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8 CARGOTALK D E C E M B E R 2 0 1 4 DEBATE 
In search of a sustainable SCM 
It is prima facie that Supply Chain management (SCM) is simply moving a product or service from supplier to 
customer. However with the booming technology, supply has an important role to play in the efficient logistics 
system. In this issue, CARGOTALK focused on the challenges that hinder the smooth transportation. 
CT BUREAU 
Mansingh Jaswal, Director & CEO, Genex Logistics 
Today’s supply chain needs to deal with continuous volatility 
and that does not mean risk only but also opportunity when a 
competitor is not being able to deliver the same. In this process 
of evolution, the pace of change has increased manifold and 
technology has been at the helm of affairs, either to create the pace 
or manage it. Shippers are under continuous pressure to reduce 
supply chain costs as part of larger organisational goals. 
Largely the cost reduction has to come from 
two sources, either from simple incremental 
improvement in the ongoing process or from business 
remodelling itself. 
Most of the activities of an end-to-end supply chain happen outside the four walls of a warehouse 
and companies are largely looking at wireless solutions. 
However, the fact that the pace of change in technology is almost catching up with the expectations 
of the end consumer or the development in technology is raising the expectations of consumers. A lot 
of integration and automation upgrades still need to happen among shippers and 3PL providers to 
incorporate the emerging technology. E-commerce is a typical example of the role of logistics in busi-ness 
model creation. This is also an example of how technologies are deployed to bridge the gap 
between customer expectations and delivery. It does not end here, rather this has raised the expectations 
of consumers, resulting in the ongoing spiral that technology is creating. 
Hig h l i gh t s: 
SA Mohan, CEO, Maini Materials Movement 
The supply chain in India is largely inefficient, 
causing huge losses and stock-outs appertaining to 
the presence of intermediaries, infrastructural inade-quacy 
and complicated legislation. 13 per cent of 
India’s GDP is spent on logistics, which is an alarming 
fact. Proliferation of challenges in areas of reverse 
logistics, environmental sustainability, information 
technology and overall supply chain integration are 
further evolving the strategic roles and responsibilities 
of warehousing and material handling solutions in the 
growing field of intralogistics. 
Amalgamating new technology to increase efficiency of information exchanged 
whether through automation, Warehouse Management System (WMS), lean designs 
and vertical expansion, for example, high rise warehousing and distribution centres 
is not a nascent concept anymore. Today, it is observed to be a prerequisite for gaining 
competitive advantage and can help significantly increase customer service and 
reduce costs. 
The challenge for supply chain professionals lies in managing 
not only long-term growth but also in being equally responsive to 
short-term volatility, due to ever increasing consumer segments, 
greater number of products and emergence of new channels. 
Statistical capabilities, enhanced by technology, will enable us to take a leap towards 
smart supply chains and foster innovation adoption. 
Vikas Anand, Managing Director, DHL Supply Chain 
India 
IT is now perceived as a key enabler for all logistics offerings 
with companies relying heavily on IT automated solutions to ensure 
smooth logistics operations, which revolve mainly around WMS, 
TMS, EDI integration and visibility tools. India is a market with enor-mous 
growth potential for 3PL activity for those who can bring in 
value-for-money services of modern standards. While it is true that 
this industry is still in its nascent stage in India, things have picked 
up very rapidly in the recent past with more and more manufacturers 
realising the need for credible and experienced 3PL providers. 
Our infrastructure needs to be developed and while India is 
increasing outlays on roads and ports along with more tangible economic reforms, these infrastructure 
development projects have a long gestation period. We welcome the change and infrastructure 
upgrades that are taking place as these will benefit and facilitate our services to our clients. 
In India, logistics costs are very high compared to international standards owing to its underde-veloped 
infrastructure. Steps are being taken to improve the infrastructure, but the pace seems slower 
than the economic growth. Acceleration of road network improvement and expansion would mean 
huge savings on fuel, greener environment, enhanced safety and better turnaround time for customers. 
Jitender Panjwani , Head – Supply Chain, India 
Operations, Micromax 
There is a need to develop infrastructure to improve the 
Supply Chain Management function and a better reach to 
desired destinations. 
Roads are congested and of poor quality: Lane capacity is 
low; national highways are two lanes or less and a quarter of all 
India's highways are congested. Many roads are of poor quality 
and maintenance remains underfunded. More or less one-third of 
maintenance needs are met and this leads to the deterioration of 
roads and high transport costs for users. 
Railways are facing severe capacity constraints: All the country’s high-density rail corridors face 
severe capacity constraints. Freight transportation costs by rail are much higher than in most countries 
as freight tariffs in India have been kept high to subsidise passenger traffic. 
There has to be an immediate focus on trade lanes; on road connections and where road trans-portation 
is taking place. An immediate improvement in current infrastructure is required with safety 
and security for goods. Special cargo trains and unique material handling hubs with special features 
to cater volumes with minimal mishandling is the need of the hour for effective and responsive supply 
chain. Major improvements, such as good physical connectivity in the sector, are required to witness 
a rise in demand. 
 Technology is driving business and efficiency but there is a need 
to look at cost also 
 Technology development puts the older organisations under tremen-dous 
pressure 
 The e-commerce industry created the need for complex and sophis-ticated 
order fulfillment processes 
 Complex tax structure could be one of the reasons for the lack of 
economical options in warehouse and logistics 
 Innovation towards vertical specific solutions will be the key dif-ferentiator 
and business initiators 
 Automation drive at customs, airports and ports in coming years 
will drive trade to adopt newer ways to do business 
 The challenge for professionals lies in managing not only 
long-term growth, but also in being equally responsive to short-term 
volatility 
 Need better roads and quick pass-through of trucks at 
state borders 
 There is a close correlation of technology and efficiency but 
necessities for performance and efficiency cannot be ignored 
 Adopt technology in a way to reduce operating costs and increasing 
productivity
DEBATE D E C E M B E R 2 0 1 4 CARGOTALK 9 
Prashant Bopardikar, Chief – Projects  Design, Future Supply Chain 
The world is changing today, especially India where, with the advent of e-commerce, 
efficiencies and ‘customer first focus’ supply chain is 
under continuous pressure to deliver what it commits. 
Today the supply chain has an important role to play to 
improve the firm’s profitability by reducing cost and time 
to market. Supply chain definitions have to change. It has 
to be more flexible, agile and customer centric. This is to 
ensure the final consumer gets what he or she has 
demanded on time and in full. 
Being able to identify and respond to events in time 
can be the difference between staying ahead of compe-tition 
or falling behind. Therefore, companies are looking 
for better ways to control the end-to-end supply chain. 
Current supply chain is continuously evolving and adapt-ing 
to changing needs that are driven by customer demand and preferences. Certainly there 
are roadblocks which need to be addressed and worked upon 
• We need better roads, quick pass-through of the trucks at state bor-ders, 
which means documentation has to be less extensive and quick. 
With the new government prioritising the GST roll out in the near 
future, it seems to be a reality 
• Use EDI to link all the legs in the supply chain for visibility across all 
stakeholders. With proliferation of e-commerce, this aspect is improv-ing 
but it needs speed 
• Invest in technology and automation as a long term strategic invest-ment 
• Multimodal infrastructure is not completely evolved; a greater focus 
is needed on this in terms of developing infrastructure through logistic 
parks, which provide flexibility to customer to use road, rail, air and 
sea effectively. 
Devdip Purkayastha, President, CHEP India 
A recent report from a leading international consultant titled ‘Building India: 
Transforming the nation’s logistics infrastructure’ mentions that around $45 billion 
is lost each year due to the inefficiencies in India’s logistics network. One of the 
parameters contributing to this huge loss of efficiency is non-standards in the entire 
supply chain. This leads us to a debate on how to make our supply chains smarter. 
There are multiple dimensions on how this can be achieved, including adopting 
technology, robotics, robust processes, adhering to standards, developing internal 
infrastructure and most importantly skillful management. 
For warehouses to be deemed ‘Smart’, it should enable the movement of 
goods by ‘the least touch method’. One key component is how material is handled 
smarter at the warehouses. While most consultants and experts will talk about adopting hi-tech 
and high-cost automation opportunities, it is really about getting the basics right. 
Today, in India bottlenecks are created as goods move through the 
supply chain. It is important that this flow is seamless as goods move from supplier 
to manufacturer to 3PL to retail. Warehousing is one of the key pieces of this 
jigsaw puzzle. 
Technology definitely helps but the question is at what cost. Technology that 
may work in a developed market, where labour is scarce and hence expensive, 
may not make good business sense in India. Again it comes to basics, we 
have our racking systems, material handling equipment, docks and handling plat-forms 
such as pallets optimised to enable high throughput. Are there 
standards that enable ‘least touch’ in the warehouse? Does our warehousing 
support collaboration internally within our own supply chain or externally across 
suppliers as well as customers’ supply chains? Are the warehouses compatible? 
Many supply chain managers are adopting these basics and technologies that can reduce 
operating costs and increase productivity. 
Shesh Kulkarni, President  CEO, UFMI 
Technology is a necessity these days; it is increasingly get-ting 
imperative that the logistics industry at large, embraces tech-nology 
wholeheartedly. Organisations which fail to do so will be 
left behind in the coming years. 
With the growing demand of consumers and increasing use 
of e-commerce, the ease of transacting business for consumers 
and retail companies has become very easy. All this is enabled 
by an efficient technology platform. ‘Billion Sale’ by Flipkart is a 
classic example of how technology is driving business and effi-ciency. 
But the question remains, is industry ready to support 
this. Many companies are building their own infrastructure for 
on-time delivery of goods, and, the primary reason is cost. 
The model of e-commerce business and its ability to make money is still not clear to many. 
Therefore, the logistics industry today is not ready to support e-commerce business, barring a 
select few who have heavy assets and are leveraging this. For larger logistics industry to see 
benefit, and for them to experience gain from growth, it is still a challenge to bring their cost of 
operations down. 
The automation drive at customs, airport and ports in the coming years is going to be very 
interesting, and it will drive trade to adopt newer ways to do business. Future seems promising! 
Suunil Dabral, Country Head, Schaefer Systems 
International 
Changing trends in customer’s needs and purchasing power 
calls for ‘Just in Time’ and quick response inventory management, 
in order to meet the demand supply mismatch. In most of the sup-ply 
chains such as e-commerce and the fashion industry, distribu-tion 
channels from conventional retail and home deliveries, trans-porting 
individual orders directly to local stores or other pickup 
points are becoming more varied and complex. The increasing 
trends in the e-commerce industry are creating the need for com-plex 
and sophisticated order fulfilment processes. Management 
of these processes requires software and automated technologies 
with the increase in number of orders. 
In order to meet these uncertain future requirements and also to minimise distribution costs , 
an efficient supply chain has an important role to play. Complex tax structure could be one of the rea-sons 
why manufacturers and distributors implement the most economical options in warehouse and 
logistics, ignoring quality and efficiency. At present, companies handling manufacturing and distribution 
design their supply chains to reduce operational cost instead of value creation. 
Subhasish Ghosh, Director – Information Technology, 
Schenker India 
Technology is an important enabler for the efficiency of supply 
chain and complements it in the on-ground implementation. We see 
that cost and time factors can be made more favourable by using 
state-of-the-art technology for the supply chain which would bring 
in more efficiency and saving for customers. Modern day supply 
chain runs on technology and the dependency is increasing con-tinuously. 
Companies are investing a fair amount of resources in 
upgrading the technology to increase their efficiency. On the other 
hand, customers are more demanding than ever and as a service 
provider we are committed to fulfilling their expectations. 
In today’s world, we have access to technology however the implementation is very subjective 
as per the requirement of our customers and local market. In the Indian context, both are going hand 
in hand as far as internal or controllable factors are concerned; for others we have to be largely depend-ent 
on other external factors like market, infrastructure and policies. So there is a close correlation of 
technology and efficiency but necessities for performance and efficiency cannot be ignored. Innovation 
towards vertical specific solution will be the key differentiator and business initiator. 
Akash Bansal, Head – Logistics, Om Logistics 
To survive on the long and bumpy ride through the 
recent recession, many retail logistics executives focussed 
on cost reduction. However, this necessary objective drove 
important changes in the supply chain strategy, from net-work 
right-sizing to innovative warehouse automation and 
energy-efficiency tactics. Now that the economy is 
rebounding, and rising costs are on the horizon, every sup-ply 
chain strategy must address this new reality. An 
increased focus on channelising strategies and the need 
for faster delivery of more goods to more places could 
cause some pain. It is high time for industries to reassess their supply chain. 
One concern that always awakes the supply chain professionals is transportation costs. 
Trucks are responsible for transporting more than 80 per cent of consumer goods but with 
economic recovery, looming driver shortage and new federal regulations are expected to limit 
capacity and trucking costs are on the rise. This declining supply could leave supply chains 
in the tilt when they need capacity the most. 
Next and same-day delivery is on the fast track to becoming table stakes for retailers. 
To achieve these tight delivery times without asking customers to foot the bill, one should 
expand the distribution network to incorporate regional distribution centres in strategic markets. 
Location decisions based on manufacturing costs alone could ultimately cost more. 
As markets change and customer bases shift, the cost of transporting products to consumers 
could outweigh the value of lower manufacturing costs. To counter this, we should adopt 
region based manufacturing strategies. Making or sourcing products in the same region 
where they are consumed can reduce transport times, complexity and risk, and ultimately 
increase efficiency.

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Genex Logistics Coverage in Cargotalk - December'14 issue

  • 1. 8 CARGOTALK D E C E M B E R 2 0 1 4 DEBATE In search of a sustainable SCM It is prima facie that Supply Chain management (SCM) is simply moving a product or service from supplier to customer. However with the booming technology, supply has an important role to play in the efficient logistics system. In this issue, CARGOTALK focused on the challenges that hinder the smooth transportation. CT BUREAU Mansingh Jaswal, Director & CEO, Genex Logistics Today’s supply chain needs to deal with continuous volatility and that does not mean risk only but also opportunity when a competitor is not being able to deliver the same. In this process of evolution, the pace of change has increased manifold and technology has been at the helm of affairs, either to create the pace or manage it. Shippers are under continuous pressure to reduce supply chain costs as part of larger organisational goals. Largely the cost reduction has to come from two sources, either from simple incremental improvement in the ongoing process or from business remodelling itself. Most of the activities of an end-to-end supply chain happen outside the four walls of a warehouse and companies are largely looking at wireless solutions. However, the fact that the pace of change in technology is almost catching up with the expectations of the end consumer or the development in technology is raising the expectations of consumers. A lot of integration and automation upgrades still need to happen among shippers and 3PL providers to incorporate the emerging technology. E-commerce is a typical example of the role of logistics in busi-ness model creation. This is also an example of how technologies are deployed to bridge the gap between customer expectations and delivery. It does not end here, rather this has raised the expectations of consumers, resulting in the ongoing spiral that technology is creating. Hig h l i gh t s: SA Mohan, CEO, Maini Materials Movement The supply chain in India is largely inefficient, causing huge losses and stock-outs appertaining to the presence of intermediaries, infrastructural inade-quacy and complicated legislation. 13 per cent of India’s GDP is spent on logistics, which is an alarming fact. Proliferation of challenges in areas of reverse logistics, environmental sustainability, information technology and overall supply chain integration are further evolving the strategic roles and responsibilities of warehousing and material handling solutions in the growing field of intralogistics. Amalgamating new technology to increase efficiency of information exchanged whether through automation, Warehouse Management System (WMS), lean designs and vertical expansion, for example, high rise warehousing and distribution centres is not a nascent concept anymore. Today, it is observed to be a prerequisite for gaining competitive advantage and can help significantly increase customer service and reduce costs. The challenge for supply chain professionals lies in managing not only long-term growth but also in being equally responsive to short-term volatility, due to ever increasing consumer segments, greater number of products and emergence of new channels. Statistical capabilities, enhanced by technology, will enable us to take a leap towards smart supply chains and foster innovation adoption. Vikas Anand, Managing Director, DHL Supply Chain India IT is now perceived as a key enabler for all logistics offerings with companies relying heavily on IT automated solutions to ensure smooth logistics operations, which revolve mainly around WMS, TMS, EDI integration and visibility tools. India is a market with enor-mous growth potential for 3PL activity for those who can bring in value-for-money services of modern standards. While it is true that this industry is still in its nascent stage in India, things have picked up very rapidly in the recent past with more and more manufacturers realising the need for credible and experienced 3PL providers. Our infrastructure needs to be developed and while India is increasing outlays on roads and ports along with more tangible economic reforms, these infrastructure development projects have a long gestation period. We welcome the change and infrastructure upgrades that are taking place as these will benefit and facilitate our services to our clients. In India, logistics costs are very high compared to international standards owing to its underde-veloped infrastructure. Steps are being taken to improve the infrastructure, but the pace seems slower than the economic growth. Acceleration of road network improvement and expansion would mean huge savings on fuel, greener environment, enhanced safety and better turnaround time for customers. Jitender Panjwani , Head – Supply Chain, India Operations, Micromax There is a need to develop infrastructure to improve the Supply Chain Management function and a better reach to desired destinations. Roads are congested and of poor quality: Lane capacity is low; national highways are two lanes or less and a quarter of all India's highways are congested. Many roads are of poor quality and maintenance remains underfunded. More or less one-third of maintenance needs are met and this leads to the deterioration of roads and high transport costs for users. Railways are facing severe capacity constraints: All the country’s high-density rail corridors face severe capacity constraints. Freight transportation costs by rail are much higher than in most countries as freight tariffs in India have been kept high to subsidise passenger traffic. There has to be an immediate focus on trade lanes; on road connections and where road trans-portation is taking place. An immediate improvement in current infrastructure is required with safety and security for goods. Special cargo trains and unique material handling hubs with special features to cater volumes with minimal mishandling is the need of the hour for effective and responsive supply chain. Major improvements, such as good physical connectivity in the sector, are required to witness a rise in demand. Technology is driving business and efficiency but there is a need to look at cost also Technology development puts the older organisations under tremen-dous pressure The e-commerce industry created the need for complex and sophis-ticated order fulfillment processes Complex tax structure could be one of the reasons for the lack of economical options in warehouse and logistics Innovation towards vertical specific solutions will be the key dif-ferentiator and business initiators Automation drive at customs, airports and ports in coming years will drive trade to adopt newer ways to do business The challenge for professionals lies in managing not only long-term growth, but also in being equally responsive to short-term volatility Need better roads and quick pass-through of trucks at state borders There is a close correlation of technology and efficiency but necessities for performance and efficiency cannot be ignored Adopt technology in a way to reduce operating costs and increasing productivity
  • 2. DEBATE D E C E M B E R 2 0 1 4 CARGOTALK 9 Prashant Bopardikar, Chief – Projects Design, Future Supply Chain The world is changing today, especially India where, with the advent of e-commerce, efficiencies and ‘customer first focus’ supply chain is under continuous pressure to deliver what it commits. Today the supply chain has an important role to play to improve the firm’s profitability by reducing cost and time to market. Supply chain definitions have to change. It has to be more flexible, agile and customer centric. This is to ensure the final consumer gets what he or she has demanded on time and in full. Being able to identify and respond to events in time can be the difference between staying ahead of compe-tition or falling behind. Therefore, companies are looking for better ways to control the end-to-end supply chain. Current supply chain is continuously evolving and adapt-ing to changing needs that are driven by customer demand and preferences. Certainly there are roadblocks which need to be addressed and worked upon • We need better roads, quick pass-through of the trucks at state bor-ders, which means documentation has to be less extensive and quick. With the new government prioritising the GST roll out in the near future, it seems to be a reality • Use EDI to link all the legs in the supply chain for visibility across all stakeholders. With proliferation of e-commerce, this aspect is improv-ing but it needs speed • Invest in technology and automation as a long term strategic invest-ment • Multimodal infrastructure is not completely evolved; a greater focus is needed on this in terms of developing infrastructure through logistic parks, which provide flexibility to customer to use road, rail, air and sea effectively. Devdip Purkayastha, President, CHEP India A recent report from a leading international consultant titled ‘Building India: Transforming the nation’s logistics infrastructure’ mentions that around $45 billion is lost each year due to the inefficiencies in India’s logistics network. One of the parameters contributing to this huge loss of efficiency is non-standards in the entire supply chain. This leads us to a debate on how to make our supply chains smarter. There are multiple dimensions on how this can be achieved, including adopting technology, robotics, robust processes, adhering to standards, developing internal infrastructure and most importantly skillful management. For warehouses to be deemed ‘Smart’, it should enable the movement of goods by ‘the least touch method’. One key component is how material is handled smarter at the warehouses. While most consultants and experts will talk about adopting hi-tech and high-cost automation opportunities, it is really about getting the basics right. Today, in India bottlenecks are created as goods move through the supply chain. It is important that this flow is seamless as goods move from supplier to manufacturer to 3PL to retail. Warehousing is one of the key pieces of this jigsaw puzzle. Technology definitely helps but the question is at what cost. Technology that may work in a developed market, where labour is scarce and hence expensive, may not make good business sense in India. Again it comes to basics, we have our racking systems, material handling equipment, docks and handling plat-forms such as pallets optimised to enable high throughput. Are there standards that enable ‘least touch’ in the warehouse? Does our warehousing support collaboration internally within our own supply chain or externally across suppliers as well as customers’ supply chains? Are the warehouses compatible? Many supply chain managers are adopting these basics and technologies that can reduce operating costs and increase productivity. Shesh Kulkarni, President CEO, UFMI Technology is a necessity these days; it is increasingly get-ting imperative that the logistics industry at large, embraces tech-nology wholeheartedly. Organisations which fail to do so will be left behind in the coming years. With the growing demand of consumers and increasing use of e-commerce, the ease of transacting business for consumers and retail companies has become very easy. All this is enabled by an efficient technology platform. ‘Billion Sale’ by Flipkart is a classic example of how technology is driving business and effi-ciency. But the question remains, is industry ready to support this. Many companies are building their own infrastructure for on-time delivery of goods, and, the primary reason is cost. The model of e-commerce business and its ability to make money is still not clear to many. Therefore, the logistics industry today is not ready to support e-commerce business, barring a select few who have heavy assets and are leveraging this. For larger logistics industry to see benefit, and for them to experience gain from growth, it is still a challenge to bring their cost of operations down. The automation drive at customs, airport and ports in the coming years is going to be very interesting, and it will drive trade to adopt newer ways to do business. Future seems promising! Suunil Dabral, Country Head, Schaefer Systems International Changing trends in customer’s needs and purchasing power calls for ‘Just in Time’ and quick response inventory management, in order to meet the demand supply mismatch. In most of the sup-ply chains such as e-commerce and the fashion industry, distribu-tion channels from conventional retail and home deliveries, trans-porting individual orders directly to local stores or other pickup points are becoming more varied and complex. The increasing trends in the e-commerce industry are creating the need for com-plex and sophisticated order fulfilment processes. Management of these processes requires software and automated technologies with the increase in number of orders. In order to meet these uncertain future requirements and also to minimise distribution costs , an efficient supply chain has an important role to play. Complex tax structure could be one of the rea-sons why manufacturers and distributors implement the most economical options in warehouse and logistics, ignoring quality and efficiency. At present, companies handling manufacturing and distribution design their supply chains to reduce operational cost instead of value creation. Subhasish Ghosh, Director – Information Technology, Schenker India Technology is an important enabler for the efficiency of supply chain and complements it in the on-ground implementation. We see that cost and time factors can be made more favourable by using state-of-the-art technology for the supply chain which would bring in more efficiency and saving for customers. Modern day supply chain runs on technology and the dependency is increasing con-tinuously. Companies are investing a fair amount of resources in upgrading the technology to increase their efficiency. On the other hand, customers are more demanding than ever and as a service provider we are committed to fulfilling their expectations. In today’s world, we have access to technology however the implementation is very subjective as per the requirement of our customers and local market. In the Indian context, both are going hand in hand as far as internal or controllable factors are concerned; for others we have to be largely depend-ent on other external factors like market, infrastructure and policies. So there is a close correlation of technology and efficiency but necessities for performance and efficiency cannot be ignored. Innovation towards vertical specific solution will be the key differentiator and business initiator. Akash Bansal, Head – Logistics, Om Logistics To survive on the long and bumpy ride through the recent recession, many retail logistics executives focussed on cost reduction. However, this necessary objective drove important changes in the supply chain strategy, from net-work right-sizing to innovative warehouse automation and energy-efficiency tactics. Now that the economy is rebounding, and rising costs are on the horizon, every sup-ply chain strategy must address this new reality. An increased focus on channelising strategies and the need for faster delivery of more goods to more places could cause some pain. It is high time for industries to reassess their supply chain. One concern that always awakes the supply chain professionals is transportation costs. Trucks are responsible for transporting more than 80 per cent of consumer goods but with economic recovery, looming driver shortage and new federal regulations are expected to limit capacity and trucking costs are on the rise. This declining supply could leave supply chains in the tilt when they need capacity the most. Next and same-day delivery is on the fast track to becoming table stakes for retailers. To achieve these tight delivery times without asking customers to foot the bill, one should expand the distribution network to incorporate regional distribution centres in strategic markets. Location decisions based on manufacturing costs alone could ultimately cost more. As markets change and customer bases shift, the cost of transporting products to consumers could outweigh the value of lower manufacturing costs. To counter this, we should adopt region based manufacturing strategies. Making or sourcing products in the same region where they are consumed can reduce transport times, complexity and risk, and ultimately increase efficiency.