The document discusses the importance of logistics in supporting India's "Make in India" initiative to transform the country into a major manufacturing hub. It notes that efficient logistics will be crucial to attract foreign investment and manufacture goods for domestic and international markets. Developing transportation alternatives like waterways and rail can reduce reliance on high-cost road transport and help lower logistics costs. The article emphasizes that a well-planned logistics strategy is essential for businesses to deliver goods to customers reliably and maintain competitiveness.

1. GUESTCOLUMN3 2 CARGOTALK SEPTEMBER 2015
Logisticscrucialto‘MakeinIndia’initiative
Every business establishment is
aimed at providing quality, timely
and effective products or services to
their customers as a means of retain-
ing them and opening more cus-
tomer doors. Business logistics is
very important in business for it
actually leads to the ultimate
consummation of the sales
contract. Logistical support
enables the actual movement,
delivery and transportation
of goods or services from a
seller to a buyer.
By initiating‘Make in India’cam-
paign, we are basically inviting foreign
manufacturers to produce in India.
However, it can only succeed if effi-
cient logistics is made affordable. If
we want to produce for the market,
there needs to be a way to distribute
it in an affordable manner, which can
be managed by producer.To export,
there should be adequate capacity
and deep draughts at ports to ensure
faster turnaround of vessels.Vessel
turnaround time at ports should be in
line with the global practice; instead
of four days, it should take a maxi-
mum time of day-and-a-half.
Today the increased depend-
ence on road logistics is increasing
the burden on local manufacturer.
Besides, the high cost of road logis-
tics highly demoralises the local
manufacturer doing business. The
only way to solve the situation is by
developing other means of transport
like seaways and railways, which
shall reduce the dependency on the
road transport avoiding the higher
cost involved in it.
The logistics department is one
of major departments in multinational
firms. Logistics at a global stage is
very crucial in globalisation. Very
many businesses are involved in
multinational trade, hence the neces-
sity of well laid out coordination of the
shipment of goods has increased.
Efficient logistic systems throughout
the world economies are the basis
for trade.
Logistic support has gained
importance in international market-
ing as a result of technological
advancements in information and
communication technology. The
internet has allowed for the ease of
shipping handling and most compa-
nies are restructuring their opera-
tions globally. Advancements in
communication and information
industry enable logistic managers to
update sales and plan inventory
faster and more frequently.
Establishing a logistics plan is
essential. Pointing out the steps
required and the personnel who will
be assigning responsibilities to those,
who will be performing the specific
tasks is also essential. An efficient
plan is necessary for the planning or
controlling of activities of an organi-
sation. It has to be clearly defined
in order to avoid vagueness or
confusion that could interfere with
the accomplishment of the
desired goals.
While drafting such a plan, it is
important to keep in mind all the pos-
sible present and the future scenar-
ios.A logistic manager needs to have
the capability to carefully plan,
analyse and implement forecasts to
a considerate extent on behalf of a
firm.The plan he or she drafts should
be organised such that every
employee knows their duties, respon-
sibilities and roles.Coordination and
understanding between all the
departments will enable the realisa-
tion of the goals of such a plan.
Logistics planning too is an
important part of business nowa-
days.How quickly and reliably goods
are delivered to customers can mean
the difference between retaining your
customers and losing them. A great
deal of business logistics comes
under the heading of marketing and
specifically, distribution.The planning
phase is the most important followed
by good implementation of a logistics
plan.It is not only the speed of deliv-
ery that matters, but also the product
quality and customer service.
A buyer is always concerned
with the actual delivery of goods or
services as per the agreed sales con-
tract.He or she is not interested with
the promises of a seller about their
capability to supply the same; it is
assumed. Delivery of goods or serv-
ices to a buyer according to the sales
agreement is important so as to avoid
legal tussles that may arise as a
result of delays or failed contracts.
Timely deliveries and honouring con-
tracts is essential in maintaining your
clients and obtaining repeated orders.
Effective logistical systems con-
tribute heavily to the achievements
of the firm and its marketing objec-
tives. It is very essential in creating
place and time utilities in the products
in order to maximise customer satis-
faction.A quick and timely delivery in
minimum time and cost relieves the
customer of excess inventories and
subsequently brings down the cost
of carrying inventory, transportation
and material handling.This improves
customer service and reduces costs.
In a nutshell, ‘Make in India’
campaign is not a far dream if the
solution to the obstacles are
answered or combatted judiciously
by efficiently developing other means
of transport.Introducing policies per-
taining to the reduction of the cost of
logistics and by introducing Goods
and Service Tax (GST), which will
reduce the other taxes will also
reduce the logistic costs involved.
The ‘Make in India’ strategy planned by the government aims to transform the country
into a major manufacturing hub and encourages foreign companies to come and
manufacture in India. As the initiative plans to garner huge investment, bringing lots of
capital into India it cannot be denied that the need for efficient logistics would also be felt
to cater to the same.
Deepak Baid
Director
Siddhi Vinayak Logistic
A second weekly freighter
flight was initiated to Chennai by
Cargolux in partnership with
Oman Air from August 11, 2015.
The partnership inked in April
2015 between Oman Air and
Cargolux enables both to jointly
access new freighter destinations
and contribute to the logistics facil-
ities of Oman. Two full freighter
flights from Chennai to Muscat
would be operated by both Oman
Air and Cargolux.This enables the
former to strengthen its presence
in the Indian market by accessing
the industrial belts of South India
and the latter to use Oman
Air’s experience of flying to a
range of global destinations,
including 11 in India.
Cargolux – Oman
Air: 2nd
freighter
flight to Chennai
The Government expects to
finalise the revised draft civil avia-
tion policy by the first week of
September.The new policy which
has been under work from quite
some time is anticipated to focus
on improving air connectivity apart
from possible changes in overseas
flying norms for local carriers.
RN Choubey, Secretary,
Ministry of Civil Aviation says, “The
draft policy is expected to be put up
for public comments by the first
week of September.The inter-min-
isterial consultations are taking time
and there is nothing problematic.”
Among others, the draft
policy proposes to enhance
regional air connectivity, rationalise
jet fuel costs, promote air
cargo, maintenance, repair
and operations (MRO) and
helicopter operations and improve
passenger facilitation.
The draft policy was initially
unveiled in November 2014 and
after taking into consideration the
comments and suggestions
received, the Ministry is looking at
certain modifications to it.
Draft civil
aviation policy
by September
Railways: two DFC projects sanctioned
In an information shared by
Manoj Sinha, Minister of State for
Railways in a Lok Sabha session, two
Dedicated Freight Corridors (DFC)
projects on the Western and Eastern
routes have been sanctioned and are
under implementation at a cost of
`81,459 crore (excluding cost of
Sonnagar-Dankuni Section of Eastern
DFC).Compensation Award of 85 per
cent of land has been completed, while
65 per cent of civil contract and 48 per
cent of system contract have been
awarded.The physical progress of civil
work is 20 per cent.The freight carry-
ing capacity of the two corridors would
be over 500 billion NTKM per year.
The unit cost of freight transport on
the two corridors will be lesser than
that of Indian Railways.
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