METI Commissioned Project in 2018
FY2018 Survey on Logistics Human Resource Development in India
Report
March 2019
Report of Survey on Logistics Human Resource Development in India Index
Part 1 Report
CHAPTER 1 GENERAL ...... 1
1-1. BACKGROUND AND PURPOSE ...... 1 1-2. DETAILS OF IMPLEMENTATION...... 1
CHAPTER 2 PRESENT SITUATIONS AND ISSUES OF LOGISTICS ...... 8
2-1. OVERVIEW OF INDIA ...... 8 2-2. OVERVIEW OF LOGISTICS ...... 9 2-3. PRESENT SITUATIONS AND ISSUES ON LOGISTICS IN JAPANESE COMPANIES ...... 27 2-4. SUMMARY ...... 33
CHAPTER 3 PRESENT SITUATIONS AND ISSUES OF LOGISTICS HUMAN RESOURCE DEVELOPMENT ...... 34
3-1. PRESENT SITUATIONS AND ISSUES OF LOGISTICS HUMAN RESOURCE DEVELOPMENT IN JAPANESE COMPANIES ...... 34 3-2. CURRENT SITUATIONS AND ISSUES IN LOGISTICS HRD IN LOCAL COMPANIES ...... 44 3-3. LOGISTICS HRD PROGRAM BY LOCAL LOGISTICS ASSOCIATION ...... 45 3-4. ISSUE RECOGNITION OF INDIAN ADMINISTRATION ...... 50 3-5. SUMMARY ...... 51
CHAPTER 4 CREATION OF LOGISTICS HUMAN RESOURCE DEVELOPMENT CURRICULUM ...... 55
4-1. SELECTION OF TARGETS AND THEME ...... 55 4-2. CONSIDERATION OF PROGRAM IDEA AND MATCHING WITH CII-IL PROGRAM ...... 56 4-3. CONFIRMATION OF USEFULNESS OF CII-IL LOGISTICS HUMAN RESOURCE DEVELOPMENT PROGRAM ...... 65
CHAPTER 5 DIRECTION OF ENVIRONMENT IMPROVEMENT FOR HUMAN RESOURCE DEVELOPMENT IN FUTURE (ROADMAP) ...... 75
5-1. SUPPORT MEASURES WITH HIGH PRIORITY ...... 78 5-2. OTHER SUPPORT MEASURES ...... 81
Part 2 Materials
1. Texts for Local Seminars 2. Materials for CII-IL Lectures at Local Study Group Meeting 3. CII-IL Programs
Part 1 Report
Chapter 1 General
1-1. Background and Purpose
India is high in attractiveness as a consumer market due to the size of population, high economic growth, increase in the middle-income and high-income classes, etc. and is an important point for supply chain that is located between Europe/Africa and Asia; therefore, the number of Japanese companies entering is on an increasing trend. Further, because the business environment will be improved by the Make in India Policy set by Prime Minister Modi, development of infrastructure by large-scale investment (Delhi-Mumbai Industrial Corridor, Dedicated Freight Corridor Construction Plan of India, etc.), introduction of GST (abolition of tax for inter-state sales), etc., it is expected that logistics will be changed drastically. On the other hand, under the above-mentioned environment, there is a high possibility that delay in securing and developing human resources capable of responding to requests from customers becoming more sophisticated or supporting logistics sites as the bases will be a bottleneck in future; therefore, we believe that it is urgently required to develop logistic human resources to strengthen the competitive power of Japanese companies entering into the market. This project will be implemented for the purpose of improving the environment to develop logistics human resources who may be able to contribute to reinforcing international competitive power of Japanese companies that will enter into the market of India.
1-2. Details of Implementation
1-2-1. Establishment of Domestic Study Group Domestic Study Group with academic experts, businessmen, etc. with a view to considering: the survey results on the logistics circumstances in India, the gap between the expected level of Japanese companies and the current level for the human resources being engaged in logistics operations, the needs for support measures for logistics human resource development as its solution, etc.; and the outline of the program and texts for logistics human resource development.
Members: - In random order and titles omitted 1 Chairman Katsuhiko Hayashi Ryutsu Keizai University Professor, Faculty of Distribution and Logistics Systems 2 Member Takehiro Ichihara Alps Logistics Co., Ltd. 3 Member Mikio Omori Office Omori 4 Member Keiichi Higuchi Kawasaki-Rikuso Transportation Co., Ltd. 5 Member Kengo Shibata Suzuyo & Co., Ltd. 6 Member Toshiyuki Yokoyama Nippon Express Co., Ltd.
7 Member Masahiro Tagawa Johnson Controls-Hitachi Air Conditioning, Inc.
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Observers: Logistics Policy Planning Office, Commerce and Service Industry Policy Group, Commerce and Information Policy Bureau, Ministry of Economy, Trade and Industry Southwest Asia Office, Trade Policy Bureau, Ministry of Economy, Trade and Industry International Logistics Division, Policy Bureau, Ministry of Land, Infrastructure, Transport and Tourism
Secretariat: Japan Institute of Logistics Systems
Outline of Domestic Study Group Meeting (1) The 1st Domestic Study Group Meeting Date and Time: Thursday, October 4, 2018 10:00 to 12:00 Venue: Conference Room, Japan Institute of Logistics Systems Agenda: 1. Explanation of outline of this project 2. Present situations and issues of logistics in India 3. Present situations and issues of logistics human resource development in India 4. Local survey 5. Others
(2) The 2nd Domestic Study Group Meeting Date and Time: Thursday, December 6, 2018 10:00 to 12:00 Venue: Room D, 3F, World Trade Center Building Agenda: 1. Report on project outline and progress 2. Present situations and issues of logistics 3. Present situations and issues of logistics human resource development 4. Framework of logistics human resource development and the curriculum idea 5. Holding of local seminars, etc. 6. Roadmap for logistics human resource development (outline) 7. Others
(3) The 3rd Domestic Study Group Meeting Date and Time: Friday, March 1, 2019 14:00 to 16:00 Venue: Conference Room, Japan Institute of Logistics Systems Agenda: 1. Report on outline and progress (Report on activity of visit to local places in February) 2. Training program for warehouse managers (draft) 3. Direction of environment improvement for logistics human
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resource development in future (roadmap) 4. Report (draft) 5. Others
1-2-2. Survey to grasp actual situations In order to grasp the logistics circumstances and the actual situation of developing human resources being engaged in logistics operations in India, various surveys were conducted, and its outline was summarized.
(1) Documents examination Various documentary records and the domestic and overseas information through web search were reviewed, and the present situations and issues were put in order.
(2) Domestic interviews Date (weekday) Time Place of Visit 1 Aug. 1 (Wed.) 11:00 to 12:30 Logistics operator 2 Aug. 2 (Thu.) 10:00 to 11:00 Logistics operator 3 Aug. 7 (Tue.) 10:00 to 11:30 Logistics operator 4 Aug. 7 (Tue.) 13:30 to 14:30 Automotive manufacturer 5 Aug. 9 (Thu.) 13:30 to 14:30 Trading company 6 Aug. 22 (Wed.) 11:00 to 12:00 Electric appliance manufacturer 7 Aug. 24 (Fri.) 10:00 to 11:30 Medical equipment manufacturer 8 Sept. 3 (Mon.) 11:30 to 12:30 Logistics operator 9 Oct. 5 (Fri.) 11:00 to 12:00 Logistics system company
(3) Domestic interviews（Preliminary, main and additional surveys） a) Preliminary survey Date (weekday) Time City Place of Visit 1 Aug. 10 (Fri.) 16:30 to 18:00 Gurugram Japanese logistics operator 2 Aug. 10 (Fri.) 9:30 to 10:30 New Delhi Japanese trading company 3 Sept. 12 (Wed.) 14:00 to 15:15 Gurugram Japanese logistics operator 4 Sept. 14 (Fri.) 11:30 to 13:00 Gurugram Japanese logistics operator 5 Sept. 19 (Wed.) 16:00 to 17:30 Gurugram Japanese electric appliance manufacturer 6 Sept. 20 (Thu.) 12:30 to 14:00 Gurugram Japanese automotive parts manufacturer 7 Sept. 20 (Thu.) 17:00 to 18:00 Gurugram Japanese trading company 8 Sept. 21 (Fri.) 10:30 to 12:00 Gurugram Japanese electric appliance manufacturer 9 Sept. 21 (Fri.) 14:30 to 15:45 Noida Japanese motorcycle manufacturer 10 Sept. 24 (Mon.) 18:00 to 19:30 Gurugram Japanese logistics operator
b) Main survey Date (weekday) Time City Place of Visit 1 Oct. 11 (Thu.) 10:00 to 12:00 Mumbai Confederation of Indian Industry
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Local logistics operators (4 companies) 2 Oct. 11 (Thu.) 14:00 to 15:30 Mumbai JETRO Mumbai 3 Oct. 11 (Thu.) 16:00 to 17:10 Mumbai Local specialized logistics association 4 Oct. 12 (Fri.) 10:30 to 13:00 Navi Mumbai Visit to JNPT port 5 Oct. 12 (Fri.) 15:30 to 17:00 Bhiwandi Local logistics company 6 Oct. 15 (Mon.) 10:00 to 12:00 Bawal Japanese automotive parts manufacturer 7 Oct. 15 (Mon.) 13:00 to 16:15 Tapukara Japanese automotive manufacturer 8 Oct. 16 (Tue.) 10:00 to 12:30 Faridabad Japanese logistics operator Local logistics operator 9 Oct. 16 (Tue.) 14:00 to 16:00 Faridabad Japanese automotive parts manufacturer 10 Oct. 17 (Wed.) 8:40 to 10:00 New Delhi Japan Chamber of Commerce and Industry in India 11 Oct. 17 (Wed.) 11:00 to 12:30 New Delhi Ministry of Commerce and Industry of India Confederation of Indian Industry Indian Institute of Technology 12 Oct. 17 (Wed.) 15:30 to 17:30 Gurugram Japanese trading company 13 Oct. 18 (Thu.) 11:00 to 12:30 Gurugram ISM-India 14 Oct. 18 (Thu.) 14:00 to 16:00 Gurugram Japanese logistics operator c) Additional survey Date (weekday) Time City Place of Visit 1 Feb. 3 (Sun.) 11:00 to 11:30 New Delhi Logistics Sector Skill Council 2 Feb. 3 (Sun.) 11:30 to 13:00 New Delhi CII-IL meeting and additional interview 3 Feb. 3 (Sun.) 13:00 to 13:30 New Delhi Local logistics operator interview 4 Feb. 3 (Sun.) 14:30 to 15:00 New Delhi Visit to exhibition 5 Feb. 4 (Mon.) 9:30 to 15:00 Gurugram Local seminar Interview with participants and questionnaire 6 Feb. 5 (Tue.) 10:00 to 14:00 Gurugram Local study group meeting Interview with participants and questionnaire 7 Feb. 6 (Wed.) 10:00 to 11:30 Gurugram Japanese staffing company 8 Feb. 6 (Wed.) 13:00 to 14:30 New Delhi Japan Chamber of Commerce and Industry
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1-2-3. Creation of logistics human resource development curriculum
As a result of consideration at the second domestic study group meeting based on the survey result on logistics human resource development, the targets (middle managers and site leader class) and the theme (warehouse management) have been decided. Further, it has been decided to create the curriculum while bringing utilization of CII-IL logistics human resource development program into view.
1) Selection of targets Because many Japanese companies have a strong desire of establishing the system by which middle managers and site leaders may give guidance to site workers, the target shall be the middle manager and site leader class members.
2) Selection of theme From the survey result, it has become apparent that there are many Japanese companies having issues on transportation/distribution operations and warehouse-related works. However, for the transportation operations, many Japanese companies are outsourcing its operations; therefore, the environment surrounding them is that it is difficult to perform human resource development of the employees at outsourcing companies directly to solve the issues. On the other hand, at the bases of Japanese companies (both shipper and logistics companies), there exist warehouses and each company’s employees are performing management and operations, which enables human resources to be developed directly. For this reason, it is considered to be advantageous for many Japanese companies to solve the issues at their warehouses; consequently, it has been decided to create the curriculum on “Warehouse Management”.
3) Curriculum for fostering warehouse managers (1) Purpose Foster warehouse managers
(2) Targets Middle managers and logistics site leaders class members being engaged in logistics operations
(3) Attainment level expected after completion The persons having completed the program shall have systematically acquired knowledge and techniques required for warehouse management. The persons having completed the program shall be able to apply the acquired basic knowledge to practical operations, guide site members and manage the warehouse.
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(4) Program Refer to Figure 1-1.
(5) Venue Delhi, India (However, E-learning will also be utilized concurrently.)
(6) Lecturers Present Indian lecturers and Indian lecturers who have received guidance from Japanese specialists
(7) Language English
(8) Secretariat Confederation of Indian Industry (CII-Institute of Logistics)
(9) Others Group type lectures shall be held on weekdays. Concerning the subjects of whether the system should be made the one for qualification recognition, the qualification certification method, the learning period, the participation fee, etc., those shall be decided upon discussion with the Secretariat, together with consideration on the detailed program.
1-2-4. Direction of environment improvement for human resource development in future (Roadmap)
The direction in the coming three years (roadmap) has been established toward opening the training (the qualification course) based on the above program for warehouse managers.
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Figure 1-1 Program for Warehouse Managers Code No. in applicable CII Category Subcategory Individual Item Type program
○
1 Introduction 1 Code of Conduct as a 1 Basics of business manners and meaning of work Development is required.
Elective businessman (mindset) 2 Reporting, communication and consulting/5S/5whys/Improvement mind 2 Logistics/SCM 1 Logistics LM11 2 SCM SCM11 3 Customer service 1 Customer FE13/LM11 2 Customer relationship 4 Organization and 1 Collaboration and partnership FE16 communication 2 Human resource management (fostering of employees) 3 Communication EM11
◎
2 Basics for 1 Definition of warehouse 1 Warehouse types and structures Compulsory LM12 Warehouse 2 Warehouse-related law and fire law Development is required. management 2 In-warehouse works 1 Flow of goods and layout LM12 2 Warehouse works (warehousing to shipping) 3 Warehouse management 1 Points of warehouse management LM12 2 KPI on warehouse 3 Labor management 4 Measures for unexpected incidents, troubles and Development is required. complaints 3 Safety and 1 Safety and health 1 Safety and health management Development is required. health management 2 Safety (labor accident and Heinrich's law) (LM12: Safety) 3 Health (Work environment management, work management and health management) 4 Establishment of system and promotion of education 4 Productivity 1 Efficiency improvement 1 Productivity and storage/work efficiency LM12 of in-warehouse works 2 Unitization and standardization 3 Work classification and work sampling Development is required. 4 Optimization of location 5 Personnel arrangement in warehouse and LM12 development of multi-skill workers 5 Quality 1 Basics of quality 1 Significance of quality management and logistics Development is required. management management quality 2 5S and PDCA 3 QC circle, QC story and procedures for solving problems 4 Utilization and analysis of data and QC seven tools 5 Creation and modification of procedures and manuals 6 Material 1 Material handling 1 Utilization of material handling equipment LM12 handling equipment equipment 2 Types of material handling equipment and technology and 2 Information system 1 Purpose and effect of using information system information 2 WMS system 3 Picking system 7 Inspection 3 Inspection and 1 Why inspection and maintenance are performed? Development is required. and maintenance of 2 Points of inspection and maintenance 8 Article 1 Basics of article 1 Purpose of article management SCM12 management management 2 Key to management and 1 Cargo receiving and shipping, and inspection LM12 guidance of each work 2 Storage 3 Cargo handling and picking 4 Packaging and transport packaging 5 Distribution processing Development is required. 6 Paperworks and various kinds of form processing Development is required. 3 Inventory taking 1 Purpose and procedure of inventory taking Development is required. 9 Inventory 1 Definition of inventory 1 Purpose of inventory management and cause for SCM12/FE11 generation of inventory 2 Types and functions of inventory and proper inventory 2 Inventory management 1 Concept of inventory management and inventory turnover rate 2 Inventory calculation method and pareto analysis 10 Cost 1 Cost management in 1 Fixes cost and variable cost in warehouse Development is required. warehouse 2 Concept of storage cost, storage efficiency and exercise 3 Concept of cargo handling, work efficiency and exercise 11 Improvement 1 Purpose and procedure 1 Why working on improvement? Development is required. of improvement 2 Solution of problems and 5 whys 3 Procedure (grasping of present situation, improvement planning, implementation and evaluation/fixing） 2 Improvement point and 1 Viewpoints on each site and improvement points examples 3 Improvement examples 1 Company examples 4 Exercise 1 Case studies
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Chapter 2 Present Situations and Issues of Logistics
2-1. Overview of India
India has a population of approximately 1.3 billion people and the population is expected to grow in future and surpass that of China to be No. 1 in 2030. It has a huge land with an area of approximately 9 times the Japan’s. Economic growth in India is bringing about the development of industry and the sharp increase in the middle-income class with purchasing power. Figure 2-2 indicates the status of market entry of Japanese companies into India. In India there are issues in the environmental aspect such as undeveloped infrastructure and unclear operations of laws, but because it is a promising country in terms of mid/long-term business development for the reasons of the market scale, growth potential in future and the inexpensive labor force, the number of Japanese companies entering is on an increasing trend. The transition in the number of bases indicates an outstanding growth in the states of Gurajat and Haryana. Figure 2-1 Overview of India
Overview Population Approx. 1.28 billion people (No.2 in the world) Land 3.28 million km2 (ca. 8.7 times of Japan’s land) Race Aryan, Dravidian, Mongoloid, etc. Religion Hindus (80%) and Muslims (14%) Literacy rate 71.2% Language Hindi (Official language of the Union), and other 17 authorized languages Economy GDP growth rate 6.7% (according to government documents of India in 2017) Nominal GDP Approx. 2,597.4 billion dollars (according to the World Bank data in 2017) GDP per person 1,939 dollars (according to the World Bank data in 2017)
Figure 2-2 Status of Entry of Japanese Companies into India
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2-2. Overview of Logistics
2-2-1. Distribution Network 1) Road The 5,850km National Highways to connect major cities of India called the Golden Quadruple and the 7,300km East to West and South to North Industrial Corridors are the backbones of the road network. The total length of the road is 5.6 million km (in 2016) and it indicates an increasing trend. Out of it, rural roads occupy approx. 70% of the total and the National Highways occupy only 1.8% of the total length. Further, the paved rate in the whole country of India is more or less 60%.
Road Network Surfaced Roads
Source: JETRO “India Distribution Network Map” (2009)
Transition of Road Extension
Source: Basic Road statistics of India 2015-2016
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2) Railroad The railroad network extends to 67,368km (2016 to 2017). The maximum transportation item is coal, which occupies approximately 45% of the total freight volume. The container railroad transport business is operated by Container Corporation of India (CONCOR), having a network connecting 81 ICD/CFS. The volume of containers being handled by railroad is on an increasing trend, and it will continue to be an important logistics infrastructure of India without fail also in future since the Dedicated Freight Corridor will be inaugurated.
Railroad Network CONCOR’s Terminals
Source: JETRO “India Distribution Network Map” (2009)
Transition of Handling Volume of Railroad by CONCOR (Unit: TEU)
Source: Website of Container Corporation of India Ltd.
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3) Port Because of a coastline of as long as approximately 7,500km, coastal transportation has been developed in India with 13 main ports at present. The volumes of traffic in 2017 were 105,442 thousand tons at the Kandla Port, 88,955 thousand tons at the Paradip Port and 63,049 thousand tons at the Mumbai Port in the order of the bigger handling volume. The volumes of container traffic in 2016 to 2017 were 4,500 thousand TED at the JNPT Port and 1,495 thousand TEU at the Chennai Port. The JNPT Port is close to Mumbai, the India’s largest commercial city, and furthermore functions as the gateway to Delhi, thus playing an important role in Indian distribution. Main Ports JNPT Port in Full View (a model)
Source: JETRO “Distribution Network Map of India” (2009)
Volumes of Traffic and Container Traffic at Main Ports of India
TRAFFIC CONTAINER TRAFFIC 1,000Ton 1,000TEUｓ 2017 2016/17 Kolkata Dock System 16,810 636 Haldia Dock Complex 34,141 136 PARADIP 88,955 2 VISAKHAPATNAM 61,020 367 KAMARAJAR (ENNORE) 30,020 - CHENNAI 50,214 1,495 V.O. CHIDAMBARANAR 38,463 642 COCHIN 25,007 491 NEW MANGALORE 39,945 95 MORMUGAO 33,181 30 MUMBAI 63,049 42 JNPT 62,151 4,500 KANDLA 105,442 10 TOTAL 648,398 8,446 Created with Data by Indian Port Association
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4) Airport There exist 26 international airports and 48 domestic airports. The airfreight volumes are on an increasing trend both for domestic and international freight. The airports with big volumes of freight are the Indira Gandhi Airport in Delhi and the Chhatrapati Shivaji Airport in Mumbai.
Main International Airports
Source: JETRO “Distribution Network Map of India” (2009)
Airfreight Traffic (Unit: Measurement Ton)
2016-17 2017-18 Growth rate
international freight domestic freight Total(MT) international freight domestic freight Total(MT)
1 DELHI 559,062 298,357 857,419 651,420 311,612 963,032 1.12
2 MUMBAI 547,372 234,917 782,289 647,965 258,356 906,321 1.16
3 CHENNAI 268,026 91,191 359,217 312,085 105,702 417,787 1.16
4 BANGALORE 199,466 119,878 319,344 219,899 128,504 348,403 1.09
5 KOLKATA 56,770 95,645 152,415 60,772 102,551 163,323 1.07
6 HYDERABAD 68,946 52,936 121,882 79,177 54,964 134,141 1.10
OTHER AIRPORTS 155,419 230,256 385,675 172,650 251,371 424,021 1.10
GRAND TOTAL 1,855,061 1,123,180 2,978,241 2,143,968 1,213,060 3,357,028 1.13
Source: Airport Authority of India
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2-2-2. Logistics-related large-scale development
1) Delhi Mumbai Industrial Corridor (DMIC) Delhi Mumbai Industrial Corridor (hereinafter referred to as DMIC) is the most ambitious infrastructure program, being aimed at developing new industrial cities as “Smart Cities” and integrating next-generation technologies over infrastructures. Its purpose is to expand the bases for manufacturing and service industries in India and developing DMIC as “the global base for manufacturing and trade”. This program is expected to provide the large driving force to systematic urbanization of India with manufacturing as a key driver. More flexible intervention is supposed such as the programs for collaborative development of infrastructures of, for example, power plants, secure water supply, large-capacity transportation and logistics facilities in addition to new industrial cities as well as for skill development for employing local people. At the first stage, eight industrial cities are being developed. The six states as the subject of development occupy 15% of the total land area in India and 20% of the total population (i.e. approx. 200 million people). (There is also a trial calculation that the population will increase by 30% in coming 30 years.) This program is being implemented under the partnership and joint activities with the Government of Japan.
Source: DMICDC Website (https://dmicdc.com/about-DMICDC)
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2) Dedicated Freight Corridor (DFC) The plan is to build the Dedicated Freight Corridor for expanding cargo transportation capacity in the West Corridor (between Delhi and Mumbai) and in the East Corridor (between Delhi and Kolkata) with the total length of approximately 2,800km that cover approximately 65% of cargo transportation in India. This proje ct is positioned as a national project in India. In 2008, it was decided to provide ODA yen loan to construction of the West Corridor. Between Delhi and Mumbai (approximately 1,500km), a new dedicated freight railroad will be constructed; full-automatic traffic signals and the communication system will be arranged; and large-capacity and high-speed electric locomotives will be introduced. DFC is expected to function as the backbone of industrial logistics in DMIC. Full inauguration in 2025 is the policy goal of the Government of India. Partial opening is expected to be realized in a timely manner even prior to 2025.
Source: Website of Dedicated Freight Corridor Corporation of India Ltd. (http://dfccil.gov.in/dfccil_app/Home)
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3) Logistics Park Plan (MMLP) The Ministry of Road Transport and Highways of the Government is developing multimodal logistics parks at specific locations in the country under the Logistics Efficiency Enhancement Programme (LEEP). Multi-Modal Logistics Parks are a key policy initiative of the Government of India to improve the country’s logistics sector by lowering freight costs, reducing vehicular pollution and congestion, and cutting warehousing costs.
(1) Ability and function Freight aggregation and distribution services (Zones exclusive for each product type, cross-docking facilities and railroad-side areas arranged for efficient cargo transportation) Multi-modal cargo transportation (Connectivity of road, railways, air and waterways) Storage warehouse (Outdoor storage, indoor storage, control storage and refrigerated storage) Introduction of material handling equipment ICD Value-added services (Labelling, packing, repackaging, processing and re- processing) 100 acres at the smallest (40.5 hectares)
(2) Advantage Inventory management and cost reduction (mechanized warehousing and large- sized storage spaces will enable reduction of handling costs.) Reduction of lead times (Reduction of waiting time for customs clearance and additional time reduction by value-added services)
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Source: India Warehousing Market Report 2018
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4) Development of industrial park exclusive for Japanese companies (Japan Industrial Township) In “Action Agenda for the India-Japan Investment and Trade Promotion and Indo- Pacific Economic Integration” signed between India and Japan in April 2015, it was agreed to take steps to develop “Japan Industrial Townships” to promote investment from Japan to India. Up to the present, 12 candidate sites have been selected.
The State of Haryana Jhajjar Industrial Park The State of Rajasthan Neemrana Industrial Park and Ghilot Industrial Park The State of Gujarat Mandal Industrial Park The State of Maharashtra Supa Industrial Park The State of Uttar Pradesh Greater Noida Integrated Industrial Park The State of Madhya Pradesh Pitampur Industrial Park The State of Karnataka Tumkur Industrial Park The State of Tamil Nadu Ponneri Industrial Park, One Hub Chennai Industrial Park and Sojitz-Motherson Industrial Park The area between the south border of the State of Andhra Pradesh and Krishnapatnam Port
Source: Ministry of Economy, Trade and Industry (Progress Report of the Japan Industrial Townships (JITs) in India, October 2018)
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5) Navaseva Port (JNPT) Development Plan Nabasheva Port (JNPT), which has the largest container handling capacity in India, has to cope with the volume of 4,500,000 TEUs per year, but the low processing capacity causes stagnation of cargo. The measures for processing capacity aim to achieve the processing capacity of 10 million TEUs by 2022. In the first phase, with the aim of improving the processing capacity of 7.2 million TEUs by 2019, container berths are being added at four container terminals in JNPT. The two major roads leading to the port are planned to be extended from four lanes to six to eight lanes as a solution to the congestion on the surrounding roads. It is also planned to expand the parking lot for waiting for trucks and to install accommodation with showers for long distance drivers to take a break. Furthermore, with the support of JICA, construction of a cross bridge connecting JNPT and central Mumbai is planned. For transportation other than trucks, routes from the JNPT draw-in line to the freight railway are in place. New airport construction is planned within 15 kilometers from JNPT as a measure to enhance air cargo transport. In addition, a special economic zone adjacent to the port will be established for the first time in India. The special economic zone covers 277 hectares. It aims to attract factories from foreign countries such as electrical equipment, food processing, aut o parts, automobiles, machinery, pharmaceuticals, and electronic parts. Various subsidies from the government will be granted to companies that have entered the S EZ. Companies are expected to receive benefits such as import and processing approval in a bonded state, tax exemption for exports, tax exemption for GST generated in procurement, and relaxation of restrictions on foreign direct investment. ※ For details, refer to the JNPT SEZ website (http://www.jnptsez.com)
6) Logistics visualization business As part of DMIC, with the support of the Ministry of Economy, Trade and Industry, Nippon Electric Co. (Head office: Minato- ku, Tokyo) has been working on developing solutions to improve logistics throughout India since 2010. The company established a joint venture, DMICDC Logistics Data Services, with DMICDC, and has developed a mechanism to track where the container is now in India using RFID. An RFID tag is attached to all containers arriving at the JNPT. The receiver reads the RFID and sends the location information of the container to the server when the container passes through the expressway, the depot, and the railway base. Users can use cargo reports via the Internet. The disposable RFID is used instead of GPS because of the risk of theft and cost. DMICDC LDS plans to develop logistics visualization business in other ports in India.
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2-2-3. Distribution circumstances and channels
1) Distribution structure mainly for traditional trade Traditional Trade (TT: There are 12 million Kirana shops throughout the country) occupies 98% of the market, whereas Modern Trade (MT: Supermarkets, convenience stores, etc.) has a very small portion of the market. This tendency has been and is continuing. This is because of severe restrictions on foreign investment for the retail trade. In 2006, the restrictions were loosened for the retail trade where single-brand products only were being sold and in 2012 for food retailing and also for the retail trade where plural-brand products were being sold.
by sales amount in 2013
Example of distribution structure (The issues lie in cost increase due to multi -stage structure and difficulty in customer management.)
Carrying and Forwarding Agent The business operator who stores and distributes the products (CFA) manufactured by food manufacturers. It is said that an operator owns a warehouse in each state under the influence of the central sales tax (inter- state tax). Distributor It keeps a sales agent at each area and grasps the trend on consumers, which will be a key in establishing sales force. A food manufacturer concludes an exclusive contract in principle. Source: Mizuho Industry Focus vol.160 (August 2014)
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2-2-4. Transportation route
The following chart illustrates transportation routes (from import to domestic sales or export). In either case long-distance transportation is involved. Further, we see that cargoes are being distributed with plural stock points in the whole country of India due to the inter-state tax having been imposed on domestic sales.
Example of Domestic Transportation Routes (Import to Domestic Sales)
Examples of Transportation Routes in Exporting
Source: Created from “Logistics Ease Across Different States (LEADS) Jan. 2018”
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2-2-5. Progress of e-commerce
Increase in the middle-income class has created demands for smartphones and tablets, and consequently, there are about 375 million internet users and 220 million smartphone users as of 2015, pushing up the e-commerce industry. Approximately 70% of on-line trade is on cash on delivery basis, and so, the COD service compatibility is increasing. Furthermore, utilization of debit or credit cards is also increasing quickly.
Example of logistics companies being utilized by on-line retail sites
Gati-KWE Blue Dart FedEX DTDC First Flight Aramex Gojavas Ekart Delhivery Dotzot Amazon Transportation Service Private Limited India Post
Source: Market survey of e-commerce in India (January 2017 by JETRO)
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2-2-6. Logistics performance in India
1) Logistics performance index The questionnaire on the following six dimensions has been performed for main import counterpart countries of each country and specialized logistics companies in the surrounding countries (more than 1,000 companies in total), and international logistics of the country is evaluated in 5 steps and its score is calculated. (The Logistics Performance Index – LPI） The order of India was improved from the 54th in 2014 to the 35th in 2016, whereas in the latest ranking in 2018, the position was lowered to the 44th.
Customs Efficiency of the clearance process by border control agencies, including customs Infrastructure Quality of trade- and transport-related infrastructure Ease of arranging shipments Ease of arranging competitively priced shipments
Quality of logistics services Competence and quality of logistics services (e.g., transport operators, customs brokers) Tracking and tracing Ability to track and trace consignments Timeliness Timeliness of shipments in reaching destination within the scheduled or expected delivery time
(Reference) Logistics Score Chart
2) Logistics cost According to announcement made by Chamber of Commerce and Industry in India (ASSOCHAM), the ratio of the logistics cost to GDP of India was allegedly 14.4% (the result in 2016).
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Examples of Logistics Cost Ratio by Industry
Source: INDIA LOGISTICS & WAREHOUSING
3) Structure of logistics costs The ratio of the transportation cost is high, but the ratios of the costs for storage (inventory), loss and packaging/packing are also high. Indicated as the measures are: “Minimize losses.”, “Locate warehouses effectively.”, “Reduce the transportation cost.” and “Manage inventory effectively.”
Source: Materials created by Confederation of Indian Industry
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2-2-7. Introduction of Goods and Service Tax (GST) and impact on logistics
The Goods and Service Tax (GST) was introduced, effective on the 1st July, by which complicated tax procedures have been simplified. Furthermore, the Central Sales Tax (CST) imposed on sales to outside the state has been abolished; therefore, it is expecte d that inter- state distribution will be activated and efficiency of logistics will be enhanced. Companies are establishing supply chains, not only from the logistics viewpoint but also attaching importance to tax optimization. Companies had distribution warehouses in each state to avoid payment of CST in the past. Due to the tax being imposed on inter- state transactions, in procurement operations for example, it was necessary to obtain raw materials by placing orders to local suppliers being located in the same state as the manufacturing factory. It has become possible to re-arrange suppliers in future from the viewpoint of cost optimization. Up to the present, vehicle stopping and waiting time has been so far occurring to have certificates of payment for the border tax and CST confirmed at checkpoints of state borders. Because state-border checkpoints have been removed due to procedures being electronized, transportation lead times have been shortened. On the other hand, due to the distances from distribution bases to customers becoming longer as a result of consolidation of distribution bases, longer transportation lead times will be caused and this situation is being concerned about. Therefore, it is necessary to re-define proper service level for customers. The results of the company interview are as follows.
1) Japanese Companies In India it often happens that things do not arrive on the desired day. Therefore, it is necessary to keep the stock close to the customer. GST is being introduced, and warehouse consolidation is expected, but Japanese shippers and logistics companies are looking at the situation until road infrastructure is developed to some extent.
2) Local Companies Local companies are focused on costs. Shippers and logistics companies who had warehouses in each state began to consolidate warehouses to save taxes. As a result of warehouse consolidation after the introduction of GST, the convenient warehouse rent in Mumbai, which is near the port, increased from 10 rupees / ft2 to 18-25 rupees / ft2. The cost of transportation increased by about 10% due to the recent rise in crude oil prices and the consolidation of warehouses increased the transportation distance. There is also the problem of one-load due to the concentration of bases.
The situation being above, it is expected that the supply chain will need to be redesigned in the future, such as optimizing the warehouse location throughout the supply chain.
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2-2-8. Issue recognition on the side of India
The Ministry of Commerce and Industry of India has the following issue recognition.
1) Logistics policy • In India, four ministries are working on logistics. Because of less cooperative relationship having been established, it is necessary to improve it to generate a synergistic effect. For this purpose, a new section has been established. Currently, they are making the consultant draw a master plan. They want to reform logistics drastically. • They want to refer to the Comprehensive Physical Distribution Policy Outline in Japan.
2) Logistics-related issues • The infrastructure is a bottleneck. In particular, the facilities at the JNPT port and at the border with Bangladesh are deteriorated.
3) Logistics-related laws and regulations • The laws relating to transportation (air, marine and railroad) and multi-modal transport are considering revision of them. • They are performing physical inspection of 40% of the total cargoes at the time of customs clearance from the viewpoint of risk management. It is necessary to reduce this operation for efficiency.
4) Others • The logistics cost ratio to GLP is approximately 14% in India, and they want to reduce the ratio to 10% in three years. • They are working on calculating detailed logistics costs. They want to grasp what factors are pushing up the cost. • Because of no reefer container available, the loss rate (the abandonment rate) of agricultural products is high. • The shares of transportation means in India are 30% by railroad, 60% by truck and 6% by coastal marine transportation. They understand that the cost for utilizing roads and the trade cost are high. Because there are many organizations and personnel being involved in trade as intermediaries, it is necessary to reduce them.
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2-2-9. Support from Japan
1) Activities of Ministry of Economy, Trade and Industry (1) Cooperation relating to promotion of “Make in India” Signature for the roadmap for India-Japan investment promotion Signature for Memorandum of Cooperation on “the India and Japan Make in India Special Program” Human resource development in the manufacturing industry (Implementation of Japan-India Institute for Manufacturing and Japanese Endowed Courses) (2) Delhi Mumbai Industrial Corridor (DMIC) Energy cooperation: Holding of India-Japan energy dialogue (3) Construction of the International Cooperation and Convention Center in Varanasi
2) Activities of Ministry of Land, Infrastructure, Transport and Tourism Holding of Joint Committee Meeting on Indian High Speed Rail (held several times since 2016) Signature for “Memorandum of Cooperation between the Ministry of Land, Infrastructure, Transport and Tourism of Japan and the Ministry of Railways of the Republic of India on Railway Safety” (2017) Exchange of agreement on expansion of India Japan aviation relationship
3) Ministry of Agriculture, Forestry and Fisheries Project for promoting development of Food Value Chain Project for developing infrastructure for food industry global deployment
4) Japan International Cooperation Agency (JICA) (1) Cooperation on transportation Development of industrial corridors (Delhi Mumbai (DMIC) and Chennai Bangalore (CBICI)): Development of investment environment Delhi-Mumbai Dedicated Freight Corridor Construction Project (DFC) Delhi Ahmedabad High Speed Railway (HSR): Introduction of Japanese Shinkansen System Delhi Mass Rapid Transport System Project (Delhi Metro) Hyderabad Outer Ring Road Project Development of Ports (e.g.: Visakhapatnam Port Expansion Project) Implementation of training at railways and ports (2) Others Visionary Leaders for Manufacturing Programme
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2-3. Present Situations and Issues on Logistics in Japanese Companies
Category Present Situations, Problems and Issues Examples of Measures Being Direction of Measures Implemented by Companies 1. 1) Priority Japanese companies seek for quality enhancement, but local companies give Partner companies are developed over a It is necessary to enhance the Common given to cost priority to cost. middle/long period of time. quality in the whole country of than quality No complaints are received from customers for the level of contamination and Differentiation is aimed for by realization India. (low quality/ damage of outer cartons. Even if there is damage to a product, the problem is of high added-value logistics because it is low cost) solved by return or exchange, which is accepted also by customers. not possible for Japanese companies to Because the length of lead time and cargo damage depend on the outer compete price-wise with local companies. environment such as the infrastructure, in many cases those cannot be solved by the effort of a company. Customers understand such a situation. Unless a strong request is made from a customer, the cost will not be spent for a particular problem. Customers are satisfied, i.e. make a compromise, with “low quality, low price”. Among logistics operators in India, there exist some companies that are making good cargo handling and logistics quality a selling point. 2) Poor cargo There is no problem awareness on throwing cargoes. Service standards are set with some Thorough performing of basic handling Due to low personnel cost, loading/unloading is basically made manually. No allowance. cargo handling consideration is given to introduction of devices such as a forklift. Packing and packaging are being Standardization and palletization Because of no progress toward mechanization and automation, manual cargo performed thoroughly. Dissemination of devices such as handling is the main work. Hard works lead to the high turnover rate. An extra volume of inventory is being kept. handlifts and handcarts Training is being given through OJT. Measures for manpower reduction Pallets and forklifts are being used in and introduction of material response to increase in the logistics handling equipment in response volume. (To realize increase in speed.) to increase in cargo volume. 3) Selection Japanese shipper companies are outsourcing transportation and warehousing KPIs have been set and discussions are being It is necessary to enhance the and operations to Japanese or local logistics operators. Japanese logistics made with those figures being indicated at logistics quality in the whole management of operators are also doing business while utilizing local logistics operators. meetings because it is not possible to give country of India because the main outsourcing Selection and management of outsourcing companies are important. guidance to outsourcing companies directly. bodies of distribution after companies The KPIs to manage logistics operators are quality, cost, delivery time, safety Evaluations are being performed with KPIs manufacturing are local readiness and management system. for price, safety, time management, number companies. (human resource There is no local staff who can judge cost versus effect of the operations to be of trucks, financing, etc. development) entrusted to logistics operators. Mass transportation being possible and Holding of seminars on the points There is no timely reporting or information when a delay occurs, it is not having a nation-wide network are made the of selecting/managing outsourcing selecting criteria. possible to give a reply to the customer. A problem is sometimes disclosed for companies, the points of Individual drivers are being evaluated, each the first time when information of no delivery is given by the customer. setting/managing KPIs, etc. with a check sheet. In the southern area including Mumbai, the power of local unions is strong. Consideration of introduction of G Whether the owner of an outsourcing Sometimes, the union member companies (transportation operator/staffing company is trying to provide high-quality Mark System company) must be used inevitably. logistics services is made a judgment Thefts of products to be transported to distributors occur frequently. standard. The company’s own SOP is being provided to outsourcing companies to have it used. 4) Customer Because distribution of the company’s own products to the warehouse of Wholesalers having high consciousness of It is necessary to enhance the management wholesalers can be managed on its own, the transportation quality is secured. quality have set standards for logistics quality in the whole However, it is difficult to view the transportation from wholesalers to transportation and products storage and country of India because the main customers and the product management on the side of customers. are disclosing the information. bodies of distribution after The logistics skill and quality at the end are poor, and problems are occurring. Audit is being conducted to wholesalers. manufacturing are local companies. Thorough logistics management shall be required also at customers.
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Category Present Situations, Problems and Issues Examples of Measures Being Direction of Measures Implemented by Companies 5) Increase in Supply does not catch up with demands. In addition to the logistics infrastructure An extra volume of inventory is being kept. Logistics park plan by the needs for having not been developed, the transportation capacity is insufficient. Demands are being forecasted thoroughly. Government of India logistics and The number of trucks is limited for transporting electric home appliances. Products are being transported from other Measures for enhancing the status over capacity There are few vehicles capable of performing temperature management. centers. of logistics and the logistics The status of the logistics industry is low and as a result, there are few people industry who have desire of being employed by logistics operators. Shortage of drivers is Measures for supporting truck occurring. operators The number of warehouses is insufficient in the areas of Delhi and Gurgaon due Creation of a guide on warehouse to increase in the logistics volume. Although there are increasing cases of farmers design in consideration of building building warehouses to utilize their land, warehouses that are difficult to use are standards of warehouses and being constructed due to no knowledge of logistics. warehousing operations. 2. 1) Road 【Occurrence of cargo damage】 Packing and packaging are being performed Thorough performing of basic cargo Transpor- transportation Due to many unpaved roads, cargo collapse often occurs. Although packing is thoroughly. handling tation arranged with the standards in Japan, cargo damage occurs. An extra volume of inventory is being kept Standardization and palletization There are many crossroads where humps (speed breakers) are set, without traffic Importance is given to KPI on packing. Dissemination of devices such as signals. Shocks when passing through may have an impact. Transportation route is designated. handlifts and handcarts Due to long distance of trunk-line transportation, the transportation with relays Utilization of curing materials is arranged. Reloading at relay points is required, where cargo damage occurs by Preparation of signals harsh manual cargo handling. Building of high-standard road network 【Lead time is long; arrival time is not known; and delivery time is not observed.】 GPS management Development of the freight/vehicle Procurement lead time from domestic suppliers is long. An extra volume of Drivers dedicated to the company demand system (Matching system: inventory has to be kept, including the portion that may be contaminated or lost Phone information at check points (thorough Application software) by transportation. reporting) For truck operators, always securing cargoes is connected to increase in profits. An extra volume of inventory is being kept They give more priority to the companies’ own profits over delivery times A little longer lead time is assumed. requested by customers. (e.g.: Trucks will not leave the relay point until cargoes It is devised so as to realize full loading. are collected.) Plans to be taken in an emergency are being They do not have a concept of observing delivery times even when those have shared with customers. been designated. Even in the case that a delay is expected from a schedule, no Tracking system with RFID is being utilized. report is given and alternative means are not considered or proposed. Time schedules are not observed. Problems may be caused also by rainfall. Since the rainy season lasts only two months, no measures are implemented especially. There are few street gutters and rivers for draining water thereinto, floods tend to occur frequently. Once a flood occurs, the traffic may sometimes be restricted for trucks. Long-distance transportation driving in the vast area of India is caught almost every time in traffic congestions, political uncertainties, strikes, floods, festivals or rites, driver shortage or traffic accidents occurring somewhere in the country. The speed of infrastructure improvement has become higher remarkably during recent 10 years. (It has been connected to decrease in inventory.) 【Chronic traffic congestion】 Securing of financial resources for Main causes are: undeveloped road infrastructure, irregular road surfaces, roads and maintenance unprepared traffic signals, crossing with pedestrians, no street lights, Road maintenance by JBIC or JICA overflowing in the rainy season and insufficient road capacity due to increase in the number of vehicles. There are many one-lane roads on one side except in major cities (in the suburban areas) and traffic congestions occur. Repairs of roads are made in an ad hoc manner and so, the environment has not been improved.
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Category Present Situations, Problems and Issues Examples of Measures Being Direction of Measures Implemented by Companies
【Utilization of truck operators and risk】 Training for drivers are being conducted. It is necessary to develop the The quality of drivers is low. They tend to think it better to deliver cargoes (OJT) environment so that safety quicker. The accident reporting rate has been made education (driver education) may be Delivery time is not observed; cargo handling is poor; there is a theft risk. KPI, not the accident rate, because an provided by many truck operators. Old trucks are being used. accident will give an impact on the outer Selection and management of high- Vehicles are modified to increase the loading capacities; cargoes are being environment. quality local logistics operators transported in an overloaded state. Utilization of insurance Method for managing drivers Unions have been founded by forwarders in some areas; therefore, any order for Award system for drivers transportation in the applicable area has to be placed basically with the union. Organization commendation system Because vehicles have not been standardized, cargo handling works cannot be (certification of green management, standardized as well. Due to importance being given to the immediately G Mark, etc.) occurring cost, no investment is made. Creation of national rules on There are many trucks without air conditioners. Unless the works under high vehicles temperature is improved, there is a possibility of causing shortage of truck drivers in future. Due to forwarders giving priority to transportation of cargoes of major companies, they are struggling to secure trucks. 【Milk run】 It is being carried out within the capacity of It is not easy to carry out the milk run due to the environment related to the group companies. union of truck operators. Partner companies for many years are being utilized. Not only the company’s own parts but also competitors’ parts are consolidated. 【Food loss and cold chain】 PAS1018: International standard There is a big volume of wastes due to agricultural products and foods being for indirect, temperature-controlled damaged during transportation. (occurrence of food loss) refrigerated delivery service; and There are few refrigerated vehicles. acquisition of ISO certification Subsidy system for purchasing refrigerated vehicles The share of rail transportation is high. An extra volume of inventory is being kept. Inauguration of DFC. While it is The management company is managing the operations exclusively, so the charge Scheduling with a time allowance expected to some extent that DFC for use is high (The charge is higher than the import cost from abroad.) Tracking system using RFID will improve logistics Delays occur in the rainy season. circumstances, we foresee that its Sometimes an electric locomotive does not appear when loading of containers has result may vary much with the been finished and the cargoes are kept waiting. operation body, whether Railroad vehicles have been improved, but the conditions of railroads remain government-operated or privately- unchanged. operated. Utilization will depend on Due to the unit train system, the train will not leave the place of departure until the cost. the cargoes reach the expected volume. Departure time is now known when a delay occurs. The lead time cannot be estimated. There is no fixed schedule. The time table has been made with priority given to passengers. Due to reloading of cargoes occurring frequently, it is difficult to track cargoes. It is desired to promote commercial use of the railway between India and Bangladesh.
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Category Present Situations, Problems and Issues Examples of Measures Being Direction of Measures Implemented by Companies
3.Distri- 1)Port facilities Facilities are becoming deteriorated for aging. Packing and packaging are being performed Response of the administration of bution Accumulation of cargoes occurs with the processing capacity not catching up with thoroughly. India base the cargo volume. An extra volume of inventory is being kept Introduction of, for example, the Congestion of surrounding roads. Among others, the congestion in the Scheduling with a time allowance Terminal Appointment Booking neighboring areas of Nhava Sheva and Pipavav ports is serious. At the Nhava Sheva port, constructions of System (TABS) in the Philippines Cargo handling is poor. road expansion (increase in the number of The government-operated ports are located at the place easily accessible but lanes), an express way and driver rest inefficient in its operations and low in the service level. On the other hand, facilities have started. privately-operated ports have high-level services. 2)Airport Accumulation of cargoes occurs with the processing capacity not catching up with Packing and packaging are being performed Response of the administration of facilities the cargo volume. thoroughly. India Cargo handling is poor. An extra volume of inventory is being kept The accidents of claws of a forklift hitting cargoes occur a few times a year. Scheduling with a time allowance Air transportation is used for an emergency, but delays occur and influence production. 3)ICD The government-operated ICD is inefficient in operations and low in the service The companies capable of investigating ICD evaluation system level. Customs clearance takes much time. causes of problems have been made partners. Human resource development for The privately-operated ICD has high-level services and has been on an managers and workers working in increasing trend in recent years. the government-operated ICD Because the quality of cargo handling is low, FCL is recommended to customers. Problems may lie also on the cargo Cargoes are sometimes stored in an exposed-to-rain state. loading side. For the reason of import with poor-quality pallets, quality accidents happen such as cargo collapse. There are sometimes the cases that the ICD on the carton - opening side is considered to have caused quality accidents. 4)Warehouse 【Facilities】 Creation of a guide on warehouse No berth is available in warehouses, so trucks directly enter the inside of design in consideration of building warehouses for unloading works. standards of warehouses and Cargoes are mostly placed flat, not being stacked vertically. (Cargoes are mainly warehousing operations handled manually; cargo handling equipment has not been introduced.) It is difficult to build new warehouses because loan for investment to warehouse and the land-acquiring cost are high. More and more farmers are building warehouses in their farms under the influence of warehouse shortage, but only difficult-to-use warehouses are being constructed in disorder. 【Warehouse management】 OJT (Human resource development) Because cargoes are placed directly on the floor surface, those are subjected to Management is being performed based on Key point for warehouse the influence of rainfall and humidity. experience. management Cargoes are sometimes stored in an exposed-to-rain state. Warehouse management system has not been introduced. Although there are handwritten sheets, those are not utilized. There is no awareness of FIFO, so newly warehoused products are shipped out first. Consequently, the inventory of earlier warehoused products is left in the warehouse. Location management is insufficient. No proposal is given to shipper companies. (e.g.: The dead inventory is stored as it is. Workers tend to think that if they keep silent, they can continuously receive the storage fee.)
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Category Present Situations, Problems and Issues Examples of Measures Being Direction of Measures Implemented by Companies 4)Warehouse 【Temperature control】 Abandonment of agricultural products has Certification of Good Distribution There are few refrigerated warehouses. Agricultural products are abandoned due been reduced by construction of a fixed Practice (GDP) for pharmaceuticals to damage during production and storage. (Occurrence of food loss) temperature warehouse with the photovoltaic PAS1018 (Out of indirect, Although attention is paid to cold chain, the demand is small for the moment. power generation system (Kawasaki-Rikuso temperature-controlled refrigerated The bottlenecks are difficulty in forming a chain for a long distance, expensive Transportation) delivery service, the transportation electricity charge, etc. Power supply is also insufficient. mode with reloading of cargoes is Although pharmaceuticals require mid/low-temperature management, those are the subject. not properly managed. Requirements are prescribed on reloading works during distribution, with focus on temperature control of the refrigerators mounted on the vehicles.) 【Systematization】 Introduction of WMS Inventory management is performed on the basis of ledger management and Electronization of procedures and shipping Excel. documents Shipping documents and procedures are partly electronized, but the works requiring papers still remain in operation. 4.Legal 1)General 【Difficulty in obtaining information on the legal system】 Information sharing between Japanese Establishment of framework for System When there are changes in laws or regulations, it is difficult to obtain companies providing and sharing information information locally. Provision of information from Japan In April 2016, the number of finished automobiles that can be carried by a truck Chamber of Commerce and Industry in India was changed. Its period of suspension was as short as six months. Submission of proposals to the Government 【Different interpretation and operation by each person in charge】 of India through Japan Chamber of Each person in charge has different interpretation. With different responses, Commerce and Industry sometimes it is difficult to respond to a case. 【Relation between the central government and state governments】 A policy cannot be put into effect unless both the central and state governments agree with each other. 2)GST Procedures at state borders have been eliminated and the distance of driving In the case of India, due to a higher risk of It appears that reorganization of within one day has been extended, so the lead time has been shortened. cargoes being not delivered, there is no other network will not occur rapidly until Long-distance transportation of drivers has increased. To give priority to deliver choice but to prioritize keeping of the the road infrastructure is developed cargoes earlier, drivers do not want to take rest. For this reason, accidents are inventory near to customers rather than to some extent. increasing. consolidation of bases. The domestic demands continue to In India where floods are likely to occur, consolidation of warehouses has a risk The working system of drivers has been expand for the time being, so the of causing malfunction of the logistics network in a large scale. shifted to the 2-person alternation system. interest in consolidation and There are many areas where road infrastructure has not been developed, so the enlargement of bases as well as current situation with warehouses near to demand areas is more convenient also networking is high. Education on for shippers. the base allocation plan is required Although the inter-state tax has been abolished, no discussion is made on on the assumption of rebuilding the consolidation of bases. logistics network in future. It is said that warehouses can be consolidated, but in our view, it will not be realized within a short time. According to local companies, in spite of warehouses having been consolidated, the transportation cost has increased. Besides, the rent for warehouses in Mumbai that is convenient because of its location near to the port has increased. (The warehouse rent has increased from INR10/ft 2 to INR18 to 25/ft2.)
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Category Present Situations, Problems and Issues Examples of Measures Being Direction of Measures Implemented by Companies
4.Legal 3)Customs The time required for procedures is long. The time for customs clearance is As procedures are complicated, those are ICD evaluation system System clearance shorter at the privately-operated ICD. (approx. one day) coped with by increase in the number of To perform prompt customs clearance, the unclear handling charge may employees. sometimes be requested. Registered Customs Specialists are employed, but their wages are high. Although we want to make the operation by one person, as risk management for an operation problem when one person leaves the company, two persons are kept. HS Code for the compressor is 841430 as a world standard, but only in India it is 841480. We hope that the code will be made identical to the world standard. 4)Traffic Because passing of trucks with other cargoes than those being shipped or The ICD in the suburb of Delhi is utilized. restriction received in Delhi is prohibited, a detour is caused and consequently, the lead time is longer. 5)Insurance The insurance system is unclear. system The condition for insurance benefits is severe. The idea for liability is weak. It is a very difficult problem for transportation operators. Even when a problem occurs, people tend to have an idea that “Finally, payment has only to be made with insurance.”, so it will not be connected to cause finding and improvement. 1)Utilization of With AI and blockchain technology, it is expected that logistics operations will Information collection Sharing of the latest information in information also be greatly changed in India in future. each country technology We foresee that technological innovation relating to logistics operations will Holding of exhibition occur in three to five years or at the longest within 10 years as a result that electronization of shipping documents and declaration will make progress.
3)Mechanization Due to low labor cost, logistics are performed basically by manual operations, but Information collection Case studies of efficiency and automation it is assumed that the cargo volume will be increased with this continuing enhancement by introduction of economic growth or the progress of e-commerce. The same as in China, the time material handling equipment and when automation and mechanization is required may come in the immediate its introduction procedures future. Holding of exhibition
2)Environment Among Asian countries, in India and Taiwan, the movement for setting Eco-driving training Certification of green management protection regulations on the environment is advancing. Promotion of green logistics The Government of India has expressed the policy that sales of gasoline and Consideration of introduction of the diesel automobiles will be restricted fully by the year of 2030, limiting the energy-saving law automobiles to be sold in India completely to electric ones. It is forecasted that this environmental regulation will give an impact also on global supply chain. 4)African market It is planned to export the products in Indian standards to East Africa. Consideration of reorganizing Temporary staffing in Africa is also included in undertaking. global SCM India/Japan cooperation in business in Asian and African areas “Act East Policy” of India
5)Differentiation With increase in the dissemination rate of products, commoditization of products It is desirable to have the by logistics will advance; therefore, differentiation (enhancement of competitive force) by environment that a proper charge logistics will come to be expected. can be set for high added-value logistics services.
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2-4. Summary
Through various surveys, the present logistics situations and issues in India have been made clear. Among others, there are many issues due to undevelopment of infrastructure. Concerning these issues, not only Japanese companies but also local companies, specialized logistics associations and the administration (the Ministry of Commerce and Industry) of India had the same recognition. The low logistics quality in India is greatly influenced by the external environment such as the undeveloped infrastructure and the systems/business practice, but logistics infrastructure development is also in progress as part of the “make in India” policy. Japan Chamber of Commerce and Industry in India has been submitting a proposal every year since 2009 to the Government of India. We have been delivering the voices of Japanese companies having entered into India directly to the Government of India (Contact: DIPP, Ministry of Commerce and Industry), and the Suggestion Letter Promotion Committee has been negotiating as the main contact with the Government of India under the support of Japanese Embassy in India toward solving various problems that we are facing in India with resultant achievements. Through these activities, we have realized in the past: “Obligation of submitting a manifesto from 24 hours before arrival to 4 hours”, “Progress of customs clearance procedures to be through a single window”, “Realization of 24-hour customs clearance at main airports”, etc. The following table indicates logistics-related requests described in the proposals, from which we can see the development of infrastructure is an important issue. It is important to continue this activity also in future toward solving logistics issues in India.
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Chapter 3 Present Situations and Issues of Logistics Human Resource Development
3-1. Present Situations and Issues of Logistics Human Resource Development in Japanese Companies
3-1-1. Present situations and issues seen in common 1) Characteristics of administrators The persons for management tasks are generally excellent, having high desire of learning voluntarily. Among them, there are the persons who speak Japanese. The level of persons in the SCM area is high on a global level. They have learned SCM and logistics already before entering companies and can be adapted to the tasks as almost immediate work force after employment. On the other hand, they are requested to have application skills.
2) Characteristics of workers They cannot take common-sense activities in the logistics industry. Their ability is the lowest as compared with the other South East Asia. Workers perform only the instructed works, not taking actions voluntarily. They do not think “why this should be done” as the background for instructions. They do not feel necessity for higher work efficiency and improvement. Among logistics field workers, there are the persons who do not understand English and cannot read letters. To those workers, explanations are made orally without use of materials. Visual training materials would be desired. Because language is different for each major city, manuals are created in local languages.
3) Necessity of mindset Mindset is indispensable so that employees may find “meaning” and “mission” in their works and have desire of creating new value actively, and many Japanese companies are struggling with its education. The activities of Japanese companies are summarized below.
(1) Device for direct guidance Site workers have no basic way of thinking. For this reason, aim to teach “how to change the way of thinking”, not “the way of doing”. Make them think about the cause of a mistake and declare not to repeat it (prevention of recurrence). Make them propose and implement measures together. Tell workers over again to let them consider improvement at any time (Improvement is one of the works/duties.) Make the workers conscious of customers.
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When a problem occurs, let workers be aware of and regard the incident as responsibility of themselves, not making them shift responsibility to other persons or to other companies. (Make them think about preventive measures and solutions.) Divide workers into teams and nominate team leaders to be responsible for works. Do not control workers strictly. (Delegate authority and give discretionary powers and degrees of freedom.) Interact with workers cheerfully and with a smile. It is also important to change the way of thinking of the senior management and Japanese head office. (India is not equal to ASEAN regions; India is nearly equal to Europe.) Make them show improvement in monetary amounts. (They will have higher motivation to tackle improvements with conversion into money rather than into work time.)
(2) Structure and system Work on creating a corporate culture in the whole company. (Involve the corporate management; talk to workers at the workplace; and communication.) If all employees work on it, it will eventually become a corporate climate. (leading also new employees to copy how to work on it) Show a career development model. (Remove anxiety about the future; link the current work with the future.) Increase model workers gradually. (Make apparent the model to be targeted.) Award/praise the worker who has achieved results. (Make the person aware of contribution to the company.) Make the worker, who cannot be expected to grow, focus on the duty given. (To be made an expert.) Check the comprehension degree with the report after new employee training and provide repeated guidance. Provide education through OJT during the trial period and after that time, employ the person. Promote superior workers to be administrators (Let them do the management work actually.); promote them to regular employees.
4) Lack of basics (1) 5S The 5S practice is not thoroughly done. Cleaning is not performed. They do not know that a clean site will make it easier to do works. It is desired to make cleaning a habit.
(2) Reporting, Communication and Consulting
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Even when a problem occurs during distribution, there is no reporting. Unless requested, no reporting is made. Reporting is delayed. Contents reported are ambiguous. Many answers on the spur of the moment are seen for solution. No logical thinking. Even when a problem occurs, it is not reported to the head office from the local site.
5) Lack of improvement mind What has been instructed is performed, but the fact that the current work is inefficient is not noticed. No awareness The products, which should be handled with a forklift, are being handled manually. No thinking of efficient way of handling. The logistics KPIs have enabled visualization, but those do not lead to improvement after that time. No idea of improving methods. It is necessary to provide education on improvement and PDCA. Since improvement has not been made a habit, the request has been made for dispatching an improvement instructor from the Japanese head office, but it has not been realized. While it is important to know best practices for improvement, there is no good example within the company. It is difficult for site workers to acquire improvement methods. The ideal way is that administrators (in the level of assistant manager) learn the improvement methods, based on which improvement activities are proceeded with. Guidance by supervisors is essential to make improvement activities penetrate into the site level. Although improvement activities are performed with emphasis thereon, the improvement is mainly in the manufacturing process. The number of improvement proposals on logistics and SCM is still small.
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good occasion of sharing best practices.)
6) Job hopping and effect of education The turnover rate is high. Even after education, workers tend to move to companies with higher wages. It is worrisome that education is nevertheless necessary. Providing education will increase the risk of employees being headhunted.
< Measures being Implemented> Development of evaluation after education and treatment Introduction of award system Priority is given to recruitment of experienced persons rather than education.
7) Difficulty in giving guidance to outsourcing companies and customers Transportation and warehousing works are outsourced to logistics operators; therefore, it is impossible to develop human resources directly. As products have been stored outdoors and exposed to rainfall at the warehouse of a wholesaler, which is one of customers, a request has been given to their manager to instruct the workers accordingly. Because a subcontracting company for transportation is strong, it is difficult to provide education and give detailed instructions. There is a risk of their refusing transportation. There were several cases that water-soaked products were delivered to customers. Although instructions have been given, it is necessary to think over the measures for preventing water. There was a case that a theft was attributed to a forwarding company, but no clear answer has been made to investigation of the cause.
< Measures being Implemented> Management and evaluation of outsourcing companies with the logistics KPI Pointing out at the time of meeting with outsourcing companies Checking of the warehouse of a customer without prior notice Award granting once a year at the presentation meeting. This system leads to enhancement of motivation of managers of subcontractors and promotion of improvement. Education on 5S and safety being provided to workers of outsourcing companies Instruction on handling of each product with Standard Operation Procedures created
8) Difficulty in localization Notwithstanding the desire that Indians in the class of vice present and general manager proceed with management and business, they are not functioning as instructed by the head office; therefore, the management of a local subsidiary cannot be left to Indians only. Stationing of Japanese staffs is necessary. There are local people having knowledge of logistics but no such people having a management sense.
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Localization is aimed at, but because SCM in India is so important that “top-level” staffs have been sent to the local subsidiary from Japan. As a result of promoting localization, one Japanese system has been established up to the present.
< Measures being Implemented> Employment of superior personnel Dispatching to Japan or South East Asia for training
3-1-2. Current situations and issues in logistics HRD in shipper companies
1) Indian top management The top management does not recognize importance of logistics. In fact, the positioning of logistics is low in management. The reasons are that manufacturers have been giving priority to proficiency of workers, production technology, investment to machines and equipment, etc. related directly to manufacturing and no education has been provided on logistics. Logistics KPI has been established in the way of being linked with management indicators, but few employees understand the concept. Relation between logistics and management is not understood. Priority of quality and added value is low that are required by customers for logistics. The stance is that low quality would be acceptable if the cost for logistics should be increased. The short-term and apparent profit is prioritized, and on the contrary, the profit is thought lightly of that will become obvious during the mid-to-long terms through improvement activities. They are thinking of nothing but cost reduction. The human resources capable of managing not only logistics but also the SCM function cross-functionally from manufacturing to sales have not been developed.
2) Indian middle managers There are issues in management for transportation and warehouse. Intuitive inventory management has been continuing. It is desired to be able to perform management logically. It is necessary to provide education on the correct management method (basics). Instructions are given based on experiences in the past. We have a feeling that systematic education will be required. It is important to provide education in consideration of uniqueness of India, but on the other hand, global-level uniformity (unification of KPIs, etc.) has also to be considered. Its balance taking is difficult. Due to poor environment of logistics infrastructure, there is a tendency of having higher inventory as compared with other countries. The cost becomes higher to that
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extent. The person in charge tends to have a little more safety stock, but it is desired to decrease the inventory to the lowest possible level. As the logistics cost is higher than in other areas, it is necessary to provide education to decrease the inventory in the medium to long term.
< Measures being Implemented> Education is provided basically by OJT and in-house training. There are logistics educational training programs (training for new employees, training at work change, overseas training and HR training) Frequent holding of seminars with employee lecturers (There is a cycle in operation that Indians educate Indians.) There is a system that an employee takes training once a year. (Education has been provided on demand forecast by CII invited.) Arrangement of job rotation (effective for changing thinking way and viewpoint)
3) Education to Japanese being stationed As they are stationed in India as managers for production or sales, they do not have experience of having learned distribution/logistics deeply. Although they recognize importance and have basic knowledge of logistics, they do not have skills on logistics strategy and its improvement methods. It is desired to have them learn the basics of logistics systematically if there is a training like the logistics basic course held in Vietnam.
3-1-3. Current situations and issues in logistics HRD in logistics companies
1) Indian top management It is desired that they should learn management toward localization, but the situation continues that they do not or cannot perform the duty as instructed. With all the desire for localization, the situation of absence of general manager may occur if that person leaves the company as job hopping; therefore, there will be no other alternative but to continue dispatching of Japanese. Although it is desired to standardize and enhance efficiency of all the works, no consideration is given. Unless the thinking way of the top management is changed, the thinking way of site workers is not changed as well. Workers cannot do their works from a customer standpoint.
< Measures being Implemented> Because education cannot be provided domestically in India, the candidates for
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executives are invited to Japan and given training.
2) Indian middle managers They do not have mind of performing improvement based on their thinking of “The present way is the best.” and “My way is the most efficient.” Warehouse management is performed based on experience, but we want to make them learn general knowledge of warehouse management. No new idea is thought out for vehicle allocation planning. There is no staff capable of giving guidance to supervisors and workers. The requirement level is transmitted through the warehouse manager and guidance is given directly, but it does not work well. The number predetermined for each cargo is entered manually on the ledger, but it does not seem to be utilized effectively. One of the reasons is that letters are difficult to read due to bad handwriting. Ledger management is not performed with an electronic device, for example, for barcode. The control sheet of EXCEL is used, but inventory differences occur. Standard works have been fixed but not used thoroughly. There is no problem recognition that inventory difference should not occur. They do not know the improvement method. For this reason, no guidance can be given to supervisors. Awareness on safety, quality and brand image is low. Although it is desired to make Japanese staffs concentrate on marketing jobs, they are too busy to be engaged in supporting operations, giving guidance to site workers or responding to complaints. It is desired that Indians should be more independent. Although it is desired that they should participate in external training courses, we do not know where exists external training. As external training courses are held only in major cities, it is not possible to dispatch managers.
< Measures being Implemented> Education is provided basically by OJT and in-house training. As it is not possible to teach warehouse management domestically in India, the members are dispatched to the company’s warehouse in the other country for training. Because motivation for learning is high, arrangements are made so that the persons who have desires may participate in external training.
3) Truck drivers The quality of drivers is low. They tend to think that the quicker the delivery is, the better. They do not observe the delivery time. They are not conscious of customers. There is a risk of theft.
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Old trucks are being used. Vehicles have been modified to increase loading efficiency. Cargoes are transported in an over-loading state. . A truck that should have been arranged does not come. Education to the company’s drivers is not conducted sufficiently. Drivers are changing every time at sub-contractors and sub-subcontractors, so that this problem can be coped with only by giving an instruction for each case.
< Measures being Implemented> Safety checking, alcohol inspection and route confirmation is conducted for drivers of sub-contractors before departure. Guidance before operation Guidance when a driver at an outsourcing company is changed. Making drivers exclusive.
4) Warehouse workers Cargo handling is poor in the whole country of India. They have no hesitation to throw cargoes. They tend to think that products will not be damaged even if the external box is crushed. (Excessively relying on packaging) Given works are performed well. The principle of FIFO is instructed, but the products on the front side are taken out first. They perform the work which they are in charge of but have no interest in other works. They do not think of helping other works even if those are delayed. A mistake is not reported.
< Measures being Implemented> Education is provided basically by OJT and in-house training. Guidance at each time when a new worker is dispatched Creation and utilization of standard operation procedures, manuals, checklists, etc. Calling attention to important matters with a poster (e.g.: 5S) Training on the basis of lecture by utilizing the TV conference system Manuals are being created in local languages because the language is different in each major city.
3-1-4. Recruitment of employees and workers
1) Administrators
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The persons having knowledge of SCM and logistics are employed mid-career.
Logistics experienced persons (the persons having experience of logistics operations in Japanese companies) are employed mid-career preferentially.
University graduates (new graduates) are employed. It is desirable to create the environment to foster new graduates in the company.
Mobility of human resources is high with the high turnover rate, which makes it possible to recruit logistics experienced persons from the outside and it is difficult to make an investment in education.
The human resource department takes initiative in approaching universities for recruitment, through which employees are recruited from all over India.
Japanese staffing companies are utilized. (JAC, Pasona, Recruit Staffing, etc.)
Staffing companies having strength in the logistics industry is utilized; therefore, the staffs having deep knowledge of logistics are dispatched.
Because there is a rule peculiar to India such as the impact of the caste system, recruitment is left to Indian staffs. In some cases, no involvement of Japanese brings good results.
※Japanese staffing companies Main business is introduction, temporary staffing, seminars and personnel consulting. Because “Temporary staff” has a bad image that the person cannot be a regular employee due to working for a limited period and is easy to be dismissed, many customers utilize “Introduction”. There are two types of introduction, one for readiness and the other with careful character evaluation. When a person introduced is employed, success reward is received. No introduction is made from a Japanese company to the other Japanese company. On the database, a little less than 80,000 persons after screening are registered. Companies want to have industry-ready persons; therefore, the experienced are employed immediately. The needs for new graduates are low. It will be essential to provide education to the unexperienced after employment. Many companies have the trial period after employment (for three to six months). (Dismissal on the spot is possible.) Indian managers have different criteria for evaluation from Japanese managers. Japanese select persons for employing excellent staffs, but Indians tend to employ the persons who will follow the instructions or who are not superior to them. Logistics are an unpopular business type. Wages are lower than other types of business. As there is a tendency of not changing the career in India, not so many
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people want to work in the logistics area. If there is a qualification system even in the logistics related area, it will be useful for evaluation of human resources. That is, better staffs may be introduced.
2) Workers Because temporary staffs are utilized, there is no company’s own employee. There are many high school graduates.
< Measures being Implemented> Excellent workers among those of subcontractors are promoted to be company regular employees.
3-1-5. Others
1) Approach to future issues It is certain that prices and personnel costs will increase in future. Logistics operators will be required to be able to present proper charges to shipper companies. Shipper companies will be required to have ability to judge whether the presented amount will be proper. With the progress of e-commerce etc., the distribution volume will increase, which will bring out the situation that it will be impossible to manage without material handling equipment. Under the circumstances that material handling equipment has not been introduced widely in India, if the introduction effect and examples are educated, it will lead to promotion of material handling equipment. It is desirable to learn logistics knowledge on apparel products and pharmaceuticals that are expected to grow in future. With continuing economic growth and large-scale development, proper placement of distribution bases (new establishment/consolidation) will have to be considered urgently, but there are no Indian human resources capable of proposing solutions. It will be ideal to solve the issues in mutual cooperation between Japanese shipper companies and with logistics operators as well.
2) Human resource evaluation and qualification certification system As Japanese managers are busy, they cannot be involved in effects and evaluations of training. If there is a system for qualification certification, completion, etc., it will be easier to perform evaluation. If completion or qualification is recognized by test results, it will become possible to perform evaluation that training has enabled proper learning. It is very important to have a qualification system to certify skills and knowledge in India where there are many turnovers. It will also contribute to enhancement of motivation of workers.
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If a training course as conducted in Vietnam is available, it will be possible to make warehouse managers, managers in the logistics department and Japanese being stationed attend such training.
3-2. Current Situations and Issues in Logistics HRD in Local Companies
1) Major logistics companies They have the same issue recognition as in Japanese companies. Employee education is basically given by OJT, and external training is also utilized as required but in a small scale. In India, the logistics are recognized as the work to be done by workers, not an occupation; therefore, its position is low. In order to increase the number of people who will be employed by logistics companies, the measures have to be implemented such as “Make logistics one of faculties in universities”, “Make the company management realize importance of logistics”, etc. Further, with the logistics qualification certification system available, the logistics industry can be appealed socially. If the JILS qualification certification program is also deployed in India, they want to send their employees. Particularly, the strong interest is in “Basic Logistics Course”. It is necessary to provide education also on transportation and warehouse management. Under the leadership of Prime Minister Modi, interest in logistics has been gradually increasing. The current situation is that the administration can easily secure the budget, we have the desire that the government and the administration will be pushed to take actions in cooperation with influential CII and the Chamber of Commerce and Industry.
2) Medium-sized logistics companies Education for new recruits (new graduates and mid-career employment) and by hierarchical levels is implemented. The comprehension degree is confirmed by report submitted after training. If understanding is insufficient, unclear points are removed through interviews. A trial period is 3 to 4 months after joining the company, and with mutual acknowledgment, those recruits are employed officially. Education by OJT is implemented during the trial period. If a subordinate does not do the work in accordance with the standard operation procedures (SOP), the manager gives instructions on the spot. Internal education is provided by managers as the lecturers. There is training to review SOP on a regular basis. All the employees are obligated to attend external training on safety/security. We have no information on logistics education by CII. Workers and security staffs are secured through staffing companies. Since workers are
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low in the education level, it is necessary to give guidance to them repeatedly.
3) Small logistics companies The issues are poor cargo handling and picking mistakes. Further, even when there is product damage during distribution, the cause is not investigated. (They think that all they have to do is to make payment by using insurance.) Warehouse location management is insufficient, but they tend to consider that there is no problem because workers grasp all due to the small area. Besides, while they are keeping the dead inventory continuously, they are not submitting any proposal to shipper companies. The retention rate of employees is low. Mismatching occurs between the image of human resources sought by the company and the staffs having been actually employed such as the case that the short-term turnover is caused due to inability of carrying heavy items. External training is considered effective, but due to the fact that workers often leave the company in two to three months even after education has been provided, it is difficult for small companies to dispatch their employees. Video teaching materials and visual manuals that can be used on logistics sites may be utilized.
3-3. Logistics HRD Program by Local Logistics Association
3-3-1. Confederation of Indian Industry (CII-IL)
CII Institute of Logistics (hereinafter referred to as CII-IL) is a specialized logistics association under Confederation of Indian Industry (CII). The headquarters are located in Chennai. In collaboration with branches of CII in different areas, CII-IL is implementing dissemination/enlightenment activities of logistics, holding of conferences to introduce best practices, education projects such as seminars and qualification courses as well as survey and study activities in the whole area of India. No financial support is received from the Government. CII-IL is managing their association independently with the profits obtained from their business. Corporate members of this association exceed 8,500 companies, in which a few Japanese companies are included. The targets for education of logistics human resources performed by CII-IL are the management and the white-collar workers.
1) Outline of education program • There are Education Program and Training Program. Accumulated participants are approximately 10,000 persons in total. Almost no participants from Japanese companies.
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• Education Program is a qualification system (with 12 courses). The program is basically correspondence education and e-learning, and Amity University and an educational institution having a partnership relation are conducting group trainings (lectures) in major cities. There are approximately 1,000 participants in one year, and the pass rate is 75 to 85%. Reasons for failure are: (1) The course could not be completed by the deadline or (2) the test result was bad. The Capstone project, which requires reporting of the result of activities implemented actually for improvement etc. in the company, is incorporated in the course for practical level or higher. • Training Program is a group training program customized individually. The participants are approximately 350 to 400 persons. • The test is conducted twice a year in 20 major cities of India. (in June and December) • Two hours for each subject. The test type: Multiple-Choice Questions (MCQ)
2) Target participants • Indian people residing in India or abroad
3) Secretariat • Main roles of the Secretariat are: Deigning of curriculums and syllabuses, development of contents, management of tie-up partners, etc. • Permanent staffs are 5 and the total members are about 20 including those in different cities. (There are many members who have been engaged in logistics operations for as long as 10 to 20 years.)
4) Requests to Japanese side • As there are few participants from Japanese companies, we want to introduce the program widely. • Furthermore, the program for logistics improvement is insufficient. We want to ask JILS, which has achievements of holding the qualification course and seminars, to give cooperation in providing know-how and developing programs. (Strong requests were expressed at the time of interviews.)
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Figure3-1 CII-IL Qualification Course
Supply Chain Management Logistics Management Third Party Logistics Management Logistics and Shipping Managerial Certificate Program (MC) MCSCM MCLM MCCSCM MCELS Advanced Certificate (AC) ACSCM ACLM ACTPL ACELS Certificate (C) CSCM CLM CTPL CELS
Supply Chain Management Logistics Management Third Party Logistics Management Logistics and Shipping C AC MCP C AC MCP C AC MCP C AC MCP CSCM ACSCM MCSCM CLM ACLM MCLM CTPL ACTPL MCCSCM CELS ACELS MCELS EM 11 Business Communication ● ● ● ● ● ● ● ● 12 Principles of Management ● ● ● ● 13 Financial Accounting ● ● ● ● 14 Managerial Economics ● ● ● ● 15 Qualitative And Quantitative Analysis ● ● ● ● 16 Business Laws And Taxation ● ● ● ● 22 Operations Strategy ● ● ● ● ● ● ● 23 Supply Chain Information Systems ● ● ● ● ● ● ● 24 Research Methodology ● ● ● ● FE 11 Logistics and Supply Chain Modeling △2 △2 △2 △2 ● ● △2 △2 13 Customer Service and Relationship Management △2 △2 △2 △2 △2 △2 △2 △2 15 Project Management △2 △2 △2 △2 △2 △2 △2 △2 16 Logistics Organization Development △2 △2 △2 △2 △2 △2 △2 △2 SS 11 Contract & Reverse Logistics △2 △2 ● ● ● △2 △2 SCM 11 Supply Chain Concepts & Planning ● ● ● ● 12 Materials & Inventory Management ● ● ● ● 13 Purchasing & Strategic Sourcing ● ● ● ● 14 Marketing Channel Design & Distribution Planning ● ● ● ● LM 11 Logistics Concepts & Planning ● ● ● ● ● 12 Warehouse & Distribution Facilities Management ● ● ● ● ● ● 13 Freight Transport Management ● ● ● ● ● ● 14 International Logistics ● ● ● ● ● ● FCS 11 Introduction to Trade & Commercial Terms ● ● ● 12 Trade Routes & Shipping Overview ● ● ● 13 Container Trade ● ● ● 14 Customs & EXIM Procedures ● ● ● Capstone project ● ● ● ● ● ● ●
Figure 3-2 Number of Persons Having Obtained Certificates
Certificate (6 months) Advanced certificate (12 months) Managerial certificate (18 to 24 months)
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3-3-2. Logistics Sector Skill Council (LSC)
Logistics Sector Skill Council (hereinafter referred to as LSC) is a logistics education association under the control of the Ministry of Skill Development and Entrepreneurship. It is being operated with contribution from the Government of India, CII and private companies. The headquarters are located in Chennai, having more than 1,000 training points throughout India and conducting more than 5,000 training courses. Education and training programs of LSC are mainly focusing on logistics site workers (blue- collar workers). This association issues qualification certificates to the persons who have completed the course and also introduces the places of employment. While the workers having jobs already in the logistics industry may participate in the programs of LSC, the programs have a significant aspect of giving support for employment by means of providing education and training to workers who have no skill. LSC has the achievement that more than 100 thousand people have attended the course. Due to group trainings, the students are to attend the course in one of the neighboring major cities.
Figure 3-3 Overview of Education and Training Program
Figure 3-4 Area of Education
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Figure 3-5 Program and Career Path of Warehouse Workers
Entrance Course
The target is workers, but it is the course of lectures for career enhancement from workers, not the education to be workers. Main contents are practical knowledge on in-warehouse works The curriculum for 300 to 600 hours The course contains the curriculum of having lectures in the class and practical training (training of skills) as inseparable both wheels of a vehicle. Ratio of lectures in the class and practical training: 2 : 5 or 1 : 4 Practical training is far longer. Morals, safety and 5S are also educated.
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3-3-3. Other associations
1) Association of Supply Chain Professionals (ASCP) Association of Supply Chain Professionals (hereinafter referred to as ASCP) is a nonprofit organization on SCM certified by the central government (founded in 2016). It has offices in Delhi, Kolkata, Chennai and Mumbai (Headquarters). The membership fee is INR5,000/year for an individual member and INR1,500/year for a student member. Companies may become members, but there are many individual members (approx. 250 persons). As an educational project for individuals, mainly short-term seminars on SCM are held regularly in various cities in India. Further, consulting and logistics human resource development support are implemented for companies. (Results: Philips, Sony and TATA) A large-scale conference is held and lecture activities are conducted every year. (A lecture meeting was held at the Japan Logistics Society on 29th September 2018.)
2) ISM-India ISM-India was established for the purpose of acquisition of global purchasing qualification, education and consultation for business persons being engaged in the occupation of purchase, procurement, logistics, production management, etc. as the Indian branch of the U.S. Institute for Supply Management. The headquarters are located in Gurgaon, and there are 8 branches throughout India. The number of employees is about 50 (regular employees). It has more than 50,000 members, of which main members are individuals. Specifically, three main businesses are education, consulting and holding of conference. As for education business, as the partner in India, ISM-India is operating lecture courses and performing certification works on Certified Professional in Supply Management (CPSM) to be issued by ISM in the U.S., IPSCM to be issued by WTO of the United Nations and PDPP relating to governmental procurement to be issued by the World Bank.
3-4. Issue Recognition of Indian Administration
Having visited the Ministry of Commerce and Industry of India at the time of field survey, we have confirmed that they have the following issue recognition. Further, they have asked us to cooperate with them on the logistics human resource development program. Currently, 22 million workers are engaged in the logistics industry in India. With the prospect that the number will increase to 40 million people within 5 to 6 years from now, logistics human resource development is urgently required. However, because of the fact that the personnel cost is lower than in other countries, the idea of enhancing productivity by advancing mechanization or implementing education does not easily come out from companies. Further, the logistics industry itself is low in
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attractiveness and have a high turnover rate. The Government of India is implementing education and training and certifying qualification through Logistics Sector Skill Council (hereinafter referred to as LSC) with a view to enhancing the quality of logistics human resources in India and supporting employment of workers. We believe that once the LSC qualification has become popular within the industry, companies will preferentially employ qualification holders and it will raise the entire level of logistics human resources in India. CII-IL is implementing the human resource development project (qualification course) related to logistics. We want Japanese companies also to utilize the above qualification system. Further, we are anxious to receive feedback information as to whether the Indian program corresponds to the needs of Japanese companies so that we may arrange for providing logistics education program in India to JILS for information sharing.
3-5. Summary
1) Business environment peculiar to India having an impact on logistics HRD In an environment that there is a tendency of placing greater importance on cost rather than quality, and furthermore, it is possible to recruit logistics experienced persons from the outside because the turnover rate and mobility of human resources are high, it is difficult to make an investment in education. In addition, the low logistics quality in India is largely influenced by the external environment such as undeveloped infrastructure, systems and trade practices. However, Japanese companies are implementing human resource development under the recognition that it is important to take actions that can be carried out directly by themselves. At the interviews conducted locally this time, there were a lot of indications such as “Project deployment in India is far more difficult than in ASEAN countries.” and “The result achieved in ASEAN countries cannot be horizontally deployed in India as those are.” (Refer to Figure 3-6.) Under such a difficult environment as described, Japanese companies are aiming for establishing logistics human resource development that fits local conditions while making the “Japanese-style” human resource management penetrate into India over the years.
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Figure 3-6 Business environment peculiar to India having an impact on logistics HRD
2) Issues having occurred due to insufficient human resource development At the company interviews, we have noticed many issues having occurred due to insufficient human resource development as indicated below. As for transportation, the difficult point is that the companies’ own drivers can be instructed directly but not to the drivers of outsourcing companies. It is necessary to create the nation-wide structure for educating truck drivers. As with transportation, many issues have also been pointed out on the works in warehouses. We think it urgently required to educate warehouse managers (middle managers) on warehouse management. As there exist warehouses at the stations of Japanese companies (shipper and logistics companies) and the companies’ own employees are performing management and works, the human resources can be developed directly. Providing education on warehouse management is considered to be advantageous for many Japanese companies.
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3) Main needs of Japanese companies (1) Target persons Many local Japanese companies have a desire of establishing the structure that middle managers may give guidance to site workers. Development of senior managers toward localization In manufacturers, education on logistics is required to Japanese staffs being stationed. (Importance tends to be placed on production and marketing.)
(2) Themes The priority subject is mindset. There are many issues on transportation and operations in the warehouse. Desired is acquisition of basics (5S and reporting/information/consultation), customer orientation and improvement mind Desired is development of human resources capable of practicing improvement Desired is acquisition of correct knowledge as currently management is done based on experience. Acquisition of knowledge on the themes in future (e.g.: Material handling equipment and Information system) Desired is learning of distribution and logistics systematically
(3) How to develop Training that enables acquisition of application ability (Interactive lecture and
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inclusion of drills/exercises) Training with “authoritative assurance” by qualification etc. (Enable the educational effect to be evaluated; may be referred to in employment; enhance motivation of employees) There exists a qualification certification system in CII-IL. Existing programs are to be utilized effectively. Desired is learning of examples of other companies (best practices) Educational tools with visual images are effective because of easy viewing.
4) Direction of measures for solving issues From the above description, the current situations and issues of logistics human resource development in India have become clear. As it is necessary to solve these issues promptly, the issue solving measures have been summarized. (Refer to Figure 3-7.) Details of these measures for solution and deployment in future will be put in order in Chapters 4 and 5.
Figure 3-7 Issue Solving Measures
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Chapter 4 Creation of Logistics Human Resource Development Curriculum
The logistics human resource development curriculum has been created in the following procedure.
Figure 4-1 Creation Flow
4-1. Selection of Targets and Theme
As a result of consideration at the second domestic study group meeting based on the survey result on logistics human resource development in Chapter 3, the targets (middle managers and site leader class) and the theme (warehouse management) have been decided. Further, it has been decided to create the curriculum while bringing utilization of CII-IL logistics human resource development program into view.
1) Selection of targets Because many Japanese companies have a strong desire of establishing the system by which middle managers and site leaders may give guidance to site workers, the target shall be the middle manager and site leader class members.
2) Selection of theme From the survey result in Chapter 3, it has become apparent that there are many
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Japanese companies having issues on transportation/distribution operations and warehouse-related works. However, for the transportation operations, many Japanese companies are outsourcing its operations; therefore, the environment surrounding them is that it is difficult to perform human resource development of the employees at outsourcing companies directly to solve the issues. On the other hand, at the bases of Japanese companies (both shipper and logistics companies), there exist warehouses and each company’s employees are performing management and operations, which enables human resources to be developed directly. For this reason, it is considered to be advantageous for many Japanese companies to solve the issues at their warehouses; consequently, it has been decided to create the curriculum on “Warehouse Management”.
4-2. Consideration of Program Idea and Matching with CII-IL Program
4-2-1. Creation of program idea
In creating a program for warehouse managers, it is necessary, first of all, to put in order the ability required for warehouse managers. The details have been herein summarized in reference to “Vocational Ability Evaluation Standards (Warehousing Business)” published by Japan Vocational Ability Development Association (JAVADA) and “Warehouse Management Supervisor Manual” arranged by the Ministry of Land, Infrastructure, Transport and Tourism. After that time, a draft of the program to master knowledge and techniques required for acquiring skills summarized has been created. The details are shown in Figure 4-3.
4-2-2. Matching with CII-IL logistics human resource development program
Matching has been made between the idea of a program for warehouse managers created and the logistics human resource development program being implemented by CII-IL (Qualification Course: Figure 4-2). Although it was necessary to check the details of the text being used actually by CII- IL for matching, the text could not be obtained from CII-IL, and then, matching has been made upon checking existence of lectures based on the program items (in the levels of Category, Subcategory and Individual Item) and the interview with CII-IL. The CII-IL modules targeted are the shaded sections in Figure 4-2.
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Figure 4-2 CII-IL Logistics Human Resource Development Program (Qualification Course)
Supply Chain Management Logistics Management Third Party Logistics Management Logistics and Shipping Managerial Certificate Program (MC) MCSCM MCLM MCCSCM MCELS Advanced Certificate (AC) ACSCM ACLM ACTPL ACELS Certificate (C) CSCM CLM CTPL CELS
Supply Chain Management Logistics Management Third Party Logistics Management Logistics and Shipping C AC MCP C AC MCP C AC MCP C AC MCP CSCM ACSCM MCSCM CLM ACLM MCLM CTPL ACTPL MCCSCM CELS ACELS MCELS EM 11 Business Communication ● ● ● ● ● ● ● ● 12 Principles of Management ● ● ● ● 13 Financial Accounting ● ● ● ● 14 Managerial Economics ● ● ● ● 15 Qualitative And Quantitative Analysis ● ● ● ● 16 Business Laws And Taxation ● ● ● ● 22 Operations Strategy ● ● ● ● ● ● ● 23 Supply Chain Information Systems ● ● ● ● ● ● ● 24 Research Methodology ● ● ● ● FE 11 Logistics and Supply Chain Modeling △2 △2 △2 △2 ● ● △2 △2 13 Customer Service and Relationship Management △2 △2 △2 △2 △2 △2 △2 △2 15 Project Management △2 △2 △2 △2 △2 △2 △2 △2 16 Logistics Organization Development △2 △2 △2 △2 △2 △2 △2 △2 SS 11 Contract & Reverse Logistics △2 △2 ● ● ● △2 △2 SCM 11 Supply Chain Concepts & Planning ● ● ● ● 12 Materials & Inventory Management ● ● ● ● 13 Purchasing & Strategic Sourcing ● ● ● ● 14 Marketing Channel Design & Distribution Planning ● ● ● ● LM 11 Logistics Concepts & Planning ● ● ● ● ● 12 Warehouse & Distribution Facilities Management ● ● ● ● ● ● 13 Freight Transport Management ● ● ● ● ● ● 14 International Logistics ● ● ● ● ● ● FCS 11 Introduction to Trade & Commercial Terms ● ● ● 12 Trade Routes & Shipping Overview ● ● ● 13 Container Trade ● ● ● 14 Customs & EXIM Procedures ● ● ● Capstone project ● ● ● ● ● ● ●
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Figure 4-3 Program for Warehouse Managers (Draft)
Program CII-IL Managerial Certificate Program Examples of Actions Desired to be Performed by Warehouse Manager Course Code/Course Title Block Unit Title Ⅰ Basics 1. Code of Code of conduct (1) Code of conduct ○ Have professionalism and sense of social responsibility as a company employee. No applicable program conduct and required for as a company ○ Have an understanding of cost and its factors and take actions aggressively toward cooperation with employees and employee achieving the target of the department in charge. people ability to perform ○ Have an understanding of the importance of the business of the company and concerned operations smoothly stakeholders. while cooperating ○ Take actions and an attitude to serve as a model in line with the philosophy and the with people policy of the company. concerned (2) Contribution and ○ Be aware of social responsibility sought by the company and the requirements for the consideration to the company sought by the society. society (3) Cooperation with ○ Promote establishment of cooperative relations both internally and externally through EM-11: BUSINESS 1 INTRODUCTION TO Effective Business people concerned reporting/communicating to and consulting with the superior and other departments. COMMUNICATION COMMUNICATION Communication, message and ○ Fulfill accountability about problems/issues or customer complaints in the business. audience/Business writing 2 PRESENTING THOUGHTS Non-verbal AND RESOLVING ISSUES communication/Business presentations/Complex communications (4) Communication ○ Give due consideration to making of the workplace environment such as development of better communication so that warehouse workers may be engaged in their works comfortably. ○ Encourage better communication with other departments so that no problem may occur in the works. 2. Efforts toward Ability to drive (1) Formation of a ○ Have an understanding of the importance of preventing accidents and disasters, and take LM-12: WAREHOUSE 2 MANAGING WAREHOUSE Warehouse workforce design safety and health activities for the safe workplace actions in accordance with the company's labor accident prevention measures, AND DISTRIBUTION EFFICIENCY and development (Safety) purpose of ○ Cooperate with the superior and workers toward enhancing awareness of safety. FACILITIES preventing ○ Consider grasping problems and issues in the workplace related to accidents or MANAGEMENT company's labor disasters and measures to be taken for solving problems. accidents as well as ○ Respond calmly when a trouble occurs such as an accident or a disaster and take maintaining and actions toward preventing the spread of danger. improving the health
(2) Formation of a ○ Have an understanding of the measures for preventing health problems attributable to the No applicable program hygienic workplace work environment, and follow the measures. ○ Be always aware of changes of actions and behaviors of workers and have opportunities of hearing opinions to remove dissatisfaction and discontent as well as worries. 3. Management Ability to control the (1) Management of ○ Work on revitalization of the organization and increase of communication to achieve the FE-16: LOGISTICS 2 IMPROVING ORGANIZATION Organizing for effective logistics of organization organization toward organization target of the organization. ORGANIZATION EFFECTIVENESS management/Labor relations in and personnel achieving operational ○ Take actions necessary for solving problems such as consultation with the superior DEVELOPMENT India/Focused human resources targets while when there is a problem in the balance or the contents of work volume of workers. management/Proactive change properly managing ○ Make efforts to facilitate execution of works while considering expertise, experience, management in logistics human resources of characters, etc. of workers. EM-11: BUSINESS 1 INTRODUCTION TO Effective Business the organization in COMMUNICATION COMMUNICATION Communication, message and charge audience/Business writing 2 PRESENTING THOUGHTS Non-verbal AND RESOLVING ISSUES communication/Business presentations/Complex communications (2) Management of ○ Present, persuade and share the development targets to/with workers with an aim to personnel enhance their skill levels. ○ Give guidance regularly on the way and the direction of works to enable achievement of targets, and further, evaluate the achievement situations.
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Program CII-IL Managerial Certificate Program Examples of Actions Desired to be Performed by Warehouse Manager Course Code/Course Title Block Unit Title (2) Management of ○ Take opportunities of providing educational training without being overwhelmed with busy personnel routine works. ○ Give practical guidance with an aim to enhance work knowledge and processing procedures without disturbing routine works. ○ Take the behavior of setting an example to workers regularly. 4. Improvement Ability to improve (1) Improvement of ○ Have an understanding that enhancing customer satisfaction is leading to strengthening FE-13: CUSTOMER 1 CUSTOMER SERVICE Functional of customer customer customer satisfaction of company's competitive power and business expansion. SERVICE AND MANAGEMENT perspectives/Customer service satisfaction satisfaction by ○ Collect and put in order the needs and advices through exchanges with customers and RELATIONSHIP goals/Strategy formulation and taking proper the people concerned in the department in charge, and utilize them in the operations. MANAGEMENT implementation actions to ○ Provide time services (such as the time for receiving/shipping works) and the storage 2 CUSTOMER RELATIONSHIP Functional perspectives/Tools, customers based on conditions (such as temperature and humidity) based on the requests of customers. MANAGEMENT Techniques and collection and ○ Hold meetings regularly and consider whether there is no deviation between customer Technologies/Implementation analysis of needs and provided services. LM-11: LOGISTICS 2 LOGISTICS STRATEGY AND Logistics strategy (Customer necessary CONCEPTSAND PLANNING service) information PLANNING
5. Promotion of Ability to upgrade (1) Analysis of ○Have an understanding of the advanced customer logistics system and trend of efficient LM-11: LOGISTICS 1 CONCEPTS OF LOGISTICS Integrated Logistics/Logistics logistics the logistics system logistics logistics by outsourcing. CONCEPTSAND system design/ of own company and ○Organizing the current problems and issues to realize the logistics system required by PLANNING customers customers. 2 LOGISTICS STRATEGY AND Logistics strategy /Purchasing, PLANNING storage, inventory and location decisions/Logistics planning and design (2) Enhancement of ○ Work on collection of knowledge and enhancement of skills on each work, and utilize SCM-11: SUPPLY 1 CONCEPTS OF SUPPLY knowledge and skill them for considering and practicing the methods and means of works. CHAIN CONCEPTS CHAIN ○ When there is an ambiguous point in the method or the procedure of works, solve it by AND PLANNING questioning the superior or seniors. FE-16: LOGISTICS 1 LOGISTICS ORGANIZATION Logistics organization ORGANIZATION STRUCTURES structure/Collaboration and DEVELOPMENT partnerships/Organizational structures for global logistics excellence Ⅱ Operation 1. Management Ability to perform (1) Overall ○ Have a correct understanding of the implementation method/procedure and the LM-12: WAREHOUSE 1 ISSUES, EQUIPMENT, Warehouse rationale and Management of works in properly the management of administrative procedure of each work in the warehouse, and create a proper operation plan AND DISTRIBUTION PROCESSES material flow/Warehouse warehouse management works idea in cooperation with the superior. FACILITIES operations, systems/Layout (overall) operations for works ○ Have an understanding of the trade-off relation between the logistics service level and the MANAGEMENT in the warehouse cost/safety, and perform verification toward setting the optimum level. 2 MANAGING WAREHOUSE Order picking/Measuring ○ Create and submit predetermined workbooks and reports without delay that are related EFFICIENCY warehouse to the work management operations in the warehouse. efficiency/Warehouse workforce design and development 4 Distribution facilities Material handling system management design/Material handling technologies SCM-12: MATERIALS 1 MATERIALS MANAGEMENT AND INVENTORY MANAGEMENT 2. Management Ability to confirm the (1) Confirmation of ○ Perform the works with an understanding of the methods and procedures of works such LM-12: WAREHOUSE 1 ISSUES, EQUIPMENT, Warehouse rationale and of cargo receiving situation whether works as receiving, warehousing and carrying out the cargoes based on the cargo AND DISTRIBUTION PROCESSES material flow/Warehouse and shipping cargo receiving and receiving/shipping work plan and work instructions. FACILITIES operations/Layout(Pallets,carton works shipping works are ○ Utilize effectively the unit load systems for palletization, containerization, etc. that are MANAGEMENT s) properly performed effective for improving efficiency in cargo receiving/shipping works. 3 Unitization, shipping and Unitizing and Shipping and to give guidance ○ Have an understanding of the methods of regular inspection and operation of cargo packaging appropriately handling machines and information terminals as well as the method of handling the devices (2) Appropriate ○ Give proper guidance to workers. guidance
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Program CII-IL Managerial Certificate Program Examples of Actions Desired to be Performed by Warehouse Manager Course Code/Course Title Block Unit Title 3. Management Ability to confirm the (1) Confirmation of ○ Perform the works with an understanding of the methods and procedures on location SCM-12: MATERIALS 1 MATERIALS MANAGEMENT Concepts of storage of storage works situation whether works management, inventory taking, stock quantity checking and confirmation of abnormality. AND INVENTORY storage works are ○ Perform efficiently location management, inventory taking, entry/management of stock MANAGEMENT properly performed quantity list and confirmation of abnormality associated with the instructions for storage LM-12: WAREHOUSE 1 ISSUES, EQUIPMENT, Warehouse operations(Starage and to give guidance works. AND DISTRIBUTION PROCESSES equipment)/Layout appropriately ○ Have an understanding of the operation of information terminals used for storage works FACILITIES and the method of handling the devices at abnormal conditions, and handle them correctly. MANAGEMENT
(2) Appropriate ○ Give proper guidance to workers. guidance 4. Management Ability to confirm the (1) Confirmation of ○ Perform the works with an understanding of the method and procedures of picking and sorting LM-12: WAREHOUSE 2 MANAGING WAREHOUSE Order picking of picking and situation whether works works for stored articles based on shipping instructions. AND DISTRIBUTION EFFICIENCY sorting works picking and sorting ○ Perform confirmation of articles and quantities using information devices based on the FACILITIES works are properly shipping instructions (slips) and at the same time, perform reading works accurately and MANAGEMENT performed and to efficiently. ○ give guidance Have an understanding of the operation of information terminals used for picking and sorting works and the method of handling the devices at abnormal conditions, and handle them appropriately SCM-12: MATERIALS 1 MATERIALS MANAGEMENT Concepts of handling correctly. AND INVENTORY MANAGEMENT LM-12: WAREHOUSE 1 ISSUES, EQUIPMENT, Warehouse operations(Handling AND DISTRIBUTION PROCESSES equipment) FACILITIES MANAGEMENT (2) Appropriate ○ Give proper guidance to workers. guidance 5. Management Ability to confirm the (1) Confirmation of ○ Perform the works with an understanding of the method and procedures of distribution No applicable program of distribution situation whether works processing works based on the work plan and instructions. processing works distribution ○ Perform confirmation of articles and quantities based on the work instructions, and processing works perform distribution processing such as assortment, labelling and assembling accurately are properly and efficiently. performed and to ○ Have an understanding of the operation of information terminals used for distribution give guidance processing works and the method of handling the devices at abnormal conditions, and appropriately handle them correctly. (2) Appropriate ○ Give proper guidance to workers. guidance 6. Management Ability to confirm the (1) Confirmation of ○ Perform the works with an understanding of the method and procedures of packaging LM-12: WAREHOUSE 3 UNITIZATION, SHIPPING AND Packaging/Packaging for of packaging and situation whether works works based on the work plan and shipping instructions. AND DISTRIBUTION PACKAGING transportation packing works packaging/packing ○ Perform confirmation of articles based on the work instructions, and perform packaging FACILITIES works are properly accurately and efficiently. MANAGEMENT performed and to ○ Have an understanding of the operation of information terminals used for packaging give guidance works and the method of handling the devices at abnormal conditions, and handle them appropriately (2) Appropriate ○ Give proper guidance to workers. guidance 7. Document Ability required for (1) Document ○ Perform the form processing upon correctly understanding the implementation procedure No applicable program Processing issuing and Processing and the administrative procedure of form processing works. managing specified ○ Perform the works of issuing receiving/shipping data and instructions, the article forms needed for management ledger, settlement data, etc. and its management operations. order ○ Perform the works efficiently based on the comprehensive advice of the superior on the placement/receiving, operation and maintenance works for the information system. cargo ○ Perform properly issuance and retention of receiving/shipping instructions to receiving/shipping, receiving/shipping-order receiving and in-warehouse works and data processing for its article management, auxiliary forms. transportation and ○ Have an understanding of the flow of form filing works relating to form processing distribution, operations, and consider still more efficient method. settlement, etc. and
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Program CII-IL Managerial Certificate Program Examples of Actions Desired to be Performed by Warehouse Manager Course Code/Course Title Block Unit Title 8. Inspection Ability to create the (1) Inspection and ○ Consider the current situations and issues in cooperation with the internal and external No applicable program and maintenance plan for maintenance people concerned, and create the implementation plan idea of inspection and maintenance of inspecting/maintaini works. facilities/equipme ng ○ Perform maintenance activities of facilities and equipment. (regular inspection, periodical nt facilities/equipment shut-down maintenance, corrective maintenance and preventive maintenance) in the warehouse, ○ Perform early detection and early repair of damaged sections of the facility to enable performing operation always in a perfect state. inspection based on ○ Create manuals and have them well known to the people concerned on the response to the plan and deficiencies of cargo handling machines, air-conditioning facilities, information devices, etc. performing properly ○ Create and submit workbooks and reports without delay that are related to inspection the remedies of and maintenance works. detected ○ Grasp implementation situations and if there is a problem, report it to the superior and at deficiencies etc. the same time take appropriate emergency measures. ○ Put in order problems and improvements relating to inspection and maintenance and consult promptly with the superior and then perform review of operation processes. 9. Response to Ability to take (1) Response to ○ Create the draft of a response handling manual on the causes for unexpected incidents, No applicable program unexpected actions properly unexpected incidents deficiencies and troubles with the methods and means for coping with them, by referring to incidents or when an unexpected or troubles the past cases. troubles incident or a trouble ○ When an unexpected incident, a deficiency or a trouble occurs, report the case to the occurs superior and take actions promptly based on the instruction. ○ Create and submit workbooks and reports without delay that are related to response to troubles and actions. ○ Perform self-evaluation on the response to unexpected incidents and troubles, and also conduct necessary review by giving feedback to the superior and seniors. Ⅲ Article 1. Basics for Ability to drive the (1) Article ○ Have an understanding of details of practices and roles of article management correctly FE-11: LOGISTICS 3 INVENTORY MODELS Cycle Inventory Models/Safety Management article practices toward management and also the procedures for creating the draft of an inventory-taking operation plan and AND SUPPLY CHAIN Stock Models management maintaining the quality improvement works. MODELING proper storage ○ Put in order problems and issues to be tackled preferentially based on the advice from quality according to the superior. the properties of ○ Create and submit workbooks and reports without delay that are related to inventory stored articles taking works and storage quality. ○ Reflect on insufficient points in performing article management works, and put a lot of SCM-12: MATERIALS 1 MATERIALS MANAGEMENT Introduction to materials thought to utilize the reflection for improvement of works based on the advice of the AND INVENTORY management /Materials superior. MANAGEMENT classification /Concepts of storage, handling and inventory 2 INVENTORY PLANNING Inventory functionality and principles/Planning the inventory resource/Accommodating uncertainty 3 INVENTORY MANAGEMENT Inventory management policies/Inventory management processes 2. Inventory Ability to create an (1) Inventory taking ○ Have an understanding of the significance of inventory taking and also work and No applicable program taking inventory taking plan administrative procedures, and create the draft of an inventory-taking operation plan in and to perform cooperation with the superior. inventory taking ○ Implement the works in accordance with the established work plan by coordinating with properly by the workers in charge in the warehouse on the working level so that inventory-taking works instructing the staffs may make progress safely and smoothly. in charge of works in ○ Summarize the inventory-taking result, and if there is a deviation, put in order problems the warehouse and improvements and consult promptly with the superior and then, perform review of operation processes.
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Program CII-IL Managerial Certificate Program Examples of Actions Desired to be Performed by Warehouse Manager Course Code/Course Title Block Unit Title 3. Quality Ability required for (1) Maintenance and ○ Have an understanding of the properties of stored articles and the storage environment SCM-12: MATERIALS 1 MATERIALS MANAGEMENT Introduction to materials maintenance and maintaining/improvin improvement of corresponding to the stored articles, and maintain the storage quality that is the most AND INVENTORY management /Materials improvement of g the storage quality quality suitable for stored articles or improve its quality. MANAGEMENT classification /Concepts of stored articles according to the ○ Practice 5S activities in the warehouse. storage, handling and inventory kinds, natures, ○ Create and confirm the routine patrol inspection item list. packing/packaging ○ Have an understanding of the trade-off relation between the customer needs on quality and quantities of and the cost for the provided service level, and give consideration toward setting a proper stored articles level.
Ⅳ Indicator 1. Indicator Ability required for (1) Management of ○ Have an understanding of the productivity indicator for the works to be targeted and the LM-12: WAREHOUSE 2 MANAGING WAREHOUSE Measuring warehouse Management management performing productivity required data items. AND DISTRIBUTION EFFICIENCY efficiency(Activity profiling, operations such as ○ Forecast or grasp the quantity of articles and reflect it on the work volume properly. FACILITIES Benchmarking) setting and Further, grasp the standard working time for each work. MANAGEMENT analyzing indicators ○ Have an understanding of the outline of various analysis methods relating to work Warehouse workforce design of work productivity productivity, and grasp and put in order the result data required for proper indicator and development(Time and logistics quality management of the company. standards, personnel out of work ○ Consider a specific method in cooperation with the superior with an aim to achieve the scheduling, operator ratios) management targeted level on the productivity for cargo receiving/shipping and storage works. operations (2) Management of ○ Utilize various types of work analysis methods related to logistics quality management logistics quality and apply them to actual data management and analysis. ○ Consider a specific method to achieve the targeted level of logistics quality. ○ Consider introduction of an information device that is effective for saving labor of works, improving efficiency and enhancing quality. Ⅴ 1. Work Ability to perform (1) Grasping of ○ Have a correct understanding of a series of processes and the flow of information from No applicable program Improvement improvement enhancement of current situations procurement to sales of stored articles. efficiency and ○ Manage each work in the warehouse with awareness that it should be made more productivity by efficient. improving warehouse ○ Make good use of communication with workers to detect the factors disturbing operation improvement of work efficiency. management and ○ Be capable of extracting problems based on recognition of the actual situation. works in the (2) Planning ○ Be capable of drafting a plan to improve a problem based on the advice of the superior or warehouse the colleagues. ○ Be capable of utilizing the method necessary for drafting an improvement plan. ○ Be capable of deciding the priority of improvement ideas and creating specifically a feasible plan. ○ Be capable of setting a target that is easily understandable for all the site workers. (3) Implementation ○ Explain improvement plans and targets in an easy-to-understand manner and make them well known to site workers. ○ Provide properly education and guidance necessary for workplace improvement to site workers. ○ When a trouble or an obstacle occurs that may disturb improvement, report it to the superior and consider appropriate measures for solution. ○ Be capable of communicating with site workers such as listening to them for consultation, hearing a report or providing advice. ○ Be capable of advancing improvement smoothly through reporting to the superior or studying with the departments concerned.
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Program CII-IL Managerial Certificate Program Examples of Actions Desired to be Performed by Warehouse Manager Course Code/Course Title Block Unit Title (4) Evaluation and ○ Set and manage evaluation indicators capable of evaluating the degree of target fixing achievement. ○ Be capable of evaluating the progress situation based on the evaluation indicators having been set. ○ Perform review of a plan as required and promote further improvement activities toward achieving targets. ○ Attempt to fix improvement by making it standardized (continuous education/follow-up to workers, review of manuals, etc.) Ⅵ Others 1. Response to Ability to cope with (1) Grasping of trend ○ Have an understanding of the importance of measures for computerization (security, EM-23: SUPPLY 1 ELECTRONIC SCM, Introduction to eSCM/Supply computerization computerization for of computerization unauthorized access). CHAIN INFORMATION COMMUNICATION chain communication making business ○ Have an understanding that the purpose of computerization is rationalization of operation SYSTEMS NETWORKS AND SYSTEMS networks/Overview of enterprise more efficient and processing, improvement of storage quality and enhancement of customer service, and take information systems logistics of actions accordingly. 2 SCM SYSTEMS Information systems customers more DEVELOPMENT, development/Information sophisticated DEPLOYMENT AND systems deployment and MANAGEMENT management (2) Promotion of ○ Have an understanding of the importance and roles of the information system in the 3 INFORMATION Enterprise application computerization in business (order receiving/placement processing, cargo receiving/shipping processing, INTEGRATION integration and supply chain the assigned work inventory management, settlement processing, etc.) visibility/Planning and design ○ Have knowledge of computerization that is effective for power-saving and efficiency methodology improvement in the assigned operation. ○ Consider computerization for improving the contents of assigned operations and the problems in the processing method.
2. Response to Ability to cope with (1) Grasping of ○ Have an understanding of the necessity of reducing wastes (cartons, packaging SS-12: GREEN 1 ASSESSING THE Environmental environmental environmental environmental issues materials, etc.) and energy saving (electricity and fuel). LOGISTICS ENVIRONMENTAL EFFECTS sustainability/Carbon auditing of issues issues that have ○ Have an understanding that CO2, NOx, etc. emitted from trucks and cargo handling OF LOGISTICS companies, supply chains and become social machines are the cause for global warming and atmospheric air pollution and that its products/Evaluating and demands in environmental measures are necessary. internalizing the environmental association with costs of logistics business execution 2 STRATEGIC PERSPECTIVE Reducing the environmental impact of warehousing
(2) Promotion of ○ Make efforts to reduce wastes in the workplace such as reducing generation of rubbish 3 OPERATIONAL Reverse logistics for the environmental to a lowest possible level. PERSPECTIVE management of waste conservation in the ○ Save energy and resources to the extent possible such as turning off the power of assigned work lighting and OA devices not in use. ○ Recommend drivers of the company and outsourcing companies to take actions for reducing the environmental burden such as turning off a vehicle engines when stopped and ecological driving.
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4-3. Confirmation of Usefulness of CII-IL Logistics Human Resource Development Program
Because many Japanese companies do not recognize the CII-IL logistics human resource development program (Qualification Course), we cannot not judge whether the program is useful. Further, in order to utilize the CII-IL program, the program must be evaluated in advance. For this reason, it was decided to hold the “Warehouse Management Basics Seminar” for warehouse managers in cooperation with CII-IL and confirm usefulness with the result of participants questionnaire (on comprehension degree and possibility of application) after the seminar. As it is necessary to also have logistics responsible persons of Japanese companies evaluate the CII-IL program, it was decided to confirm usefulness by holding the “Local Study Group Meeting” for logistics responsible persons and introducing on such occasion the details of the logistics human resource development program to have them deepen their understanding.
4-3-1. Holding of local seminar
1) Outline (1) Purpose Make locally existing logistics human resource development program (CII-IL program) well known to Japanese companies. Foster warehouse managers who have attended the CII-IL program (seminar). Evaluate the CII-IL program and grasp improving points with the result of participants questionnaire, and utilize them for program development. (2) Date and Time Monday, February 4, 2019 9:30 to 15:00 (3) Venue Dia Park Premier Hotel (4) Target participants Warehouse managers working in Japanese companies (Indians) (5) Program and lecturers The contents of the unit of “Warehouse Management” in the qualification course held by CII-IL have been arranged by CII-IL as the one-day seminar program for basics.
Program Lecturer 1. Logistics sector overview Mr. H Sai Sridhar 1. About CII & CII Institute of Logistics Counsellor 2. Logistics sector overview CII Institute of Logistics 3. Trends & Challenges 2. Warehouse processes, equipment and problems Mr. Sundar Srinivasan 1. Types of warehouses and regulatory issues Divisional Manager 2. Layouts and storage systems Exports & Inbound Logistics 3. Equipment types and utility ASHOK LEYLAND 4. Role of warehouse professional
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3. Managing warehouse efficiency Mr. Aditya Gupta 1. KPI to measure the warehouse efficiency Zonal Business Head – North 2. Technology to improve warehouse efficiency Diesl 3PL Division TVS Logistics Services Limited (6) Language English (7) Number of participants With 30 participants as the prescribed number (1 to 2 participants acceptable from one company), the members have been looked for through approach to interviewed companies, JILS Mail Magazine and cooperation of Japan Chamber of Commerce and Industry in India. (8) Result Participants: 49 persons (Applicants: 51 persons) Respondents to questionnaire: 46 persons Breakdowns: Shipper companies: 29 persons of 21 companies, Logistics operators:19 persons of 14 companies, and 1 person of one company Senior managers: 3 persons of 3 companies, middle managers: 38 persons of 28 companies, and other 8 persons of 8 companies Lecture Lecture
Lecturers Group Picture
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2) Progress and questionnaire result (1) Progress At the beginning, all the participants were questioned about their expectation from the seminar. There were comments including desires of learning the current situations and trends of logistics, warehouse improvement/solution, inventory management, new technologies, etc. Lectures were made in the CII style, i.e. the lecture text being distributed after each lecture. Therefore, all the participants carefully listened to the lectures. Lectures were given in the interactive type, i.e. questions of participants could be accepted even halfway during lecture speeches. (2) Questionnaire result The 46 participants out of 49 replied to the questionnaire. The results are shown below.
Figure 4-4 Comprehension Level
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Figure 4-5 Application to Practical Operations
Additionally, following impressions and requests were expressed by participants.
◎ Main impressions of participants Had very favorable impressions of the seminar conducted by logistics experts. Learned a lot useful for warehouse management. Want to express appreciation. Acquired important points to be carried out in warehouse management in future. Found the lecture good as it contained new information. The contents were those to be useful for creating KPI and improvement. Found the interactive style of lectures good. Want this kind of seminar to be held also in future.
◎ Requests from participants It will be better if a drill is included that may be connected to application. It will be easier to understand if company case studies are taken in. Want to request introduction of improvement case studies in Japan. Have an interest in IoT, robotics and automation in India. Want to know specific case studies including the way of introduction.
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3) Consideration It can be seen from the result of questionnaire that the comprehension level of all three sessions is high and there are many participants who are considering application to their practical operations. Besides, when we talked with several participants during the lunch break, we also heard other comments not directly linked to the seminar contents such as: “It is a good opportunity as I have never attended an external seminar on logistics.” and “It is very good that I can communicate with the people of other companies.” Judging from the above, we can say that the CII-IL program is useful. In order to make the program even better, it is necessary to modify the contents to those that will enable acquisition of the application ability because the program of this time consists of basics. Particularly, it is necessary to take in exercises, company case studies, improvement examples, etc. as seen in the requests from participants.
4-3-2. Introduction to logistics human resource development project by CII-IL (holding of local study group meeting)
1) Outline (1) Purpose Make locally existing logistics human resource development program (CII-IL program) well known to Japanese companies. Hear opinions on the program for warehouse managers (preliminary draft). Set networking between logistics responsible persons and logistics managers of local Japanese companies.
(2) Date and Time Tuesday, February 5, 2019 10:00 to 14:00
(3) Venue Dia Park Premier Hotel
(4) Targets Logistics responsible persons and logistics managers of local Japanese companies (5) Agenda Part I: 10:00 to 10:30 “Present Situation of Logistics Human Resource Development in India” Presenter: Japan Institute of Logistics Systems Subjects: 1) Project outline 2) Present Situations and Issues of Logistics Human Resource Development in India, and Activities of Japanese Companies Part II: 10:40 to 11:40 “Human Resource Development Program of CII Institute of Logistics” *English/Japanese consecutive interpretation Lecturer: Mr. K.V. Mahidhar Executive Director, Confederation of Indian Industry (CII) and Representative, CII Institute of Logistics Subjects: 1) Logistics in India 2) Education Program of CII Institute of Logistics 3) Q&A
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Part III: 11:50 to 12:40 Opinion Exchange on “Logistics Human Resource Development in Future in India” 1) Making well-known the currently existing logistics human resource development program and its utilization 2) Program for warehouse managers 3) Solving issues in collaboration and cooperation with each other between Japanese companies Part IV: 12:40 to 14:00 Exchange Meeting (Lunch)
(6) Result Participants: 24 persons (Applicants: 27 persons) Breakdowns: Shipper companies: 8 persons of 6 companies, Logistics operators: 16 persons of 12 companies Senior managers: 14 persons of 11 companies, middle managers: 7 persons of 6 companies, and other 3 persons of 3 companies
CII Lecture Study Group Meeting
2) Progress After explanation by CII-IL, there were following questions and answers: Many global companies are fostering employees with internal training. I would like to hear the advantage of using the CII-IL program. (Answer: Internal training is important. CII-IL is in a position to provide examples and information of other industries because we are conducting training for various industries. It appears that participants can acquire new knowledge and information that are not available internally, and therefore, utilization of acquired information will bring better results than internal training.) I would like to know how the persons having completed training are working actively. (Answer: A two-month short-term course was held at Ford. The participants put the contents into practice and we received feedback information from the person in charge of personnel affairs that the effect of training had brought good effects. Therefore, the training has been continuing on a long-term basis.)
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3) Consideration According to the participant questionnaire performed before the study group meeting, all the companies responded gave answers of “We do not know the CII-IL qualification course”. After the study group meeting, plural participants expressed their opinions of “Provision of information from CII was precious and the meeting was an effective opportunity.” Furthermore, according to the questionnaire result after the meeting, there were answers: “We want to consider utilization of the CII-IL program (63%).” and “We desire provision of detailed information on the CII-IL program (26%).” Although the time for information was limited, we could introduce the CII-IL program to local Japanese companies. Further, we could confirm that there would be a possibility of Japanese companies utilizing the CII-IL program as one of the means for human resource development. Therefore, we believe that it will be effective to develop a program by revising and modifying the present CII-IL program in a manner of reflecting the needs of Japanese companies.
4-4. Creation of Curriculum for Warehouse Managers
4-4-1. Consideration at study group meeting
In order to create a better logistics human resource development program, it is necessary to hear concrete opinions of local Japanese companies and modify the program idea created this time. For that purpose, it has been decided to hold a study group meeting for logistics responsible persons and logistics managers of Japanese companies locally as mentioned above, give consideration to the proposed program idea and exchange opinions and eventually aim to create an effective program. Besides, we received opinions also from the members of the domestic study group. At the study group meeting, consideration was given to the created program idea (lecture items) on compulsory lectures, unrequired lectures, the lectures to be added, etc. Main opinions are described below.
• There is no unrequired lecture among those in the proposed program. • “5. Basics of Warehouse Management”, “16. Improvement” and “6. Safety and Health” should be made the compulsory lectures. • Desired to be added are, for example, “Laws related to warehousing”, “Process for solving problems”, “Exercise problems (for acquisition of application ability)” and “Actions when a trouble occurs”. • The logistics cost should be made compulsory, not recommended. • From the future perspective, material handling equipment and information system should also be included for learning.
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• Although mindset and basics of logistics and SCM are necessary items, those are educated at each company ; therefore, those may not be made compulsory. • As Indians like arguments, a group-type lecture in the discussion style is desirable. On the other hand, since the country is large, a web-learning style will also be required. Therefore, the best is to implement both types concurrently. • It will be easier to dispatch employees if the program is divided into compulsory and non- compulsory (recommended and elective) lectures, instead of the participants being requested to attend all the lectures. • Practices and site visiting should be taken in. (On the other hand, there was no company that would be able to offer its facility as a site visiting place.) • It is desirable to have lectures on weekdays. • Lectures made by company staffs are desirable. (Concerning dispatching of the company’s employees as lecturers, there were some companies expressing that dispatching would be possible depending on conditions.) • Concerning qualification certification for participants having completed training, five companies expressed their request.
4-4-2. Warehouse manager development curriculum
Based on consideration as mentioned above, the curriculum toward fostering warehouse managers in India has been created.
1) Purpose Foster warehouse managers.
2) Targets Middle managers and logistics site leader class members being engaged in logistics operations
3) Attainment Level Expected after Completion The persons having completed the program shall have systematically acquired knowledge and techniques required for warehouse management. The persons having completed the program shall be able to apply the acquired basic knowledge to practical operations, give guidance to site members and manage the warehouse.
4) Program (Refer to Figure 4-6.) The program has been divided into compulsory lectures and elective lectures.
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5) Venue Delhi, India (However, web-learning will also be utilized concurrently.)
6) Lecturers Present Indian lecturers and Indian lecturers who have received training from Japanese specialists
7) Language English
8) Secretariat Confederation of Indian Industry (CII-Institute of Logistics)
9) Others Group type lectures shall be held on weekdays. Concerning the subjects of whether the system should be made the one for qualification recognition, the qualification certification method, the learning period, the participation fee, etc., those shall be decided upon discussion with the Secretariat, together with consideration on the detailed program.
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Figure 4-6 Program for Warehouse Managers Code No. in applicable CII Category Subcategory Individual Item Type program
○
1 Introduction 1 Code of Conduct as a 1 Basics of business manners and meaning of work Development is required.
Elective businessman (mindset) 2 Reporting, communication and consulting/5S/5whys/Improvement mind 2 Logistics/SCM 1 Logistics LM11 2 SCM SCM11 3 Customer service 1 Customer FE13/LM11 2 Customer relationship 4 Organization and 1 Collaboration and partnership FE16 communication 2 Human resource management (fostering of employees) 3 Communication EM11
◎
2 Basics for 1 Definition of warehouse 1 Warehouse types and structures Compulsory LM12 Warehouse 2 Warehouse-related law and fire law Development is required. management 2 In-warehouse works 1 Flow of goods and layout LM12 2 Warehouse works (warehousing to shipping) 3 Warehouse management 1 Points of warehouse management LM12 2 KPI on warehouse 3 Labor management 4 Measures for unexpected incidents, troubles and Development is required. complaints 3 Safety and 1 Safety and health 1 Safety and health management Development is required. health management 2 Safety (labor accident and Heinrich's law) (LM12: Safety) 3 Health (Work environment management, work management and health management) 4 Establishment of system and promotion of education 4 Productivity 1 Efficiency improvement 1 Productivity and storage/work efficiency LM12 of in-warehouse works 2 Unitization and standardization 3 Work classification and work sampling Development is required. 4 Optimization of location 5 Personnel arrangement in warehouse and LM12 development of multi-skill workers 5 Quality 1 Basics of quality 1 Significance of quality management and logistics Development is required. management management quality 2 5S and PDCA 3 QC circle, QC story and procedures for solving problems 4 Utilization and analysis of data and QC seven tools 5 Creation and modification of procedures and manuals 6 Material 1 Material handling 1 Utilization of material handling equipment LM12 handling equipment equipment 2 Types of material handling equipment and technology and 2 Information system 1 Purpose and effect of using information system information 2 WMS system 3 Picking system 7 Inspection 3 Inspection and 1 Why inspection and maintenance are performed? Development is required. and maintenance of 2 Points of inspection and maintenance 8 Article 1 Basics of article 1 Purpose of article management SCM12 management management 2 Key to management and 1 Cargo receiving and shipping, and inspection LM12 guidance of each work 2 Storage 3 Cargo handling and picking 4 Packaging and transport packaging 5 Distribution processing Development is required. 6 Paperworks and various kinds of form processing Development is required. 3 Inventory taking 1 Purpose and procedure of inventory taking Development is required. 9 Inventory 1 Definition of inventory 1 Purpose of inventory management and cause for SCM12/FE11 generation of inventory 2 Types and functions of inventory and proper inventory 2 Inventory management 1 Concept of inventory management and inventory turnover rate 2 Inventory calculation method and pareto analysis 10 Cost 1 Cost management in 1 Fixes cost and variable cost in warehouse Development is required. warehouse 2 Concept of storage cost, storage efficiency and exercise 3 Concept of cargo handling, work efficiency and exercise 11 Improvement 1 Purpose and procedure 1 Why working on improvement? Development is required. of improvement 2 Solution of problems and 5 whys 3 Procedure (grasping of present situation, improvement planning, implementation and evaluation/fixing） 2 Improvement point and 1 Viewpoints on each site and improvement points examples 3 Improvement examples 1 Company examples 4 Exercise 1 Case studies
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Chapter 5 Direction of Environment Improvement for Human Resource Development in Future (Roadmap)
Based on investigation, the framework for logistics human resource development and its plan (support measures) have been put in order, out of which activities have been concretely considered, focusing on “Develop a new program by utilizing the human resource development program of the local logistics association.” Herein we have considered the future orientation of 13 support measures including “Develop a new program by utilizing the human resource development program of the local logistics association.” as indicated in Figure 5-1.
However, because it is difficult to implement these support measures simultaneously, priority has been given based on the following items.
1) Direct support: Whether it is a measure capable of directly supporting local Japanese companies 2) Local needs: Needs of Japanese companies having participated in the local study group meeting 3) Domestic study group meeting: The result of consideration at the domestic study group meeting 4) Easy starting: Easiness of starting support measures in consideration of relation with local associations, the cost scale, etc.
Making a general judgement, we can say that the highly prioritized support measures are: “1. Make well-known the logistics human resource development program of the local logistics association.”, “2. Develop a new program by utilizing the human resource program of the local logistics association.” and “6. Disseminate the tool that can be used in guidance.”
Figure 5-2 is a summary of “Implementation System (Japanese Initiative, Partnership between Japan and India, or Indian Initiative” and “Examples of Assumed Implementation Bodies” for 13 support measures. Activities may be started and proceeded with for the support measures categorized into “Japanese Initiative” or “Indian Initiative” through approach to the implementation bodies indicated as examples. On the other hand, the support measures categorized into “Partnership between Japan and India” are required to be proceeded with by implementation bodies sharing goals and cooperating with each other.
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Figure 5-1 Support Measures
Support Measures NO. Selecting Condition of Priority Order Priority
Domestic Direct Local Ease of Study Support Needs Start Group
1. Support measures 1. Making well-known and utilization of human on external education resource development program of local logistics 1 〇 〇 〇 〇 ◎ association
2. Development of a new program by utilizing human resource development program of local 2 〇 〇 〇 〇 ◎ logistics association 3. Local holding of seminars that are being held in 〇 〇 〇 Japan 3 4. Making well-known the program of graduate 〇 〇 school for society members 4 5. Development of a program for Japanese being 〇 〇 〇 stationed 5 2. Support Measures 1. Dissemination of tools that can be used for 〇 〇 〇 〇 ◎ on Internal Education guidance 6 2. Development of tools that can be used for 〇 〇 〇 guidance 7 3. Issue Solution in 1. Establishment of "Opportunity" where logistics partnership and responsible persons will meet together 8 〇 〇 〇 Cooperation with each other between 2. Establishment of inter-company network through Japanese Companies cooperation between Japan Chamber of 9 〇 〇 〇 Commerce and Industry in India and CII
4. Development of 1. Development of logistics educational program in Excellent Human universities and graduate schools 10 Resources, Employment and 2. Matching between university graduates and Matching Japanese companies (employment support) 11 〇
3. Making well-known skill training to foster 〇 logistics site workers 12 4. Matching between the persons having experience of logistics site works or those having received skill training and Japanese companies 13 〇
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Figure 5-2 Implementation System of Support Measures and Implementation Body (Example)
Implementation System Japanese Initiative Partnership between Japan and India Indian Initiative Prioritized 1. Making well-known and utilization of human resource development program of local logistics association External education
Outlines of individual support measures and deployments in future are summarized below.
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5-1. Support Measures with High Priority
1) Making well-known the logistics human resource development program of the local logistic association In this survey, the situation has become clear that many Japanese companies do not recognize existence of the local logistics associations and their activities on human resource development. Though our consideration has been mainly focused on the CII-IL program, it is assumed that because activities such as seminars and lecture meetings are implemented also by other associations, the opportunities where hints for solving issues will be increased through these activities on human resource development being widely recognized and will eventually lead to issue solution of many Japanese companies. As the support measures, it will be necessary that the information network through which the information on activities of local associations is delivered to local Japanese companies will be established, as shown in Figure 5-3. The measures include those that can be started within a short time such as “distribution of mail magazine by the logistics associations and promotion of registration”, “request to local Japanese associations (Japan Chamber of Commerce and Industry in India, JETRO, AOTS, etc.) for cooperation in providing information” and “provision of information from logistics associations in Japan (JILS etc.)”.
Figure 5-3 Information Network with Local Japanese Companies
2) Developing a new program by utilizing the human resource development program of the local logistics association In the previous chapter, a new curriculum and a new program were created based on the program of the CII-IL qualification course. These support measures are highly prioritized ones since there are needs from Japanese companies. The direction has been considered herein on the assumption that the training (a qualification course or seminars) based on the program created will be started.
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(1) Decision of classification and priority The program is divided into two lectures: compulsory lectures and elective lectures as indicated in Figure 5-4. These lectures are further divided into those of which corresponding lectures are found in the existing CII-IL program, those partly existing therein and those not existing therein. First of all, it is necessary to give priority to compulsory lectures. Figure 5-4 Classification Table
(2) Confirmation of CII-IL texts Although the system and the program of the CII-IL qualification course could be confirmed in this survey, it was not possible to grasp detailed contents of individual lecture texts. To begin with, therefore, checking of details of lecture texts will be started.
(3) Modification and creation of texts After checking the above texts, the contents will be modified or created, more specifically: “Utilization as it is”, “Modification based on pointing out from Japan” or “Addition of new contents”.
(4) New creation of texts and training of Indian lecturers When the applicable lecture is not available in CII-IL, it will be necessary to create texts for India based on the texts for the qualification course or the seminars held in Japan. Furthermore, it will be required to give guidance so that Indian lecturers may conduct lectures with these texts. A local seminar will be held and a Japanese expert will demonstrate performance of actual lectures to make Indian candidates of lecturers acquire knowledge and techniques. After that, it will be necessary to provide an opportunity for gaining their experience like a trial seminar where a lecture will be conducted actually.
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(5) Creation of exercise questions and case studies Not only to acquire knowledge but also to master the application ability, it will be necessary to incorporate exercises and case studies. It is desirable that the materials can be created with examples, videos, photos, etc. of logistics sites in India with cooperation of CII-IL.
(6) Consideration of qualification certification At the company interviews, affirmative opinions to make a qualification recognition system were expressed such as: “Motivation of employees will be raised with qualification given.” and “It will be possible to evaluate the employees having attended training.” Because there exists already a qualification certification system in CII-IL, it will be necessary to consider with CII-IL concerning qualification to the persons having completed a seminar to be held based on the program for warehouse managers while giving consideration to the present system. In conjunction therewith, the criteria for completion and for decision of passing shall also be considered. In addition, it will be required to secure continuity of the activities by the arrangement of, for example, concluding MOU between implementation bodies on Japan side (e.g. JILS) and CII-IL because cooperation of CII-IL will be absolutely needed for these activities. Following the above procedures, starting of a new training (a qualification course) will be aimed at. Its three-year plan toward realization (Roadmap) is shown in Figure 5-5.
Figure 5-5 Roadmap
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3) Dissemination of tool that can be used in guidance Having difficulty in giving guidance to workers on logistics sites, many of Japanese companies have been coping with this issue by creating procedures and manuals with many photos. However, a great deal of work would be required for creating the tool independently in a company. Therefore, it will be effective to provide the existing tool information to local Japanese companies to promote its use. Concerning “logistics improvement”, for example, Japan Institute of Logistics Systems (JILS) has been implementing activities related to logistics improvement for many years, and a lot of reference information and tools downloadable at no cost are posted on “the website for logistics site improvement”. It will be effective to make this website well known and promote utilization of the tools.
5-2. Other Support Measures
5-2-1 Support measures on external training
1) Local holding of seminars that are being held in Japan It is desirable that logistics issues that Japanese companies are facing will be made clear and human resource development required for solving them will be deployed. It is conceivable as one idea that lecture item not available in the logistics human resource development program of the local logistics association will be selected and its lecture will be organized locally as a seminar. However, if a lecturer is sent from Japan, its cost will be high; therefore, for the purpose of holding seminars continuously, “Japanese experts available locally and fostering of Indian lecturers” is necessary.
2) Making well-known the program of graduate school for society members In this survey, a program on warehouse management for middle managers was created. On the other hand, fostering of senior managers will also be required. We could confirm in this survey that CII-IL was providing the curriculum on logistics human resource development to Amity University and lectures were being conducted there. It is effective
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that CII-IL provide curriculum to other universities, but there are few senior managers within a company who may be the candidates for entering a graduate school for society members, the priority as support measures is low.
3) Development of program for Japanese being stationed Japanese companies are expecting to realize management by Indians (localization). However, in many cases in Japanese shipper companies, the staffs being stationed locally have little experience in the logistics department in Japan and thus they have not received professional logistics training. For this reason, we have heard many opinions that though recognizing problems and issues on logistics, they are struggling with drawing up of concrete issue-solving ideas and fostering of local persons in charge of logistics. In parallel with human resource development of local staffs, “creating the contents by web-learning toward fostering employees being stationed” and “permitting the employees being stationed to participate in the existing CII-IL qualification course or a new program” are necessary.
5-2-2 Support measures on internal training
1) Development of tool that can be used in guidance It will be effective to develop and provide new tools concurrently with 5-1 3). For example, “creation of training materials with local videos and images” and “creation of motion pictures for Web distribution” may be assumed. Because it will be absolutely necessary to collect local information for developing these tools, cooperation of CII-IL will become required. However, due to costs being incurred for creation, judgment has to be made in sufficient consideration of company needs and cost-effectiveness.
5-2-3. Solving issues in collaboration and cooperation with each other between Japanese companies
1) Setting of “Opportunity” where logistics responsible persons meet together This time, we have organized a study group meeting and an exchange meeting locally for logistics responsible persons and logistics managers of local Japanese companies. It has become apparent that the Indian consumer market is on an expanding trend and Japanese companies are competing with each other under its business environment; therefore, it is difficult for them to cooperate and solve problems due to few coordination areas in existence. On the other hand, a strong request has been expressed by the study group meeting participants that they want to have the study group meeting and the exchange meeting of this time continued because those are very meaningful under the situation of no “opportunity” of logistics managers meeting together domestically in India. We have also heard the impression that “We find it very good that we could meet the people with whom there had been no meeting occasion usually, exchange information and share issues.”
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It is difficult to set an “opportunity” under the initiative of mutually competing companies, it is necessary for a third party to prepare the “opportunity” and continue its support until it is firmly established. When we visited Japan Chamber of Commerce and Industry of India during our stay in India in February 2019, we obtained the response that it would be possible to establish “the logistics subcommittee” with logistics managers gathering together and the first step would be to transmit the existence of strong needs to the embassy. Further, there was the suggestion that the necessary budget would have to be made for holding a subcommittee meeting in consideration of the fact that other subcommittees were holding meetings by renting venues. It is necessary that with the study group meeting held this time as a starting point, an “opportunity” where the people concerned in logistics meet together will be established locally.
2) Establishment of inter-company network through cooperation between Japan Chamber of Commerce and Industry of India and Confederation of Indian Industry At the local study group meeting, we heard the voice calling for “establishment of network” not only among Japanese companies but also “with Indian companies due to the information of Indian company missing”. Furthermore, on the occasion of interviews with local companies, there were requests from local logistics operators for establishment of network with Japanese companies. At the local study group meeting, we could obtain the response from CII-IL that they would be able to introduce Indian companies and provide an opportunity for exchange. Additionally, we could also obtain the response that Japan Chamber of Commerce and Industry would be able to meet a request, if any, because they have a relationship with CII. This is a common request of Japanese and local companies; therefore, it is necessary that a network between Japanese and Indian companies will be established while assuming establishment as mentioned in the above 5-2-3 1).
5-2-4. Development, Employment and Matching of Superior Logistics Human Resources
1) Development of logistics training program at universities and graduate schools We could confirm in this survey that CII-IL was providing the curriculum on logistics human resource development to Amity University and conducting lectures there. On the other hand, when we placed questions to Indian professors and Indian employees, there were many responses of “There is no program related to logistics in universities.” and “I have no experience of having learned logistics in universities.” We could confirm that most of employees started to learn logistics for the first time at the company employed. Further, Logistics Sector Skill Council (LSC) is elaborating a conception of providing the program to universities that logistics experts will be produced in the 3-year course (Lectures
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in the first year, training in companies in the second year and lectures again in the third year upon returning to the university). On the assumption that the number of human resources working in logistics-related facilities will be 40 million in future, it is necessary to foster superior logistics human resources before employment.
2) Matching university graduates with Japanese companies (employment support) It is necessary that concurrently with the above 5-2-4 1), to improve the environment so that the graduates having studied logistics at university faculties or graduate schools or those having completed the study there may be employed by Japanese companies. The ideas conceivable are: “Promoting registration at staffing companies”, “Creating an opportunity of exchange (the opportunity for matching) between universities/students and Japanese companies” and “Establishing the internship scheme”.
3) Making skill training for fostering logistics site workers well known Logistics Sector Skill Council (LSC) is creating and performing the human resource development program (skill training) for logistics site workers. The persons having completed training are certified, but its degree of recognition is low in Japanese companies. We have heard the voice from Japanese companies that if there is a qualification system, it will be easier to evaluate and judge the person at the time of employment or selection. The ideas conceivable are: “Implementing the measures for enhancing the degree of recognition of a qualification system”, “Establishing database for the persons having qualification certification” and “Providing information from LSC to Japanese companies”.
4) Matching between persons having experience of logistics site works or having received skill training and Japanese companies We think it effective to improve the environment for enabling the persons having qualification certification to work (to demonstrate abilities) on the logistics site of Japanese companies. The same as in 5-2-4 3), the ideas conceivable are: “Implementing measures for enhancing the degree of recognition of the qualification certification system”, “Promoting registration of the persons having been certified at staffing companies”, “Establishing the database of the persons having qualification certification and the persons having experience of logistics site operations” and “Providing information from LSC to Japanese companies”.
5-2-5. Others
1) Maintaining a friendly relationship with local companies, the administration and logistics associations We could establish a friendly relationship with many company members, the administration and logistics associations through holding local seminars and study group
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meetings in this project. This is a very important asset in developing projects in future. It will be possible to enhance the level of logistics human resources while strengthening the network with the locals and cooperating with each other by holding seminars and study group meetings continuously.
End
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Part 2 Materials
1. Texts for Local Seminars
2. Materials for CII-IL Lectures at Local Study Group Meeting
3. CII-IL Programs
（様式２）
二次利用未承諾リスト
Survey on Logistics Human Resource Development in India
平成３０年度 内外一体の経済成長戦略構築に係る国際経済調査事業
公益社団法人 日本ロジスティクスシステム協会
頁 図表番号 タイトル 9 Road Network 9 Surfaced Roads 9 Transition of Road Extension 10 Railroad Network 10 CONCOR’s Terminals 10 Transition of Handling Volume of Railroad by CONCOR (Unit: TEU) 11 Main Ports 11 Volumes of Traffic and Container Traffic at Main Ports of India 12 Main International Airports 12 Airfreight Traffic (Unit: Measurement Ton) 13 Delhi Mumbai Industrial Corridor 14 Dedicated Freight Corridor 16 Logistics Park Plan 17 Development of industrial park exclusive for Japanese companies 19 Example of distribution structure 20 Examples of Transportation Routes in Exporting 21 Transition of internet users 23 Examples of Logistics Cost Ratio by Industry 23 Structure of logistics costs 47 Figure 3-2 Number of Persons Having Obtained Certificates 48 Figure 3-4 Area of Education 49 Figure 3-5 Program and Career Path of Warehouse Workers Materials Texts for Local Seminars Materials Materials for CII-IL Lectures at Local Study Group Meeting