Learn About Supply Chain Management

1. SUPPLY CHAIN
MANAGEMENT
PRESENTED By: BARAQUIA, ROSE JANE S.
Topic compilation on

2. LET'S GET TO KNOW
SUPPLY CHAIN MANAGEMENT
IN HOSPITALITY INDUSTRY

3. WHAT IS SUPPLY
CHAIN MANAGEMENT?
It is the management of the flow of
goods and services and includes all
processes that transform raw
materials into final products.

4. HOW YOU APPLY IT TO HOSPITALITY
INDUSTRY?
The role of supply chain management in the
hotel industry is crucial towards sustained
competitive advantages.
A well-managed supply chain can be the key
difference between a successful and
unsuccessful hotel operation

5. WHAT IS SUPPLY CHAIN NETWORK DESIGN?
SCND covers all the movements and storage of
raw materials, work-in-process inventory and
finished goods from the point-of-origin to the
point-of-consumption. It covers the planning,
Implementation and control of supply chain
operations.
Also known as 'strategic supply chain
planning' is the process for building and
modelling the supply chain to understand
the costs and time to bring goods and
services to market within an organisations
available resources.

6. How does strategic
supply chain planning fit
into the planning
process?
Planning processes in
SCND aim at finding the
best possible supply chain
configuration so that all
operations are performed
in an efficient way.

7. THREE PLANNING
LEVELS ARE
DISTINGUISHED
DEPENDING ON THE
HORIZON

8. Strategic:
Covers future planning, market factors,
capacity and technological changes.
Tactical:
Focused on a shorter planning cycle
demand, inventory and supply.
Operational:
Activities measured in weeks, demand
fulfilment, scheduling, production &
transport.

9. OPERATIONS ARE A PART OF THE SUPPLY CHAIN PROCESS
THAT STARTS WITH BASIC MATERIALS AND ENDS WITH
FINISHED GOODS SOLD TO CONSUMERS. THE
DOWNSTREAM PART OF THE SUPPLY CHAIN INCLUDES
PROCESSES USED TO CREATE FINISHED GOODS AND THE
DISTRIBUTION AND SALE
OF THE GOODS.
LOGISTICS IS A TERM USED IN THE SUPPLY CHAIN WORLD
TO DESIGNATE ANY LOGISTICAL ACTIVITIES
OCCURRING PRIOR TO THE PRODUCTION
PROCESS. IN PRACTICE, UPSTREAM LOGISTICS REFER
TO ANY ACTIVITIES CONSISTING IN PROVIDING A
COMPANY WITH PRODUCTS (RAW MATERIALS, SEMI-
FINISHED PRODUCTS, EQUIPMENT, ETC.)
DOWNSTREAM:
UPSTREAM:

10. How Does Supply
Chain Works?

11. "PLANNING"
"SOURCING"
"MANUFACTURING"
Plan and manage all resources required to meet customer demand for
a company’s product or service. When the supply chain is established,
determine metrics to measure whether the supply chain is efficient,
effective, delivers value to customers and meets company goals.
Choose suppliers to provide the goods and services needed to
create the product. Then, establish processes to monitor and
manage supplier relationships. Key processes include:
ordering, receiving, managing inventory and authorizing
supplier payments.
ORGANIZE THE ACTIVITIES REQUIRED TO ACCEPT
RAW MATERIALS, MANUFACTURE THE PRODUCT,
TEST FOR QUALITY, PACKAGE FOR SHIPPING AND
SCHEDULE FOR DELIVERY.

12. "DELIVERY AND LOGISTICS"
"RETURNING"
COORDINATE CUSTOMER ORDERS, SCHEDULE
DELIVERIES, DISPATCH LOADS, INVOICE
CUSTOMERS AND RECEIVE PAYMENTS.
CREATE A NETWORK OR PROCESS TO TAKE
BACK DEFECTIVE, EXCESS OR UNWANTED
PRODUCTS.

13. LESSON 2
(ERP) - ENTERPRISE RESOURCE
PLANNING

14. WHAT IS (ERP) - ENTERPRISE RESOURCE
PLANNING?
Procurement
All businesses today are run on ERP - Enterprise Resource
Planning which provides the organizations with tools to manage
all the functions including;
Finance management in seamless and integrated
manner.
Sales
Production

15. (ERP) - ENTERPRISE RESOURCE PLANNING
ERP - has enabled companies to manage their business
processes in different markets and countries under one
common business process thus providing standardization and
control. The complex network of various processes, software
platforms and applications and different software tools used by
various vendors and agents in the entire chain drive the supply
chain of the companies.

16. E COMMERCE
(ELECTRONIC COMMERCE)
HAS FURTHER REDEFINED THE WAY BUSINESS IS
CARRIED ON.
ONLINE PURCHASE
HAS IMPACTED THE WAY SUPPLY CHAINS ARE
ORGANIZED AND MARKETS ARE DRIVEN.

17. Has further opened up the geographical boundaries for the companies.
Any person sitting in any corner of the globe can purchase a product
online at the click of a button.
The companies have to be well equipped with the logistics and supply chain
network to be able to service the customer.
When in a global scenario, goods and services move through multiple
chains involving very many agents including transporters, forwarders,
customs, distribution centers, distributors and lastly the retail outlets,
availability of data, documentation and information becomes the lifeline for
the organization to be able to take decisions and ensure seamless processes
and control the supply chain.
THE INTERNET TECHNOLOGY

18. The entire concept of business philosophy has moved away
from traditional model to being more customer oriented,
driven by demand and based on collaborative and joint
operational strategies across global markets.
SUPPLY CHAIN NETWORK AND TECHNOLOGY

19. Supply Chain Networks
have in recent times evolved from simple sequential and linear process
networks to highly dynamic processes that call for information and sharing
and visibility to be available across the network coupled with decision making
on real time basis.
Integrated Approach
to managing logistical tasks in a highly dynamic marketplace is necessary as it
involves some internal as well as external business processes and agencies
working in tandem to manage supply chains.

20. In a highly evolved technology-driven supply
chain, the need for managing processes, events
and deviations on a 24 × 7 basis is a must.
Multi process network
Sharing knowledge Information
And enabling transactions can be managed only with an electronically enabled
technology solutions driving businesses processes.
These technology enterprises need to be able to work in collaborative mode and be
supported by infrastructure support and an IT strategy at the business enterprise
level.

21. LESSON 3
WARRANTY
MANAGEMENT

22. WHAT IS WARRANTY MANAGEMENT?
- It is a statement of assurance or
undertaking issued by the manufacturer of a
product concerning the performance of the
product and parts supplied by him by way of
sale transaction to the customer, for a certain
period as stated in the Warranty Card
accompanying the product.
- In other words, it is a performance
guarantee for the product given by the
manufacturer.

23. Warranty Management is today a separate function of Service Parts
Management Stream in the organization.
Service Parts Managers Are P & L heads of their department and the
entire business unit functions as a profit center with its revenue and cost
budget.
However, over the last few years, many organizations have realized the
underlying value that can be realized in this area.
IMPORTANT COMPONENTS OF WARRANTY
MANAGEMENT SYSTEM

24. Today Warranty Management is considered to be a
separate revenue stream.
The process of Warranty Management has evolved over a
period.
The benchmarking of best practices has led to reduction
in cost of service delivery of parts with increase in
customer satisfaction and an independent revenue
stream of warranty services.

25. SERVICE PARTS MANAGEMENT TEAM
Service Parts Management Teams and structure are the Service
Support Delivery owners and function as primary contact points with
the customer.
At the first level Service, support teams comprise of Customer Desk, which
is the first point contact for the customers to register the service request.
Technicians and Engineers as front-end site supports and second point
contacts to the customers. Parts Support Managers oversee the functioning of
the operations and take responsibility to close calls and for delivery
performance.

26. • Service Warranty Database and Tracker (Database information
uploaded from Sales Module)
• Service Request Registration, authorization, service job ticket
issue, job ticket closure & Report functions.
• Parts procurement request, parts issue authorization
• Parts Inventory Management, Purchase Order Management,
Repair Management, Vendor Management etc.
WARRANTY MANAGEMENT AND CLAIMS
PROCESSING SYSTEM

27. Service Parts Teams are supported by a
team of Subject Matter Experts.
Escalation processes determine the nature
of technical support required to be assigned
and timelines for service issue closures.
SME EXPERTS

28. PARTS PROCUREMENT AND LOGISTICS
Parts Procurement and Logistics may be handled by a
single department or by separate teams depending upon
the volume of business and the management structure.
These functions manage parts procurement functions,
inbound logistics, parts warehousing and distribution on
the outbound cycle.

29. Reverse Logistics functions managed by the
team involve;
Waste disposal or Scrapping functions.
Parts collection
Parts segregation
Inventory holding of defective parts
Parts repair
Warranty replacement with OE manufacturer
Re-Export,

30. Warehouse Management
System And Inventory
Migration Scope
LESSON 4

31. A warehouse management system (WMS) is a
software solution that offers visibility into a
business’ entire inventory and manages
supply chain fulfillment operations from the
distribution center to the store shelf.
WHAT IS A WAREHOUSE MANAGEMENT SYSTEM
(WMS)?

32. Warehouse management (WMS) solutions
additionally enable companies to maximize their
labor and space utilization and equipment
investments by coordinating and optimizing
resource usage and material flows.
Specifically, WMS systems are designed to support
the needs of an entire global supply chain, including
distribution, manufacturing, asset-intensive, and
service businesses.

33. • Warehouse Location, Layout And Building
• Internal Layout
• Types Of Storage
• Racking Designs & Material Handling Equipment
WAREHOUSE DESIGN CONCEPTS

34. • People
• Workforce – Qual/Quant, Job Structure
• Right Skill Sets
• Attitude And Outlook
WAREHOUSE OPERATIONAL EFFICIENCY
CONTRIBUTING FACTORS

35. • Inventory migration is a mammoth project
exercise involving internal teams as well as many
external agencies.
• Detailed planning, process, simulation, and
training are the basis to ensure successful
inventory migration exercise.
Inventory Migration

36. • Inventory control paves for competitive ability
• Inventory planning improves service level
• Inventory planning and management reduces storage cost
• High inventory turnover brings revenues
• You can utilize warehouse space better
• Inventory control makes cost accounting activities easier
• Inventory control is consistent with safety and economic
advantage
IMPORTANCE OF INVENTORY MIGRATION

37. • finance
• legal /compliance
• Inventory planners
• IT • Procurement
• Marketing
• Order fulfillment and logistics
• Facilities team and headed by a project leader, who
knows the operational details involved in such a project.
Scope of Inventory Migration
Project teams would consist of teams from all functional
departments namely;

38. LESSON 5
Contract Logistics- Key Block in
Supply Chain Management

39. Supply Chain Activities constitute multi-modal transportation,
customs clearance, and warehousing activities in one or more
locations in the entire network. Supply chain activities may be
local referring to within the country or regional meaning
within a continent or region and global which is essentially
intercontinental. Global operations are the order of the day as
businesses follow markets and also look for cheaper conversion
costs that are achieved by setting up manufacturing facilities
in countries where costs are cheaper.
Whay is Contract Logistics- Key Block in
Supply Chain Management

40. Take the case of Pharmaceutical Industry. High cost of
manufacturing led the companies to shift manufacturing out of
Europe and US to South Africa, India, and other cheaper nations.
While inbound supplies from these countries may be
consolidated in each country by the freight forwarder and
shipped out, they may also be shipped out by the supplier to a
third-party warehouse in the destination country for VMI
inventory replenishments. Inbound supplies may be running into
thousands of part numbers and hundreds of shipments from a
few hundred suppliers.

41. Finished goods, on the other hand, would be dispatched from
the plant directly to a distribution center in the country or
exported to another distribution center abroad. Similarly,
each country distribution center would receive finished goods
from the local plant, imported finished goods from ther
distribution centers. They would also receive the bought-out
items that are procured for integration with finished goods at
the distribution center. The distribution center manages the
inventory, completes any in-house process, etc. Further
movement of cargo goes happens from the mother
distribution center to subsidiary or secondary warehouses
from where they finally reach the distributor.

42. If you plot the above two supply chains,
- you will see that at any time,
- the highest amount of inventory is help at the warehouse that
holds supplier parts and the distribution center and subsidiary
warehouse.
The amount of shipments in the pipeline would be very small
compared to the inventory at the warehouses. Plants do not hold
inventories at all. Therefore, warehouses are critical to supply chain
networks. Warehouses are the main links in the supply chain and
their location and functioning in terms of operations affect the rest
of the supply chain efficiency.

43. Distribution Centers, VMI Centers, Parts Centers and various
business models of warehousing activities are now outsourced to
3PL Service Providers. Many companies do manage these as
critical functions in-house, but the increasing trend is to
outsource these activities.
A warehousing operation encompasses many values added
processes and critical operations.
In the case of plant logistics,
- these activities involve the complete responsibility of
managing inbound traffic management,
- yard management,
- and inbound shipment receiving,
- warehousing and inventory management.

44. In-house processes can include kitting; - sub-assembly
and any other value-add processes to be managed before
parts are supplied to the plant. Any wrong transaction or
mistake in the transaction will affect the production line
and result in an increase in downtime.
Other responsibilities managed include;
- scrap management, packing material management, etc.
In the case of automotive plants, - these warehousing
activities are very big and complex in size and word as
independent companies on 24 x 7 basis with senior
management being present at the site to manage the small
company.

45. Hypothetically in typical small size operations,
- a logistics facility could be receiving over a hundred shipments
a day,
- unloading around 50-60 containers a day,
- maintaining inventory anywhere between 20000 to 35000 SKU
part numbers,
- held in various modes in 8000 to 10000 rack locations and many
more block stock locations.
Outgoing supplies to plant may happen on call basis
- every two hours and supplies can consist of a few hundred parts
kitted as per the Bill of Material.

46. All this activity needs to happen continuously on a shift
basis. Contract Logistics companies have further extended
their services into managing semi manufacturing processes
within the plant.
Many multi-national companies
- have invested into building Contract Logistics capabilities.
The management structures
- consists of supply chain managers,
- engineers and other technical staff required managing
specific segments.
Development of core competence in managing warehousing
operations and supply chain network was perfected in
Europe in automotive, retail and many other industries.

47. In cases where the operations size and processes involved are more
than just a warehouse; normally it is referred to as Contract
Logistics. The business is driven by a Contract Manager at the site
with administration support staff and operations teams. Such sites
normally call for a lot of investments in infrastructure including
material handling equipment, racking, building, etc. The size of
operations and investments being large, the contracts usually run
for some years. The projects involve integration and building
interface with IT applications of both companies to facilitate day to
day transactions.

48. 3PL Logistics Service Providers are many in the market.
There are players from Multi National background, regional
players, local companies and individually managed business
organizations.
Warehousing business, on the other hand, can flow through
warehouses, consolidation and merging centers, finished
goods stocking points, forward locations, raw material
warehouses, JIT / VMI operations, bonded warehouses, in
plant warehouses, etc. depending upon the business
requirement.
Contract Logistics & Warehousing - Pricing &
Costing Mechanisms

49. Storage and space options provided by the 3PL in such
cases can vary with the client’s nature of the business. In a
country consolidation center, where multiple shipments
are stored and consolidated, the buyer may contract a fixed
space on square foot basis with specified number of
locations.
In another case of a merging center, the buyer may not
contract fixed space and pay on transaction basis. Public
warehouses normally rent out space in terms of per pallet
storage.
Storage Space

50. 1. Fixed Price: In cases where the buyer contracts a fixed space, the
costing model will be based on a fixed fee per month including cost of
space, resources, infrastructure, etc. Even in Fixed Fee model, there are
many variations in pricing models.
2. Transaction based pricing model: Wherever there is no fixed space
allocation, the transactional pricing models are in vogue. Variable pricing
models are many. Some of the usual methods of pricing are - Per pallet
price, per unit or Kg -volumetric weight /volume price, per transaction
price including price per inward, per shipment, etc. Normally in
transactional pricing model, the buyer’s requirement will be minimum
and does not call for any specific or dedicatedinvestments. The 3PL
provider normally uses his general or public facility and recovers his total
cost of investment and operations on the volume or transactions.
Pricing

51. Contract Logistics Pricing Methods
Warehousing and Contract Logistics forms an important part of
Supply Chain Networks. Contract Logistics projects are of two
kinds.
- The first being a flow through the warehouse that can be a
Finished Goods warehouse for the purpose of consolidation and
merging or documentation purposes or in the case of supplier
shipments, inventories being consolidated to enable FCL
shipments. Often supply chain logistics calls for shipments and
cargo to be warehoused at the point of origin or destination. In all
such cases, warehousing facilities are normally public warehouses
or shared, and common facilities offered by 3PL are used.

52. - The second kind of Contract Logistics projects
involves larger projects that are client specific and
dedicated. Such warehousing projects may be called for
in Supplier inventory management and supplies to the
Plant or manufacturing lines called in plant logistics or
models like JIT,VMI warehouses. In case of Finished
Goods too, the distribution centers, FG warehouse and
hubs at regional or country level entail dedicated
facility.

53. Are normally managed through an RFQ process where the
qualified 3PL vendors bid for the business with the response
document containing solution design, followed by
presentations and negotiations with final selected 3PL
supplier.
Many companies prefer to suggest a pricing mechanism or
model in the RFQ to enable them to compare the various
bids as well as have clarity on costs involved therein.
Warehousing Projects

54. ●Fee-based on the percentage of Sales
Turnover or volume.
●Cost Plus model
●Price per Sq. Ft
●Transaction and Fixed Price combination
●Cost per transaction or unit pricing
Types of Pricing Models in Contract Logistics:

55. Traditionally warehousing service providers
- who are called carrying and forwarding agencies involved
mainly in Finished Goods logistics have practiced the pricing
mechanism of charging Warehousing Fee as a percentage of
sales billed per month. The fee can vary anywhere from 0.5 to
2% of the monthly gross sales turnover. This practice has been
in vogue in a multi-tier supply chain network involving
distributors at state levels and further regional distributors
and so on.
Fee-based on percentage of Sales Turnover or
volume.

56. - Includes a basic minimum guarantee pricing called as floor
price. Floor price or minimum price covers the fixed cost
expenses of the warehouse. The revenue earned by the 3PL
varies with the sales revenue. 3PL stands to gain during peak
months and loose during slack months. The variable cost that
has a major impact on the costing is labor. 3PL service
providers manage this costing by employing minimum
number of human resources and add on temporary labor
onlywhen required.
This pricing mechanism

57. Is aware of the market conditions and sales
estimation for the buyer’s products he stands
to make a gain when the sales shoot up.
Buyer, on the other hand, would find it easier
to account the cost as a standard percentage
of the sales turnover without having to get
into other operational details.
While 3PL

58. Large size projects
- That are dedicated and setup as per a buyer’s
requirement are normally run based on Cost
Plus model. As the name suggests, the pricing
mechanism involves estimating the total cost
of running operations and profit as a
Management Fee which is fixed as a percentage
of the total cost.
Cost Plus model

59. - when the project size is huge and operations include multiple transactions
and value-added activities within the warehouse. A large size warehousing
project calls for huge investments to create the building and infrastructure.
The build may have to be built or may be hired by paying a security deposit.
Infrastructure investments would include racking or shelving systems,
material handling equipment including Forklifts, Reach Trucks, Dock
levelers, etc., conveyer or any other equipment needed. IT infrastructure can
include cost of hardware including servers, desktops, laptops, printers, RF
equipment, etc.
Given the size of the project and the investments involved, the contract or
project is awarded for three years with two extensions of one year each. This
helps the 3PL to amortize the investments over the contract period.
This costing method works well

60. Warehousing Costing methods vary with the business models.
While some warehouses using common shared facilities may be
worked up based on transaction costs, dedicated and standalone
facilities would be on a different costing model.
In this section, we shall go through the cost elements of a
warehouse project briefly.
Warehouse Cost elements are primarily divided into Fixed Costs,
Variable Costs and Overheads.
Contract Logistics Cost Model

61. - This cost element is included if the land and building are provided by the
3PL and not the buyer.
- In case the land and building
●are acquired by the 3PL,
● the cost of land and building may be amortized over the life of the
building or as per industry standards (average 10-12 years) and
proportionate monthly costs can be added.
- One needs to ensure that the costs are realistic and nearer to market
rates for rentals.
- In case the land and building are rented by the 3PL, the cost of monthly
rental along with the cost of funds for security deposit may be added to the
costs.
- All costs would be worked out for the term of contract period with annual
escalations considered annually.
1. Cost of Land & Building

62. - Cost of acquisition of all infrastructure including
●racks,
●MHE,
●charging equipment,
●dock levelers and any other equipment including office equipment
are itemized and amortized over the contract period orover the shelf
life of the equipment as the case may be, to arrive at monthly cost of
infrastructure.
●uniform, etc. along with proposed incremental cost over the
number of years as per contract period. - Outsourced staff costs are
also tabulated for the contract period including annual escalations.
2. Infrastructure Cost

63. - Utilities are not fixed costs.
- They are monthly variable costs.
- The items in this category are the costs towards office and
communication expenses including;
●telephones,
●the internet, etc.,
●stationery and consumables both for office and shop floor
items like tapes,
●packing materials, etc.,
●cost of electricity,
●water,
●fuel, etc.
5. Utilities & Consumables

64. - Costs of office support, - cost of
insurance and third-party liabilities and
travel costs, etc. including any other
statutory costs, deposits are covered
here.
6. Administrative Expenses

65. - Cost of management time is estimated and
included here.
- Alternatively, a percentage of corporate or regional
office cost overhead is loaded.
- Cost of money or interest cost on working capital
for three months can be included.
7. Overheads
8. Profit / Management Fee
- Management fee can be added as a
percentage of total cost or a fixed amount.

66. How Automation Benefits the Logistics Sector
through Efficiencies and Synergies

67. How Automation Benefits the Logistics Sector through
Efficiencies and Synergies
- Automation benefits the logistics sector in many ways.
- Right from order booking and package handling in
warehouses,
- including transit and shipment that is enabled by automated
modes,
- and tracking and delivering the materials,
- automation can increase the efficiencies and synergies of the
entire supply chain. Efficiencies accrue as logistics providers
can implement economies of scale made possible by
automation.

68. ●by making robots move packages around the warehouses,
●more such packages can be handled since the robots being
automated machines, do not tire or need prolonged breaks.
●by automating the shipment and transit,
●logistics providers can use drones for delivery as
well as self-driving trucks and vehicles that can be on
the road for longer periods of time.
In addition,
For instance,

69. Indeed, the leading online retailer, Amazon, is already
using automation to derive the efficiencies from the
economies of scale. similarly, by automating the supply
chain and integrating the diverse, discrete, and disparate
components of the value chain, synergies are possible as
previously disconnected components of the supply chain
can now be connected leading to better coordination and
collaboration in the supply chain.
Thus, the twin benefits of efficiencies from economies of
scale and synergies from integration would result in
substantial benefits to the logistics providers.

70. - it is often said of the logistics sector that it has high
Carbon Footprint due to its fuel intensive modes of
operation.
- Automation can help the logistics providers in this
respect as well through Green modes of operation.
How Automation Leads to Lower Carbon
Footprint and Higher Value Addition
In addition,

71. - electric powered robots and self-driving vehicles can be
deployed leading to Zero fuel consumption.
For instance,
- By automating the order booking and delivery components
of the logistics value chain, firms can ensure that drones are
used wherein there is no need for oil consumption.
In addition,

72. - this aspect is a double-edged sword as automation
in logistics can also result in job losses (something
that would be discussed in the next section) and
hence, one has to be circumspect about the impact of
automation on the logistics sector.
Indeed,
- in times when the labor policies of most logistics
providers are being scrutinized for their people
policies, automation in the logistics sector can ensure
that such concerns are addressed.
Of course,

73. The Present State of Automation in the
Logistics Sector
- there is more hype than reality as far as
automation in the logistics sector is concerned.
Indeed,
- despite the widely predicted job losses and the
doom and gloom a scenario, the logistics sector is
still labor intensive.
For instance,

74. This is because the field of robotics has not reached a stage
where robots can completely take over from humans.
Moreover, self-driving vehicles that can replace drivers
and long-distance truckers are yet to take off in a
commercial sense. In addition, there are certain aspects of
the logistics value chain that do not gain much from
automation. For instance, we are yet to see the emergence
of robot order booking and drone delivery except in
isolated cities worldwide and that too, mostly in the
United State and Europe.

75. Having said that, Big Data powered Analytics is certainly
helping the logistics sector as can be seen from the
increasing number of workers who are being employed for
this task whereas most of the lower value adding tasks has
been automated.
To summarize, while automation in the logistics sector is
increasing the efficiencies and synergies, there is still some
time before the benefits kick in fully.

76. - loading the ships with the materials to be transported and
moving them between ships at transshipment points is being
automated to a large extent in global and world class ports
such as Singapore.
For instance,
Some Future Predictions Such benefits can be in the
future as can be seen from the predictions of futurists.
- experts point to how logistics providers can automate
the entire supply chain including ship loading and
transshipment.
To explain the terms,

77. - countries such as China can immensely benefit from
automated supply chains since it is the world’s largest trading
country and hence, efficiencies and synergies can be a game
changer.
Apart from this,
- using the emerging Blockchain technology to automate the
logistics handling can benefit the logistics firms to decrease
defective item handling and move towards a hundred percent
success rate as far as avoiding loss and damage of the
packages during transit are concerned.
Moreover,

78. - even India can benefit from automating its
supply chains though the infrastructure is not
yet in place to deliver such gains. A key point to
note is that in many countries worldwide, the
software of the automation is ready and it is
only the hardware of the physical infrastructure
that is lacking.
Indeed,

79. This has lessons for emerging economies as they integrate into the global
trading system as they need to first put in place the necessary
physicalinfrastructure before automating their logistics value chains.
Moreover, they need to adopt a Global approach wherein they bring global
best practices and yet adapt them to local conditions so that the execution
is according to the on the ground situation.
Indeed, the last mile connectivity is what drags the logistics sector from
automating fully and hence, they must pay attention to this aspect. To
conclude, the future is indeed bright for the logistics sector to automate
and the gains from such automation are indeed immense.
Conclusion

80. Thank
Thank
Thank
you!
you!
you!
The End
The End
The End