A Research Report on

Key Research Issues in Supply Chain

& Logistics Management: 2030

National Institute of Industrial Engineering (NITIE) Mumbai

NITIE Mumbai | Supply Chain Networks & Logistics 01
EXECUTIVE SUMMARY

Logistics is the backbone of the economy and development of a country. Improving the logistics sector's efficiency is crucial for the country's
economy because it boosts economic growth, increases exports across global supply chains, and creates employment. Though India's
passenger and freight mobility sectors are improving, and the logistics sector is increasing at a 10.5 percent CAGR and hit USD 215 billion in
2020, the system has a number of interwoven problems that must be tackled in order to improve productivity even further. India's logistics
costs account for about 14% of GDP in terms of value, which is significantly higher than the US (9%), Europe (10%), and Japan (11%). High
logistics costs in India, when compared to other countries with similar environments and levels of development, are a cause for concern, as
they pose challenges to the country's manufacturing growth and overall development.

The high logistics costs in India are attributed to a number of factors, including an unfavorable policy environment, lack of a multimodal
transportation system and thus a heavy reliance on road transport, a weak storage infrastructure, the presence of multiple stakeholders
throughout the entire transport and storage value chain, poor road and port infrastructure, and a lack of technological innovation in
transportation/storage and distributing activities. The country's global competitiveness will eventually suffer as a result of these high logistics
costs. Order processing costs, shipping costs, material handling and storage costs, warehousing costs, inventory carrying costs,
administration costs, and packaging costs are the main components of logistics costs. Logistics cost is rising across various industrial
sectors. Automobile, multimodal transport, air cargo shipping, maritime shipping logistics, inland waterway transport, dry bulk management,
food & agro-business, oil & gas industry, warehouse automation, e-commerce, military logistics, emergency supply chain, and pharmaceutical
supply chain lie among the sectors that are growing rapidly in the national economy.

This report highlights the research issues that need to be pondered over by the Logistics community in the coming 20 years. It focuses on the
different aspects of logistics in India. It investigates supply chain management and logistics opportunities and emerging challenges in various
industries, as well as their economic, environmental, and social implications. It tackles global and industrial problems in order to ensure safer,
smarter, more convenient, and more sustainable logistics. This report also dives deep into possible strategies to promote efficient and
effective logistics.
Multimodal Transport 3 02
Maritime Shipping and Logistics 4
Inland Waterways Transport 5

Contents
Dry Bulk Cargo Management 6
Air Cargo Shipping 7
Military Logistics 8
Food and Agri-supply chain 9
Oil and Gas Industry 10
Emergency Supply Chain Management 11
Healthcare Supply Chain Management 12
Pharmaceutical Supply Chain Management 13
e-commerce 14
Water Footprint 15
Carbon Footprint 16
Autonomous Vehicles 17
Nature Inspired Logistics and Transportation 18
Smart and Sustainable Contract 19
Digital Twin in Logistics 20
Control Tower 21
Warehouse Automation 22
Improving Risk Management 23

NITIE Mumbai | Supply Chain Networks & Logistics

Multimodal Transport Key issues in Sea/Marine Freight:
There is a lack of modal integration of and detailed mapping of waterways and
It refers to the transport of goods from one point to another via more than one mode of transport. industrial clusters and also a lack of integration of hinterland coastal shipping
Multimodal Logistics can be viewed as “the chain that interconnects different links or modes of transport – with international maritime traffic.
air, sea, and land into one complete process that ensures an efficient and cost-effective door-to-door Lack of level playing policy (waterways were not on the national horizon for
movement of goods under the responsibility of a single transport operator, known as a Multimodal Transport planning and connectivity for a long time) among different modes of transport.
Operator (MTO), on one transport document”. Multimodal logistics serves to interconnect different modes of Lack of uniformity in legal and administrative issues as inland waterways move
transport – road, rail, air, water – and therefore improve efficiency and speed of goods movement. through more than one state.

Key issues in Air Freight:

There is the absence of integrated cargo infrastructure;
There are inadequacies in gateway and hinterland connectivity through
rail and road;
There is a need for streamlining of Customs procedures in air cargo;
There is a need for technological up-gradation of cargo-handling
Key Issues in Road Freight: processes;
There is a need to formulate a performance-based service;
Poor quality of roads and network connectivity.
Stoppage of vehicles at State border check posts is a major cause of delays. It is estimated that 40%
of the time lost is due to these stoppages. Multimodal logistics is designed to cut transit times, decongest
No stringent requirements or regulations for starting a trucking business. congested modes and reduce logistics cost. Estimates indicate that
A large number of small and unorganized players, with no industry consolidation and intense
Multimodal logistics can potentially reduce transit times by 40-50%.
competition.
Multimodal logistics has tremendous potential to increase supply chain
efficiencies. The right policy incentives from the government and
interests from the private sector should together go a long way to spur
Key issues in Rail Freight: growth in this sector.

Freight tariffs in India are among the highest in the world.

Rail freight lacks reliability and trackability.
It is deficient in terms of quality of operations, speed, and customer orientation.
NITIE Mumbai | Supply Chain Networks & Logistics 03
Shipping and Logistics
Finding the best rate
Around 95% of India's trading in volume and 70% in value terms account for maritime transport. India has 12
major and 205 notified minor and intermediate ports. The Indian ports and shipping industry plays a vital role Looking for the best freight shipping rates can be time-consuming when
in sustaining growth in the country’s trade and commerce. India is the sixteenth largest maritime country in not equipped with the right tools or processes. Having a transportation
the world with a coastline of about 7,517 km. In FY20, major ports in India handled 704.82 million tonnes (MT) management system in place could provide a solution to this problem.
of cargo traffic, implying a CAGR of 2.74% during FY16-FY20. The future poses many challenges but also
offers many new opportunities for the maritime sector. Today's challenges for the development of an
efficient maritime transport system including maintaining competitiveness in a global environment, improving
operational efficiency, and minimizing its environmental impacts are discussed below.
Finding the best options
Cargo can be moved from point to point in a number of different ways.
Understanding the shipping landscape could save time and money at
the end of the day.

Preparation and Documentation

From filling out the bill of lading to identifying freight classes, one
misstep can result in surcharges, delays, or customs holds when
High ports calling costs shipping internationally. Shippers must be sure to prepare ahead of time
with the necessary knowledge to get the job done.
High port charges, like port dues, berth hire, pilotage, and cargo-handling charges, in India are
also affecting the Indian shipping industry. India is known to be having high ship calling costs as
compared to other competitor countries in the region. This makes the Indian ports non- Shipping demand exceeds forecast
competitive compared to other foreign ports. High prices would normally deprive a port, a part
of its patronage (vessels and cargo owners), and thus reduce demand for port services.
Leads to delays, additional costs, potential penalties, and strained
relations with clients as well as partners.

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Inland Waterways Transport Geographical Challenges
India has an extensive network of inland waterways in the form of rivers, canals, backwaters, and creeks. Increased siltation: Reduced navigability due to siltation, as in the Bhagirathi-
Freight transportation by waterways is highly underutilized in the country as compared to developed Hooghly and in the Buckingham Canal.
countries. India's hinterland connectivity is mainly based on road and rail with domestic waterways— both Reduced water flow: Reduced flow due to diversion of water for irrigation, for
coastal shipping and inland waterways-playing a limited role. Waterways are found to be cost-effective as instance, in the Ganga which makes it difficult even for steamers to ply.
well as an environmentally friendly means of transporting freight. In India, Inland Water Transport (IWT) has Geographical constraints: There are problems in smooth navigation because
the potential to supplement the over-burdened railways and congested roadways. In addition to cargo of waterfalls and cataracts, as in Narmada and Tapti.
movement, the IWT sector also provides a convenient function in related activities such as carriage of
vehicles {on Roll-on-Roll-off (Ro-Ro) mode of cross ferry} and tourism.

Regulatory challenges
There is a lack of modal integration of and detailed mapping of waterways and
Technical challenges industrial clusters and also a lack of integration of hinterland coastal shipping
with international maritime traffic.
Lack of level playing policy (waterways were not on the national horizon for
Inadequate depth: The lack of inadequate depth of waterways for commercial movement of cargo is a planning and connectivity for a long time) among different modes of transport.
major concern. Also, the quality of water flow is becoming poorer progressively. Lack of uniformity in legal and administrative issues as inland waterways move
Inadequate air draft: Multiple bridges with low vertical clearance obstruct the passage of bigger through more than one state.
vessels.
Shortage of IWT vessels: Due to its capital incentive nature India lacks in vessel building
Lack of terminals: It inhibits door-door connectivity to end-users. Political challenges
Lack of navigation infrastructure: Rudimentary infrastructure coupled with non-availability of water
round the year is an impediment for the operation of waterways. Inter-linking of rivers is a major issue, which is yet to materialize.
Shortage of MRO facilities: There is a severe shortage of Maintenance, Repair, Overhaul facilities for
inland water transport vessels.
Poor Skills and low technology adaption: Lake of automation in processes and low multi-operation
skills affects efficient utilization of ports. Financial challenges
Private sector participation in MRO is dismal.
Construction of dams/barrage to increase the depth of navigation faces
challenges of economic viability.

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Dry Bulk Cargo Management Inherent Challenges
Dry bulk refers to grain, coal, iron ore, cement, sugar, salt, and sand. They are not
Port Congestion.
packaged separately but transported in large quantities in the hold of a ship, wagon, or
Inordinate customs clearance procedures.
lorry.
The disparity in shipping line charges.
Bulk commodities are: (i) traded in large volume (ii) of consistent granular composition and
Significant amounts of documentation and paperwork.
hence can be easily handled with automated equipment such as grabs and conveyors and
Cumbersome regulatory clearances.
(iii) low-value high volume commodities.
Equipment that is incapable of handling large volumes.
Demand for dry bulk trade has been increased gradually by demand for natural resources
Deficient dredging capabilities.
and energy on the back of high economic growth in emerging countries.
Outdated navigational aids.
Lack of sophisticated IT systems.
Lack of training and technical expertise.
Major Issues: Dry Bulk Movement

Gaining maximum economy of scale by using bigger ships

Reducing the number of times the cargo is handled
Making cargo handling operation more efficient
Reducing the size of stocks held.

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NITIE Mumbai | Supply Chain Networks & Logistics 07
Air Cargo Shipping Drones

sdnerT latigiD
Boosts warehouse safety by using artificial intelligence to visually perceive any accident
that may occur.
Air Cargo Logistics plays a vital role in the economic development of a nation. Air Cargo Speeds up the delivery process by slashing common operational issues.
represents 35% of global trade by value, but less than 1% of trade by volume (IATA,2019).
Continuously increasing demand from the industries as well as the end-users have Robotics
encapsulated rapid development in the air cargo industry over the last three decades.
Therefore, it is essential to manage this sector efficiently. New technologies boost Detects package defects before shipping occurs by sorting through packages at double the
efficiency and the green image of the air cargo industry. The air cargo industry is constantly speed
evolving and striving for the latest innovations and technology.
Internet of Things
Issues Manages and accelerates productivity within the supply chain for their specific processes.

Lack of employment and commitment Cloud Integrations

Peculiarities of non-standard packages
Provides real-time data to specific distributed locations and to people across all geographical
Challenges of warehousing
locations.
Goods packing and moving goods
Cutting Transportation Costs
Inventory Visibility, Tracking, and Management Predictive Networks
Manpower Management
Manages and accelerates productivity within the supply chain for their specific processes by
reading algorithms on both current and historical datasets.
Trending Pattern
Autonomous Tracking
Automation in logistics processes
Uses Sensors in the vehicle to evaluate road conditions.
Task assignment and task management automation
Access to alternative routes based on location and shipment overload inside the fleet.
Task assignment and task management automation
Automatic reports, notifications, alerts
Complete merchandise tracking
Blockchain
Comprehensive IT system for transparency Track product’s lifecycle and ownership from delivery to store shelf by using
Big Data: The Potential of Data advanced algorithms and transparency.
Military Logistics Key Issues
Preparation Response
Military logistics can be defined as a group of different activities that systematically, wholly and continually Assessment
support the needs of the defense military system. The global military logistics market accounted for US$ 339.56 Disaster policy
Organizational Appeals management
Bn in 2018 and is expected to reach US$ 526.50 Bn by 2027, thereby registering an attractive CAGR growth rate Operations planning
of 5.2% from 2019 to 2027. Assessment of need
Planning Mobilization
Coordination In-country operations
Facilities and systems co-operation Co-ordination
Equipment and supplies of agencies’ activities
Training Reporting
Recovery
Logistics
Recovery programs and projects
Decision-making and project implementation
Management of commodities and suppliers
Maintenance of transport and transport
Personnel resources

Objectives
Security
Transport and logistics
Construction and repair
Command, control, and communications
MILITARY LOGISTICS LUCRATIVE REGIONAL MARKETS Company Profiles Medical care
Specialized units
AECOM DynCorp International LLC Preparedness
ANHAM FZCO
Fluor Corporation
Aselsan A.S.
Honeywell International Inc.
Thales SA
KBR, Inc.
08 NITIE Mumbai | Supply Chain Networks & Logistics BAE Systems PLC
Lockheed Martin Corporation
Food and Agri-supply chain
Discussions around the effects of climate change, Green
supply chain management (GrSCM) have been among the
dominant topics of conversation in the first two decades of the
21st century. GrSCM can be defined as the integration of
environmental thinking into supply chain management,
including product design, supplier selection, and material
sourcing, manufacturing processes, product packaging,
delivery of the product to the consumers, and end-of-life
management of the product after its use.

Research opportunities in Green Supply Chain

Importance of SGrSC for businesses across
1. Eco-design
2. Green purchasing different industries
3. Environmental cooperation
4. Reverse logistics 1. Comply with International Principles and Standard
5. Environmental performance 2. Increase Profitability
6. Operational performance 3. Fulfill Corporate Social Responsibility
7. Economic performance 4. Build a Positive Brand Image
8. Social performance 5. Encourage Corporate Innovation

Sustainable Green Supply Chain (SGrSC)

A sustainable green supply chain has been receiving spotlights on
the international stage. According to the United Nations, it is the
management of environmental, social, and economic impacts, and
the encouragement of good governance practices, throughout the
life cycles of goods and services
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Oil & Gas Industry
The oil and gas sector is among the eight core industries in India and plays a major
role in influencing decision-making for all the other important sections of the
economy. India’s economic growth is closely related to its energy demand,
therefore, the need for oil and gas is projected to grow more, thereby making the
sector quite conducive for investment. Crude Oil import rose sharply to US$ 101.4
billion in 2019-20 from US$ 70.72 billion in 2016-17. India retained its spot as the
third-largest consumer of oil in the world in 2019. As of October 01, 2020, India’s oil
refining capacity stood at 249.9 million metric tonnes (MMT), making it the second-
largest refiner in Asia. The total value of petroleum products exported from the
country increased to US$ 35.8 billion in FY20 from US$ 34.9 billion in FY19.

Major Challenges for the Oil & Gas Industry

Reducing costs to remain competitive

Improving performance to ensure the valorization of assets.
Improving the Environmental footprint to meet increasingly stringent standards:

Exploring research areas in the Oil & Gas Industry

Challenges in supply chain management in
the upstream sector of oil and gas Industry There are several avenues that oil and gas companies can explore in terms of the application of artificial
intelligence in the supply chain of oil and gas operations. These areas are:
Prediction of the market price of crude oil and finished products
Remote geographic location Optimization of the crude basket, warehouse, and logistics, inventories, shipping operations
Transportation Risk hedging
Inventory Management Vessel tracking
Project supply chain challenge Planning and scheduling.
Inbound supply chain challenges Deploying robotic process automation
Outbound supply chain challenges:
Emergency supply chain challenges

NITIE Mumbai | Supply Chain Networks & Logistics 10

Emergency Supply Chain Key Factors of the Distribution Model of
Management Emergency Logistics
The main objects of the relief service operation can
In recent years, there are various kinds of serious disasters either natural occurring (e.g., be divided into increasing survivals and reducing
earthquake, typhoons, floods, drought) or man-made (e.g., the 9.11 event in the USA) damaged property.
around the world, such as the tsunami in the Indian Ocean (2004), the Katrina Hurricane in By using the advanced disaster detection
the US (2005), the Sichuan earthquake in China (2008), the Haiti Earthquake (2010), technology (the satellite remote sensor) quantities
Tohoku Earthquake and Tsunami, Fukushima Daiichi Nuclear Disaster (2011), Hurricane of affected areas and the corresponding geographic
Sandy (2012), Typhoon Haiyan (2013), West Africa Ebola Outbreak (2014-2016), Nepal relationships can be accessible in real time.
Earthquake (2015), Hurricane Harvey & Maria (2017), Cyclone Idai (2019), Global Wildfires The relief service time-varying and the relief supply
(2019), Cyclone Amphan (2020). Efficient planning and scheduling of emergency supply time-varying in each urgent relief distribution center
chain operations is the most important factor in successfully managing and controlling can be estimated based on historical data or expert
the damage. knowledge.
For each kind of relief service, each given
Emergency logistics Supply Chain and management problems: distribution center’s relief amount doesn’t exceed
its aggregate transportation capacity, which
The urgent relief services are very diverse and urgent. includes the loading capacity of vehicles in each
The accurate and real-time urgent relief demand information is almost inaccessible. time window.
The benefits of emergency logistics operations are always weakened. Rank-based Relief Distribution.
Government and the market participate in the emergency logistics service together.

Supply Chain Management (SCM) in Disasters The Support Mechanism of Emergency

Logistics
The Challenges of the emergency SCM system in disasters: Some disasters often break out so suddenly, so
time will be too urgent for suitable SCM system software to be found in such a complex market.
The solutions of the emergency SCM system: Building an emergency collaborative supply chain model includes Infrastructure Support
a message-based system that transmits information to neighboring governments, applications using technologies Unified Command and Network Coordination
such as XML messages; electronic procurement hubs in which collaborative planning, forecasting and Law Guarantee
replenishment (CPFR) can share the isolated information. Contingency Plan
The Risk of Urgent Relief Service Decision-making: The urgent relief improvisation decision-making to the
timeliness requirements is more stringent, time-bound, dynamic, kind of fuzzy decision-making technique.

NITIE Mumbai | Supply Chain Networks & Logistics 11

Healthcare Supply Chain Management
The Healthcare supply chain involves the flow of different product
types through the participation of various stakeholders to deliver
products promptly at the right quantity and quality to fulfill the
needs of the providers. According to the market research report,
the global healthcare supply chain management (HSCM) market is
projected to reach USD 3.3 billion by 2025 from USD 2.2 billion in
2020, at a CAGR of 7.9% during the forecast period.
The key factors driving the growth of the HSCM market
The adoption of the GS1 system of standard in the healthcare
industry globally.
The emergence of cloud-based solutions.
Reduction in operational costs by improving the efficacy.
Increase overall profitability.

Liquid Medical Oxygen Allocation https://www.arabhealthonline.com/magazine/en/latest-issue/Issue-4/Supply-Chain-Management-Top-5-Improvement-Themes.html

Amidst the second wave of COVID-19, Indian hospitals Vaccine Distribution

are overwhelmed with patients who require Liquid
Medical Oxygen (LMO), Ventilators, Oxygen
As vaccine distribution takes center stage, supply chain leaders need to be streamlined, yet
Concentrators to survive this deadly pandemic.
resilient, service centered on patient healthcare. Vaccine supply chain key issues are:
Network characteristics Uncertainty
Difficulties:
Allocation Tender procurement
Shortage of oxygen
Limited shelf life and cold chain distribution Manufacturing lead time
Transportation of medical oxygen from surplus to
Production capacity planning Facility disruptions
deficit regions
Batch sizing Transportation disruptions
Allocation of oxygen supply
Technological criteria Value criteria
Mismanagement
Responsiveness Vaccine availability
Panic among citizens
Economical criteria Disability-Adjusted Life Years
Insufficient demand satisfaction across the
country. strategic decision
Ensure robust but coordinated and agile supply chains
12 NITIE Mumbai | Supply Chain Networks & Logistics Use disruption as a catalyst to be agile
Agility from information gathering to final mile
Pharmaceutical Supply Chain Management Key players in the pharmaceutical industry
1. The large, research and development-based multinationals
A pharmaceutical supply chain (PSC) can be defined as ‘‘the integration of all activities associated with with a global presence in branded products, both
the flow and transformation of drugs from raw materials through to the end-user, as well as the ethical/prescription and over-the-counter. They tend to
associated information flows, through improved supply chain relationships to achieve sustainable have manufacturing sites in many locations.
competitive advantage. 2. The large generic manufacturers, who produce out-of-
patent ethical products and over-the-counter products.
3. Local manufacturing companies that operate in their home
country, producing both generic products and branded
products under license or contract.
4. Contract manufacturers, who do not have their own
product portfolio, but produce either key intermediates,
active ingredients (AI), or even final products by providing
outsourcing services to other companies.
5. Drug discovery and biotechnology companies, often
relatively new start-ups with no significant manufacturing
R&D investments as a share of sales by the leading ten Indian
pharma companies from the financial year 2012 to 2020 capacity.

Challenges Components of the pharmaceutical industry

The changing circumstances of the industry manufacturing and distribution chain
Drivers in the pharmaceutical industry 1. Primary manufacturing 4. Wholesalers;
The life-cycle of a pharmaceutical product 2. Secondary manufacturing 5. Retailers/hospitals.
3. Market warehouses/distribution centers;
Operational issues in the PSC Barchetti, Ugo, et al. "Supply chain management and automatic identification management convergence: experiences in the pharmaceutical scenario."
Supply Chain Management. IntechOpen, 2011.

Demand management Strategic and design issues in the pharmaceutical supply chain
Inventory management and distribution requirements
planning
Pipeline and development management Uncertainty in the demands for
Secondary production planning and scheduling.
Process development existing drugs
Primary manufacturing campaign planning and AI
Capacity planning and plant and supply Uncertainty in the pipeline of
inventory management.
chain network design. new drugs
Plant design Network Design
13 NITIE Mumbai | Supply Chain Networks & Logistics Value of retail pharmaceutical market in India in the financial
Sources: India Brand Equity Foundation; HDFC Securities; Various sources (Company websites); Crisil@Statista 2020 year 2017-2020, with forecast up to 2023 (in billion U.S. dollars)
Omnichannel Retail Improved Optimization Algorithm
Omnichannel retailing is a fully integrated approach to
Used for improving inventory management, automated vendor
e-commerce
commerce, providing shoppers a unified experience
across all channels or touchpoints. selection, improved selection of stocks, risk management.
Upcoming trends:
Social selling through video content There has been increasing pressure on
Multi-channel attribution e-commerce companies to provide
A greater emphasis on community
Applying customer data offline better and more efficient services. With
Shoppable video 66% of customers choosing e-vendors
Touchless/contactless transactions based on delivery options, 63% say
The emergence of omnichannel 2.0
The big step change in 2021 will be a major shift to selling delivery speed is a vital factor and 77%
on and embracing, third-party marketplaces such as are willing to pay for faster delivery;
Amazon, eBay, Etsy, Fruugo, and Zalando. rapid order fulfillment isn’t just an
Modular and Plug and Play solutions option anymore. The E-retail market is
expected to continue its strong growth
In the face of ever-changing demand, many e-commerce companies
face space crunches or underutilization of equipment. These issues
- it registered a CAGR of over 35% to
can be solved using a highly customizable modular plug-and-play reach Rs. 1.8 trillion in FY20. Over the
technology. This works as a set of Lego blocks hence they can be next five years, the Indian e-retail
easily assembled, disassembled, and configured to the needs of the
warehouse.
industry is projected to exceed ~300-
350 million shoppers, propelling the
Analyzing Time Series Data online Gross Merchandise Value (GMV)
Algorithms that utilize time series data to predict future demand trends to US$ 100-120 billion by 2025. Hence
are essential for e-commerce businesses. there is a dire need to leverage new
In-store experiences online technologies to satisfy customer
Block Chain expectations.
Leveraging augmented and virtual reality technologies to give
With the increase in e-commerce frauds, companies might be customers a better environment while shopping online and
interested in storing data using block chain since once stored it is supplementing their online experience hence boosting the sales.
permanent and incorruptible. Development of efficient blockchain This will help in product comparison and testing while shopping
technology which will take lesser power consumption and be easier to online.
integrate with the whole supply chain.
NITIE Mumbai | Supply Chain Networks & Logistics 14
Water Footprint
Environmental awareness and strategy is often part of what a business regards as its
corporate social responsibility. Worldwide, companies have started to explore the
water footprint of their products. It is calculated by the volume of freshwater used to
produce the product, measured over the various steps of the production chain. Water
use is measured in terms of water volumes consumed (evaporated) or polluted. The
water footprint shows volumes of water use and pollution, but also the locations, which
is relevant because the impact of water use depends on local conditions. A water
footprint generally breaks down into three components: the blue, green, and grey
water footprint.

Water footprint assessment: evolvement of a new research field

https://en.wikipedia.org/wiki/Water_footprint#/media/File:GlobalWaterFootprint_by_sector.1500.jpg

15 NITIE Mumbai | Supply Chain Networks & Logistics

NITIE Mumbai | Supply Chain Networks & Logistics 16 Because of increasing concern about
Carbon Footprint global climate change and carbon
emissions as a causal factor, many
companies and organizations are pursuing
“carbon footprint” projects to estimate their
own contributions to global climate change.
The International Transport Forum (ITF)
estimates that international trade-related
Mitigation technology options, freight transport currently accounts for
around 30% of all transport-related CO2
practices and behavioral aspects emissions from fuel combustion, and more
than 7% of global emissions
Energy intensity reduction
Incremental vehicle technologies
Internal combustion engines (ICEs) with both conventional and hybrid drive-trains can improve 50% in vehicle fuel
economy (in MJ/km or liters/100km units, or equal to 100% when measured as km/MJ, km/l, or miles per gallon)

Light-duty vehicles: the Global Fuel Economy Initiative target new LDVs of a 50% reduction in average fuel
use per kilometer in 2040 compared to 2020.
Heavy-duty vehicles: Medium and HDVs in the United States achieved a reduction in energy intensity of 30–
50% by 2020 by using a range of technology and operational improvements.
Rail, waterborne craft, and aircraft

https://www.ipcc.ch/site/assets/uploads/2018/02/ipcc_wg3_ar5_chapter8.pdf
Infrastructure and systemic perspectives
Path dependencies of infrastructure and GHG emission impacts
Path dependencies of urban form and mobility
Stages of carbon emission reduction
1. Direct Emissions Reduction - Reduces directly controlled emissions through, for example, Opportunities in Carbon Footprint
energy efficiency and low-carbon energy supply.
2. Indirect Emissions Reduction - Reduces emissions and costs across the supply chain and helps Reduce GHGs by technologies and practices
develop revenue opportunities from low-carbon products. Financing low-carbon transport
3. Offsetting - If appropriate, offsets emissions using high-quality offsets from verified projects Institutional, cultural, and legal barriers and opportunities
that create truly additional emission reduction
Autonomous Vehicles Perception

E-commerce giants like Amazon and courier service providers Autonomous driving requires the car to be aware of its surroundings. As
like FedEx are accelerating research into autonomous vehicles to such, data fusion algorithms are used to extract information from various
automate their last-mile deliveries. As a share of the aggregate cameras, LIDAR sensors, and ultrasonic sensors
expense of shipping, last-mile delivery costs are substantial -
comprising 53% overall. Hence, extensive research into enabling
technologies of this field as well as the closely related field of Prediction
electric vehicles is required.
Leveraging AI algorithms to predict the behaviour of objects and
people around the car in order to make necessary manoeuvres

Battery technology
Driving policy
Potent batteries are essential to make electric vehicles practical. In order to
obtain self-sufficiency in this crucial field, advanced battery technology is Improved reinforcement learning algorithms are required to make
required in India. Research into increasing battery energy density, fast recharge, automated driving decisions after observing the state of the
cell thermal management, and battery safety is crucial surrounding environment

Rising demand for micro-mobility to drive the market

Ride Sharing growth
Micro-mobility can be termed as the ability of movement for short
Revenue in the Ride-Hailing & Taxi segment is projected to reach US$35,022m in 2021. distances using vehicles that can accommodate only one or two
Revenue is expected to show an annual growth rate (CAGR 2021-2025) of 12.13%, people. These vehicles consist of light vehicles such as mopeds,
resulting in a projected market volume of US$55,364m by 2025. bikes, and scooters. Shared micro-mobility is a smart option for the
commuters who are seeking a quick ride in the city without any hustle
17 NITIE Mumbai | Supply Chain Networks & Logistics
of mass transit.
Nature Inspired Logistics and Transportation
The patterns and approaches of the natures have a high potential to solve and manage the
complex logistic and transportation problem in a reasonable amount of time. These
innovative patterns and techniques engage with animals, microorganisms, plants, etc., and
apply them to algorithms and technology.

Nature-inspired algorithms

Some efficient algorithms for solving the logistic problem are

genetic algorithm, particle swarm optimization, artificial bee
colony, ant colony optimization, memetic algorithm, etc.

Kingfisher and Shinkansen Train

Japan has manufactured one of the world's most efficient and

fast trains with speeds over 300km/h

Sharks and Marine Vehicles

The body pattern of the sharks has applied in making the ocean
carrier because of the most efficient swimmers’ nature.

18 NITIE Mumbai | Supply Chain Networks & Logistics

NITIE Mumbai | Supply Chain Networks & Logistics
Smart & Sustainable Contract 19
A smart contract is an electronic transaction protocol that is designed to digitally facilitate, check, or enforce the agreement and execution of the terms of an
underlying legal contract in order to meet common contractual requirements such as compensation, legal obligations, and compliance without the involvement of
third parties. As a result, smart contracts aim to reduce transaction costs, such as arbitration and compliance costs, by implementing trackable and irreversible
transactions through the use of blockchain technology for distributed databases.
The supplier prepares a contract with the distribution network, leaving the purchaser to monitor and validate the shipment based on the contractual agreements
signed with the other parties. A supply and demand problem arises due to a lack of vital information flow among the parties concerned. A contract may not cover all
of the aspects or scenarios that are likely to occur during the logistics process, resulting in ambiguity and a loss of resources and capital. The following are some of
the fundamental challenges in the logistics area:

Transparency

Required for the overall optimization of SCM as well as the efficient use of resources
throughout the supply chain. Transparency is inextricably linked to trust, which is of
These challenges can be addressed by employing a robust combination
paramount importance in this industry.
of blockchain-based smart contracts, logistics planners and condition
monitoring of the assets. Smart contracts can help in the following ways

Traceability
Automatically executes the flow of Digitize bills of lading (contracts)
Required in order to keep track of product movement throughout the supply chain. money based upon signals resulting Connects members of the supply
Governments are increasingly legislating for the adoption of traceability systems to reduce from the flow of goods thereby chain to a decentralized network
food waste, particularly in the area of food logistics. Traceability is also important for reducing processing costs and allows them a direct exchange
consumers to be aware of the origin of the product and producing methods Simplification of complex multi-party of documents
systems delivery Manages ownership of documents
Accountability & Liability Connects banks, lenders, buyers, and on the blockchain to eliminate
suppliers to streamline and automate disputes, forgeries, and
settlement, reduce fraud risk and unnecessary risks. Records the
Providing the buyer with necessary information about the third-party logistics provider's
storage, transportation, insurance, customs, inspection, supervision, packaging, value- costs terms of a trade
added procedures, stock management, order management, and other services
Digital Twin in Logistics Artificial Intelligence (AI)
The digital twin is a virtual representation of a real-time Leverages historical and real-time data paired with machine learning
system. A digital twin replicates the physical and digital state frameworks and predictions about future scenarios or events
of the system with dynamic behavior using real-time sensing
data from the machines and devices. According to the market
research report, the current market value of digital twin is
around 3.1 billion dollars and expected to reach up to 48.2 Application Programming Interface (API)
billion dollars by 2026 with a 58 % compound annual growth
rate. Digital twin in logistics has the potential to manage the
real-time navigation of raw materials and finish products Provides the essential tools to extract, share, and harmonize the data from
through all the supply chain facilities. A digital twin is one of the multiple systems that continue to a single platform
the breakthrough technologies that make a significant
transformation in the logistics industry. A few technologies
applied in digital twin are mentioned here.
Augmented Mixed and Virtual Reality (AM & VR)
Renders the digital twin's spatial model and visualization and provides the
medium for collaboration and interaction

Cloud Computing (CC)

Cloud Computing is the storage and processing of large volumes of machine
data and asset the digital data in real-time
20 NITIE Mumbai | Supply Chain Networks & Logistics
Control Tower Components of Control Tower
Value Chain Designer (VCD)
Value Chain Coordinator (VCC)
The global economy requires global supply chain management which relies on visibility and Business Transaction Manager (BTM)
responsiveness. Determinants such as information technology tools, process knowledge, sales and Resource Planner (RP)
operations planning experiences, etc., enable the formation of theory and practice for the supply Sensor Evaluator (SE)
Rule Handler
chain control tower concept A Control Tower has two sets of rules, namely logistic and Business Service Manager (BSM)
completeness rules Performance & Compliance Monitor (PCM)

Challenges of control tower for multi-actor collaboration Logistic rules

Visibility Synchronization of stretches in value
Flexibility chains
Optimization Quantity and quality
Predictability Costs
Agility Documentation
Responsiveness
Value Exchange
Data Quality
Compliance
Completeness rules

Customer goal satisfaction

Capabilities of Control Tower

Advantages of the Supply Chain Control Tower
End-to-end Visibility
Real-time tracking through collaborative information sharing Order fulfillment
Early warning alerts and exception management Transport management
Predictive and prescriptive decision-support Inventory management
Autonomous decision-making and control Visibility & monitoring
Cognitive Freight settlement
21 NITIE Mumbai | Supply Chain Networks & Logistics Request & deviation management
Warehouse Automation 22
The global IoT market growth is estimated at a compound annual growth rate of 21.25% by 2025.
Along with this the advancement of AI/ML techniques has led to the growth of global warehouse
automation by 14%, reaching $30 billion by 2026. Automation also helps reduce risks against
disruptions like the COVID-19 pandemic due to minimal human interactions.

Automated sorting system Autonomous Guided Vehicle

An automated sorting system would solve a critical bottleneck of the Increases the efficiency of warehouses in transporting goods, picking up storage, and also can be
operations with high accuracy, efficiency and also provide product used for daily maintenance without the need of supervision. Gives the flexibility to run warehouses
traceability. There is a need to develop virtual instrumentation 24*7 without breaks. Increase the output rate of delivery, reduces human error, and decrease labor
techniques which will help in determining various package costs. Development towards “lights out automation” which will include movement through the help
parameters. Tracking mechanism to help in product traceability. of lasers and various sensors and control algorithms
Application of machine learning to fully automate the sorting process
and development of state-of-the-art computer vision modules will be
needed
Multi Agent Path Finding Algorithm
An increase in the use of medium and large-scale automated warehouses is leading to research into
improved pathfinding algorithms to minimize congestion and increase operational efficiency. Also
Cobots finds application in controlling large fleets of drones operating autonomously

These are collaborative robots that work together with humans to

complete a set of complicated tasks accurately. Lightweight
materials, safe human and machine interaction interface technology

Drone fleets
They can help in a number of warehouse operations such as
transportation of packages in a congested warehouse, scanning
of barcodes and RFID efficiently, reaching hard to get locations in
warehouses, automated inventory counting, checking for
maintenance needs, and identifying hazards through aerial scans.
Development of better mini camera modules to get high-definition
images to better apply AI/ML capabilities and identify various
objects, accurate GPS positioning, swarm technology

NITIE Mumbai | Supply Chain Networks & Logistics

The Indian economy was expected to lose over ₹32,000 crores (US$4.5 billion) every day during the first
Improving Risk 21-days of complete lockdown, which was declared following the coronavirus outbreak. Under complete
lockdown, less than a quarter of India's $2.8 trillion economic movements was functional. Up to 53% of
Management businesses in the country were projected to be significantly affected. This shows the importance of risk
management in the supply chain to efficiently deal with such disruption in the business.

End-to-end visibility using Predictive analysis using The science and Cyber Security
War room type framework real-time simulation and technological development
modelling required for its There is an increasing amount of
Having visibility at each point of implementation disruption caused due to cyber-
a supply chain can help in Accurate prediction by building new attacks and data breaches which can
Development of a war room
mitigating risks before they AI/ML techniques which can be cost heavily to a company.
type design which will have all
occur. If some untoward adapted to various supply chains Investment in building IT solutions
the data regarding every
accident, disruption does occur without any bias. Simulation such as antivirus solutions, anti-
transshipment in a visual and
due to clear transparency one software building which can spyware, and firewall technologies.
easy to see form in one place
can easily pinpoint the issue replicate the real-life world in an These systems can include both
causing it and hence can efficient and clear manner and local and cloud-based imaging back
maneuver the logistics back on hence be able to give proper up so that they can reconfigure the
track with much more agility insights on the scenarios whole supply chain system to its
prior state and hence efficiently
23 restore the whole logistic network in
NITIE Mumbai | Supply Chain Networks & Logistics a short time