CII IL Monthly Digest: A Newsletter from the CII Institute of Logistics

Edition - 10 April 2023

About CII IL We create avenues for the industry to gain more insights into emerging trends, industry-specific problems of national importance, and global best practices in logistics & supply chain management. We enable the industry to cut down transaction costs, increase efficiency, and enhance profitability. We are committed to sensitizing the industry about macro-level issues and helping find solutions to them.

Snapshot of the Month News highlights from the world of supply chain and logistics that appeared in media over the last one month

INDIA The 2nd Energy Transitions Working Group Meeting (ETWG) under India's G20 Presidency concluded successfully in Gandhinagar on April 3, 2023. The two-day meeting witnessed the participation of over 100 delegates from G20 member countries, 10 special invitee countries and 14 International Organizations. The Meeting was chaired by Shri Alok Kumar, ETWG Chair and Secretary, Ministry of Power, Govt. of India. Shri Bhupinder Singh Bhalla, Secretary, Ministry of New and Renewable Energy; Shri Vivek Bharadwaj, Secretary, Ministry of Mines; and Shri Amrit Lal Meena, Secretary, Ministry of Coal, were also part of the Meeting and deliberations. The Tamil Nadu govt unveiled its logistics policy 2023 in March. The policy aims to build and promote an integrated, reliable, cost-efficient and sustainable logistics system in the state. The policy includes a strategic plan for the next 10 years outlining identified interventions, their envisaged outcomes, timelines as well as the key stakeholders responsible for their execution. For rail connectivity, the state government will support the identification of connectivity gaps, and coordinate with the Ministry of Railways for implementation, media reports said. Bloomberg reports that the Indian government has set an exports target of US$2 trillion annually by 2030 as the nation work toward becoming a preferred destination for companies moving supply chains away from China. The newspaper mentioned India's G20 leadership, and the initiatives launched by Prime Minister Shri Narendra Modi's government to make India the world's fastest-growing large economy over the next three years. "We will achieve US$2 trillion in exports by 2030, but we should ensure merchandise exports don't fall behind service exports," the paper quoted Minister of Commerce and Industry Shri Piyush Goyal as saying. The Business World Magazine interacted with Yvette Cameron, Senior Vice President of Global HCM Product Strategy, Oracle, about changes observed in workplace and workplace management across India and the world, during the recently held Oracle Cloud Summit (Mumbai) 2023. "In India, the focus on talent supply chain is critical. I see that here more so than anywhere else in the globe. It's not just about hiring but rediscovering talent, which means looking inward, understanding the skills and the skills-potential of individuals who are going to carry the workforce forward," Ms. Cameron said. Mr. R Dinesh, Executive Vice Chairman, TVS SCS Global Freight Solutions Limited wrote in his Mint newspaper column that "The incumbent government has with foresight concentrated on infrastructure over the last few years, and particularly so in the last two years, with the launch of the PM Gati Shakti initiative." A reduction in the cost of logistics will ensure India becomes more competitive internationally, he added. The fourth PM Gati Shakti NMP regional workshop organized by the Department for Promotion of Industry and Internal Trade (DPIIT), Ministry of Commerce and Industry, was held on 24-25th March. The theme for day one of the 2-day workshop was PM Gati Shakti NMP and day two was National Logistics Policy. More than 140 officials including those from eight states from the NE Region participated in the workshop. The first regional workshop for Central and Western Zone was organized on 20th February 2023 in Goa. The second regional workshop with Nine States/UTs of Southern region was organized on 10th & 11th March 2023 in Kochi. The third regional workshop with eight States/UTs of Northern region was held in Srinagar on 17th and 18th March 2023. With the fourth workshop, more than 30 States/UTs have been covered in interactive workshops. The fifth regional workshop is planned in early April 2023. In related news, PM Gati Shakti's network planning group (NPG) at its 45th session recommended six infrastructure projects for renewable energy, road, and the railways sectors. These projects are to be developed by MNRE (Ministry of New and Renewable Energy), Ministry of Railways and the Ministry of Road Transport and Highways. INTERNATIONAL On March 31, the US Treasury Department released its much-awaited guidance to clarify which organizations and economic partner countries can benefit from the Inflation Reduction Act's electric vehicle tax subsidies.The 61-page proposal has important implications for Europe, China and the $32 trillion arena for the EV sector and the international commerce at large. Bloomberg reported that the America's Inflation Reduction Act may have far-reaching consequences for the transatlantic trade, which may have a bearing on the direction of global green energy initiatives. The Forbes Magazine shared insights picked from a recent presentation made by communications expert Alex Heath of Edelman to illustrate how trust is the superpower of a great supply chain. Mr. Health gave the presentation at the recent Zero100 Forum which had Chief Supply Chain Officers from around the world share stories of digital transformation of their supply chains. AP Moller Maersk has signed an agreement with South African RCL Foods to acquire its frozen food logistics division, Vector Logistics. Funded by AP Moller Capital, Maersk's fund manager, the move supportsMaersk's strategy of developing integrated logistics capabilities. Supply Chain Brain shared an insightful video talk by Charley Dehoney, the vice president of Zebox, that shined light on supply chain workflow automation, document digitization, transportation optimization, visibility, and the decarbonization of assets and infrastructure. "One of the key trends we're focused on is document digitization and workflow automation. We're trying to find new ways to move data from one system to another without humans in the mix,"Mr. Dehoney said. Bolloré Africa Logistics, one of the largest transport and logistics operators in Africa, unveiled its new brand, AGL (Africa Global Logistics) on March 30. With this new brand, AGL stated that it will continue to contribute to the sustainable transformation of Africa and the emerging markets. Writing for the Harvard Business Review magazine, Pranav Padgaonkar,Vice President Supply Chain and Procurement at GEP, a global consulting form, threw light on ways to build Supply Chain resilience without sacrificing ESG goals or inflating costs. He stated that organizations need to recognize that the aims of resilience and sustainability might sometimes compete, but they are not in conflict with each other. Palm oil's second-largest global palm producer, Malaysia, and its second largest market, China, have joined hands to stabilize palm oil supply chain. Malaysia said on Apr 2 it signed an MoU a China government-backed trade association to enhance palm oil trade and cooperation. According to the report, key objectives of the collaboration include the joint promotion of the use of Malaysia's sustainable palm oil in China, as well as the design and implementation of new technologies such as artificial intelligence in oil palm plantations. The World Health Organization (WHO) is helping Somalia establish an operational medical supply chain with an aim build resilience into the country's health infrastructure.As part of the endeavor, WHO is helping the country's Federal and State ministries of health establish a functional medical supply chain for serving the most vulnerable and disadvantaged populations of the country. WHO's assistance and resources have facilitated critical healthcare and patient consultations for approximately 3.6 million individuals in marginalized communities. This aid has guaranteed medical attention for about 3.5 million children under the age of 5 living in areas with restricted access, protecting them from various childhood diseases, including polio, measles, cholera, and malnutrition. Furthermore, it has enabled the administration of critical micronutrient supplements, such as vitamin A and deworming tablets, to an additional one million children under the age of 5 in the country, said the report. Will connect again next month, with a comprehensive dossier of news, trends and events from the industry. Courtesy: Newsletter content developed by Mr. Aanand Pandey