Cover Story | November 2019
We are on target for our growth trajectory of 40 to 50% YoY
Robinsons Global Logistics Solutions (RGL) is a warehousing and distribution company than has been spun off from the reputed Robinsons Cargo & Logistics (RCNL). With a strong network of 40 warehouses in 20 states; and an extensive experience of delivering superior services for the past 23 years, RGL aims to offer expert warehousing and distribution solutions that are aligned to the dynamic needs of modern business. Apart from this, RGL also provides customized, technology-enabled warehousing and distribution solutions for cold chain, automotive, garments, as well as for consumer electronics sectors.
RGL’s Founder Director, Aditya Vazirani, is a passionate and meticulous professional with a vision to transform the logistics and warehousing industry by leveraging the new-age technological advancements. He was instrumental in obtaining the good distribution practice certification for freight forwarding and ISO 9001:2015 for RCNL, making it the first Indian logistics and supply chain management company to be awarded the quality accreditation.
Vazirani spoke with the ITJ about the automation systems adopted by the company, and how it has helped the garment and textile business. Excerpts…
RGL has a strategic combination of technology, international best practices and deep domain expertise in logistics. How do these help the textile industry in the country?
We would consider the textile industry in two ways: the feeding of raw materials onto the line and the delivery of the end product to the customer. After understanding the needs from the procurement teams of raw materials and the manufacturing team of what they need when, we can devise with the use of our system the minimum stock quantity required at your location, work backwards with the procurement teams on the various BOQ for the MRP1 and MRP2 to ensure that it is available at our warehouse and ready for dispatch through connectivity through API and EDI with the ERPs used for manufacturing. Basically ensuring that the right amount of material is delivered at the right time so that the warehouse on / off site is managed efficiently and thus putting more efforts and less space and inventory holding requirement for manufacturing.
On the other side, depending if the textiles are ‘Made to Stock’, we can plan efficient inventory management based on batch accuracy of FIFO and ensure delivery when required is done on time in full. When it comes to ‘Made to Order’, we will advise/implement the cost effective and efficient delivery methods to the end customer.
The key is to understand the needs and requirements of the manufacturing industry, whether it is textile or automotive and the intricacies involved in the process. The idea is to simplify and create processes that can be replicated with different degrees of customisation.
Please give some details about the company’s beginning and also the network of warehousing it has built around the country.
We started as a stevedoring company at Bombay &Kandla Ports to customs brokerage, domestic and international freight forwarding over the past seven decades. 3PL activities started more than two decades ago and a network of 36 warehouses in metro cities and Tier 1 and some Tier 2 cities in 18 States. Presence is fairly evenly distributed across the country but the East, which we are focusing now, only contributes to 10 per cent of our exposure.
What are the automation systems adopted by the company? How has this helped the garment and textile business?
In an industry sector such as garments where there is a shortage or mishandling of stock with a variance of 5 per cent, we have implemented our internal controls and systems, which have brought our inventory and delivery accuracy to 99.5 per cent.
The global supply chain has undergone massive changes in recent times. How is RGL equipped to meet the challenges of tomorrow?
We are always looking at new ways to challenge the status quo, most of the times it’s the customers who are reluctant to change. We always welcome challenges and implementation of new technologies and ideas. We drive efficiencies internally in processes and culture.
What are the developments and achievements of RGL in the last few years?
RGL was created out of the 65-year-old RCNL in April of 2019. What we have planned in the next two to three is going to be something we would like to discuss about in the future.
Are there any ambitious plans for expansion and diversification? If so, please give us details and tell us how this will benefit the textile industry.
Yes, we are on target for our growth trajectory of 40 to 50 per cent YoY, and looking at being even closer to our customer in partnerships rather than just vendor customer relationships. We have ideas on how to implement IoT and RFID with the textile industry to increase efficiencies and visibility, but looking for a like-minded forward thinking company to work in tandem with to change the way the business is currently run.
How do you think India is placed globally in the logistics and warehousing infrastructure? Do we need to do more? If so, what steps do you think the Government and the industry should take to reach the next level?
Even if we compare ourselves with other countries in the region, our infrastructure is far inferior and some of our rules are archaic. Saying that, the government is investing in changing the situation in order to lower than cost of logistics to GDP ratio from 13 per cent to 9 or 7, which would be ideal, but as the cost of living also increases YoY, it’s going to push more 3 and 4 PLs to counter that increase in cost with the implementation of robotics and automation. The advantage for India is that we can jump from 10 to 80 in a matter of years, if the pace of infrastructure investment continues as today we are building the most kilometers per day than any other country.