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Evolution of Logistics in Chemical

Chief Guest Speaker:A guest lecture was conducted by Mr. Miliend V Sawai, having professional work experience with multinational Organization at various capacities in the field of projects, production, sales and marketing, business management in specialty Chemical Industry Domain. He has pursued his B. Tech in Chemical Engineering from LIT, Nagpur.About Session:Supply chain management is a way to link major business processes within and across companies into a high-performance business model that drives competitive advantage. Logistics refers to the movement, storage, and flow of goods, services and information inside and outside the organization.

Key Points Covered:

⦁ Supply chain process

⦁ Current modes use for chemical logisticsRail > Road > water > Air(China) (India) (China) (USA) – Leading players

⦁ Types of Logistics: 

⦁ Sales Logistics – delivery from delivery centers and logistics warehouses to distribution points such as wholesalers and retailers.⦁ Procurement Logistics – Procurement logistics is the flow of goods when the raw materials and parts necessary for manufacturing are procured from suppliers.⦁ Production Logistics – Production logistics is the flow of goods that includes the management of procured parts and materials, distribution inside a factory, product management, packaging, and shipping to warehouse.

Key terms in Logistics:

⦁ Bonded Warehouse – It is an area in which dutiable goods may be stored, manipulated, or undergo manufacturing operations without payment of duty.⦁ Bill of lading – A bill of lading is a document issued by a carrier to acknowledge receipt of cargo for shipment.⦁ Demurrage – a charge payable to the owner of a chartered ship on failure to load or discharge the ship within the time agreed.⦁ FCL & LCL- Full container Load and Less Container Load.⦁ HSN Code – HSN stands for Harmonized System of Nomenclature which was developed by the World Customs Organization (WCO) with the vision of classifying goods all over the World in a systematic manner.⦁ CIF – Insurance, and Freight is an expense paid by a seller to cover the costs, insurance, and freight against the possibility of loss or damage to a buyer’s order while it is in transit.

Challenges in Indian Chemical Logistics:⦁ Safe transportation of hazardous chemical⦁ Inadequate transportation infrastructure⦁ Pilferage/Theft⦁ Lack of training/awareness/education on handling chemical⦁ Higher “Logistics Spend” (10-12%) of total revenue against mere 4-5% of developed countries.Future Trends in Indian Chemical Logistics⦁ Increased focus on HSE Responsible Care⦁ Atomization/ Digitization at the ports/Check points to reduce delays⦁ ISO certified containers for safe transportation of chemicals⦁ GPS Enabled containers to minimize theft⦁ Effective multi model transportation – seal/rail/road⦁ Container freight stations (CFS), Inland Container Depots (ICD), Distribution Centers, Logistics Parks.⦁ App based chemical logistics like Amazon, Flipkart