Snowman Logistics is on the right growth track with its expansion strategy as it increases its operational capacity in Siliguri and Coimbatore. By October 2021 they would have operations in 17 cities and 38 warehouses with a total of 1,20,000 pallet positions of shared warehouses and 1,10,000 sq. feet of e-commerce fulfilment centres informs Sunil Nair, CEO and Whole-Time Director, Snowman Logistics in this exclusive interaction with Rajesh Rajgor
Snowman Logistics, a market leader in integrated temperature-controlled logistics services, is on an upward trajectory. It is on a rise by not only catering to its clients’ diverse cold chain logistical needs across India but also further expanding its operational capacities. At present, Snowman Logistics caters to an extensive network of reputed clients which source and consume temperature-sensitive products in bulk amounts through 37 strategically located temperature-controlled warehouses with a total pallet capacity of 1,13,544 across 16 cities, including the key markets of Mumbai, Chennai, Bengaluru and Kolkata.
The company that currently provides a variety of services such as dairy products like butter and cheese, canned foods, poultry and meat, seafood, healthcare and pharmaceutical products has extended a further 4,032 pallet capacities at Siliguri, West Bengal. A similar facility is under construction at Coimbatore and is expected to be ready and operational by the end of October 2021. Sunil Nair, CEO and Whole-Time Director, Snowman Logistics, elaborates: “We see huge potential to profitably expand our business. We have made great strides in our transportation aggregation model thanks to our SnowLink technology platform. This enables us to provide end-to-end services to an additional set of customers. All of this should help us reduce our overheads. Our IT systems are the best in the industry and are designed to handle 3 million pallets. We are pleased that all such investments are being optimised.”
The company has the capacity to move 38,000 tons of material per month through own and leased trucks which bifurcates into approximately 160 light commercial vehicles and 240 medium and heavy commercial vehicles. “Out of the 400 trucks that we deploy, as per customer’s segment and application, 293 are company-owned and over a 100 trucks are routed through the market with our own app SnowLink. A fast food chain across multiple cities would require medium and heavy commercial vehicles while an ice cream brand with more outlets in interior locations would ask for a small or light commercial vehicle for their needs. All throughout the years of operations we have been known for customisation and flexibility in terms of vehicle movement,” informs Sunil.
Building the Resources
To move raw and finished products from one location to another, the supply chain relies on efficient asset management and logistics. When shipping goods around the world, it’s critical to build an efficient asset that makes for the best transportation resources. The combination of optimised container, vehicle and other asset utilisation with effective logistics execution greatly improves operational efficiency, security and speed. It thus doesn’t surprise that a logistics major like Snowman Logistics puts a great focus on the make and model of the vehicle and robust warehouses for seamless logistics operation.
Sunil adds: “Our vehicles are designed as per customers’ specifications and also largely on the standard industry features on par with global technologies. All our vehicles boast of 20 degrees Celsius temperature capacity and the refrigeration units are either opted from experts in the field like Carrier and Thermo King. Each vehicle boasts of telematics that is traced by the command centre in Bangalore. It monitors 24 x 7 alerts related to speed of drivers, unauthorised stoppage, location, temperature of vehicles in transit, etc. Our vehicles are outfitted with GPS and data logging systems. This means that customers can not only receive real-time updates on the cargo while it is in transit but they can also be confident that the products’ specified temperature was not compromised.”
Similarly, the company relies on the reputed workmanship of Suraksha. “We prefer to work with Suraksha containers who make the reefer containers for us. They are a renowned name in aluminium and steel composite refrigerated containers, GRP sandwich panel containers and PUF insulated containers and they design the body as per our specifications. Our emphasis on quality body while the body is in construction has brought us where we are today. We visit their plants, check the material, inspect the PUF insulation and workmanship and together with a goal to deliver the best, achieve what we require,” he explains.
When it comes to reliable and optimised warehouse, Snowman Logistics has developed and continues to invest in world-class temperature-controlled warehouses. Sunil asserts: “Our warehouses are set up adjacent to cities with a large potential for sourcing and/or consumption of temperature-sensitive products. Emphasis on client service through SnowPreserve enables us to provide warehousing solutions and services at a variety of temperatures ranging from ambient to chilled to frozen (+25°C to -25°C) as well as a number of blasts freezing facilities in key locations throughout India. At our warehouse too, we have complete flexibility for the clients as the command centre monitors and tracks the temperature and activities of each goods stored. We have given access to our customers to see what the temperature is in their chambers.”
The majority of the company’s warehouses are ISO 14001 (TUV-SUD), ISO22000 (TUV-SUD), and FSSAI-certified. Four warehouses are EIA and MPEDA (Marine Products Export Development Authority)-certified and four warehouses are Drugs and Cosmetics Act of 1940-certified. Snowman Logistics has also built a food and grocery e-commerce backend (fulfilment centre) in Mumbai. The facility is already up and running. It is a 54,000 sq. feet warehouse with a freezer, chiller and ambient storage as well as various value-added services such as sorting, grading, packing, labelling, and so on.
Another e-commerce facility is being built in Pune and it is expected to be ready and operational by the middle of September. The company has also expanded in their current locations, including Mumbai (1,944 pallets) and Krishnapatnam (560 pallets). Palwal expansions are currently under construction, adding 720 pallets. “We are pleased that we are on track with our expansion strategy. The expansions at existing locations are to handle increased customer volume as we were operating at 92% of our existing utilisation and the new locations would help us provide a larger geographic footprint to our customers,” Sunil adds.
Leading with Value-Added Services
The goal of supply chains is to add value to manufacturing and distribution. Supply chains can be differentiated based on criteria such as cost, time reliability and customisation to the markets and value chains they serve. Snowman Logistics addresses these value-additions depending on clients’ segments. “Our solution to a QSR may not fit a seafood exporter. So, customisation on a level of segmentations can vary from the process of taking orders, process of loading and unloading, picking and packaging products, etc. Value-addition sis based on what a customer’s nature of orders and requirements are. Snowman Logistics believes in providing clients with a one-stop shop. To that end, in addition to warehousing and distribution, we offer kitting, labelling, sorting, stuffing and de-stuffing of containers, repacking and bulk breaking,” Sunil informs.
“We also sort, grade, pack and wash fresh fruits and vegetables. The blast freezer installed in some of our major temperature-controlled warehouses allows us to speed up the temperature reduction by freezing the products to -40°C. Many a fruits and vegetables for leading e-commerce players go through our facilities,” he adds. It doesn’t end here; Snowman Logistics extends support also at inventory management level for many a client. He continues: “We also add value with labelling and bonded warehouse services to customers importing goods until they clear it. Inventory management services are also provided to clients who outsource this decision of what to buy, how much to buy and how much to hold.”
“Our value-addition is also extended if a customer asks us to do quality inspection of their goods before loading and unloading. Thus, anything which is post production and before consumption is something we proudly take care of,” he adds. Snowman Logistics’ warehouse infrastructure includes sophisticated equipment handling and racking systems, as well as WMS and ERP systems. This enables the company to not only analyse their own performance metrics in order to maintain high standards of service but also to provide valuable data to customers for inventory management and optimisation.
Validation of Efforts
Snowman Logistics’ efforts in building resources and providing top-notch quality have been validated by its customers time and again. In June this year the company had a strategic partnership with Dr. Reddy’s Laboratories Ltd. for storage, primary and secondary transportation of Sputnik vaccine in India. “Snowman Logistics’ end-to-end logistics for vaccines in the country and its envious national reach will prove significant in vaccine distribution. Our offering of storage, order processing, shipper packing and secondary transportation through our wide network only adds credibility to our infrastructure and distribution and bolsters our efforts in the pharmaceutical sector,” states Sunil.
With all these additions, the company is expecting a CAGR of 20%. “With a focus on the pharmaceutical and e-commerce sectors where we have seen huge increases in demand since the outbreak of the pandemic, especially given the scarcity of capacity in the organised sector, we are expecting that all our investments towards expansion will give us full utilisation towards revenue from next year,” he says. The company that enjoys a leadership position in the country wants to be the best in the world. “The efficiency of our technology and infrastructure has been validated by several MNCs on the basis of what they have experienced with us. We have been pioneers in the services (capacity and distribution) cost and the technology we offer. Now that we have passed the learning phase, we can use the learnings and expertise to convert that into profit and benchmark again the best in the world. India is showing promising growth in the cold chain sector and the top four sectors i.e. QSRs, seafood, pharmaceuticals and e-commerce will flourish further, providing immense growth opportunities to the organised players in the cold chain industry,” he concludes.