Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.

Logistics supply chain

942 views

Published on

Logistics & Supply Chain

Published in: Business
  • Be the first to comment

  • Be the first to like this

Logistics supply chain

  1. 1. LOGISTICSSupply ChainShantanu BhadkamkarRegional ConferenceWIRCICAIIndustry Growth, Opportunities, ChallengesGovernment Policies & InitiativesRole Of Chartered Accountants
  2. 2. “Logistics service providers should join logisticsclusters and actively collaborate with transportinfrastructure operators, governments and academia.Players in the logistics arena should establishand foster knowledge exchange and managementacross company borders.”Transportation & Logistics 2030Price Waterhouse Coopers 2010
  3. 3. LOGISTICS-Supply ChainGovt. Policies/Initiatives, challenges and opportunities.The expectation is how is the industry growing, whatare the opportunities, challenges and if charteredaccountants can play roll.
  4. 4. • “Businesses no longer compete, its Supply Chainsthat compete!”• Professor Martin Christopher• In 2010 Transport Intelligence identified India as theworld‟s most important growing logistics market
  5. 5. “the absence of a single logistics champion (whether in form of aministry or otherwise) in thegovernment (or industry) led to a disintegrated approach todevelopment of the sector. Extensivefragmentation meant the incapacity of industry players to develop theindustry as a whole and poorsupport infrastructure, such as roads, ports and telecoms, led to asituation where the opportunity tocreate value is limited.”Skill gaps in the Indian Logistics SectorKPMG & CII 2007
  6. 6. “India will require a National Integrated Logistics Policy (NILP). Such a policyshould target a greatershare of rail, reduce economic waste and improve energy efficiency. Thepolicy will need to establishand implement targeted national programmes including dedicated freightcorridors, coastal freightchannels, national expressways, last-mile roads, last-mile rail, multi-modallogistics parks, roadmaintenance, technology adoption, skills development, and equipment &service standards”Transforming the Nations InfrastructureMcKinsey 2010
  7. 7. “Logistics service providers should join logisticsclusters and actively collaborate with transportinfrastructure operators, governments and academia.Players in the logistics arena should establishand foster knowledge exchange and managementacross company borders.”Transportation & Logistics 2030Price Waterhouse Coopers 2010
  8. 8. What is LOGISTICSTuesday, April 30, 2013SHANTANU BHADKAMKAR - ATC 8Logistics is the process of planning, implementing, and controllingthe efficient, effective flow and storage of goods, services, andrelated information from point of origin to point of consumption forthe purpose of conforming to customer requirements.Reference: Council of Logistics Management, http://www.clm1.org/mission.html, 12 Feb 98Note that this definition includes inbound, outbound, internal, and external movements, andreturn of materials for environmental purposes.Logistics (CEN)
The planning, execution and control:•of the movement and placement of people and/or goods•and of the supporting activities related to such movement andplacement within a system organised to achieve specificobjectivesCEN : European Committee for Standardization (Comité Européen de Normalisation in French)
  9. 9. Tuesday, April 30, 2013SHANTANU BHADKAMKAR - ATC 9Logistics ObjectivesRight PlaceRight DocumentationGood ConditionRight PriceRight TimeRight TariffSmoothMovementOnlineInformation
  10. 10. Outsource Logistics• We want to outsource logistics :)• Shippers never owned bullock carts, ships, railwaysetc• What is envisaged is outsourced management.
  11. 11. ConsilienceJargon & Acronyms1pl - xplDefinition Depends on whom you askAs many experts as many definitionsDISCLAIMERYou have 2 Economists, you have 3 Opinions.
  12. 12. Parties• 1st Party: The Supplier• 2nd Party: The Company buying the product that is beingstored or shipped• 3rd Party Logistics Provider (3PL): The company that provideswarehousing and transportation outsourcing• 4th Party Logistics Provider (4PL): The majority of peoplewould agree that 4PL is little more than logistics consultant, butnevertheless here is the official definition courtesy ofAccenture:„A 4PL is an integrator that assembles the resources, capabilities,and technology of its own organization and other organizationsto design, build and run comprehensive supply chain solutions.‟
  13. 13. What is 5PL• 5PL is the alignment of individual supply chains intoa common network strategically managed by asingle body• Therefore the fifth party itself is not (necessarily) aphysical entity but a system that informs a controllingparty which in turn manages the various supply chains inthe network on the basis of real time information and pre-aligned logistics facilities such as transport, shipping,storage etc.SupplyChain 1SupplyChain 2SupplyChain 3SupplyChain 4SupplyChain 5RMFINISHEDGOODSCONSUMER
  14. 14. INTEGRATIONSUPPLY CHAIN LOGISTICSINTEGRATIONCOST TIMETRANSIT WAITING OBSTACLESRELIABILITY RISKS
  15. 15. LOGISTICSINTEGRATION• SEAMLESS MANAGENT• REAL TIME MONITORING• VISIBILITY• TRACEABILITY• SYNCHRONISATION• MULTI TIERCHARACTERISTICS• GLOBALISATION OF MARKETS• INCREASED COMPETITION• TECHNOLOGY• PARTNERSHIPS• INFRASTRUCTURE• VENDOR & CUSTOMER DEMANDSDRIVERS
  16. 16. What Is 7 PL?7PL = 3PL + 4PL
  17. 17. What Is 3PL + 4PL3PL + 4PL = ?Same as 3½PLNONSENSEORSOMETHING I DON‟T KNOW YET
  18. 18. Heard in EuropeSome Bankrupt Forwarders are now Consultants.They work on Commission based on COSTREDUCTION.They Call themselves 4PL
  19. 19. 4PL = Asset FreeIs only asset free enough?3PL Paved Way For OutsourcingNew BPO,LeadLogisticsFocuses OnProcessRather ThanTaskFills Service Vacuum created by 3PL4PL is Neutral Brings ValueReEngineeredApproach
  20. 20. VISION• BUILD ON CORECOMPETANCIESKNOWLEDGE• KNOW HOW• EXPERIANCETECHNOLOGYINVESTMENT• PEOPLE• PROCESSESIMPLIMENTATION• NEUTRAL• COMMITMENT• PARTNERSHIPRECIPE
  21. 21. 3PLCarriers• Airlines• Shipping Lines• Rail• Truckers• Courier• PostInfrastructure• Port• CFS• Warehouses• ITCustomers• Buying Agents• Manufacturers• MerchantsOrganisors• CHA• IATA• MTO• NVOCC• Liner AgentsTuesday, April 30, 2013 SHANTANU BHADKAMKAR - ATC 22CONVERGENCE IN LOGISTICS
  22. 22. SHANTANU BHADKAMKAR - ATCPricing,Costing,Forecasting,Feed BackMIS, ResponseManagementConcept Selling& EnhancedRole OfMarketingAbility ToHandle NewUnexpectedSituationsDealing WithUncertaintyGlobal Alliances& StrategicNetworkingBetterManagement OfFinancesStrategic GlobalVisionQuickerDeliveryLower CostSuperiorServiceRangeFlexibility VisibilityTraceabilityIntegrationTuesday, April 30, 201323
  23. 23. Technologies• InformationManagement• FullIntegrationwithCustomer’sERP• Middle Ware• RFID, BarCoding …EnhancedSafetyStandards• Hazards• Accidents• Health• SafetyCulture• Monitoring,Review &AuditSecurity• Domestic• International• Storage• Carriage• PersonnelEnvironmentalIssues• Statutory |Compliance• Packing• GreenLogistics• ReverseLogistics• CarbonCreditsFuel• Costs: Rise &Volatility• ParticularlyFossil Fuels• Peak Oil• AlternativeGLOBALISATION• Opening OfMarkets• GlobalManufacturing• Various LocalLaws• VariousInternationalConventionsTuesday, April 30, 2013SHANTANU BHADKAMKAR- ATC24
  24. 24. 4PL & 3PLOPPORTUNITIES• Competition, cost worries and strict deliveryschedules are forcing companies to focus oncore competencies & outsource their logisticsManagement to third-party vendors.• About 75% of the companies in the US use 3PLproviders, while India has just made a start
  25. 25. OPPORTUNITIES• GDP Growth ~ 5%• Logistics Growth Rates Above GDP• Above Average Market Valuations• Integration With Supply Chains• New Models, New Services, Emerging Field• BRAND INDIATuesday, April 30, 2013SHANTANU BHADKAMKAR - ATC 26
  26. 26. Marketing• More Sales…• Sales ByNon SalesPersonnel• Brand Equity• IncreasedCustomerFocusCost Saving• DiscretionaryExpenses• GreaterEfficiency• Re-EngineeringStrategicInvestments• People -TalentSearch• NewServices• Assets• Up ValueChainTuesday, April 30, 2013 SHANTANU BHADKAMKAR - ATC 27READY FOR NEXT UPSWING… but Competitors are also doing the same
  27. 27. CACreditManagement• Bank !ContractsPrudence• Risk Mitigation• ViabilityM & A
  28. 28. As Peter Drucker called 3 decadesback is Logistics still the last greatunexplored continent of business?SHANTANU BHADKAMKARGrowth – Opportunities - Challenges

×