Friday 24 September 2010

Shell bags Oil&Gas Award 2010



Shell received the 2010 Oil & Gas Award for Supply Chain Management Excellence. The award is being conferred at the annual event of OFS Portal, a not-for-profit data standardization body dedicated to the upstream oil and gas industry.

BSI has conducted an annual in-depth global operations management benchmark study in the oiland gas industry since 2008. This year it screened over 300 candidate operations and supply chain management improvements among National Oil Companies (NOCs), International Oil Companies (IOCs, Equipment Providers, and Service Providers.

Shell won based on its high-performing standardization program, which allowed it to reduce purchase prices by 30% for valves, cut variety by 50%, through use of its extensive Materials and Equipment Standards and Code (MESC) catalog. The catalog, which is based on ISO and IEC standards to ensure interoperability, integrates 370 Design and Engineering Practices (DEPs) that standardize tools and facilities, reducing recurring engineering and design work and consolidating spend on standard items. In addition to reducing purchase cost, the practice also reduces delays due to supplier confusion and costs related to unnecessary rework. Continuous feedback from users and participation from external standards bodies keeps specifications up to date. Shell more than doubled the number of DEPS between 2000 and 2010, and is aiming for a DEP age of 3.5 years.

Alfred Kruijer, Principal Technical Expert Piping & Valves, accepted the award, saying: “The benefits of standardization and interoperability accrue to many parties in the supply chain. Our internal team has been able to achieve truly meaningful results thanks to the efforts of our suppliers and organizations such as ISO. I am proud that our collective effort has been recognized by Boston Strategies International.”

Boston Strategies International (bostonstrategies.com), founded in 1998, offers global supply chain consulting, global cost and pricing intelligence, and procurement tools to the oil and gas industry to create global growth opportunities through strategic supply chain management. OFS Portal (ofsportal.com) provides standardized electronic information to B2B trading partners to facilitate eCommerce in upstream oil and gas products and services.

Thursday 23 September 2010

People & Quotes - Louis Yiakoumi


Names can be misleading at times. I made that faux pas when I first heard his name. I beleived - yes, I believed that Louis Yiakoumi, Publisher & Conventions Director, Ultimamedia Group, London must be Japanese. How wrong I was!

As he walked into the lobby at Crowne Plaza, Gurgaon, India on a wet Wednesday half past noon, I understood my mistake. He's not Japanese. Finito.

Another mistake I made was my assessment of his age over the past 4 months I have been interacting with him on phone and emails. I guessed he must be in his mid-30s.

Again wrong. He was in late 40s. August 1962 born.

Two wrongs in one go.

With Mercurio Pallia Logistics chief Vipul Nanda and Logistics Times Marketing Chief Ved Shukla in tow, we trooped into the luncheon lounge.

Louis' maiden question was: "Is your onroad trip on?"

Of course, he was referring to my proposed Gurgaon-Chennai plan to accompany Maruti vehicles for delivery in the cabin of Mercurio Pallia carriers.

Vipul told Louis that I would be his "brand ambassador" and of course, I would be wearing MP logo-ed T-shirts with Logistics Times name tugged somewhere. Yet to be decided.

Louis is on a pre-convention trip to INdia. Automotive Logistics would be hosting a convention in Chennai in December.

Now he is in India, criss crossing cities to meet potential invitees personally.

Before flying off to London (his homebase), he was halting at Delhi.

Mind you, INdia is not new to Louis. He had been here several times.

Here are a few of his observations:

- To taste authentic Indian food, better go/come to India. But authentic Chinese food, on the other hand, will be available only outside China.
- Mobile phones are the cheapest in India. His son, studying in France, opted to use his British mobile from French soil because it was too expensive to buy a local sim card for usage.
- Gurgaon hotels are expensive than Taj Palace.
- Not perturbed over the Commonwealth Games fiasco India is currently witnessing. He recalls that when the Olympics was held in Greece, (by the way, his origins are Greek), the city was getting fresh paint coasting even a couple of hours before the games opened! Indians, take heart.

- 2009, he held the convention in Chennai. AGain the same location this year too. Next year, he is looking at fresh options - preferably in the north.

- Goa? No. The impression is going to Goa means holiday, but serious business.
- India's best hotels are best like any other in the world. The worst or the world's worst.

- He wants to add a convention in the Middle East/Gulf region. and possibly a South Asia location.

One global convention - maybe in China - every year

Louis almost lives out of his suitcase because his calendar of events takes him to various places on the planet month after month.

He should be back in INdia first week of December.

Till then, bye, Louis!

Wednesday 22 September 2010

What's up in Sri Lanka?



Preethilal Fernando, Managing Director, GAC Sri Lanka

When Sri Lanka’s civil war officially came to an end in 2009, it marked the start of a new era of reconstruction and modernisation. Following the formal cessation of the military campaign, Lloyds’ Joint War Committee removal of the country from the War Risk List in June this year signaled a fresh focus - both locally and from the international community - on development.

Since then, Sri Lanka has witnessed a boom in infrastructure development projects, such as the construction and upgrading of power plants, roads, the railway network, harbours, airports and renewable energy projects.

All that activity requires the support of a specialised shipping and logistics service provider with the expertise and resources to handle the movement of essential heavy cargoes and materials. And for most major projects, it is GAC Sri Lanka that has provided those skills, services and resources.

On track for change
One of those projects saw GAC’s dedicated logistics team handling the transportation of 15,000 metric tons of concrete sleepers, intersections, steel girders and other essential parts and equipment for the rehabilitation of 45 kilometres of rail track between Galle and Matara. Managed by IRCON International Limited, the project is part of the government’s plan to upgrade about 120 kilometres of old track between Kalutara and Matara, expected to be completed by March next year.

The heavy parts were shipped in from all over from India in more than 500 containers, and once they arrived in Sri Lanka the local GAC team arrange their de-stuffing, stacking and delivery to the various construction sites along the railway track.

GAC is proud to be involved in this project, which means so much to the future of the country. It was a challenging task, but our logistics team has the solid teamwork and experience to meet the challenges, and we look forward to continuing our support for the second phase starting in October.

The rail reconstruction is just one of the transport projects GAC is playing a part in. It also handles a range of sensitive cargoes or aircraft engines and landing gears for airlines in the country.

Powering up
Energy is vital to Sri Lanka’s future, and GAC has helped bring heavy renewable energy equipment to the country for the building of wind power plants and the reconstruction of hydro power plants. We are also working on a major shore-based management project for the biggest single oil exploration project in the region, off the Sri Lankan coast.

NOTE: A more detailed GAC Sri Lanka report will appear in LOGISTICS TIMES (PRINT VERSION) soon.

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Rudrapur musings


In the next four years, Prakash Dindorkar would have to hang up his boots, thus ending his 30 plus years of Bajaj Auto linkages. Perhaps. He may be asked to continue given his rich experience in managing the two & three-wheeler giant's plants across the country.

I ran into him at Rudrapur during a recent visit to participate in Credence Logistics' 20th anniversary celebrations. Short and he was in a casual T-shirt and normal pair of pants. Unless you've met him in person or seen his photos, you would tend to ignore him. Very low profile.

Speaking about logistical issues at his Rudrapur plant which he is managing right from Day One - three years ago - he passingly mentioned that he does not have a "pucca" stores or inventory space for finished vehicles. Or, put it differently, his storage/inventory time is just 30 minutes.

In simple terms, it meant that no two-wheeler that trundles out of his assembly line stays inside the premises beyond 30 minutes. It was a bombshell for me.

Bajaj Auto plant churns out 4000 two-wheelers daily from two-shifts. 100,000 vehicles per month or a million-plus every year.

Over cocktail-cum-dinner, I introduced myself and told him that I would like to return to Rudrapur to witness his "magic" at his plant. He was gracious enough to extend an invitation.

We worked out visit plans over email and remained "speechless" till I landed up 10 days later at his doorstep.

It was a "Wow" feeling or "Aha" moment to see the Bajaj Auto plant even from the gate where the private taxi dropped me.

The security chaps knew of my impending arrival and the entry was smooth. Right from the moment, I entered Rudrapur I kept Dindorkar informed of my route plan through SMSes on his mobile.

Honestly I was feeling hungry and could not spare time to meet this crucial physical demand. I was led into the first floor reception hall where visitors are received. While climbing the stairs, I noticed the expansive dining hall which was almost empty except for a single gent. I could not recognise him.

I sat transfixed in the reception lobby. There was no sign of any receptionist but saw a lot of white T-shirted Bajaj Auto-logo-ed employees sauntering around. Approached one young employee and told my intent. He asked me to wait.

In the next few minutes, I was approached by another BJ employee with the message that Dindorkar"saab" has invited me for "lunch". Wow! Another "Aha" moment!

I quietly glided down the staircase and entered the spick and span dining hall. The only gent whom I had noticed engrossed in eating was none other than Dindorkar.

He too was in his white T-shirt with a Bajaj Auto logo. We exchanged greetings and sat down to complete the main business of "eating".

He requested me to complete my meal and come up and till then he wished to attend to some official work.

While I was refuelling myself for the hectic day or evening ahead, my roving eyes noticed the vast expanse of Bajaj Auto complex. Glass fronted. Manicured lawns. Huge pond. "Photography prohibited" signboard. Head-covered canteen staff. Gym and sports room across the dining hall. Lot of heavy vehicle movement on the road outside which I could watch fromt he dining hall. Reminded me Peenya Industrial Estate that I had visited near Bangalore almost 30 years ago. Or the crowded streets and bylanes of Okhal Industrial Estate in Delhi where I had come from.

When I had landed in Rudrapur less than an hour ago, there was a heavy downpour and roads were dirty and waterlogged. A roadside dhabawalla guided me to take a cycle rickshaw to the next chowk from where I can hop onto a tempo to reach Sector 10 of Rudrapur industrial cluster. I signalled the first available cycle rickshaw and managed to squeeze myself into it.

Try to ride in a c.r. with its hood unfurled next time. YOu wll know what I am saying. He dropped me at the designated chowk and saw a huge line of tempos with workers squeezed like sardines. Was it not like the Bombay local train ride from Virar to Churchgate that I had traversed 20 years ago?

I was in two minds. To hop onto this rickety tempos and rub shouldes with the blue collar workers or do what? I am not class conscious. But my limbs were tired after 7 hour long journey from Delhi and I was famished. Do I have the energy to withstand the push and shove style of travelling in completing the last mile connectivity? I decided against the tempo ride.

Watching my reluctance, a turbanned youngster approached to check out what I wanted. When he understood my need, he offered to ride me to my destination for a "fee". Matter of factly, he said that I would be spending Rs.10 in the crowded tempo, but he would chage me "multiples".

Mind you, it was raining. Without batting an eyelid, I hopped onto his tempo - yes tempo with me as the sole occupant! He told that he is offering me a "private taxi" service! Smart chap.

When he quoted his fare in Hindi, I was clueless because I could not figure out what he said. That is, I did not understand what is his demand. En route, I called my spouse over phone in Delhi and uttered the Hindi number to her and asked her "what the hell it meant?" She laughed and said it meant Rs.165, but she was curious to know why do I want to know this number. Quickly I explained. Sixteen times more I will be paying this guy! Oof!

The ride was okay with rain lashing from both sides and I was seated in the middle of the wide bodied tempo. Suddenly my driver braked and saw a khaki-uniformed policeman hopping next to me for a short ride perhaps.

No requests made to me. The policeman tried to nudge me to the corner so that he can occupy the dry area where I sat. I was unmoved. He reconciled himself to sit on the wet seat, perhaps cursing me or his fate!

He hopped out just before entering the Rudrapur industrial estate. Many blue collar workers en route tried to wave the tempo down for a drive inside, but the driver drove non-stop.

It was a different world with globally renowned companies on both sides of the road: HP, Nestle, HCL, Tata Motors, etc. Containers and logistics company vehicles most visible in many compounds: either inbound or outbound.

Very few know about Rudrapur's industrial development. Many such clusters have come up in the state. Haridwar is no longer a pilgrimage centre, but a fast developing industrial hub as well.

Keep hearing about Rudrapur for more than 2 years, but never visited. Now I am here.

From a distance, I could notice the Bajaj Auto logo. I pulled out my wallet and prised money out for the ride.

The ride lasted not more than 15 minutes. My "chauffeur" waited till I reached the security gate. Then he waved and went away.

Ah.. here I am, I told myself. Should I declare that I am carrying a camera in my carry bag? Dindorkar specifically told me not to bring a photographer because it is prohibited. Yet, I was taking a risk of carrying a camera. I decided against declaring the "contraband".

A few yards down the path towards the glass-fronted edifice of Bajaj Auto corporate office, a security ran behind me and asked for my bag. Ohmigod! His CCTV or scanner got me red-handed!

"Sirji, I will carry your bag inside", he said politely.

I declined.Thanked silently and began to unfold my folded sleeves and button up for the crucial meet with Dindorkar.

What happened afterwards?

Well... one has to wait for the forthcoming issue of LOGISTICS TIMES to know the 30-minute magic weaved by the quiet Maharashtrian master.

Meanwhile, you can always visit http://www.logisticstimes.net/magazine.php to check out our previous issues.

And follow us on Twitter http://www.twitter.com/logisticstimes

A lot of profiles of interesting personalities from the logistics and supply chain arena.

In depth stories on big names...

And more.

Monday 13 September 2010

Sixth Issue (September 2010)

LOGISTICS TIMES' sixth issue will be out in the next 24 hours.

We are proud of this issue.

DHL, for the first time, opened its doors to us to engage in total conversation.

In fact, Jyoti Row Kavi (an old friend, dating back to Bombay 1990)meticulously assembled her four CEOs in Bombay and flew down Editor Ritwik Sinha and photo-journalist Anil Baral in August for a two-day marathon interview cum photo sessions.

Ritwik was zapped with the load of taped interviews. So was Anil. He was overwhelmed because it was maiden outside Delhi assignment in his new career.

Four cover options were made and chose the one that finally went into print.

Designer Kauser Syed, observing Ramadhan fast while the issue was under print, literally consumed midnight electricity to cook new concoctions.

Sorting more than 250 odd photographs was a nightmare for Kauser.

It was a monumental task for editorial and design team.

But the effort was worth it when the final print-ready CD was made.

Welcome!

It is no secret that logistics is sector-agnostic. Whether one makes toothpaste or high end aero engines, both these activities need materials to manufacture to begin with and once the product is ready for roll out, they need to be shipped out of factory gates. Both presupposes movement of raw raw materials or finished products.

So, to me, Logistics is be-all and end-all.

Hence through this blog, I will be sharing my perceptions on logisitical issues gained through reading and interacting with stakes.

I would have preferred to call it OnWheels... But on second thoughts, I don't want it to be confused with automotive-focused blog.

The journey begins ... NOW!