Capt. Ashok Shrivastava, CEO - Shipping Services, Allcargo Logistics
Our unique capabilities as an integrated logistics service provider with coastal shipping, owned CFS and ICDs pan India, owned equipment including trailers, project logistics and contract logistics give us a more efficient and effective medium of service to our customers for their logistics needs, says Capt. Ashok Shrivastava, CEO - Shipping Services, Allcargo Logistics. Excerpts from the interview...
What technology choices were made by you and why?
The challenges are more to do with infrastructure related to road, rail and seamless movement of cargo through surface transportation of kinds between states as well as policies to make logistics more cost effective. We see the challenges as an opportunity to innovate our integrated logistics services to create a competitive advantage for our customers. As we specialize in providing both infrastructure as well as services we have created a leadership position in successfully managing this challenge. Technology plays an important role for us.
How do you assess the potential for integrated logistics systems? What are the steps initiated in this regard?
Presently, movement of cement goes through multiple modes and service providers handling the product thus forming part of the overall logistics cost structure.
One of the most efficient ways to control and leverage this variable is to look at integrated logistics wherein a provider has the network, the size and scale to provide all types of movement from coastal shipping to trailer movement to last mile distribution, thus forming a value added service. This will make a huge difference in terms of managing the value chain and optimizing costs as well delivery time of the product.
Is Allcargo currently investing in any other logistics-related optimization projects?
As a multinational organization, we are constantly evaluating efficient ways to service our customers, enhance our service delivery and innovate solutions suiting our customer´s requirements.
What are your views about outsourcing logistics functions?
Global trends have shown that logistics is one of the most important functions for an organization to not only optimize costs but also to create a sustainable competitive advantage, thus outsourcing it to specialist is one of the most important strategic direction a company can take. This trend is being witnessed in a developing economy like India as well, wherein industry leaders - domestic as well as international companies - have embraced this proven outsourcing model effectively.
What is your view on bulk transportation of cement and what is the scope in future?
As the industry matures and keep itself in pace of growth of our economy, innovation and adaptation of global best practice is the eventuality. Globally bulk cement is moved more often in terms of overall percentage than in bagged form. Thus, it is inevitable that this trend will be the more profound one in coming years and there is definitely a tremendous scope in coming future.