Economy & Market
Cement Machinery – Eyeing on the green potential
Published
5 years agoon
By
admin
Increasing focus on savings in energy consumption, stringent emission and pollution control norms, thinning bottom lines on one hand, and thanks to the Perform-Achieve-Trade Scheme, launched by Bureau of Energy Eficeny (BEE), most of the cement majors been inspired to innovate for ways and means, not only to reduce the energy consumption and the carbon footprint, but also to better cost efficiency. This has resulted in plant optimisation where energy and fuel efficient equipment and components play a pivotal role. INDIAN CEMENT REVIEW trains its thoughts on the latest developments.
EVEN THOUGH THE economic slowdown has adversely impacted the off take of cement, and to an extent, has dented the confidence of the equipment vendors, the long term growth potential is really tremendous. The per capita consumption of cement in India tells no other tale. Indian per capita consumption of cement is much less compared to the world average. As per reports, compared to the world average of over 350 kg, the Indian per capita consumption of cement was around 150 kg in 2011. The corresponding figure is 660 kg per capita in China, 631 kg per capita in Japan and 447 kg per capita in France. This very fact has been one of the main reasons that brought in global players into the Indian shore.
The Indian cement industry is globally competitive with lowest energy consumption and CO2 emissions. As per inputs from Cement Manufacturers Association during 2009-10, the Indian cement industry grew at a robust rate of 12.7 per cent. With the government promoting construction activities across the country through various stimulus packages for building roads, bridges, houses, etc., the Indian cement industry added a capacity of 37 million tonne in 2009-10, which is the highest capacity ever added in any single year so far. The government’s focus on building infrastructure is likely to continue in the near future and the Indian cement industry is expected to sustain an even higher growth rate of 15 per cent over the coming years.
According to G Jayaraman, Associate Director, Price Waterhouse, Chennai, the Indian cement industry has been very proactive in adopting various technological advancements taking place all over the world. This was particularly triggered by the partial decontrol of cement industry in 1982 followed by full decontrol in 1989 giving the resultant free market competition an opportunity for growth in production and productivity. Jayaraman points out, "The share of energy inefficient wet process plants had slowly decreased from 94.4 per cent in 1960 to 61.6 per cent in 1980. Thereafter, as a result of quantum jump in production capacities through installation of modern dry process plants as well as conversion of some of the wet process plants, the share of wet process has reduced to less than 5 per cent today. During the last two decades (80’s and 90’s), major technological advancements took place in design of cement plant equipment/systems basically in the following major areas – a) pre-calcination b) high pressure grinding c) automation in process control d) high efficiency particle separation and e) clinker cooling.
Technology Roadmap
These innovation resulted in sea change developments globally and the Indian cement industry followed the international trend."
Recently, a low-carbon technology roadmap for the Indian cement industry has been launched in response to the sector’s need to cut its carbon footprint whilst meeting the growing demand for building materials in the country. It follows the launch of the global cement technology roadmap published in 2009. Enhancing energy efficiency and investing in newer technologies is one of the major objectives in the India-specific roadmap that aims to reduce the industry’s carbon emissions by 45 per cent by 2050. In an exclusive interview with Indian Cement Review, Philip Fonta, Managing Director, World Business Council for Sustainable Development says, "The Indian cement industry’s efforts to reduce its carbon footprint by adopting the best available technologies and environmental practices are reflected in the achievement of reducing total CO2 emissions to an industrial average of 0.719 tonne COf per tonne cement in 2010 from a substantially higher level of 1.12 tonne CO2 per tonne cement in 1996. The Indian roadmap outlines a low-carbon growth pathway for the Indian cement industry that could lead to carbon intensity reductions of 45 per cent by 2050. It proposes that these reductions could come from increased clinker substitution and alternative fuel use; further improvements to energy efficiency, and the development and widespread implementation of newer technologies."
Fonta further adds, "The vision laid out in the roadmap is ambitious but achievable. Wide stakeholder consultation took place throughout the process to bring in varied perspectives, and to reiterate that decisive action by all stakeholders is critical to realise the vision laid out in the roadmap. To achieve the proposed levels of efficiency improvements and emissions reduction, government and industry must join hands to take decisive and collaborative actions in creating an investment climate that will stimulate the scale-up of financing required."
"Energy efficiency index of Indian cement industries is better than the world average. This has been achieved by judicious selection of plant/equipments for greenfield projects/plant upgradation and adopting outstanding processes/practices. Installing latest equipments has resulted into incremental saving in terms of energy consumption, innovative efforts that lead towards quantum jump in terms of energy saving to be pursued," says Ratan K Shaw, Group Executive President & Chief Manufacturing Officer, UltraTech Cement Limited. He further adds, "Enhancement of blended cement share and fly ash/slag absorption will contribute not only towards energy reduction but will also help in reducing carbon footprint and thus paving the road to green solution."
According to him, the criteria for selection of equipment for new plants are as follows: input material properties viz. grindability, abrasiveness, moisture, presence of free silica, minor constituents, versatility in terms of grinding viz. OPC/PPC/Slag, output material properties-product fineness, PSD etc, investment and operating cost, scope for capacity enhancement and layout constraints in application of the technology. The operative norms desired are specific fuel and power consumption, environmental considerations, equipment reliability-easy to maintain equipment/proven performance.
The focus on energy efficiency for upcoming new plants as well as operating plants will contribute towards reduced energy demand and CO2 abatement, and he stresses on the selection of state-of-art energy efficient equipments /auxiliaries, latest automation systems/optimal systems/layout, integrated design with WHR power plants.
SN Subrahmanyan, Member of the Board and Sr. EVP, L&T Construction says, "The current focus is on savings in energy consumption and emission control methods, with stringent pollution control norms which are tightened day by day and the introduction of the PAT (Perform, Achieve and Trade) scheme. Cement manufacturers are expected to operate their plant in optimised conditions all the time. Power availability is also a key factor that affects cement plant operations. Clients are looking for equipment which reduces energy, fuel consumption, and effective utilisation of waste heat. Due to this trend, waste heat recovery systems and alternate fuel firing systems have become common requirements in cement plant tenders."
"Fuel efficient technologies have been adopted by majority of cement manufacturers," says Jayesh Somwanshi, Proprietor, Shreeyash Engineering. He adds, "A lot of affordable technology is now coming into the market. Also, there is a shift in focus of the manufacturers on the fuel efficient products which are really important for our industry."
Talking about the latest trends in technology, B Seenaiah, National President, Builder’s Association of India and Managing Director, BSCPL says, "The cement machinery manufacturers are obviously now focusing more on fuel efficient equipment. The manufacturers are now more keen on complying this latest emmission norm which helps save fuel and increases durability of the machinery." Explaining the same further, Martin Gierse, Managing Director, KHD Humboldt Wedag India Pvt Limited "We see that the trend is towards environmentally friendly and energy efficient products and services. As such, KHD has established themselves as one of the industry leaders in low NOx calcining technology, power efficient grinding technology and highly efficient pyro processing equipment requiring less heat and energy consumption, and thus avoids producing additional unnecessary CO2."
According to R Bhargava, Chief Climate & Sustainability Officer Shree Cement, periodic review of performance of various parameters of equipment with operating condition of plant at time of commissioning, year on year basis, checking of all parts of equipment at suppliers site, evaluation of energy efficiency for new equipment, determination of measuring points for evaluating the performance of plant are important factors while selecting plant and machinery with an approach towards energy reduction. Training on energy policy to vendors/contractors to design and construct energy efficient plant, efficient purchasing strategies, and incorporating specific energy consumption for every equipment in purchase order/contract etc, will also help moving towards the higher goal making an energy-efficient plant.
K Karunakara Rao, Dalmia Cement (Bharat) says, "The life cycle cost is a very important factor while selecting equipment. Deployment of higher capacity equipment bring added advantages of higher reliability, and easier supervision of operation apart from lowering overall cost per tonne, and will also reduce manpower. The higher capacity equipment also helps reduce the traffic on the haul roads, reduce the exposure of humans to the safety risk, and minimise the fugitive emissions. He also stressed the use of Vehicle Health Monitoring System (VHMS) that could help avoid unexpected machine downtime by a prognostic look at data changes over time, helps faster troubleshooting due to readily identified situations and causes. Another advantage is the in-advance arrangement for certified rebuilt parts for replacement, resulting in downtime reduction, which also helps achieve extended service life of the machine through proper operating method and maintenance work."
Highlighting the latest technologies in raw material grinding, Jayaraman says, "Selection of the type of grinding mill depends on the raw materials’ several physical characteristics, most important amongst them are hardness of the material and moisture content. Availability of the major grinding equipment in appropriate capacity decides complexity or otherwise of layout, auxiliary equipment sizing etc which ultimately decide the plant’s pyro-processing capacity. Vertical roller mills have been widely accepted for combined grinding and drying of moist raw materials in view of their excellent drying capacity and low energy consumption.
Although the principle of the vertical roller mill did not change over the years, many improvements have been made in design of the mill and other equipments in the grinding circuit resulting in less energy consumption and improved reliability. Introduction of external re-circulation of material, adjustable louvre ring and modification of mill body to improve the air and material trajectories are examples of such design changes." He further adds, "Apart from the main equipment viz. mill, classifier and fan, the efforts have been on improving the performance of internals e.g. table liners in case of vertical roller mills and classifying liners in case of ball mills. Use of mechanical conveying systems like bucket elevators are becoming more common in place of pneumatic conveying giving substantial savings in energy."
Market Trends
Gierse says, "The current situation is governed by the low utilisation of the cement production facilities on the one side and low speed in decision making and granting of permits on the other. This has made cement producers focus on reduction of operational cost and increasing efficiency. Some are working on optimisation of their product offerings to serve more specific needs of their respective clients. Only the very strategic players planned to expand their production base, following the good rule that makes you win market shares during low seasons. However, cement consumption grew in 2012 by 8 per cent, which is more than the GDP growth and proves the importance of this core sector."
However, KHD is not planning to launch any new equipment in the market but the focus remains on the further optimisation of, as well the systems for pyro and grinding sections with cost and performance. Talking about the requirements of the clients, Gierse said, "We do believe that our clients’ business cases can best be supported by offering services in achieving the maximum performance for their manufacturing plant."
Commenting on the situation, Gaurav Khanna, Managing Director, Ashoka Group says, "Currently the industry is going through a bad phase since the infrastructure projects are not happening and there is no business. However, we expect the industry to improve in the year 2014 due to elections otherwise to be honest; I do not expect much right now. The year 2013 will be similar to the previous year."
Somwanshi says, "Right now, our industry is not in a satisfactory phase. The projects have not been happening since a long time. Due to which, we are on the receiving end. Though, the announcement made by the government for the construction of 3,000 km road project has brought a huge relief, you actually do not know if they are implementing the same in six months time." Feeling the heat of slowness in the markets, Shreeyash Engineering, does not plan to launch any new equipment currently.
But Seenaiah was on a positive refrain. "I do agree that the cement equipment manufacturers are facing a tough time but by the end of the year, the cement companies will expand their capacity by 25 per cent, especially in the southern parts of India." He further adds, "The construction sector is divided into two parts, one is the building construction and the other is infrastructure projects. The building construction is picking up, but the infrastructure part is stagnant. The year 2013 will be marginal as the government is still taking a stock of the situation and change needs time." Manish Kumar, Head of Plant and Machinery, Supreme Infra, also supports the view. According to him, the industry is gradually coming back to the earlier pace. "I would say that the industry is going well, since there are projects that have been coming up which has reflected in the sale of equipment. We have recently purchased equipments, despite the government not doing enough for the industry."
The China Factor
Contributing nearly 15 per cent globally, Chinese equipment players have taken a significant share of Indian demand. But for some, the only advantage of the China brand is low price. Despite, the users combating several issues like bad quality and after sales services, the Chinese equipment continues to make inroads into the Indian markets.
"There are few plants in India which are running on equipment supplied by Chinese suppliers but the lifecycle of such plants are questionable. Some investors only see the initial cost of the project rather than the performance and efficiency of the plant. This trend is threatening the Indian suppliers who offer quality products at a moderate price. Dumping from China has affected not only the Indian market but industries globally. Most of the customers who purchased Chinese equipment for their plants are facing issues in operation as well as in maintenance areas like frequent breakdowns of core equipment, increased plant downtime and increased equipment replacement cost. This trend can only be arrested if our government takes concrete steps to curb dumping from China," says Subrahmanyan.
Seenaiah says, "The quality of machinery is cheap but it is fine for them, since their costs are low and ours are high. But the quality of our machinery is also much better as compared to theirs. For us quality matters and a lot of players have changed their preferences and have now shifted to Indian equipment."
Geirse begs to differ. He says, "I would not call this a threat. As western suppliers, the Chinese suppliers are today players in the global competition. The western suppliers have in the meantime opened up equivalent sourcing strategies to cater the clients’ need for the most favourable balance between technology and cost. India itself offers good opportunities for such sourcing, which lead to the fact that Chinese plant equipment manufacturers have yet to establish a significant presence in the Indian cement industry." Explaining the situation further, he said, "For India as an import destination, equipment manufactured in China loses its competitive edge when pitched against equipment manufactured domestically.
Duties, inadequate transport/handling infrastructure and freight costs are, possibly, the principal deterrents. In addition, the Engineering, Procurement and Construction (EPC) mode of project execution, at which the Chinese are particularly proficient, is yet to establish itself in the Indian context."
According to Somwanshi, the Chinese equipment cannot be labeled as æcheap quality ones’. Admitting the fact that a few players in the market have been known for its cheap price and substandard quality, he says, "Some companies are really good and their range of products are as competitive as ours. Now, that the Chinese manufacturers know that the customer opts for quality and not price, the companies have now been quality conscious and are adhering to the quality standards." But he quickly adds, "In fact, I suggest that our government should make policies that protect our economy from the Chinese."
Priority List
Voicing their concern over some of the major challenges Khanna, says, "Commencement of the projects which have been pending since long is the one thing that we would like to have. The other would be the reduction in import duty. Since long we have been demanding all this, but even during the budget the government didn’t announce any good policies. So we are stuck where we are and we are not able to move ahead."
According to Seenaiah, the projects worth Rs 40, 000 crore have been pending for a while which need to be cleared quickly.
He says, "The banking policies need to be in place since the companies are now cash-strapped to invest in any of these projects." Says Gierse, "On the policy level, government needs to push investment in infrastructure projects, and with regard to equipment and plant and machinery industry, the government should bring in similar kind of sops given during the 2009 budget, i.e reduction in excise duty for capital equipment. Further, if some changes could be done for abolition of entry tax, and implementation of GST, and bringing in uniform tax structure would lead to positive growth sentiments. According to Kumar, one of the biggest challenges for the industry today is the price rise. He also pointed out that the pending projects are worth crore of rupees resulting in cost escalation. He further adds, "The import duty has also been very high and even the budget hasn’t spelt out any reduction in the same." Valued at US$ 360 billion, India’s construction market accounted for five per cent of the US$ 7.2 trillion global construction market in 2010, and is expected to replace Japan as the third largest, after China and the US, by 2020.
As per India’s 12th Five-Year Plan (2012-17) document, the two segments most important to construction activity are infrastructure and housing. Since, infrastructure spending is expected to go up to nine per cent of gross domestic product (GDP) or US$ 1 trillion for the Plan period (2012-17), this will translate into double-digit growth for the demand of cement.
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Concrete
Nuvoco Vistas, CleanMax Partner for Wind-Solar Hybrid Project in Rajasthan
Published
5 days agoon
September 29, 2026By
admin
The project – comprising 20 MW of wind and 26.4 MWdc of solar capacity – will support Nuvoco’s cement operations with cleaner power while strengthening its renewable energy and decarbonisation strategy.
Mumbai, September 29, 2026
Nuvoco Vistas Corp Ltd, part of Nirma Group and one of India’s leading cement companies, has partnered with Clean Max Enviro Energy Solutions Limited (CleanMax), a renewable energy solutions provider for the commercial and industrial (C&I) sector, to develop a 46.4 MW wind-solar hybrid renewable energy project in Rajasthan.
The project will support Nuvoco’s cement operations with cleaner power while strengthening its renewable energy and decarbonisation strategy. It is expected to increase the share of renewable energy in Nuvoco’s power mix, reducing fossil fuel consumption and associated emissions.
Developed by CleanMax, an Independent Power Producer (IPP), at Bhikamkhore, Rajasthan, the project will comprise 20 MW of wind capacity and 26.4 MWdc of solar capacity, along with a 2-MWh Battery Energy Storage System (BESS). Power generated from the facility will be supplied to Nuvoco through the State Transmission Utility (STU) Open Access network.
The hybrid project is expected to generate approximately 100 million units (MU) of renewable electricity annually and help avoid around 1,25,485 tonnes of CO₂ emissions every year across Scope 1 and Scope 2 emissions.
The initiative supports Nuvoco’s ongoing efforts to reduce the carbon intensity of its manufacturing operations through renewable energy adoption, Waste Heat Recovery Systems (WHRS), energy-efficiency measures and increased use of alternative fuels. It also aligns with the company’s DIRE (Digitalisation, Innovation and Renewables) agenda, which focuses on climate action, renewable energy transition, water stewardship, circularity and biodiversity conservation across its manufacturing ecosystem.
Commenting on the initiative, Jayakumar Krishnaswamy, Managing Director, Nuvoco Vistas Corp Ltd, said, “This marks an important step in advancing Nuvoco’s journey towards more sustainable and resilient operations. Our collaboration with CleanMax will increase the share of renewable energy across our Rajasthan operations, strengthening our energy mix while improving long-term cost efficiency and reducing our dependence on conventional power sources. Initiatives such as these reinforce our commitment to operational excellence and responsible growth, while supporting our vision of Building a Safer, Smarter and Sustainable World.”
Kuldeep Jain, Founder and Managing Director, CleanMax, said, “Cement plants run continuously, so the power behind them has to be dependable for decades, not years. We’re seeing manufacturing industries view clean energy as an integral part of their core operations and long-term strategy. Our partnership with Nuvoco reflects that shift, and we’re pleased to support its decarbonisation journey. This wind-solar hybrid project is designed to deliver long-term cost certainty while supporting the Company’s transition to cleaner power.”
Nuvoco has been advancing its sustainability initiatives through renewable energy, operational efficiency and technology-driven solutions. The company operates across Cement, Ready-Mix Concrete (RMX) and Modern Building Materials (MBM) segments, with a presence across East, North and West India.
The company began operations in 2014 with a greenfield cement plant in Nimbol, Rajasthan, and later acquired Lafarge India Limited, which entered India in 1999, along with Emami Cement Ltd in 2020 and Vadraj Cement Limited in April 2025. With planned expansion initiatives, including a new grinding mill at the Arasmeta Cement Plant and multiple debottlenecking projects, Nuvoco aims to achieve a cement capacity of 35 MMTPA.
The company reported total income of Rs 113.62 billion in FY 2025-26, reflecting its continued growth trajectory. Its cement portfolio includes Concreto, Duraguard, Double Bull, PSC, Nirmax and Infracem brands, while its RMX business offers products under Concreto, Artiste, InstaMix, X-Con and Ecodure brands. Nuvoco also provides construction solutions under its Zero M range of modern building materials.
Concrete
UltraTech Cement achieves 100% green energy milestone at Chhattisgarh plant
Published
5 days agoon
September 29, 2026By
admin
UltraTech Cement’s Kukurdih Works becomes its first integrated unit to meet 100 per cent electricity needs through green energy every month.
Raipur (Chhattisgarh)
UltraTech Cement Limited, the world’s largest cement company outside China, has achieved a significant decarbonisation milestone, with its Kukurdih Cement Works integrated unit in Chhattisgarh meeting 100 per cent of its electricity requirement through green energy every month since April 2026.
Commissioned in 2024, Kukurdih Cement Works has an installed grey cement capacity of 3.3 million tonnes per annum. The unit achieved this milestone through a combination of renewable power sourcing and Waste Heat Recovery Systems (WHRS), which now collectively meet its entire electricity demand while ensuring operational reliability.
Since April 2026, nearly one-third of UltraTech’s 76 manufacturing units in India have maintained green energy utilisation above 50 per cent of their electricity requirements. Five units, including Kukurdih, have exceeded 95 per cent green energy utilisation. The company is also progressively deploying Battery Energy Storage Systems (BESS) across its network to enable deeper renewable energy integration.
As part of its decarbonisation strategy, UltraTech has not invested in additional captive thermal power capacity for greenfield projects or brownfield expansions at its integrated units for over a decade.
As of Q1FY27, the company’s captive green energy capacity stood at 1,897 MW, comprising 1,463 MW of renewable energy capacity from solar, wind and hybrid sources, along with 434 MW of WHRS capacity. Under its RE100 commitment, UltraTech aims to increase the share of green power in its total energy mix to 85 per cent by 2030 and achieve 100 per cent by 2050.
UltraTech Cement Ltd, the cement flagship company of the Aditya Birla Group, is a $10-billion building solutions company and the largest cement producer globally by sales volume outside China. The company has a total grey cement capacity of 210.1 MTPA and white cement/putty capacity of 3.5 MTPA. It is a signatory to the GCCA Climate Ambition 2050 and has committed to the Net Zero Concrete roadmap announced by GCCA.
Praveen Vashistha, Founder, Gxpress Solutions, speaks about building a holistic logistics network that encompasses latest technology and current challenges faced by logistics service providers.
Logistics may seem to only entail transporting a package from one location to another. However, there is more to this term than just that. Logistics refers to the entire process of controlling all movement, transfers and decisions in the correct way at the right time and cost and with the desired level of visibility.
People nowadays want to receive more than just the delivery. They want quick, efficient, reliable and transparent logistics service. On the other hand, companies are facing higher operating costs, broken supply chains, congested cities, changing habits of consumers and growing complexity of logistics services. In this situation, a full logistics package is gaining importance not only as a competitive advantage but also as a necessity for a successful business.
The main challenge lies in uniting the first mile, the middle mile and the last mile into one seamless process.
The journey begins before the package moves
First-mile logistics may be the least recognised part of the logistics chain, but they have a crucial influence on all that follows.
This stage starts from the moment the shipment leaves the manufacturer, supplier, farm, warehouse or distribution centre. Depending on the industry, first-mile logistics may involve grouping shipments from multiple suppliers, compiling paperwork and checking the inventory before sending the shipments to a central hub.
Flaws in first-mile logistics produce effects later down the supply chain. Delays in cargo pickup can affect warehouse operations; improper packaging can damage goods in transit; and incorrect inventory information may cause stockholding or unnecessary replenishments.
This is why building a reliable network involves simplifying the operations done at the beginning of the supply chain.

Companies require accurate demand forecasts, supplier visibility, standard procedures, and software to capture information from the moment a shipment enters the supply chain. Route planning and fleet management are also important at this stage, especially as it may involve contacting multiple suppliers.
The main goal is simply to make the first mile predictable.
The middle mile: Where scale meets complexity
When products leave the original site, they travel through the ‘middle mile,’ which connects fulfilment centres, warehouses, sorting centres, and regional distribution points. In this phase, logistics networks begin operating on a large scale. A shipment can pass through several facilities before reaching the final destination. Each additional transfer entails the risk of delay or damage and information losses. Accordingly, the ideal solution is not to minimise the number of transfers but rather to optimise them. The use of hub-and-spoke networks, regional distribution centres, and strategically placed distribution centres can help companies shorten transportation routes and optimise distribution costs. Besides, data can be used to determine the optimal placement of inventories.
For instance, a retailer may find that it takes more time and is more expensive to deliver goods to customers if everything is stored in a central warehouse. Meanwhile, regional distribution helps meet the customer’s needs quicker and more efficiently.
The last mile is where the customer judges you
When it comes to the logistics experience, the customer experience comes down to the delivery. While the last mile might comprise a small part of the entire journey in actual distance, it could also entail expensive and difficult processes. Delivery runs through densely populated cities, through traffic jams, through unsuccessful delivery attempts, and through changing consumer preferences and narrowed time frames.
Customers want to have control over their delivery. Delivery means that customers expect to know the exact moment when their order is delivered. They need to receive current updates about their orders and the ability to decide whether they want scheduled deliveries, or whether they want their order to be dropped off at a designated location far from their house.
As a result, last-mile logistics must incorporate both efficiency and experience. The technology may be used to ensure timely and accurate delivery, through such products as route optimisation and real-time delivery tracking.
However, technology is not enough to guarantee success in terms of last-mile delivery. Knowledge of the local area is still an important aspect that contributes to successful delivery.
One network, not three separate operations
First, the common mistake that organisations can make is treating the first mile, the middle, and the last mile separately.
An effective first mile of logistics does not matter much if the shipment waits in a hub for many hours. A perfectly working warehouse does not make a happy customer if the last-mile delivery fails. Therefore, even the fastest last-mile delivery can become an expensive operation if the supply is not well geographically positioned.
The three moments should work together as one whole system.
This implies having a common view on inventory, transport capacities, shipment statuses and demand. The Transportation Management System, Warehouse Management System and order management system should give information to each other instead of acting like separate islands.
That is where real-time information comes into play!
If something happens, such as a vehicle gets delayed, the company has to know that from the start. If not, someone from Customer Service should be informed about the situation.
Visibility is the new infrastructure
Previously, companies had to rely on physical assets, such as warehouses, trucks, and sorting facilities, to create their logistics networks. Today, they have an additional layer of technology providing visibility.
Command-and-control systems now include GPS tracking, Internet of Things devices, bar-coding, RFID, cloud computing, artificial intelligence, and analytics, which allow companies to know what the goods are doing, how well they are doing, and what is going to happen next.
Predictive analytics reveal possible delays. AI-powered forecasting increases availability. Digital dashboards enable the manager to monitor all operations in one place. The efficiency of such technologies is not measured in the amount of information they gather, but rather in their capability of converting data into knowledge.
Logistics managers should be able to answer the following questions: Where is it? When is it supposed to arrive? What causes the delay? What impact does it have? Can it be delivered some other way? How much will it cost?
The sooner the answers are given, the more resilient the logistics system is.
Resilience must be designed into the network
The events of recent years have highlighted the vulnerability of interconnected supply chains. Geopolitical tensions, bad weather, a lack of labour, poorly developed infrastructure and an unexpected spike in demand are some events that can cause problems for logistics systems without prior notice. Thus, companies should create an end-to-end network not just for normal times but also capable of functioning quickly in problematic situations. In order to create such a network, it is necessary to find alternative suppliers, use several means of transportation, create several routes of delivery, and establish inventory. It is also important to use scenario planning to define what to do if the main hub becomes unavailable or any means of transportation is blocked.
Sustainability: Part of the delivery equation
The future of logistics will also be shaped by environmental considerations.
As delivery volumes rise, businesses are under increasing pressure to reduce emissions without compromising service. Better route planning, load optimisation, electric vehicles, alternative fuels, renewable-energy-powered warehouses and consolidated deliveries can all contribute. The most sustainable shipment is often the one that does not require unnecessary movement in the first place.
Better demand forecasting and inventory placement can reduce empty miles and avoid repeated transportation. Consolidating deliveries can improve vehicle utilisation. Reverse logistics can ensure that products, packaging and materials return efficiently instead of becoming waste.
Sustainability, therefore, should not be treated as a separate initiative. It should be incorporated into network design itself.
The future belongs to connected logistics
An end-to-end logistics network ultimately seeks to close existing gaps between various processes.
Every mile of the process should be interconnected with the other miles. Warehouses should be aware of the restraints imposed by transportation. Delivery crews should be able to know at every moment the inventory at their disposal. Clients must have access to this useful information.
Companies that will be successful in this area will not necessarily be the ones with the biggest fleets or the most warehouses. They will simply be the ones that can employ their resources in the most effective manner.
The future of logistics will be represented by an ecosystem consisting of the combination of the physical aspect, digital intelligence, and personnel decisions. Every mile in the process of delivery is important. However, the key advantage here is getting those miles to work together.
For companies, it means having minimal resistance, enhancing their efficiency and improving customer care. For clients, it means simply having the right product delivered at the right time.
About the author: Praveen Vashistha, Founder, Gxpress Solutions,
UltraTech’s Kukurdih unit runs fully on green energy
Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected
Andhra Pradesh Clears Rs. 30 bn My Home Cement Plant
Nuvoco Vistas, CleanMax Partner for Wind-Solar Hybrid Project in Rajasthan
UltraTech Unit Runs Entirely on Green Energy
UltraTech’s Kukurdih unit runs fully on green energy
Cement Prices Rise Rs. 7 per Bag in September; October Hikes Expected
Andhra Pradesh Clears Rs. 30 bn My Home Cement Plant
Nuvoco Vistas, CleanMax Partner for Wind-Solar Hybrid Project in Rajasthan
UltraTech Unit Runs Entirely on Green Energy
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