"We can expect technological advancements in production logistics to originate from India"

...says Rohit Kapur, managing director, FlexLink Systems India Pvt Ltd, a knowledge-based company  with deep roots in industrial manufacturing and ideally positioned to meet the growing need for flexible automated production processes. A wholly-owned subsidiary of FlexLink AB, Sweden, Kapur joined FlexLink soon after its incorporation in 2006. His earlier stint was with Danfoss (India) Ltd (presently known as Indfos Industries Ltd), where he served as the president and was also on the board of directors. In his current role, Kapur has been charting ambitious growth plans for the company, which caters to various industries like automotive, engineering, FMCG, food and pharmaceuticals. He shares his thoughts on the present industry trends and his company's future growth plans in this exclusive e-interview with Archana Sharma.  Excerpts...

Role of production logistics in packaging...

Production logistics can be defined as the management of material and information flows in production process. Basically, all production processes culminate in the packaging of products. Production logistics, therefore, play a vital role in efficient transportation, tracking and management of the product during packaging. Its role in packaging includes picking and placing or filling the product in their individual packages and counting the individually packaged products through checkware. It also finds usage in screen, laser or other forms of printing on the individually packaged product; packing the individual products into secondary packing like cartons or crates through picking&placing mechanisms; conveying&palletising the packed products to stores and organising the storage&retrieval of packages in the stores through automated storage and retrieval systems.

Further, it finds usage in integrating this entire process into the material management system to ensure that complete real-time online information is available on stock levels, receipts and dispatches. All these processes could have varying degrees of automation, justified by the volumes involved. However, there are many advantages like reduced floor space requirements, fewer products in line and lower packaging & handling costs that ensure lesser errors in packaging & dispatch.

Recent initiatives in production logistics for the packaging industry...

There is a whole range of technological innovations available to factory managers. They can select any method to make their packaging functions efficient and cost-effective. The innovations include modular & flexible systems, functions to stop, merge, elevate, lift and accumulate packages including pick & place systems integrated with palletising & robotics, if appropriate, and automated storage & retrieval systems. There is also a range of tracking systems integrated with the above ranges like sensors, RFID, bar coding, etc to track not only the location, but also the quantity and quality.

The shape, size and firmness of the package being conveyed also play an important role in selecting the appropriate technologies for transporting and tracking the packages. Today, solutions for these are available, which hitherto were not amenable to automation.

FlexLink's area of expertise...

FlexLink AB Sweden is a world leader in the field of production logistics. Broadly, we cater to the automotive, electronics, FMCG and healthcare segments by making a comprehensive offer of hardware, software, integration and subsequent service & support. The hardware includes a variety of material handling equipment including conveyors, structurals, sensors, controls, robots, etc. The software offer encompasses designing appropriate solutions for a factory process including the layouts, the automation required and the programming of the material flows and storage. FlexLink has a unique global footprint by virtue of its presence in 28 countries worldwide through wholly-owned subsidiaries with 140 application engineers, 140 project engineers and 40 research engineers.

USP of FlexLink...

FlexLink Systems India Pvt Ltd started its operations in mid 2007. The company is headquartered in Gurgaon and has regional offices in Pune and Bengaluru. These ambitious growth plans are in line with the growth forecast for India and Indian industry in particular. Having achieved sales of Rs 4.25 crore in 2007, our target is to reach sales worth Rs 30 crore by 2010.

Our USP is that we are not limited to packaging. We endeavour to provide holistic turnkey production logistics solutions to factories. Also, FlexLink, through its centres of excellence and area system houses, continually upgrades existing technologies and introduces new products. We, in fact, significantly contribute to setting global standards in production logistics. This instills confidence in our customers, who rely upon us to provide them with optimum factory automation solutions. Besides, our strength also lies in the fact that we are present in 28 countries. The information bank on new applications and their solutions proves to be a powerful engineering support to all FlexLink units worldwide and therefore to our customers as well.
  
Current trends witnessed in production logistics segment in India...

Growing demand for large volumes of high quality products in both domestic and export markets have compelled the Indian industry to seriously consider the impact of effective production logistics on productivity, efficiency & reliability of the production processes, and consequently upon the quality of the products. Earlier, the transfer of material through the manufacturing processes was done manually as it was felt that it would be cheaper than making investments in production logistics. Progressive factories quickly realised that appropriate automation of the manufacturing process can yield quick dividends in terms of higher throughput, higher quality and consequently lower costs. The users seek suppliers of production logistics, who are capable of studying the manufacturing process and suggesting optimum solutions, which are flexible, efficient and easy to handle with low maintenance requirements. Appropriate level of automation can be selected depending upon, principally, the volume, speed of output and complexity of the manufacturing process, among other factors, justified by the return on investment (ROI).

Production logistics sector in India vis-à-vis other nations...

Logistics and storage technologies become crucial as production volumes rise in tandem with the growth in demand. With rising GDP and disposable incomes in the hands of the growing middle class, India, too, is witnessing growth in demand for a whole range of high quality products. This has necessitated the implementation of efficient production logistics by those factories, which have increased their output in line with the growing demand. The number of such factories will grow with rising demand for an increasing number of products. At present, there are a number of local suppliers who cater to some aspect or the other of production logistics, but there are very few suppliers offering holistic turnkey solutions. A growing number of project managers now recognise the need to specifically plan and budget for production logistics while setting up factories. This is a growing trend and will lead to the entry of competent suppliers of production logistics in the country.

Opportunities and threats for suppliers of production logistics in India...

Opportunities abound in this industry.The threat, if that is what we want to call it, is only if the supplier is unable to fully understand the users' needs and is unable to offer appropriate, flexible and cost-effective solutions that are relevant in the Indian context. Any supplier who can custom design material handling solutions and offer equipment, which meet the users' requirements will always be successful. The user should be satisfied about the fact that he has received value for every rupee
of investment made.

On strategies that will boost the production logistics industry...

First and foremost, while there is already a growing awareness, it is important that the players should interact with the industry to inform them about the benefits. They should also make them understand as to how the offer is more efficient and economical to plan for production logistics in the initial stages of project planning. Second, the solutions offered should be flexible, user-friendly, low on maintenance, robust and reliable. Last, but not the least, the investment should deliver a justified return. If we, as suppliers, can offer this to our customers, it will instill confidence in them and encourage them to make investments. We shall be perceived as partners in their growth and not as mere suppliers.

The future of production logistics in India...

Over the decades, globally, the scope of production logistics has widened dramatically from the modest pallet to sophisticated conveying systems with automated traffic management and robots. It has also varied from a manual recording of material flows to sophisticated information systems integrated smoothly with the manufacturing processes on a real-time online basis. India is squarely on the path of progression and will soon be abreast with developed countries as far as these technologies are concerned, and before long, we can expect technological advancements in the field of production logistics to originate from India.