WHAT IS LOGISTICS =LOGICAL THINKING + STATISTICSLogistics is the management of the flow of resources between the point of origin and the point of consumption in order to meet some requirementsTherefore Logistics is…… an optimization process of the location, movement and storage of resources from the point of origin, through various economic activities, to the final consumer.
The total logistic market comprises of transportation, warehousing, freight forwarding and Value added logistics services(VALS)Transportation represents the largest share of this market since most industries spend above half of their logistics cost on this function. Owing to these efforts, professional logistics services can be extended up to rural areas, leading to a higher scale of logistics activities outsourcing.“Value added services are the courier services and other 4PL service providers who offer outsourced logistics services.Warehousing includes Warehouse, Logistic Park(MEPZ, SEZ, ICD, CFS, port)Transportation includes AIR ,SEA ,ROAD, RAIL, COSTAL, COLD CHAIN(for food and pharma industry).Freight forwarding includes AIR SEA ROAD – Freight operations.
Although India’s logistic sector has witnessed increased investments, evolving regulatory policies, mega infrastructure projects and several other intiatives. Globalization, Supply Chain Integration, Flexibility and Speed, Track and Trace Capabilities,Transportation marketplaces, Optimization Technologies, and Growth and expansion of 3PL and 4PL services.. There is a need to significantly accelerate the pace of such developments.
- Overall EX-IM cargo at Indian ports is projected to increase to around 2,800MMT by 2020 from which is approx 890MMT currently.- The transformation of India’s logistics landscape needs a clear, long-term and sustainable vision encompassing initiatives that are proactive rather than reactive to leverage India’s economic potential in future.- Yet, it is perhaps an opportune time to dive deep into certain specific developments — those in the pipeline as well as those that must be focused upon in the near future — that could potentially overhaul the way India moves, stores and delivers.
1. As India continues its transformation into a manufacturing and services-led economy, growing migration toward urban areas is expected.2. Current spending on organized warehousing in India constitutes 9 percent of total logistics spending, as against 25 percent in the US, The growth of niche industries will likely necessitate value-added services such as cold-chain warehousing, packaging and track-and-trace services.3.Deriving the best possible selection of modes to lower congestion and facilitate the smooth movement of cargo is the need of the hour.
Cost and quality are both concern areas for the Indian logistics industry.High cost of logistics negatively impacts customers, suppliers, and service providers. Any analysis of capitalisation across India’s logistics landscape would perhaps be incomplete without considering ‘warehousing.’In recent times, the Indian warehousing segment in India has evolved significantly, resulting in a gradual metamorphosis from the traditional concept of godowns to modern formats. Free-trade warehousing zones (FTWZs) in India offer has increased. The sector has witnessed significant growth from 0.7 MMT in 1995–96 to 2.7 MMT in 2011–12. Between 2006 and 2012, air cargo traffic handled at Indian airports increased at a CAGR of 11.5 percent, with domestic cargo growing at 12.3 percent, faster than international cargo (11.2 percent). International cargo, which accounts for two-thirds of total cargo, is largely concentrated in the metro airports of Mumbai, Delhi, Chennai, Bengaluru and Hyderabad. The Delhi and Mumbai airports collectively handle around 50 percent on India’s domestic and international cargo.Inadequate cargo handling and storage infrastructure at airports across India has been a longstanding challenge. India’s ports serve as gateways to India’s international trade and facilitate 90 percent by volume and 70 percent by value of India’s external trade via maritime trafficThe connectivity and the convenience in operations is the key for sustaining the global trade growth. Currently India's logistics sector is valued at around USD 125 billion and is likely to cross the USD 200 billion by 2020.Infrastructural problems like bad road conditions, poor connectivity, inadequate air and sea port capacities and lack of development of modes of transports like railways and alternates like inland water transport and domestic aviation have been constant irritants. Due to the infrastructural bottlenecks costs per transaction in Indian logistics sector is very much high compared to those in the developed markets. Less economy of scale due to high fragmentation of industry, lack of skilled labor and manpower are also one of the major challenges for the logistic sector.
Maintenance of ships, harbor premises, cleanliness, sanitation and upkeep must be of strictest possible standard. Considering today's fast paced market's situations, logistics companies these days are generating the perfect balance of time, cost, frequency and space to keep up with the growing logistics needs. Secure and managed delivery of goods through smooth networks is the need of the hour today.--------------These technologies greatly enhances the planning capability of the Freight carriers in the current years, With the on-board computers and tracker systems, the motor carriers during transportation can be tracked from starting point to the end point.
The analogy that a chain is only as strong as its weakest link holds here as well. Organizations must first be able to provide quality products or services in a timely, cost-effective manner if they want to tackle broader supply chain issues. are just as relevant today as they were in the past.
2012 saw continued supply chain disruptions due to manmade and environmental disasters. At the beginning of the year, automakers and computer manufactures saw supply disruptions continue from the 2011 Earthquake in Japan. As the year progressed, many were affected by the drought in the Midwest which started to hit commodity prices at the end of the year. Global operations were also affected by the power outages in India and unrest in Africa and the Middle East. As the year came to a close, the Northeastern US was hit by Hurricane Sandy, which knocked out the supply chain capabilities of many organizations. In 2013, companies need to take steps to prepare their supply chains for any number of contingencies that while unpredictable, can be mitigated with the right planning.
INDUSTRIALZONE – suburbanisation of distribution centres where land is available particularly highways (EG.NOKIA,FORD,HYUNDAI, SRIPERUMBATUR AREA, GUDUVANCHERY AREA)LOGISTIC ZONE - They are commonly the outcome of strategies of port authorities, regional governments or private terminal operators.(SEZ, MEPZ)LOGISTIC POLE - A pole has a higher level of integration with intermodal terminals, let them be ports, rail yards or airports, resulting in an intermodal freight distribution system.
The primary consumer concerns that a logistics firm looks to address is infrastructure, service quality , operational efficientyUsers are progressively demanding the integration of logistics infrastructure.Service quality, operational efficiency and the best possible use of IT applications to align to business needs are concerns any firm looks to address.
ASRS-Benefits are Offers many options to allow easy customization, for a comprehensive controls package ,Operates at a low noise levelPerforms heavy-duty jobs with lighter equipment, Provides high reliability..EDI - With the help of EDI , Since 2010 India started implementing this EDI technology as a major source of customs work because of which we get clear picture of the arrival status, departure, Manifest details, Bill filing and status of bills at the customs and any refunds issues can also be checked. This remains transperant to exporters, importers, customs brokers, airlines , shipping lines and port authorities. GPS – With the global positioning system we get to track the cargo easily, and this is also done by the 1PL 2PL 3PL and 4PL members. From the local transportation to international carriers and deliverying at the door step. The cargo can be tracked.
Logisticia 2013 Vels university
Capitalizing New market
opportunities in Logistics
JOSHELA JENIFER .G
KMM FREIGHTS SYSTEMS, Chennai
DEFINITION OF LOGISTICS
• Logical Thinking + Statistics
• "Logistics means having the right thing, at the
right place, at the right time in the right
quantity at the right price”
CHALLENGES FACED IN LOGISTICS
Major hurdles faced by Logistic Companies :
• Cost and Quality
The Economic liberalization and the relaxed FDI
norms have been a tremendous help in the
growth of the sector. But,
• Infrastructural Problems
• Lack of Skilled Labor and Manpower
are Major Challenges for the Logistic Sector.
IMPROVING LOGISTICS IN INDIA
SUPPLY CHAIN MANAGEMENT
SUPPLY CHAIN MANAGEMENT