In an exclusive interaction, CJ Darcl highlights the global challenges faced by the world of logistics and shared its pov about technological advancement.

Can you tell us about the current market for warehousing and logistics in the mining and industrial sectors?

The logistics and warehousing sectors have become crucialto the supply chain and distribution system.According to a recent McKinsey Global Institute (MGI) report, India’s logistics sector would expand at a Compound Annual Growth Rate (CAGR) of more than 10 percent, from $200 billion in early 2020 to at least $320 billion in 2025. New emerging trends such as Omni channel shipping, globalisation, compliance, and so onare reshaping the logistics and warehousing industry. Logistics and warehousing drive growth in the segment, which is critical in stimulatingthe Indian economy in the post-covid world, thanks to technological advancements, consolidation, government support, newer business models, and investment.

While cement, coal, steel, and aluminium have seena spurt in demand due to various factors, such as the decarbonisation of metals like nickel, cobalt, and lithium, which are used as raw materials for rechargeable batteries has indirectly raised the demand for logistics. The green transition is also focusing on theincreasing demand for metals and minerals, needed to produce wind turbines, solar panels, electric vehicles, battery storage, and other electronic equipment. Forthe mining and industrial sectors, CJ Darcl assigns a dedicated fleet to its mining zone to supplement the movement of these materials from nodal point A to point B.

What kind of logistic solutions do you offer for the metal and mining industries?

Keeping in mind environmental sustainability, CJ Darcl logistics has successfully extended its operations via rail by innovating multi-direction routes connecting the length and breadth of the country to achieve shorter delivery times and more cost-effective solutions. CJ Darcl gathers cargo from various locations and clients, transport them to the warehousing terminals, and then dispatches it by train in 80 to 90 container rakes to the destined regions or markets. CJ Darcl also has its dedicated tip trailers to the assigned mining zone, which help in transporting iron ore and other resources to the market or their destination. For metal and mining, CJ Darcl introduced its specialised containers to ease the movability of cargo to its clients.

How are you dealing with global supply chain challenges?

The global supply chain faces many challenges, which may have lasting ripple effects on the supply chain.Challenges such as labour shortages due to high demand for wages, delays in deliveries due to lack of infrastructure and resources, unstable demand and supply, continuous changes in trends and socio-political changes are highly responsible for increasing fuel tariffs and logistics costs. Other challenges like environmental sustainability are also foreseen in the coming years.

CJ Darcl is addressing these global challenges by implementing leaner logistical solutions and, as a result, expanding its operations with new verticals such as Surface Express, Warehousing & Distribution, Air Cargo, Coastal, and Railways, among others, to avoid waste and achieve last mile deliveries promptly. CJ Darcl is also integrating technology, which will act as icing on the cake for supply chain management. CJ Darcl leverages technology for operational efficiencies and has mostly computerised its operations with SAP ERP. For environmental sustainability, CJ Darcl is aligned with government initiatives and working towards building a network of low carbon emissions by extending its operations from road to rail and coastal. CJ Darcl is also seeking ways to use electric vehicles for short-haul distances.

How are innovative technologies assisting you in maintaining efficiency across the value chain? The Indian supply chain is changing rapidly when it comes to technological innovations. New technologies are uplifting the supply chain by enabling real-time deliveries. CJ Logistics assisting in new Innovations like Technology Engineering Systems & Solution Consulting (TES) transforming operations from traditional to advanced techniques in logistics. The use of AI/ML and robotics in warehouses is automating logistics.

These technologies have a bigger impact in India, where most work is still done manually. Technological advancements are transforming traditional sourcing, shipping, and inventory management methods, among other things.

What investments do you intend to make in your facilities in the coming years?

CJ Darcl’s vision is to become a leading total logistics solution provider for its customers, and this will require a focused approach to nurturing its multiple business verticals. CJ Darcl is working towards expansion of its warehousing and distribution business to 17 lakh sq. ft in 2022–23, eventually reaching 40 lakh sq. ft in 2025-26 in Delhi NCR, Mumbai, Kolkata, Chennai, Bengaluru, Hyderabad, Anantapur, Calicut, and Gwalior. As part of its growth strategy, the company will implement a common warehouse and integrated management system for current Consumer Packaged Goods (CPG) customers to reduce logistics costs. CJ Darcl plans and prepares the availability of warehouses per the cargo category by using Automated Storage and Retrieval (ASRS), which enables the company to choose the suitable space and condition for the specific cargoes and therefore offerscarousel storage and temperature-controlled warehouses as a part of the customer facility.

For more details visit: https://cjdarcl.com/