Chairman’s Message

T S Kaladharan

 

Taking time to look at the current world situation, it is apparent that positive signs of economic stability are being challenged by various social and political concerns. Big economies are exhibiting sluggish trends whereas certain regions, showing promising potential, are under threat from unpredictable forces such as terrorism. This overall situation prompts responsible proactive companies to assess how they may maintain and promote confidence. CSS is, quite rightly, well placed in the middle ground of these challenges. Our core principles of customer awareness, service and innovation stand us in good stead. It means that our leadership team possess the much valued emotional intelligence required to instil confidence in others. This quality, in particular, is of paramount importance. Its application, being able to understand and appreciate what causes concerns in others, enables CSS to combine our experience in a way which encourages faith in the future. This ability is not achieved by chance. It is the product of having a long time commitment to the services and logistics industry. We are able to lead and push positive trends forward to the advantage of those who do business with us. This is not only of benefit to CSS but also to everyone else.
The first weeks of 2016 have quickly highlighted the course CSS needs to take in order to make inroads into new market places, whilst at the same time being able to continue providing on-going support, service and resolutions for our valued customers. CSS, as a customer – client proactive company, is able to anticipate when changes are needed in order to respond to market demands. Accordingly I look forward with confidence to CSS, along with the mutual support of our friends, being able to help each other achieve our respective visions for the future.

Outstanding Contribution Honoured

Consolidated Shipping Services Group Receives IMC Excellence award


U B Prince receiving award from Sohan Roy


Consolidated Shipping Services Group (CSS) received the Excellence award for their outstanding contribution towards the Maritime Industry. The award was constituted by the International Maritime Club (IMC). On behalf of T S Kaladharan, Chairman of CSS Group, U B Prince, the COO of their BPO operations received the award.


The IMC Excellence Award ceremony the prodigious efforts and contributions of Malayali Maritime entrepreneurs, technocrats and academicians for generating maximum employment, professionals and business opportunities in various segments of the maritime sector. The nominations for the awards were received from various sectors of the maritime industry and were reviewed by the IMC panel of judges. The awards were purely based on individual merits and their personal contribution for furthering the developments in the maritime industry.

International Maritime Club (IMC) inaugurated its Cochin chapter and hosted IMC Excellence Awards 2015 at Casino Hotel, Cochin on 27th December 2015.

The ceremony was held during the silver jubilee reunion of Department of Ship Technology, CUSAT’s 11th Batch.  IMC – Cochin Chapter was inaugurated by      Mr. Sohan Roy, IMC Global President,    Dr. P.G. Sunil Kumar, Capt .T. J. Mathew and Mr. K. K. Devanandan.

International Maritime Club (IMC) is a non-profit organization which works for the conscious and continuous development of the vast maritime industry. It is a platform where professionals from various sectors of the maritime industry come together under one roof to exchange knowledge and ideas on the maritime trade and industry. Currently, IMC is associated with more than 200 maritime organizations across the globe. More details on club can be found on its website
www.internationalmaritimeclub.com 

C.H. Robinson Visits CSS in Dubai

CSS Group recently had the pleasure of hosting an executive delegation from C.H. Robinson, USA from the 18th to 21st January. The visiting team comprised of, Mr. Andrew Clarke, Chief Financial Officer, Mr. Mike Short President, Global Forwarding, Mr. Tom Sweet, Vice President Overseas Development- Global Forwarding, Mr. T J Srinivasan, Managing Director- India

Along with the subjects of mutual interests, Business development, projects and initiatives in the Pipeline were also discussed during the meetings. The current market scenario, while acknowledged to be below par, was discussed and a mutual agreement to work collectively to improve both companies presence in the Middle East Market place.

“It was our pleasure to host the C.H. Robinson Senior Management delegates in our Dubai office facilities and further develop our customer-focused business initiatives and personal relationships.  Since working with C.H. Robinson, we have seen our relationship grow from strength to strength”, mentioned T S Kaladharan, Chairman CSS Group, while talking about the delegate visit. The visit to CSS Group Jebel Ali offices included a fully guided tour of their Bonded CFS, and a firsthand view of the construction of the CSS Group’s new State of the Art Corporate office and the Warehouse extension project. This development, mentioned earlier, is in line with the growth aspirations which CSS Group has in the region. This while ensuring that they maintain their edge in the market place while representing a globally renowned company such as C.H. Robinson.

The two day programme included visits to key business partners like the Dubai Ports, Emirates Airlines, and the key customers of CSS and C.H. Robinson in Dubai.

“Our relationship with C.H. Robinson has been growing steadily over the last few years. An association with an organization with the size/scale that C.H. Robinson is today has proved effective here in the region. We now have a Global platform to pitch with our key customers” commented Ajay Krishnan, Senior General Manager, Freight forwarding operations, CSS Group.

C. H. Robinson is a global provider of multimodal transportation services and logistics solutions, operating through a network of branch offices in North America, Europe, Asia, South America, Australia and the Middle East. They are a non-asset based transportation provider, who works with approximately 63,000 transportation companies worldwide. They also provide a wide range of value added logistics services, such as supply chain analysis, freight consolidation, core carrier program management, and information reporting.

CSS Group while remaining as the most trusted partner for freight forwarding and logistics among the global fraternity has shown steady growth in their professional approach and dedicated services offered in the field of Ocean Freight, Air Freight, Local & International Land Transportation, Projects Management, Supply Chain Management and Personal Effects Management. Being a prominent name in the Middle East and the Indian Subcontinent, CSS Group has to its credit an enviable list of Global Network Partners. CSS has a dedicated and highly skilled team of over 1000 professionals around the globe offering integrated freight forwarding & logistic solutions to varied clientele.

Extra Care For Your Cargo

CSS Homeward Bound uses Vacuum Packing for special care of cargo


Vacuum packing has been extensively used by CSS Homeward Bound as per customer’s request. It’s a specialized service only few companies are providing in the industry. Homeward Bound specializes in all kinds of vacuum packing from helicopters / yachts to small machines.

Vacuum packing is a method of packaging that removes air from the package prior to sealing. This method involves (manually or automatically) placing items in a plastic film package, removing air from inside, and sealing the package. Shrink film is sometimes used to have a tight fit to the contents. The intent of vacuum packing is usually to remove oxygen from the container with flexible package forms. It will reduce the volume of the contents and package.

Any type of cargo can be vacuum packed and it depends on the customer who wants to safeguard their cargo from moisture. Vacuum packing stops rusting and aging of the cargo also the cargo stays new for a longer time. “Much cost variance is not there for vacuum packing from normal packing and our customers who are willing to pay a small extra money can make doubly sure that their cargo is more secured”, commented Syed Zeeshan, General Manager, CSS Homeward Bound. “We have given special and extensive training for our staff for specialised cargo packing requirements as most of our customers demand such new trends, “added Zeeshan.

Vacuum packing reduces atmospheric oxygen, limiting the growth of aerobic bacteria or fungi, and preventing the evaporation of volatile components. Special equipments are being used for vacuum packing at CSS Homeward Bound warehouse. 

Vacuum Packing Procedures

Cargo will be wrapped in Aluminium barrier foil and all joints will be sealed with heat seale , air to be completely sucked out from the Package and VCI emitters and desiccants placed inside. (In case of sharp edges in the cargo cushioning material will be placed)

Material  Specifications:

Metal Barrier foil :

Flexible, heat sealable,  water vapour & corrosion  resistant  barrier foil

Tri-laminate of Polyester, Aluminium   & Polyethylene.

Total thickness – 115 Micron (Tolerance +/- 5 %)

Maritime and More

Interview with Sohan Roy, Founder Chairman & CEO of Aries Group of Companies




A Ship Designer by profession, Sohan Roy started his career as a Marine Engineer, to become the first Naval Architect in India to join Merchant Navy. Along with a Guinness Book entry, today he has global reputation as the Director of the Oscar selected movie DAM999 and the Creative Head & Project Designer of many award winning films & documentaries. He is also the President of the International Maritime Club (IMC) and founder of the first global maritime TV channel, Marine BizTV.

Sohan Roy speaks about his concepts and vision to, G. Unnikrishnan, Head of Marketing and Corporate communications, CSS Group, in an exclusive interview.

IMC has been working as an umbrella organisation for the maritime world for quite some time. Is there any specific reason behind the Cochin chapter inauguration now?
IMC has been active since 2007 in UAE. One of its objectives is to have Marine Cities across the world in all maritime hubs were Mariners can stay, work and learn together in an exclusive housing colony along with having a branch of IMC in that hub. Since the concept of IMC got evolved from Cochin, we decided to have the first marine city at Cochin. Also to make the process more effective we need to have a branch of IMC there for its smooth execution. Since thousands of mariners are staying in and around  Cochin it has a huge potential to support Maritime Industry through Marine City and IMC. Cochin is just a beginning . We are planning to have 10 branches of IMC to be initiated this year itself.

As a guiding figure for the IMC, could you give us your larger vision on the future of this great union of Maritime associations?
The ten objectives of IMC are the Integration of the Maritime organizations for better interaction, quality based accreditation of Maritime institutes, Knowledge sharing through Events, Identify & honour the achievers and talents, Promote charity activities, Effective Utilization of Govt. funds, Establish Marine Cities, To attract investments to the Maritime industry to create more job opportunities, Amicable settlement of Maritime Dispute and the initiatives for Maritime Sustainability. Even though having the huge potential while controlling two third of the world, Maritime Industry is one of the most disintegrated community without having the vision of “those who rule the sea can conquer the world”. The very dream of IMC is to make it happen through an efficient unified maritime community.

Consolidated Shipping Group is an NVOCC, what advantages do an NVOCC have in associating with IMC?
As long as 90% of trade happens through sea, NVOCC will have its major role in the Maritime Industry. Organizations like IMC can take up initiative to guide and put pressure on developing countries like India to open up more and more ports without any delay to boost the cargo movements. Once a container transport system is in place development of that country is automatic as it boosts both import and export. Ports like Vizhinjam would have realized long back if IMC had taken initiative.

Can you explain more about the Maritime city project
The very need of Marine cities is to create marine communities were mariners can walk to their office from home and can work till their last breathe while moulding the next generation in a better way. Future ship management companies shall be based in these communities so that the same vessel can be looked after by the same team for its better maintenance.  As sailors feel more comfortable to see their families being stayed along with co-sailor’s families they shall extend their sailing life which is what really required for the industry these days not to lose experienced hands. Along with ship management, other areas like design firms, academies, survey firms etc. also can be a part of these marine cities.

According to your perspective, what are the impacts of the current socio political situation around the world on the shipping industry?

Crust and trough are part of shipping however; right now shipping is passing through its worst phase. Oil crisis, piracy, Civil wars, massive production of Chinese shipyards and the drastic reduction in the cargo movements to US & China may make it further worse.  But the expected economic boom in countries like India gives a lot of hope for a recovery.

Marine BizTV is the only channel dedicated to Maritime industry. What inspired you to begin such a venture?? Are you satisfied with the outcome??

I had to do a project as part of my Diploma course from Hollywood Film Institute and the idea of starting an exclusive TV channel for Maritime Industry got evolved from that clubbing with my Maritime experience as a Marine Engineer & Naval Architect.  Accordingly Marine Biz TV was launched in 2007 coinciding with the beginning of current shipping recession. As per our initial plans, it was to be commercialized within 3 years. As the Industry could not get out of the recession, it was not possible to get the right promoters for an infotainment channel like this. Presently it’s a CSR initiative of Aries Group to support IMC and free downloading facility is made available to all even on mobile platforms. More than 7000 hours of technical contents are available in the library. Marine BizTV has become the official media for more than 500 maritime events. Even though Marine BizTV hasn’t reached its real heights as planned, I’m satisfied with what it has gained during the worst phase of the Industry.

Sohan Roy is a versatile personality, but you are more known as a film director to the common man. Do you like that??

My passion was always into Films and destiny made me a Naval Architect. After my Engineering Degree I tried to join Film Industry. Due to the pressure from my parents I had to quit my dreams and join back my real profession. Aries was launched in 1998 and within few years I could make our design division as the best in Middle East. The day when one of my designs got into Guinness Book of World records, I decided to chase my dreams on movies again. Several Programmes & Documentaries were made for Marine BizTV to begin with that journey. Portraying the story of few mariners for the branding of Maritime Industry, DAM 999 was announced in 2008 and the movie got release in 2011 by Warner Bros with 5 Oscar short listing. So far the movie has been got into more than 100 film festivals and won several International Awards. It’s a fact that I’m more known as a Film maker than a Ship Designer due to the glittering glamour of the Film Industry. Being a passion I spend 50% of my time for the movie industry even though Shipping is still my bread and butter.

What were the challenges you faced during the epic movie shoot of DAM999

DAM999 was not just another movie for the Indian Film Industry. It was the first movie ever made from the largest film making country in the real Hollywood Format. It was the first 2D  to 3D converted 4K scanned movie . Also it was the first perfectly designed synch Sound Movie. It was for the first time a Super Tanker was used for a Movie shoot and it became the largest floating object ever shown in any movie. The movie got released in 5 languages at a time even though it faced some bans. Even Indian parliament was stopped for 2 days due to the heavy protest to ban the movie due to its controversial subject. However we could launch the concept of Marine City through it.

Being a follower of your updates in the Social media, personally I felt that you love to travel a lot. What sort of perfection do you achieve during these vast travels??

Even though it requires a lot of travel to meet my official commitments I love to travel a lot. All my creative works are happening in the flight as I’m absolutely free from all disturbances. Also these travels give me a lot of experience to learn about the world and people, which is really required for any film maker. I attend several Film Festival across the world where I use to invite my maritime clients too which gives double satisfaction and better networking.

Your website mentions about the pioneering concepts, which are truly amazing. Have you ever thought about bringing in a governmental, state or central level participation for any of these projects?

Presently I’m working on a US$10billion Project called Indywood to revamp the entire Indian Film Industry within 5 years to make it on top of the world in quality and revenue too. There are 100 specific targets for this Project and more than 80% target sample analysis have been successfully done. The concept was launched in last Nov and the next edition will be at Ramoji Film City from 2016 Sept 24-27. It will be done with the Support of state government and Central Govt. Several policy amendments are needed to full fill the remaining targets of Project Indywood. We expect the Prime Minister and the Chief Minister to grace the occasion along with many IMC members who could be the future investors in Project Indywood as part of their branding. Kindly consider this as the invitation to attend this film carnival.

Qatar Hits Out at India Over Traffic Rights

Qatar Airways CEO has hit out an Indian government proposal to sell the country’s air traffic rights.

In October last year, the civil aviation ministry released its draft civil aviation policy which contained a proposal to have an open skies policy with countries in South Asian neighbours and countries beyond 5,000 kms.

The policy also proposed to auction additional traffic rights beyond the existing rights to airlines from countries within 5,000 kms. The bidding would be introduced if domestic airlines have not fully utilised their quota, with those rights granted on a three-year basis, with fund raised going towards the regional connectivity fund.

Speaking at Singapore Airshow, HE Akbar Al Baker said he was disappointed at India’s decision to auction the air traffic rights, known as bilaterals, which he said was against foreign carriers operating freely in the country’s air space, according to a report in Economic Times.

Al Baker insisted that the air traffic rights should remain in the control of a country, and not be sold to an entity that India may not have a strategic interest in.

He said foreign airlines that operate freely in Indian airspace help boost trade and tourism, as well as generate jobs for locals. Qatar Airways currently operates from 13 Indian cities.

International Air Transport Association has also expressed concerns that the move may lead to higher fares.

Oman Reconsidering its Involvement in GCC Rail Network

Oman is reportedly reconsidering its efforts towards the planned GCC rail network.

The country may instead focus on constructing its domestic rail network, owing to uncertainty over when the regional project will proceed, transport minister Ahmed Bin Mohammed Al-Futaisi said.

Worth $15.4bn, the GCC Rail project will span 2,117km across the region. However, technical and bureaucratic delays have reportedly delayed the development’s completion date past its original target of 2017.

Furthermore, low oil prices are contributing to a slowdown in government funding towards large-scale projects, including the GCC Rail. Last month, Etihad Rail suspended the tendering process for Stage 2 of the UAE’s railway network. The state-backed firm, which is behind the construction of a new UAE railway network, is reviewing options for the timing and delivery of the project’s second phase, according to a company statement.

Stage 2 of Etihad Rail involves the construction of a network in Abu Dhabi, connecting the Emirate’s borders with Saudi Arabia and Oman – as well as connecting other areas within the UAE. Futaisi said the suspension of Etihad Rail’s plans made it difficult for Oman to award a deal for its own track, despite being ahead of its GCC counterparts in designing its part of the overall network.

The minister said the rail network’s future might be discussed when GCC transport ministers hold their next meeting, most likely in October.

CMA CGM Says APL Purchase will Make it Largest Carrier IN U.S. Trades

With 30 percent volume growth in cargoes to and from the United States during 2015 and its acquisition of the container operations of APL, the French ocean carrier expects to jump ahead of industry leaders MSC and Maersk Line in the U.S. trade lanes.

CMA CGM reported strong growth in the U.S. trades in 2015, increasing volumes by 30 percent to 2.3 million TEUs and boosting the company to being the third instead of fifth largest container carrier in the U.S. market, said Marc Bourdon, the president of CMA CGM (America) LLC.    Rodolphe Saadé, vice chairman of the company said the Marseilles, France-headquartered company hopes to complete its acquisition of Singapore-based APL this summer, at which point he said CMA CGM will jump ahead of MSC and Maersk to become the largest carrier moving containerized freight in and out of the U.S.

Pharma Giants and Cold Chain Logistics Experts to Meet in Dubai

Leading pharma companies and cold chain distribution experts to meet in Dubai at Middle East Pharma Cold Chain 2016 to address the key issues surrounding the healthcare cold chain distribution in MENA

According to IMARC Group, the healthcare cold chain logistic services market is expected to hit nearly US$13.4 billion by 2020 and emerging markets such as the Middle East and North Africa are gearing up for rapid expansion and growth in the industry.

Temperature-sensitive pharmaceuticals such as vaccines, hormones and insulin rely on the integrity of the cold chain in order to render these products effective and safe for the patient and end-users. While great strides have been made in terms of infrastructure, technology and governance; with each advancement come unique challenges making the pharmaceutical cold chain landscape perennially evolving. The importance of cold chain in healthcare is such that both public and private sectors are collaborating to ensure that all aspects of the cold chain are kept intact and maintain integrity while striving for innovation. In the Middle East, government regulatory authorities have stepped up with new policies and requirements for pharma shipping, distribution and storage. Pharmaceutical companies have invested heavily in research and development, while distribution and logistics companies, along with airlines are continuing to build expansive infrastructure to support the integrity of the entire cold chain.

With this in mind, it is with great excitement that Maarefah announces the 2016 Middle East Pharma Cold Chain Congress. The region’s foremost event covering temperature-controlled pharmaceutical supply chains and temperature-sensitive pharmaceuticals returns to Dubai on March 28 – 31 for unparalleled days of networking, learning, discussions and solutions and will gather more than 100 stakeholders for an unrivalled program designed to address the industry’s most critical issues and challenges in MENA.

To register or for more information, visit www.pharmacoldchainme.com

Adani Hazira Port Connected By Rail to Central India

Adani Hazira Port Private Limited part of Adani Ports & Special Economic Zone Limited (APSEZ), India’s largest port developer is now connected to ICD Pithampur – Ratlam in Central India through rail.

CONCOR has begun running rakes from ICD Pithampur – Ratlam to Adani Hazira Port on a regular basis and the Port has received 8 Laden Export rakes from these ICD’s already.  This development will evidently benefit customers in Central India while using the Adani Hazira Port. Major Shipping Lines like Maersk, MSC, CMA CGM, UASC, Balaji Shipping, Goodrich are using this rail services to connect their export boxes to Hazira. National Steel, Lanxess India, Shakti Pumps, Krasoma Laboratory are some of the customers who are loading their export shipments regularly on this service and are delighted by this development.

APSEZ is the country’s largest port company with footprint across the Indian seashore. It has proven expertise in building, operating and maintaining world class port infrastructure. Apart from Hazira, APSEZ also operates ports in Mundra, Tuna-Tekra (Kandla) and Dahej, in Gujarat, Dhamra in Odisha and operates specialized coal handling facilities in Mormugao in Goa, Visakhapatnam in Andhra Pradesh. It is currently setting up a container terminal at Ennore in Tamil Nadu and has recently laid the foundation stone for the development of India’s First Transhipment Port at Vizhinjam, Kerala.

Cosco, Cina Shipping Merger to Result in New Company: State-Owned Assets Regulator

China Ocean Shipping Group Co (COSCO) and China Shipping Group Co will become a new entity after merging, led by the latter’s current chairman, China’s state-owned assets regulator said on Monday.  The former rivals said in December they would merge through a series of asset swaps, creating units focused on distinct business areas such as container shipping and vessel leasing. Together, COSCO and China Shipping control 488 billion yuan ($74.7 billion) worth of assets, Barclays analysts estimated.  After the merger, the resulting, newly established company will be chaired by Xu Lirong, the State-Owned Asset Supervision and Administration Commission said on its official microblog. The merger comes as the government moves to consolidate state-owned industries.

Walking a Warehouse Stockroom

Rajesh Chakiat
General Manager, Supply Chain
CSS Dubai

Having run and managed many massive warehouse facilities with some of the most complicated supply chains for leading brands in almost all verticals in the past two and half decades, can summarize some of the main ground rules as below.

You’d think that the place that holds (typically) more than 80% of a company’s inventory, and sometimes accounts for more than half of its working capital, would get plenty of attention. But only a few companies seem to really pay attention to their stockroom or warehouse, or the five processes that affect it. (Receiving, put-away, picking, shipping and maintenance, where “maintenance” represents the combination of cycle counting, consolidation, and other processes that maintain the stockroom in good operating order)

In my opinion, this is short-sighted. You can’t create a truly lean manufacturing process if you don’t have effective processes to supply materials to the floor. Time and motion study, six sigma through process re–engineering with mapping and having re layouts done can significantly boost productivity.  And if it takes a week or more for inbound shipments to move from the receiving dock to warehouse shelves and then out to the production line, you’re robbing other functions (R&D, marketing, even IT) of capital that could make them more effective.

That lack of attention represents an opportunity for individuals, to make a difference at their companies or clients. So… here’s my New Year’s gift to anyone who wants to help their company’s supply chain become more capable. (Or… if you are visiting one of your EMS or logistics partners, this might help you to get a better idea of how well they are managing your inventory)

These are broad guidelines that are generally valid, in my experience – but there can be exceptions, especially in operations that are very focused. (A stockroom that only holds materials for New Product Introduction will look very different from a manufacturing warehouse for a television or large appliance factory!) But more frequently I’ve found that the disconnects I’ve observed were due to not making necessary investments. (Focused investments in materials handling operations can have considerable ROI. Improving receiving and warehouse performance can enable you to take multiple days out of inventory.)

Whether it’s big or small, whether it handles small parts, large items, or a mix, a well-run warehouse will have the following characteristics:

  • Items will be stored according to a strategy that accounts for the physical size of each item and the frequency with which it is picked.
  • Items will be managed to make efficient use of available space.
  • Items will be stored in a way that will keep them safe and in good condition – and will not pose a danger to warehouse workers.
  • Items will be managed to make safe and efficient use of manpower.
  • Items will be managed in a way to provide high performance to the warehouse’s “customer” – the manufacturing floor or shipping dock.
  • Items will be managed in a way to minimize handling.
  • Problems and issues will be physically separated and handled expeditiously.
  • Performance and diagnostic metrics will be collected & published.


There are trade-offs between these, especially when resources are limited. If space is limited, a well-run warehouse may decide to pack some of its slow-moving parts into a small space. This make picking those parts less efficient, but it will also increase the amount of space (and decrease handling time) for the frequently picked / fast-moving parts. If automation (forklifts, conveyors, etc.) is limited, the stockroom may use more floor storage.

There are also differences in the way that a manufacturing stockroom will operate versus a finished goods warehouse. Outbound shipments tend to be larger, less frequent, and more predictable than inventory movements to the manufacturing floor. So you will usually see a lot more activity in a manufacturing stockroom.

What you should see when walking through a stockroom and associated areas like receiving, staging, etc.:

1.  Picking processes and storage strategies that are designed to minimize the amount of time and effort spent on the most frequently picked items while maintaining control of inventory. Examples of this include:

  • Putting the most frequently picked items along the main aisle, at ground level, or near the exit from the warehouse (to the manufacturing area). You might see, for instance, a set of shelves with commonly picked items along the wall by the doorway; or flow racks; or even pallets of materials staged for quick delivery.
  • A mix of storage methods: pallet racks for items that are received on pallets and are picked in large quantities, flow racks, shelves for small parts storage, etc.
  • Use of automated identification tools – bar code or RFID. Without auto-ID, workers have to manually keypunch transactions – which will lead to errors.
  • Guided picking processes, where stockroom workers using RF Barcode equipment are guided through the stockroom in an efficient manner, so that they pick one item, then move to the next shelf for another item, and so forth – instead of moving from one area to another, then back to the original area.


2.  Cleanliness and good order – not to the point of obsession, but you should be able to easily see box labels, and items should be stacked neatly. There should be a clear distinction between each storage location. Usually that means a physical barrier (like a metal divider) or air – so it’s obvious which items are in each location.

3.  Clearly visible bin (location) IDs on the shelves & racks, to identify each individual storage location.

4.  Generally, one item stored per location. There can be temporary exceptions to this rule when a stockroom or warehouse is near or over capacity, but multiple part numbers in the same location will lead to picking and inventory errors if allowed to become normal practice.

5.  Attention to safety and ergonomics, including adequate lighting. Workers shouldn’t have to spend their days kneeling on the floor, nor should they be asked to frequently pick up heavy boxes. At minimum, you should see manual conveyors, tables, and carts for workers to use while receiving and picking goods. If forklifts operate in the aisles, there should be obvious attention to safety requirements.

6.  A small area holding received goods that can’t be processed, items in “quarantine” and other problem items. The items in this area shouldn’t have aged more than a week or two. (Yes, there are exceptions to this. But they should be true exceptions – you shouldn’t see lots of aged problem items.)

Even God Can’t Do It

Rahat Talreja
Vice President – CSS India

A shipper had to award a shipment to a forwarder.

He selected a forwarder finally.

The shipment was booked at a freight of USD 10 w/m and was worth 5000 cbm.

The Managing Director heading the forwarding company thought that the freight is very low and below cost.

USD 11 w/m would be appropriate to at least break even but USD 10 w/m is a loss.

So they said, its a small increase of USD 1 w/m that needs to be done in the sell rate so let us send a management trainee (who spend at least USD 20000 these days to become a management trainee from their MBA schools)

The fresh management trainee went to the shipper and tried.

His often used words were: sir, kindly, please. It didn’t work, he came back.

Next they sent the junior executive.

His words were: can you , what if , why not , try. didn’t work, came back.

Next went the senior executive and his words were: not possible, loss , pressure from seniors. didn’t work, came back.

Next went the senior Manager and his words were: contract, global economy, cost pressures, recession, GDP. didn’t work, came back.

Next went the Vice president and his words were: Prime minister , European Union, Suez Canal, NASA, Federal reserve. almost worked but no, it didn’t actually and he came back.

The Managing Director was upset. His entire team failed from bottom to top for such a simple thing. so he decided to go himself.

Like a seasoned owner, he spoke very little, smiled more , had lunch with the customer, paid the bill , dropped the customer back in his Mercedes and in between all this, took his blood pressure pills on time and tried maximum to gain the customers sympathy. Humility is the new negotiating tool for modern entrepreneurs.

But he was a 21st century customer , over fed, over pampered, over informed. He didn’t budge. Sell rate remained USD 10 w/m.

The cost details of the above transaction:

Straight loss USD 1 w/m and 5000 cbm = USD 5000

Junior executive 1 day time cost : USD 50
Senior executive 1 day time cost: USD 100
Senior Manager 1 day time cost: USD 250
Vice President 1 day time cost: USD 500
Managing Director 1 day time cost: USD 2000

Total: USD 2900

junior executive went by train: cost USD 50
senior executive went by taxi: cost USD 100
senior manager went by personal hatchback car: cost USD 150
Vice president went by personal long wheelbase sedan: cost USD 200
Managing Director went by AMG Mercedes convertible: cost USD 500

Total: USD 1100

Lunch , memento , stationary, print outs, visiting cards etc Total USD 1000

Total money spent to purchase loss: USD 10,000

Now, they were left with a loss. They were feeling very bad about it. So they thought how to feel good. Suddenly they had creative ideas.

They published to all other customers that they have “ so and so elite customer “ as their client.

Other customers said: wow, really thats great. so they felt better now.

2) The Chartered accountant told them that by incurring a loss of USD 10,000, they have actually saved 30% tax or USD 3000 in it. They felt even better.

3) Next called their banker. He congratulated them. He said by doing just 5 more loss transactions like this , their turnover would anyway increase a lot and the bank would be pleased to offer them an additional loan facility based on the turnover and having such grade “ A “ clients. Now they started flying.

The managing director consulted his astrologer who said: your best time is beginning now. He thanked his stars. by incurring just a USD 1 w/m loss, so many good things are happening. god forbid if the customer had agreed to increasing the sell rate and not having a loss, so many other nice things would have been missed.

in his happy mood, he became his generous best and awarded himself a new convertible luxury car, awarded his people top to bottom , made the company 10% more expensive to run , and appointed new salesmen to search for such loss making customers.

meanwhile, what the astrologer said was right. his best time was beginning. best means when you do away with all those things in life which give you a false sense of yourself like money , yes men , fake relations, turnover, so called society respect etc and when all these falsehoods vanish, the inner self turns towards the real goal of life of self actualisation. indeed it was a start for him.

Meanwhile, CMA took over APL. Crude oil went down below USD 30 per barrel. Donald Trumps odds to win went up. Women of the century are more empowered.  So what? The customer still doesn’t agree to pay USD 1 w/m more:)

Rise of Iran in Various International Sectors

The year 2016 marked a new rise of Iran in the International Trade when the European Union along with the UN entities announced the lifting of sanction over Iran. The sanction imposed by US and European Union had limited Iran’s International trade including its sale of Oil and Gas.

What is the Restriction imposed on Iran?

In 1979, it was United States who first imposed restriction on Iran following the Iranian Revolution. It was later expanded in 1995 to include the firms dealing with the Iranian Government. In 2006, the UN Security Council passed resolution and imposed sanction after Iran refused to suspend its Uranium enrichment program. US restrictions initially targeted investment in Oil, gas, petrochemicals, export of refined petroleum products and business dealings. This encompasses banking and insurance transactions, shipping, web hosting services for commercial endeavours and domain name registration services. In addition to this, the European Union also imposed restriction on co operation with Iran in the year 2007  in foreign trade, financial services, energy sector and technologies, banned the provisions of insurance and reinsurance by member states to Iran and Iranian Owned Companies. Over the years, these restrictions have taken a serious toll on the Iran’s economy and people. The Iran sanctions were the toughest in among those imposed by the World Community on any Country.

The Turning Point on 16th January, 2016

The Lift of sanction on 16th January, 2016 (also known as the Implementation Day) can be literally considered as the turning point for Iran by re opening Iran’s door into the International economy. While most of the US sanctions will remain in place, the lifting of EU Sanctions will benefit a number of Industries like Energy, Finance and International Trade.

Energy/Oil/Gas: It is said that Iran has the Fourth largest crude oil reserve and second largest natural gas reserve. Now with the lifting of the sanction, they have opened business opportunities in this Industry.  It is stated by the experts that by 2017, following the lifting of sanction, Iran’s Oil production would rise to around 4 million barrels a day.

Finance/Banking: Iran would also have access to the Money that was left frozen overseas. Iran could not transfer their monies abroad and this also affected Iran’s International Trade. By lifting the sanction, now the foreign companies are allowed to deal with Iran’s market and thereby, they are expecting a huge increase in its revenue from the sale of the oil and gas to the Asian Countries

The lifting of banking sanctions means that Iran is once again re connected to the World Financial network. Money will be able to move between the European Union and Iran without any special authorisation or Notification.

International Trade: International Trade is the next major industry that would benefit from the lifting of sanction. Now since Iran can easily step into the international trade and that now there is no difficulty in transferring the payments abroad, the Iran’s Shipping Companies and Port would definitely increase their foreign trade and thus the shipping industry is expected to rebound within no time.

Shipping and Transport:  The European Union shall allow the trade to Iran of naval Equipment and technology for ship building. European Union would also allow the cargo flights from Iran to access member state airports. But it is reported that US will not sanction non US Citizens who are part of the shipping sector in Iran or to have financial dealings with it.

The Aircraft industry is the only one sector wherein US has fully allowed to do business in Iran. US Companies will now be allowed to sell the commercial aircraft and parts to Iran.

With the lift of sanction, countries are looking forward to build up a friendly relation with Iran. To support this fact, it was reported that the business delegations from various European Countries have already travelled to Iran to assess the business opportunities.

Bowie Changes

Being brought-up in England, as a youngster in the 60’s, meant one thing to an impressionable youngster and that was seeing David Bowie performing ‘Space Oddity’ on BBC TV Top Of The Pops programme. Bowie’s appearance seemed as far out as it was possible to be. Back then there was no way to record television so you could watch it later. Any one appearing had to make an immediate and lasting impact. Bowie’s first TV performance is still vividly lodged in viewers’ minds. This underscores his ability to command a following of fans, throughout a 60 year career, that may be credited to two main characteristics.

Coming from a working class back ground, Bowie provided an inspiration to many which is attributed to the fact that music leaps across all boundaries. Whatever your cultural, social, ethnic or economic background music is a universal means of communication. It mattered not that he was born in Brixton, south London. His mother – a waitress, and his father – a promotions officer, were unmarried at the time. What became more important was his reputation, which started to grow from when he attended Stockwell Infants School. Leaving, at the age of six, his reports said he was a gifted and single-minded child as well as being a defiant brawler!  Bowie was already displaying his first main characteristic that was to be so influential throughout his life. It was a determination to stand-up, defend and promote your own belief in yourself.

It became obvious, with his music, that he was saying that it was okay to be different. Just think how many people are ridiculed because they dare to be different? Bowie realised that standing out from the crowd helps others to recognise you and your brand. The more people know of you the better your chances of success. The difficulty, for those involved with creative people, is spotting potential and giving it room to develop. Too often creativity is smothered by the urge of others to conform. Being told to “act your age” is a response from those who just want to follow the rules. It is one of those truisms that winners never do what others do. That’s why they win!

Bowie’s second main characteristic demonstrated the benefits of adapting and evolving. At the age of nine, his junior school introduced innovative music and dance movement classes. His teachers described him as being strikingly imaginative and vividly artistic with a poise that was astonishing for someone of his age. Around this time his interest in music was further aroused when his father brought home some American records by artistes including Elvis Presley, Little Richard and Fats Domino. In interviews, later on in his career, Bowie expressed how much this had influenced him. So several years, groups, styles and management changes later; in 1969 “Space Oddity” was born. This record proved to be a quintessential start to Bowie’s illustrious career which saw him transform his image and music style to ones including Ziggy Stardust, The Thin White Duke, Pierrot, The Regular Dude and finally The Black Star. Over the years Bowie moved from persona to persona, with ease, creating an every changing fascinating image. This sounds easy but the clever part is staying in touch with your audience and being ahead of what they want. Sometimes changes happen because of what happens around us but Bowie seemed aware of this. Many of his fans will have treasured memories of events that influenced their lives. Even a concert ticket gives a chance to say “We were there” but importantly to remember that to succeed and survive we perhaps need to embrace Bowie’s motivational spirit.  His fans have enjoyed the merry dance on which David Bowie led us throughout his career. By grasping a belief in oneself and awareness for change we may achieve similar lasting success in our business adventures.  As Bowie sang early on in his career: –

Ch-ch-ch-ch-Changes, I said that time may change me!