Logistics Management Practices in India - International Marketing

1. Group Name:
1. Mohammad Jewel : 13302129
2. Md: Omar Faruq Mozumder : 13302099
3. Dawlat A Elahi Sawrab : 13302147
4. Md. Abu Kausar Bhuiyan : 13302020

2. Topic
Name: Mohammad Jewel
ID : 13302129
• Logistics & Logistics
management
• Components of Logistics
System
• India logistics Sector
• The Evolution of Logistics
Industry in India
• Market Scenario
• General Characteristics of
India Logistics Market

3. Logistics
Logistics is about moving
materials, information and
funds from one business to
another business or from a
business to the consumer.
It encompasses activities like
freight transportation,
warehousing, material
handling, protective packaging,
inventory control, order
processing, marketing,
forecasting and customer
service

4. Logistics
 Fierce competition in today’s global
market, the introduction of
products with short life cycles, the
heighten expectations of customer
and the cost cutting measures have
forced business enterprise to focus
attention on logistics industry.
 Historically, the logistics sector was
clearly separated and restricted
mainly to transportation and
warehousing.
The logistics management in
today’s world however, covers all the
aspects of value chain including
 an efficient integration of
transportation,
 distribution,
 warehousing,
 reverse logistics,
 value added services such as
payment collection,
 packaging,
 documentation,
 customer brokerage facilities,
 kitting,
 repair management,
 reconfiguration etc.

5. Logistics management
Logistics management is an area of research that has been getting
increasing attention from academicians and practitioners over the
last two decades since it may lead to reduced operational costs,
improved delivery performance and increased customer
satisfaction levels, thereby making an organization more
competitive in terms of cost, quality, delivery and flexibility.
The importance of logistics is
increasing also due to globalization
as more and more multi-national
companies (MNC) are sourcing,
manufacturing and distributing on a
global scale, making their supply chains
very complex to manage.

7. India logistics Sector
The Logistics sector in
INDIA has today become
an area of priority. It is
the interplay of
infrastructure, technology
and new types of service
providers, which defines
whether the logistics
industry will be able to
help its customers reduce
their costs and provide
effective services.

8. The Evolution of Logistics Industry in
India
• The Indian logistics industry has come a long way from
being a labor intensive during 60’s to the present
technology oriented system that provides wide range
of logistics services. The concept of 3PL is a recent past
culture in India
• Traditionally, manufacturing companies in India
managed their own logistics requirements in-house.
Subsequently, basic services such as transportation and
warehousing were outsourced to different service
providers known as the (Second-Party Logistics) 2PL
service providers and they used 3PL.

9. • The market size of the
logistics sector in INDIA is
estimated to be between
USD 90-125 billion. Given
that the Indian economy has
grown to over USD 1.7
trillion, these estimates may
already be well below the
actual size of the industry.
Due to these reasons the
Indian logistics sector is
viewed as one of the most
attractive in the world.
• According to Economic
Survey 2017-18, the Indian
logistics market is expected
to reach about $215 billion in
2020, growing at a
CAGR(Compound Annual
Growth Rate) of 10.5 percent.
Ranks 44th in Global

10. According to the Global Ranking of the World Bank's 2018 Logistics
Performance Index, India jumped to 44th rank in 2018 from 54th
rank in 2014 in terms of overall logistics performance. The report
also showed that India’s logistics sector has improved its
performance on all the six parameters used in the ranking. This is a
huge jump of 20 ranks and clearly indicates the
growth of the sector.
44th LPI
rank

11. • According to CRISIL the future for
the Indian logistics industry is going
to shine even brighter. The
research firm suggests the logistics
industry of India which stood at Rs
6.4 trillion in FY17 will grow at a
CAGR of 13 per cent over the next
three years and will be at Rs 9.2
trillion by FY20.
• The government’s focus going
forward is to bring down the cost
of logistics which is at 14.4 per cent
of India’s GDP at present. The aim
is to bring it down to 10 per cent
level in the next four years.

12. General Characteristics of India Logistics Market
The Indian logistics sector provides a livelihood to over 22
million people, which in the next couple of years is expected
to grow significantly. Equipping the sector with the latest
digital technologies and automation in operations would lead
to a 10 percent decrease in indirect logistics costs, placing
India in good stead with countries like the US, China and Japan
when it comes to both domestic as well as international trade
The government has already formed a national committee
headed by the Cabinet Secretary to reduce the logistics cost
from 14 percent currently to 10 percent by 2022
The overview of Asia-Pacific logistics market and the position
of India as compared to other countries within the region are
as following:

14. • Unlike China, the development in the logistics market is relatively
slow and still in the infancy stage in India. However with the entry
of several foreign logistics companies into the country, domestic
logistics players are realizing the advantage of supply chain
management and trying to adopt them into their business to
remain competitive. As a result, recent years has been witnessing
increasing service levels in the industry.
• Growth is varied within different industry segments. Some industry
segments are highly fragmented with many organized and
unorganized units. In fact, about 85% of the logistics services are in
unorganized sectors

15. Topic
Name: Md Omar Faruq
Mozumder
ID : 13302099
• Transportation Modes
• Major Drivers Of Logistics
Industry in India
• Logistics Management
Practice in India
1. Agarwal Movers And
Packers

16. Transportation Modes In India
Airways 0.10% Railways, 32.10%
Road, 60.20%
Costal and Shipping, 7.40%

17. Rapid Industrial
Growth
Major Drivers of Logistics Industry in India
Increasing
Globalization

18. Streamlining Indirect
Tax Structure
Government Initiatives
Paving the Way

19. Favorable
Demographics in India
Dawn of Organized
Retail

20. • Established in 1987
• functioned particularly for the
shifting of household goods.
• Rs. 650 Crores business
conglomerate which has a diversified
interest in Aviation Logistics, Packing
and Moving (nationally as well as
internationally), Transportation, 3PL,
Warehousing, Home Storage, Supply
Chain, ODC Transportation, Cube-on-
line Freight station and other related
activities.
“Cities Change; Values
Don’t. Your Priorities will
always be Ours.”AGARWAL PACKERS AND MOVERS

21. Operations (Domestic Relocation Process)
The hospitality team comprised of about 20
people known as ‘Your Shifting Assistant’
(YSM). After confirmation, each client was
assigned a YSM by APML, who served as the
single point of contact between the client
and the company. His job was to keep the
customers informed about the location of
their goods through telephone calls during
various phases of the goods transportation.
The phases of the relocation process were:
• Phase I: Introduction call just after
confirmation of the booking.
• Phase II: This call involved taking a feedback
after packing was done.
• Phase III: During transit of goods, customers
were called every alternate day to inform
them about the location of their goods.
• Phase IV: This call was to fix an appropriate
delivery time based on client’s convenience,
after the goods reached the destination city.
• Phase V: This call was after the delivery and
a feedback was taken from the client about
the overall experience with APML’s service.
The process was divided into two parts: hospitality, which made the front end of the
process and operations

22. The operations team comprised of a team of packers along with their
supervisors at individual branch office. They were responsible for packing and
delivery operations performed at the source and destination respectively.
• On confirmation of a booking, the branch office at the originating city was
informed where the Branch Malik issued a duty slip, an inventory issue slip, and
wrapping material for the job. A typical packing team included four packers and
one supervisor.
• However, other factors such as the number of floors and distance between the
house entry and the vehicle location affected the number of packing team
members.
•This team was responsible for packing and loading of consignments. The goods
were then transported from the origin branch office to the destination branch
office.

23. As GST is implemented, their trucking cube will be
providing a great value as far as storage and
distribution is concerned. To avoid CST, earlier
companies used to have several small warehouses
at the state level. But in a uniform tax regime that
will not be required.
With this solution, they can offer big companies the
Virtual Warehousing solution. They can just
continue with their Regional Distribution Centers
(RDCs’) / Distribution Centers (DCs’) to deal with
their clients while their goods can remain parked
with us in the cubes in our stock yards, till they plan
to dispatch their dealers / clients.
• RFID Reader
• Security (24*7)
• Well Managed
• Highly Economical
• Cubes of different sizes
• “In all it is a 22nd
Century concept in
Existence”
• Ease of Operation
• Zero Pilferage
VIRTUAL WAREHOUSE

24. TRANSPORTATION
• Perform efficiently and timely for tackling
all your day-to-day transportation demands.
• With a fleet of more than 1000 self-owned
carriers and over 5000 Trucking Cubes, we have
been able to cover the entire country and the
world at large, so that we can render our
unhindered supply-chain solutions everywhere
around the globe.
• Employ multi-modal transportation system
• They have been expertly tackling express
delivery and specialized movements, i.e., Over
Dimensional Containers (ODC) movements and
make use of containerized vehicles - open and
enclosed.

25. Distribution System
• Foray into supply chain management system
indicates the maximum expansion of their
operations in this sector.
• Have ventured into different verticals under the
logistics domain namely, warehousing and
transportation and this has facilitated us to start
the supply chain management service.
• Develop solutions to meet the unique
requirements of your business and help you by
modeling distribution networks, analyzing and
prioritizing risks, analyzing freight contracts, or
determining the right levels of inventory in the
supply chain.

26. Record Management
•Fire-resistant materials
•Monitored security
systems with Controlled
access
•Video surveillance and
round-the-clock security
personnel
•Automatic fire
suppression systems &
wireless smoke detectors
•Locations outside of the
areas designated as "Food
Prone
• APML provides secure and clean facilities,
where customer's records and documents are
safe as well as easily retrievable on demand.
• their clean and safe warehouses are the
perfect place for your documents. APML''s
off-site storage facilities are custom built for
records'' storage and management

27. Topic
Name: Dawlat-A-Elahi
Sawrab
ID : 13302147
• Logistics Management
practice In India (contd’)
2. Domino’s Pizza
3. Dabbawala

28. Domino’s Pizza India Ltd Logistics Management
"We are more a logistics company than a food service chain."
"Supply chain management is the factor that differentiates the winners and the losers in this business."
- Pawan Bhatia, former CEO, Domino's Pizza India.
Initially, Domino’s had a simple model. It had three self- contained commissaries in New Delhi, Mumbai and
Bangalore which bought their own wheat, tomatoes and other ingredients, processed them, then delivered
them in refrigerated trucks to each outlet.
But Dominos was planning to open 150 new outlets by the end of 2002 covering 23 cities. So it had to come
with better plan to and minimize cost maintain standard. And it came up with a unique efficient logistic
system.

29. Domino’s Pizza India Ltd Logistics
Management
• The entire country has been divided into 4 regions- Northern
region, Western region, Eastern Region &Southern region
Each region has a Domino's control center. This center
handles the procurement of raw materials and supplying
them to the various outlets . Such a center is called a
'Commissary'.
• Therefore Domino's has 4 commissaries across India.
They are located at the following places:
1. Northern region - Delhi
2. Western region – Mumbai
3. Eastern Region - Calcutta
4. Southern region- Bangalore

30. Domino’s Pizza India Ltd Logistics
Management
Domino's first decides procurement strategy for its key raw materials: wheat, baby corn, tomatoes and
spices
The commissaries typically located near the largest market in that region. And each commissaries are
given tasks for specific component.
DOMINO'S REGIONAL COMMISSORIES & PROCUREMENT CENTRES FOR RAW MATERIALS
RAW MATERIALS PROCUREMENT
CENTRES
REGIONAL
COMMISSORIES
Wheat Jalandhar (Punjab) Northern region - Delhi
Cheese Karnal, Haryana Western region –
Mumbai
Tomatoes Bhubaneswar, Orissa Eastern Region -
Calcutta
Spice South India Southern region-
Bangalore

31. Baby Corn
Nepal
Exotic
Vegetables Sri Lanka
Pepperoni
Australia
Jalapeno
Spain
Domino’s Pizza India Ltd Logistics
Management
• Identifying specialty crops in each region also has strategic
implications for Domino's. It allows the commissary in a
region to specialize in processing a particular crop.
• For example, the commissary for the eastern region in
Calcutta will be responsible for buying tomatoes, processing
them and then sending them to all the other commissaries.
Similarly, the northern commissary will send out the flour.
This way, not only does it cut out duplication, the dangers of
perishability are also minimized.
• With the new cluster model formalized, Dominos is using its
fleet of 25 refrigerated trucks.

32. Domino’s Pizza India Ltd Logistics Management
This logistics plan starts off with the supply and storage of raw materials at the Northern
Commissary located at New Delhi. It begins right from the point Domino's buys wheat for making
the dough required for pizza bases. For instance, wheat is the cheapest at Jalandhar's wholesale
markets.
Its refrigerated trucks then get the wheat back to the commissary in Delhi, which handles the
processing of the wheat and prepares the flour. Now to get to Jalandhar, the trucks would have to
go through Chandigarh, which is clearly a potential market for Domino's products. It has,
therefore, opened an outlet there. The cost of entry is low because there is no additional
transportation cost incurred in shipping products.
Wherever there is a potential market which falls on the route between the commissary in Delhi
and its prime sourcing base Jalandhar, Domino's will open an outlet. So, if there is no major
deviation from its route plan, Domino's costs then automatically get apportioned across many
more outlets. The same logic is extended to Shimla. From Chandigarh, Shimla is just a three-hour
drive away with a large market, especially in the tourist season.

33. Domino’s Pizza India Ltd Logistics Management
• Domino's logistics system is based
on a concept -- backhauling.
• Earlier, if it had to open an outlet
in Jalandhar, the commissary in
Delhi would send all the raw
material in processed form to
Jalandhar. But the truck would
have to return empty on its way
back.
• Now with the new system,
Domino's is able to leverage its
fleet.

34. Domino’s Pizza India Ltd Logistics Management
• The functions of warehousing are carried
out at commissary level. All the
commissaries have a warehousing facility.
These warehouses act as centers for
inflow and outflow of goods.
• There are four obvious benefits:
1. Lower transportation costs
2. Cheaper procurement
3. Economies of scale.
4. Lower lead time
• https://kupdf.net/download/dominos-
india-supply-chain-case-
study_59ba03c208bbc57b27894d52_pdf
• http://icmrindia.org/casestudies/catalogu
e/Operations/OPER135.htm
• http://www.icmrindia.org/casestudies/cat
alogue/Operations/OPER005.htm
•
https://www.slideshare.net/sawatiyadav/l
ogistic-management-dominos

35. Dabbawala’s of Mumbai
The Nutan Mumbai Tiffin Box Charity Trust of Mumbai was
established in 1891 to provide pick-up and delivery of lunch
for British working in Mumbai. Since then it has become the
leading lunch delivery cooperative in the city.
It picks-up and delivers 200,000 lunch boxes in a standard
container every day and returns the same to the place of
pickup. The firm has an annual turnover of about $12 mn and
employs 5000 people for pickup and delivery – almost all of
them are uneducated. However, there are less than 10 boxes
mis-delivered or un-picked in a month.
Recognized world wide for their accuracy and timely delivery.

36. Dabbawala’s of Mumbai
• The Trust which is organized as a cooperative is operationally organized in hierarchical teams:
and then the reverse the functions for empty boxes.
• Typically, each dabba or the lunch box passes through more than four pair of hands and may be
transported up to 60 km each way.
• Pickup is done between 7.30am-9.00am, delivery between 12.00 and 1.00pm and return
between 2.00-5.00pm.
• a team of 20-25 members supervised by a team leader pick-up lunch boxes from homes –
about 30 per pick-ups person.
Pick-up
teams
Consolidation
teams Delivery teams

37. Dabbawala’s of Mumbai
• The boxes are carried in a specialized fixture on a bicycle to the nearest train station where the
boxes are consolidated by destination. A consolidation team performs this task and carries the
boxes (which may have been picked by members of different teams but need to travel to the same
destination geography) into the train.
• Often tiffin or lunch boxes are un-loaded at intermediate train stations – re-consolidated with
boxes coming from other locations (cross-docked) and carried on a third train to its destination
station.
• At the destination station, the lunch boxes coming from various origins/cross-docking destinations,
are once again segregated by the building where the delivery is made.
• Finally, a delivery team picks up their boxes, i.e., boxes that they will deliver to specific owners in
specific buildings, carry them on their bicycles and deliver them in the office of the owner of the
box.
• Later in the afternoon, the same person picks-up the empty box and pursues the reverse logistics
and the box is ultimately delivered at its point of origin – either a home or a restaurant.

38. Dabbawala’s of Mumbai
Reasons For Success And Accuracy
• Each operator has a limited yet definite role. This role is one of pickup,
consolidation & transfer and delivery (and the similarly for reverse
logistics). Each pickup operator does not pickup more than 25-30 boxes as
that is the number of addresses etc. that he can remember accurately
which helps in avoiding mistakes.
• The lunch box is enclosed in a standard container which carries a unique
code for the destination station, the building where the box is to be
delivered and the floor number in that building where the office of the
customer is located. ach operator recognizes a limited set of codes that are
relevant to him and does not have to learn the entire coding scheme.
• Above all the linear geography of Mumbai, the punctuality of trains,
relatively stable demand and strong inter-dependence between
operators. It is an example of how manual logistics systems can be
organized to effectively deliver value to the customer.

39. Dabbawala’s of Mumbai
• https://www.researchgate.net/publication/46437406_The_Logistics_Sector_in_India_O
verview_and_Challenges?fbclid=IwAR0oa7MBUG9hQkluh0hjqP7qDyia8x3kCFBK8Y9T
1V6Oh-594CZPn3IxXq4
• https://www.slideshare.net/prachi_23/presentation-dabbawala
• https://signalvnoise.com/posts/2882-the-incredible-delivery-system-of-indias-
dabbawallahs

40. Topic
Name: Md Abu Kausar
Bhuiyan
ID : 13302020
• Govt. Initiatives
• Opportunities & Threats
• E- tailing in India
• Conclusion

41. Six Government Initiatives Indian Logistics Sector:
Diesel de-
regulation
Big thrust on
highways build-up
Carriage of goods
by road act, 2007
Dedicated freight
corridor
Goods and
Services Tax
Make in India
http://www.businessworld.in

42. • Diesel De-regulation:
Deregulation means government does not control diesel prices
but they are decided depending upon the price of crude oil in
international market and refining costs. So no longer do any
threats of strikes with each Rupees’ change in diesel price. As a
result, logistics costs have become more accurate
• Big Thrust On Highways Build-up:
Highways are the backbone to goods transportation. Road
freight, carrying 60 percent of all goods transport in India.
With focus on highways build-up cause:
- Truck turn-around times have improved
- Transit times have got upgraded,
- Vehicle down times have reduced
- Productivity is better
This has resulted in improvement in inventory
related costs - reduction in transit claims, reduced cost of
inventory on road.

43. • Carriage Of Goods By Road Act, 2007:
The main objective of this act is to regulate and limit the
liability of common carriers, to provide for registration of
common carriers and to regulate carrier of hazardous and
dangerous goods.
• Dedicated Freight Corridor:
Dedicated Freight Corridor (DFC) is a rail route created for
freight (goods and commodity) transportation. It is a high-
speed and high-capacity railway corridor dedicated exclusively
for freight movement. Considering its mammoth contribution
of 67 percent in railway revenue, the government has decided
to integrate state-of-the-art technology and up-scale the
railway infrastructure via Dedicated Freight Corridor (DFC) .

44. • Goods and Services Tax:
Goods and Services Tax (GST) is an indirect tax levied on
the supply of goods and services. This law has replaced
many indirect tax laws that previously existed in India.
• Make in India:
The shift in India’s economy from a large agriculture
economy to a large services economy. India is now
attracting some big ticket manufacturing investments.
Make in India over the next five years will add more
than $ 20 billion to the Indian logistics sector, mainly
because 20 of the 25 focus sectors in the Make in India
have a high logistics dependence.

45. Threats:
• Inadequate Infrastructure:
Although massive developmental work has been
undertaken on the main routes of transportation, doorstep
delivery becomes a big problem due to deteriorating
conditions of roads in the interiors of the country. This
enhances the cost of wear and tear of the vehicle which in
turn increases the operating costs for logistics players.
• Conventional Ways Of Operations:
One of the most important bottlenecks troubling the Indian
logistics scenario is the obsolete way in which things are
run. For instance, if there existed a nation-wide broadband
logistics IT network then a trucker initiating.

46. • Economies Of Scale:
The Indian transport industry is a $385 Bn industry, yet
it suffers from business trade-off loss due to its
distance from technology. For instance, there is an
immense scope in equipping vehicles with GPS trackers
as lack of a transparent network between vehicle
owners and those in need of transportation services
often leads to transporters making empty journeys.
• Government Barriers:
India’s logistics industry are the hurdles in
transportation facilities that are still prevalent, despite
vast betterment over time. There are rules imposed by
national, regional and local authorities, but they differ
from city to city, resulting in a botched network.

47. 50
49
35
15
24
25
25
9
9
10
18
31
0% 50% 100%
USA
China
India
Transportation
Inventory
Warehousing
Others ( Including Losses)
Inefficiencies Leading To $45 Billion Each Year
www.slideshare.net
80 74
85 79
20 26
15 21
Transportation Warehouse Others Overall
Unorganized Organized
www.kalaari.com

48. Opportunities:
India has jumped 19th place in the world banks Logistics
performance index, from 54th place to 35th.
-World Bank’s Logistic Performance Index (LPI)
• 3PL:
3P Logistics is rising as a key driver of development for e-
trade players.
For example,
- Flipkart have enhanced into logistics with Ekart
- Snapdeal has procured GoJavas
- Amazon keeps running with backing from BASIX
www.falconautoonline.com

49. • Growth In The Economy:
The logistics sector in India has today become a key
performance of the Indian economy. One of the primary
reasons for it is that a significant rise in the volume of
freight traffic moved. This traffic generated new growth
opportunities in all domains of logistics.
According to popular market projections, the
logistics industry is estimated to grow at the rate of 10 to
15 percent annually in the future.
• Introduction of GST:
The implementation of GST will allow companies that
have many small warehouses in different parts of the
country, to reduce these numbers to only a few in
specific places.

50. • Infrastructure Enablement:
“The Bharatmala Project” holds the promise of
strengthening the countrywide road network and
improving connectivity with the interior and backward
areas of the country.
“The Sagarmala Intiative” is a key step in doubling India’s
coastal shipping share in the country’s broader and heavy
emphasis on improving maritime linkages and promoting
port-led industrial development.
“Dedicated Freight Corridor Project” aims at decongesting
a heavily saturated road network and reducing freight
transit times.
www.financialexpress.com

51. 4.2
12 13.5
17.5
24
~ 50
~ 100
2014 2015 2016 2017 2018 2020 F 2023 F
188%
12%
28%
35%
35-40 % (F)
Indian E-Tailing
Gross GMV in USD Bn

53. Conclusion
• Indian logistics efficiency are still at a nascent stage
• It will take longer time to materialize
• So India should move forward for an integrated
strategy to develop a world class logistic system.

54. THANK YOU