Vol.1 No.19 / March 2012

SSuuppppllyy CChhaaiinn IInnddiiaa

Resigned!

Ramesh Kumar, Publisher & Editor-At-Large

Arvind Ambo, Senior Vice President, Credence Logisitics, is in a murderous mood. So also someone at Gati Ltd. Over the past few weeks, I was inundated with authentic inputs that senior executives who were once touted as the backbone of these organizations and who would help achieve the scripted big dream goals have quietly put in their papers and moved out or in the process of moving. When you track the industry such as logistics, still in its infancy that is yet to get the respect it deserves, it pains a lot to know the gem of talent that you have interacted with over the past two years have deserted for greener pastures. What’s happening? Coming back to Arvind, a respected new breed of logistical industry professionals in less than five years, he was fretting and fuming when I tweeted last week that Harsh Saksena, a veteran in surface transport, who was part of Credence Logistics, left to join DHL Le Muir. Well, he was not the only one to bid good bye to Credence. Other topnotch seniors who scooted out include Suryanarayan Singh, rail logistics specialist, and Hitesh Gossain, the senior most and No.2 to CEO Pradeep Tewari,when I did a cover story for Logistics Times (co-founded with two colleagues) in January 2011. Second tier executives – hands and operational heads such as Ram Vihari also quit to join APL Maersk. More than Arvind, I was perplexed. Why so much desertion? Everyone of them whom I have called up to cross check their exit confirmed and explained that they decided to move out for ‘better career prospects’. Understandable. Arvind felt my tweeting may cause damage to the reputation of his company and gave vent to his feeling in a strong email. As luck would have it, the very next day happened to be Pradeep Tewari’s (March 3) birthday, I called up him to wish and clarify that my intention through tweets was not to damage Credence’s image but to capture happenings in the industry. The soft spoken Credence CEO, who would have been a professor but for the quirk of fate that drew him to logistics, explained that he never stopped anyone who wished to leave “for better prospects” and elaborated on what his company is upto. Yes, there are challenges to be confronted and he was hopeful of surmounting them all. There was no remorse in his voice. Not accusatory in tone. Thanks, Pradeep! In a similar way got to know that Sameer Khatri, Gati’s international operations head, has put in his papers. Sameer, confirmed his proposed exit. Once again, he was someone whom I had met among several other the crème-de la-crème of Gati for a cover story mid-2010. So I know this company seniors inside out. Big plans approved by founder and managing director Mahendra Agarwal have to be executed by these blue-eyed men of highest talent. But … there again, executive exodus. Right hand man, Harry Lagad, left to join Toll Logistics of Australia with Singapore as base to enlarge business scope in South Asia, including India. Globally renowned cold chain expert Pawanexh Kohli, heading Gati’s cold chain, left for Arshiya International a few months ago. (Pawanexh, moved out from Arshiya also recently!). Howard-Scott James, the Brit who had served the British Army as Logistics head, before touching down India and work with Gati as Chief Supply Chain Officer also left to start his own consultancy. Two respected companies, whom I was tracking, losing out the top notch team and naturally I was concerned. …. Concerned is too strong word. But, on second thoughts, that is the right word because these bunch of experts were trying to pump in respectability into logistics industry with their exposition and

interaction with the end-users in India. And succeeded immensely. Until their arrival on the Indian horizon, logistics meant just transportation and it was not a ‘respectable’ industry. No doubt, the likes of DHL, FedEx, UPS, Panalpina, Schenker, Kuhne + Nagel were present for long. But they were in different league with thrust on freight forwarding for outside India. Not within. The likes of Gati, Credence and several others when came about gave a lot of hope. Naturally, the news about seniors leaving these companies, I strongly felt, would affect their plans under implementation. That brought me back to the issue of “Executive Exodus”. While the rationale of “leaving for greener pastures” was understandable and acceptable, it helped me rewind my dialogue with owners on professionalizing their organizations. “How dependable these professionals are, tell me?” demanded a chairman of most respected logistics company in his spacious chambers. “Show them a Rs.1,000 jump in their monthly paycheck and I guarantee that they would jump,” he argued. There is no loyalty to the organization where they work. Forget about life long loyalty. Not even time bound, goal-oriented commitment.

There are two sets of deserters. One lot goes to work for better paymasters. Another lot wants to test their own business instincts as entrepreneurs. Fortyish Mansingh Jaswal, founder-owner of GenEx Logistics, is a prime example. “The urge is always there to start your own. Career path planning certainly kicks in. After that, what? After that, what? … Beyond a point, your growth is stunted. That’s when you look around, examine your business potential, your capacity, your risk-taking ability and take a plunge,” explains the bespectacled MDI (Gurgaon) alumni while sipping lemon tea at Radisson coffee shop on a Saturday evening. I listen in rapt attention as GenEx supremo unspools over two and a half hour exposition on where he is heading. I feel happy for him. What if, he were to fail? I ask him. He is ready to face failure, pat comes reply. I salute that spirit. Unless you experiment, how will you gain experience? he asks rhetorically. It is his own money. Gutsy guy.

Mansingh has entered and exited the portals of Expeditors, DHL (India and Singapore), BLR Logistics over a span of 15 years and last November floated his own GenEx Logistics with a clear focus on freight forwarding, contract logistics, warehousing & distribution in the retail space. Six crore Rupees turnover in the first financial year is what he is assured of this year. I can see the spark in his eyes. Hunger for growth. “I could have remained working for someone, but decided to explore my potential,” adds he. Howard Scott James, ex-Gati, runs his own consultancy and finds his hands full with opportunities. Honestly, he does not have time for a cuppa with me for over five months. How, when are we meeting? But there are companies where senior executives have stayed put for more than a decade, despite the owner-driven culture. A senior most executive, next only to owners, says that his stay is fine with the organization, because “I enjoy 100% freedom to decide”. No over the shoulder or micro-managing by the foreign-educated owners. By the way, this suave CEO has been delivering consistently in his sphere of operation. In another logistics company, seniors have been there for much longer than a decade, micromanaged by the chairman. “I am comfortable. I have no career ambitions and at the same time, my interests are fully taken care of by the organization. Why should I worry?” asks a No.2 in this company. Understandable. The logistics industry is definitely growing. It is attracting talent in small doses. In the days to come, it will draw a lot more

because - there is a huge shortage of talent at every level. However, these young talent is greedy and aspire to rise in the shortest possible time. This certainly would create hiccups for companies. So, executive exodus will become a permanent feature. It has to be factored in while bluepencilling growth strategy. Plans may go haywire. That’s where the shrewd planners – owners and their band of loyalists(!) – have to factor in this short-termism of the young talent. Exciting times are ahead. Projects are galore. Businesses are willing to outsource more jobs to 3PLs. Super execution plans are drafted with hypothetical managerial strength. It’s a risk. But rewards are mouth-watering. A tight rope walk, indeed. The final, authentic, word came from a professional CEO, not owner: “Men may come, men may go. But business will continue. Yes, there will a minor turbulence. What’s life without such challenges? Perhaps this exit will usher in better talent. Who knows?” Yes, who knows? Send your feedback to ramesh@konsultramesh.com

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