (Multimodal transport operation). Multimodal transport refers to transport of goods from one point to another via more than one mode of transport. It also helps in economic transactions, serving as a major enabler of growth of trade and commerce in an economy. The multimodal system uses a combination of rail, road, and sea, which allows the customer to cost-effectively manage shipments from start-to-end, ensuring optimum care and efficiency at every step of the way.

The Indian logistics industry is witnessing a major transformation, with an increased focus on containerisation, and constant technological upgradations such that logistics can facilitate in getting the products and services as and when needed to the customer, in a more efficient way. The Indian government has recognized the value of multimodal logistics of domestic companies in improving their performances. The multimodal logistics model also helps improve a company's competitiveness. At the macro level, it helps in propelling the country's economic growth.

Tiger Logistics India
In order to have an efficient multimodal transport and logistics system, the government works closely with the private sector on capacity building, management, and operation of container terminals. A coordinated approach is required from an empowered government body to oversee all infrastructure projects spanning road, rail, air, coastal shipping, and inland waterways. This will not only speed up things, but also bring in transparency. The government should address the problems and offer a level playing field to Indian multimodal operators. It needs to take measures to improve the processes for clearances. As the government alone cannot meet these objectives, it needs to encourage more and more private participation through PPP mode and Make in India initiatives.

Tiger Logistics is providing multimodal transport in a more effective way as most of our customers are benefitting through our time saving and cost-effective operations.

What impact will the government's mega projects Bharatmala and Sagarmala have on the Logistcis Industry?

The Bharatmala Pariyojana and Sagarmala projects are very beneficial for our industry's growth and profitable for the Indian economy in the long term. Both projects will create job opportunities, and, after completion, they will be considered a milestone in India's infra development. Bharatmala is an umbrella programme of the ministry to enhance road connectivity across the country, while Sagarmala is the government's flagship programme to develop and modernise ports along the coastline. They are the most ambitious infrastructure programmes of the Government, involving investments of ₹5.35 lakh crore and ₹8 lakh crore, respectively. Projects in sectors such as railways, roads, power, renewable energy, and rural and urban development are covered under it. The government has already announced ₹5.35 lakh-crore investment under the Bharatmala Pariyojana project to construct 34,800 km of roads over five years, which will create 14.2 crore jobs. Around 2,100 km coastal roads have been identified to be built along the 7,500 km coastline.

Under the Sagarmala programme, 415 projects at an estimated investment of around ₹8 lakh crore, have been identified for port modernisation, new port development, port connectivity enhancement, port-linked industrialisation, and coastal community development during the period 2015 up to 2035. Faster implementation of critical infrastructure projects will boost economic growth. The Centre's move comes at a time when the finance ministry's medium-term expenditure framework has projected capital spending to rise to ₹3.90 lakh crore by 2019-20 (up by 26% from the budgeted ₹3.09 lakh crore for the current fiscal).

Within this, capital expenditure in the transport and power sectors is expected to rise in excess of 30% to ₹1.62 lakh crore by 2019-20 from the budgeted level for this fiscal. Even grants for the creation of certain capital assets, including those for the Mahatma Gandhi National Rural Employment Guarantee Scheme, rural housing and Pradhan Mantri Gram Sadak Yojana, which are otherwise considered part of revenue expenditure, are also projected to rise over 30% to ₹2.55 lakh crore by 2019-20.

The infrastructure sector needs a massive ₹43 lakh-crore investment over the next five years, of which 70% will be in power, roads and urban infrastructure projects. Around 2,000 km of port connectivity roads have been identified to facilitate export-import trade with an emphasis to improve connectivity to non-major ports.

What are the underlying technologies and trends reshaping today's supply chains?

To tap the potential opportunity in logistics, Logistics Service Providers must implant and improve ERP i.e. Enterprise Resource Planning. ERP has become a buzzword in the logistics industry, with the realization of the necessity of adopting IT for better process efficiency. However, a common dilemma faced by key project evaluation teams at leading global logistics service providers (LSPs) today is, either to customize their existing ERP for logistics business or to choose a best-of-breed and proven logistics solution which is readily available in the market. Each approach has its own merits and the best way to go about before taking this crucial decision is to look at the critical success factors (CSFs) that impact business. In evaluating an enterprise IT solution, apart from CSFs like project cost, implementation timeframes and risks related to vendor's capability a project manager needs to also consider whether either of these IT options are aligned with the larger business goals.

Tiger Logistics India Effer
In case of a customized ERP involving development with a System Integrator (SI), most of the generic Sis have limited domain knowledge of logistics business, thus the cost of project will not only shoot up but also cause further delays in system rollout. Also such developers have a high sourcing cost. Therefore, one needs to invest in a vendor who has an established product and has the inherent capability to enhance the solution based on industry needs. This is crucial in reducing the Total Cost of Ownership (TCO) for the LSP. Third-party logistics or 3PL is a business process followed by companies to outsource their logistics and supply chain activities to a service provider specialized in handling different logistics functions.

For ODC movement, productivity, reliability and safety are quite important factors; Tell us about your integrated value creating services & solutions and application areas being catered to?

As an established International logistics company, Tiger Logistics is one of the leading service providers involved in shipping equipment and supplies for projects throughout the world. In fact, we are known as a specialist in project handling. We provide integrated, value-creating solutions to the world's major industries. We are associated with many reputed organizations for handling project shipments such as ISGEC – heavy and machinery goods, Indian Oil – oil and gas giant, Indian Defence Forces, and so on.

Each shipment has its own importance, challenges and even difficulties, but we see each and every shipment as a new opportunity that adds to the wealth of our experience, our competence and credibility. We take time to understand each customer's business to provide globally integrated end-to-end solutions tailored to the client's supply chain management needs. Whether it is a small project or a big project, Tiger Logistics ensures that the services will be provided to the client's complete satisfaction, and we do not take a cookie cutter approach to any service required from us.

Tiger Logistics offers a wide range of services and several types of transportation. These include Project Cargo, Heavy Lifts and Turnkey Projects, Packaging Solutions and Air Freight Forwarding, Customs Clearance and Trade Compliance, Perishable Items, Warehousing and Distribution, Ocean Freight Forwarding and more. Tiger Logistics helps clients in the following fields: Automobile, Textile Plants, Retail, Agriculture, Iron and Steel, Cement, Infrastructure, Telecommunication and even Transmission and Distribution.

Our assistance to clients begins with a collaborative consultation. The client remains in constant contact with the Project Manager who will be familiar with the service being provided and the location where the service will be delivered. We undertake shipping of heavy machinery such as fork lifts, surveying equipment, barges, cranes and trailers, irrespective of the height and/or weight. Our team of professionals are aware of both domestic and international shipping rules and they ensure that the cargo is delivered on time and efficiently, and as per the laws and codes.

What is you action plan for 2020?

Tiger Logistics is a leading logistics service provider involved in MTO (multimodal transport operations), Transportation and Customs clearance activities for handling of project cargo across North, West and East India. With the company's widespread network across continents, we plan to hire mid-level expats who can break the language and cultural barriers and reach out to their foreign counterparts.

In today's economy, Information is Power and to keep ahead of competitors Tiger Logistics has the best technologies like customer redressal system, mobile applications, GPS tracking and cloud computing to improve communications, logistics, and inventory tracking. This also helps boost customer trust and brand loyalty. As an economy and trade specialist, I'm looking carefully at the positive economic growth trends of 2020. I expect the domestic economy to do better across this 12 to 24-month period, which means that many companies should now be thinking about how to scale up and accommodate this expansion.

The company is planning to have a pan-India presence and venture majorly into domestic logistics with warehousing distribution and transportation. It also has plans to open its own offices in countries such as U.S.A, China, Mexico, and Panama, following the opening of its first overseas office in Singapore.

Tapping into the trends of increasing logistics outsourcing to 3PL companies, future logistics can effectively serve the needs of organized retail. With a pan India network, it has the foundation to meet the proximity needs of logistics business. Also, with its expertise and capabilities in serving reputed customers in diverse categories such as Projects, Automobile Goods, Engineering Goods, Yarn & Textiles, Consumer Durables, Food Commodities, and Cold Chain, the company has garnered a significant market share. Supported by robust technology and an accomplished manpower, Tiger Logistics is set to see a huge growth in revenues in the coming years.

Lifting & Specialized Transport — January - March 2019

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