Mini Project 2 Report

On
“INDIAN LOGISTICS INDUSTRY ISUESS/CHALLENGES
AND IMPACT OF EMERGING TECHNOLOGIES”

Submitted in partial fulfillment of the requirements

for the award of the degree of
Masters of Business Administration
Submitted By:
AYUSH SHUKLA
MBA 2nd Sem
Roll No.: 2000110700183
Batch (2020-2022)
Submitted By: Submitted To:
Ayush Shukla MR. Rohit Kumar Vishwakarma

UNITED INSTITUTE OF MANAGEMENT

UPSIDC INDUSTRIAL AREA, NAINI, Prayagraj, U.P., 211010
 UNITED INSTITUTE OF MANAGEMENT
A-31 UPSIDC Industrial Area, Naini, Prayagraj – 211010
Ph. 0532–2686070. 2686090 Fax 0532-2687147

Certificate
Mini Project Report – 2, AY 2020-21

This is to certify that Mr. Ayush Shukla, Roll No 2000110700183 student of

MBA 2nd Semester of our institute has prepared a report on the

topic Indian Logistic Industry Issues and emerging technologies

He has worked on identifying the issues & challenges as well as the application of
emerging technologies in the above industry, under my supervision and has
completed the same in conformance with / partial fulfillment of the provisions of
AKTU, Lucknow.

The work is original and has not been submitted anywhere else in any manner.

Signature……………………………………………..
Name Mr/Ms/Dr…………………………………..
Date……………………………………………………..
Department of Business Administration

Counter signed

Signature…………………
(Prof K K Malviya)
Principal
Date…………..……..……
 DECLARATION

This is to certify that I have completed the Mini Project 2 titled “INDIAN LOGISTICS

INDUSTRY ITS ISUEES/CHALLENGES AND EMERGING TECHNOLOGIES” under

the guidance of “MR. Rohit Kumar Vishwakarma” in partial fulfillment of the requirement

for the award of degree of Master of Business Administration at United Institute Of

Management, Naini, Prayagraj.

This is an original piece of work and I have not submitted it earlier elsewhere.

Place: Prayagraj Candidate’s signature

Name: AYUSH SHUKLA

Enroll No. 2000110700183

Name: MR. Rohit Kumar Vishwakarma Name: Prof. K.K Malviya

(Class Coordinator) (Principal)

United Institute Of Management United Institute Of Management

 Acknowledgement

First, I would like to thank the UNITED INSTITUTE OF MANAGEMENT forgiving me the

opportunity to make project on ”INDIAN LOGISTICS INDUSTRY AND ITS ISSUES AND

EMERGING TECHNOLOGIES” and explore my knowledge.

I would like to thank my Principal sir of UIM, Mr. (Proff.) KK Malwiya sir and my HOD Dr.

Vishnu Prakash Mishra Sir and my class coordinator Ass.Professor MR. Rohit Kumar

Vishwakarma sir.

Hereby, I want to take the opportunity to thank all sources, people, friends, guides who help

me to get the required data. because of them I will able to knowledge of my curiosity about

the subject.

Ayush Shukla
TABLE OF CONTENTS

S.No. Topics Page No.

1 INTRODUCTION 1 -06

2 Objective of the project 07

3 Review of literature 08- 14

4 Overview of the industry 15-26

5 Issues and Challenges 27-30

6 Impact of technologies to resolve issues 31-34

7 Suggestive Strategies 35

8 Learning Outcomes 36

9 Recommendation 37

10 Bibliography 38
INTRODUCTION

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. However, outsourcing

logistics activities to experienced logistics service providers (LSP), also known as third-party

logistics (3PL) providers, may enable companies get very efficient and customized logistical

support while themselves focusing on the core organizational activities. Today, there are

many large multi-national LSPs that offer complete supply chain solutions across many

diverse countries in terms of their socio-economic and political environments. Apart from

core logistical activities such as transportation and warehousing, LSPs also offer value-added

services such as customs clearance, freight forwarding, import/export management, inventory

management, assembly/installation, packaging and labelling, distribution, after sales support,

reverse logistics and so on. By outsourcing logistics, companies can leverage the expertise of

LSPs while concentrating on their core competencies.

The road transport mode serves as one of the key factors in the developmental process of any

economy. While historically, the railways have played a dominant role in the overall

transport system of many countries, the road transport mode has, over a period of time, come

to occupy a pivotal role by virtue of certain inherent advantages. Over the past few decades,

the share of road transport in the total surface traffic movement in India has been gradually

increasing with a distinct shift away from the railways being observed. Most recent estimates

1
give the road mode a share of nearly 63 per cent in freight movement compared to its share of

just about 10 per cent in the early fifties.

According to these estimates, this percentage share is likely to stabilize around 85 percent.

Same as the Rail and Air services are also increasing day by day. Airlines transport in

popular for its faster services and the rail is little slower than the Air but much faster than the

Road lines.

Given this emerging significant role, many issues have been raised in the context of Rail, Air

and road freight movements, which apart from many others relate to efficiency of operations,

the competitiveness of the market, etc. Given the huge number of suppliers and the apparent

ease of entry into the sector, it was widely believed that the market was very nearly

competitive.

However, it has been an emerging feeling that the organisation of the structure of the industry

as well as some unimaginative policy measures and tardy implementation of even the limited

but fairly well designed regulatory measures have resulted in inefficient provision of services

which when viewed in the context of a liberalized and globalised framework of economic

activities affects competitiveness. It is against this background that an attempt has been made,

in this study, to examine and understand the nature of competitiveness in the Air, Rail and

Road goods transport industry in India.

India is one of the fastest growing economies of the world today. This growth is fuelled by

growth in infrastructure, booming manufacturing sector, EXIM trade, retail and agricultural

related activities amongst others. This, in turn, has resulted in increased demand for world-

class logistics and warehousing services in India, leading to the growth and transformation of

this sector. The logistics sector has been growing at an impressive CAGR of 18 per cent. The

industry has been valued at USD325 billion in 2020 and is expected to continue this growth

2
for the next 3-5 years. With rising disposable income, changing lifestyle, focus of

government and private sector logistics has received special attention in the past two to three

years. Development of cold chain / warehousing infrastructure, thus, remains at the core of

the government’s plan to enable growth of the logistics sector.

Further, the government is strengthening the infrastructure with over US $170 billion of

investment planned till 2022.Loistics will be one sector which will be the backbone of

flourishing trade activity and infrastructure development, and will receive special attention by

the government / private sector in coming years. The accelerated growth of the logistics

industry, coupled with emerging trends of 3PL services, logistic parks, cold chain and

warehousing activities, has made India a vast and untapped market.

For most domestic players logistics has for long been restricted to the basic transportation of

goods. Warehousing has grown to some extent but other services are still at a nascent stage.

With increasing demand (from both MNCs and Indian companies) and growing requirements,

the Indian logistics industry has expanded its bouquet of services to courier, cold chain,

container freight, 3PL etc. with greater emphasis being laid on value-added services, such as

packaging, labelling, bar coding and reverse logistics. All these factors have led to the rapid

growth of the organisedwarehousing industry in India. Growing at the rate of 30 per cent per

annum, the 3PL industry is capturing the imagination of various logistics players, both

domestic as well as international. Over the next five years, approximately 210 logistics parks

and 94.5 million square feet of warehousing space is expected to be developed across the

country by various logistics companies. Despite the impressive growth rates, the logistics

sector in India is fraught with much inefficiency. Logistics cost in India is fairly high – at

around 16 per cent of GDP, which is much

3
higher than that in USA (9%), Europe (10 %) and Japan (11%). These inefficiencies of the

Indian logistics industry can be attributed to factors such as a complicated tax regime,

fragmented market structure and inadequate infrastructure. It may be noted that although,

lack of infrastructure acts as an inhibitor, but the dearth of adequate infrastructure also

presents unique opportunities to players who are ready for the situation and understand the

market. Infrastructure developments like the

railway dedicated freight corridors, road development projects and modernisation of over 37

operational airports will increase India's handling capacities, thereby enhancing logistical

performances. This report identifies such elements which are growth engines of the Indian

logistics sector and focuses on understanding opportunities related within these elements.

Customer expectations are increasing greatly. Both individuals and businesses expect to get

goods faster, more flexibly, and – in the case of consumers – at low or no delivery cost.

Manufacturing is becoming more and more customised, which is good for customers but hard

work for the logistics industry. Add it all up and the sector is under acute and growing

pressure to deliver a better service at an ever lower cost.

Issues and Challenges Despite showing immense growth potential, the Indian logistics and

warehousing industry encounters various issues and challenges today. Success of this

Industry will depend largely on the resolution of these. Even though some of the biggest

challenges require initiatives at the government level, the private sector will also play an

equally important role. Some of the key challenges witnessed by the industry are explained

below:

Transport Infrastructure The logistics and warehousing industry has a very high dependence

on physical infrastructure. The challenges pertaining to it are manifold ranging from lack of

ample road and rail network to accessible storage options. India lacks efficient road and rail

4
network to facilitate smooth movement of goods. Also there is overdependence on road

infrastructure unlike the developed countries where rail is an equally important mode of

freight movement. The rail network in our country is saturated due to limited addition in

tracks during the past decade. Likewise cargo handling capacity of our ports is also

inadequate leading to delay in deliveries. The typical turnaround time of Indian ports is twice

that of the neighbouring ports of Colombo and Singapore. All the above transport related

issues in turn affect the export and import time which in turn pose a challenge for companies.

Information Technology The importance of information technology cannot be undervalued in

the logistics sector. Low penetration of IT and absence of efficient communication

infrastructure pose a big challenge for logistics companies. Whether it is the use of transport

management systems, Radio Frequency Identification Device (RFID) or warehouse

management systems, India lacks on every front.

Fragmented Market The logistics sector in India is highly unorganised and fragmented. Most

of the truck operators are small private players and are unable to contract directly with the

clients. As a result of this, mediators come into play and generate business for them and take

commission. All this leads to operational inefficiencies and compels the truck owners to

overload in order to achieve profit margins. Since the operations are so fragmented,

economics of scale cannot be adopted. Presence of multiple check points for trucks is

another challenge. Every state requires certain documentation for a truck to pass the border

such as RTO inspection and Toll Tax among others leading to huge delays during the

journey. Land Availability Affordable land availability with clear titles in tactical locations is

a big challenge currently. Since land is a state subject, it adds to the challenges as different

states have different set of procedures pertaining to agriculture land acquisition. Increasing

land values even in the peripheral areas of a city further makes it unviable for companies to

5
invest in warehousing. Lack of Standardisation As discussed earlier the demand drivers of the

logistics industry are varied and have specific requirements. These requirements are further

reflected in transportation and warehouse needs. There is lack of standards related to design,

safety and type of facilities and amenities of warehouses. Increasing globalisation and

entrance of international players has increased the demand for good quality warehouses

which are at par with other countries. Currently there is a dearth of such warehouses which

compels companies to invest further in order to support their operations. Lack of Trained

Manpower There are limited options of specialised studies on logistics management in the

country. Most of the warehousing players lack the required expertise leading to operational

inefficiencies. As the industry evolves, the need for experts is also expected to grow. A

majority of logistics players today have limited knowledge of material loading, handling and

storage leading to wastage.

Emerging technologies in logistics industries like Digital twin, Blockchain, Artificial

Intelligence, Big data science and Internet of things etc. can help to resolve these problems

6
 OBJECTIVE OF THE REPORT

The primary objective of the report is understand the Logistic industry and to study about the

issues and challenges faced by Logistics industry. The another major objective of the report is

to understand the emerging technologies in the Logistics industry and its impact.

The following objectives of the report are described as follows:

1. To understand the working of the Logistics industry and its impact on other industries.

2. To identify the issues and challenges facing by Logistics industries such as

transportation problem, inventory problem, warehousing problem and distribution

problem etc.

3. To identify the emerging technologies in logistics industry and how these

technologies will help in solving and reducing the current logistics problem.

4. The impact of emerging technologies such as Digital twins, Artificial Intelligence,

Blockchain, Real time visibility of supply chain etc. on working of Logistic industry.

7
 Review of literature

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.

However, outsourcing logistics activities to experienced logistics service providers

(LSP), also known as third-party logistics (3PL) providers, may enable companies get very

efficient and customized logistical support while themselves focusing on the core

organizational activities. Today, there are many large multi-national LSPs that offer complete

supply chain solutions across many diverse countries in terms of their socio-economic and

political environments. Apart from core logistical activities such as transportation and

warehousing, LSPs also offer value-added services such as customs clearance, freight

forwarding, import/export management, inventory management, assembly/installation,

packaging and labelling, distribution, after sales support, reverse logistics and so on. By

outsourcing logistics, companies can leverage the expertise of LSPs while concentrating on

their core competencies.

Indian Scenario of Logistics Industry

The Logistics sector in INDIA has today become an area of priority. One prime reason

for the same stems from the reason that years of high growth in the Indian economy have

resulted in a significant rise in the volume of freight traffic moved. The large volume of

traffic has provided for growth opportunities in all facets of logistics including transportation,

8
warehousing, freight forwarding, express cargo delivery, container services, shipping services

etc. The growth path also suggests that increase demand is being placed on the sector to

provide the solutions required for supporting future growth. Strength of the logistic sector is

likely to be one of the key determinants of the pace of the future growth of the economy.

The market size of the logistics sector in INDIA is estimated to be between USD 190-225

billion. These estimates may already be well below the actual size of the industry. Sources

estimates that the industry employs over 65 million people and is going at the rate of 25%

with sub-sector growing at even 35-45% per annum. Due to these reasons the Indian logistics

sector is viewed as one of the most attractive in the world. Recent policies by the government

attract a strong growth area for logistics in the future. Despite holding promise the logistics

sector in India remains mired in several complexities which have the potential of holding it

back. These includes significant inefficiencies in transportation, poor condition of storage

infrastructure, complex tax structure, low rate of technology adoption, and poor skills of

logistics professionals.

India-Emergence of Global Manufacturing Hub

The demand for FMCG and electronic products in India has been growing at the very

fast pace. Several MNCs from diverse industries have shown growing interest in setting up

world class manufacturing facilities in India to cater to the domestic market as well as for

the export market.

Establishing manufacturing facilities in India has been a strategic move to reduce their

manufacturing costs and cater to the expanding Indian market. The Indian automotive

industry is well on its way to become one of the world’s major automobile manufacturing

hubs. Since the deregulation and opening up of the automotive industry, the industry has

witnessed tremendous changes and experienced a great boom.

9
Indian Logistics Industry: Current Scenario and Future Outlook

Logistic is the backbone of the economy, providing the efficient, cost effective flow of

goods on which other commercial sectors depends. The logistics industry in India is evolving

rapidly and it is the interplay of infrastructure, technology, and new types of service providers

that will define whether the industry is able to help its customers reduce their logistics costs

and provide efficient services.

Despite weak economic sentiments, the logistics and warehousing industry continued to

witness growth largely due to growth in detail, E-commerce and manufacturing sectors. The

logistics sector is expected to grow at around 10-15% in the period 2014-2015. With this

forward looking attitude and promise of growth and improvements, the service oriented

logistics is all set to expand beyond the horizons in the later half of this decade.

EVOLUTION AND OVERVIEW OF THE LOGISTICS &

WAREHOUSING SECTOR IN INDIA

Background The word logistics is derived from the Greek adjective logistikos meaning

“skilled in calculating”. The concept of logistics first appeared during the war and covered

the processes of procuring food, clothing, ammunition etc. for the military. Logistics started

acquiring importance in the business world during the 1950s, post the structural evolution of

world trade. Since then many factors such as deregulation, penetration of information

technology and globalisation have contributed to the growth of this sector.

Logistics can be defined as the science of planning, implementing and controlling efficient

flow and storage of goods and services from the point of production to the consumption

centres in order to meet the customer requirements. On a broad level, logistics comprises

three major components namely transportation, storage and distribution. Furthermore, for the

logistics sector to reach a mature phase, it is imperative for these three sub components to
10
work efficiently. Transportation refers to infrastructure like ports, road, rail and air. Storage

refers to warehouses and distribution includes service providers like freight forwarders,

multimodal operators and 3PL (Third Party Logistics) players.

Despite being at a nascent stage India’s logistics and warehousing industry presents a big

opportunity. Augmented foreign trade, FDI allowance in the manufacturing and retail sector,

globalisation and changing tax systems are some of the important driving factors of the

industry. Increased awareness of corporates towards logistics and warehousing cost has given

the much needed impetus to the sector. Introduction of new business models and increasing

linkages with global supply chains will further thrust growth in the sector.

Currently the Indian logistics and warehousing industry is highly fragmented and

unorganised.

Evolution of Logistics in India The logistics and warehousing sector in India is still in its

initial stage of development and has a long way to catch up with most of the advanced

economies. Managing transportation network and storage of finished goods, used to define

the supply chain strategy for most of the companies in India until a few years back. However,

integration of the Indian economy with the global economy and various multi-national

companies setting up manufacturing facilities locally have helped in bringing the global best

practices to the domestic market. This has resulted in a gradual shift from simply managing

transport network and godowns towards a more integrated supply chain management system.

In order to understand the evolution of the logistics sector in India, it is imperative to study

the competing markets that have moved ahead in the value chain. United States of America

(USA) is considered to be the most evolved logistics market in the world and can be used as a

benchmark to compare with the Indian market. China, sharing a great amount of

characteristics in terms of economy and geography with India, can be considered as another

11
benchmark for comparison. The comparison of USA and China with India will help in

understanding the various gaps and the current status of the domestic logistics market.

Evolution of the Logistics Sector

Firstly India spends 8.2% of its GDP only on transportation, which is almost as much as the

USA spends on its entire logistics sector. Secondly India’s proportionate expenditure on

transportation is nearly double that of the USA’s despite having only one-third of its

landmass. This highlights the scope for improvement in India’s transportation sector. The

USA logistics sector has a value of almost 10 times that of the Indian logistics sector. Yet the

USA logistics sector employs only one tenth the number of people that the Indian logistics

sector does. Primary reason for such a stark contrast is that the logistics sector in the USA is

highly mechanised and uses automation extensively unlike in India where it is largely

dependent on labour.

Transport: Trucking and railroads are the main modes of transportation in the India. Trucking

is more expensive as a mode of transport and is generally used for either shorter routes or to

transport expensive cargo. The India relies heavily on trucking and on rail. Of the total share

of transportation (tonnage) handled by roads and rail, trucking accounts for 86% whereas rail

accounts for a mere 14%. This is very similar to India which has roughly the same

proportions.

Comparison with the USA Logistics Sector Overview: The USA has the largest and one of

the most developed logistics markets in the world. Its logistics sector accounts for nearly

8.5% of its GDP. Although the USA is a heavily service driven economy, this number is still

very low in comparison to China and India that have logistics cost as a percentage of GDP at

18% and 13% respectively.

12
Evolution of Logistics in India The logistics and warehousing sector in India is still in its

initial stage of development and has a long way to catch up with most of the advanced

economies. Managing transportation network and storage of finished goods, used to define

the supply chain strategy for most of the companies in India until a few years back. However,

integration of the Indian economy with the global economy and various multi-national

companies setting up manufacturing facilities locally have helped in bringing the global best

practices to the domestic market. This has resulted in a gradual shift from simply managing

transport network and godowns towards a more integrated supply chain management system.

In order to understand the evolution of the logistics sector in India, it is imperative to study

the competing markets that have moved ahead in the value chain. United States of America is

considered to be the most evolved logistics market in the world and can be used as a

benchmark to compare with the Indian market. China, sharing a great amount of

characteristics in terms of economy and geography with India, can be considered as another

benchmark for comparison. The comparison of USA and China with India will help in

understanding the various gaps and the current status of the domestic logistics market.to its

current level of 2.8%. However, the country’s transportation expenses on the other hand have

been relatively constant since the 1980s at an approximate value of 5% of the country’s GDP.

India on the other hand spends 8.2% of its GDP on transportation and 3.8% on warehousing.

Two things stand out immediately when we juxtapose India and the USA. Firstly India

spends 8.2% of its GDP only on transportation, which is almost as much as the USA spends

on its entire logistics sector. Secondly India’s proportionate expenditure on transportation is

nearly double that of the USA’s despite having only one-third of its landmass. This highlights

the scope for improvement in India’s transportation sector. The USA logistics sector has a

value of almost 10 times that of the Indian logistics sector. Yet the USA logistics sector

employs only one tenth the number of people that the Indian logistics sector does. Primary

13
reason for such a stark contrast is that the logistics sector in the USA is highly mechanised

and uses automation extensively unlike in India where it is largely dependent on labour.

Demand Drivers of India’s Logistics Sector: The need for logistics arises when there is a

gap between the time a product is initially manufactured and then finally consumed. The

larger this gap, the higher the need for storing the product. Since each product is uniquely

placed depending on who consumes it and where it is consumed, the need for logistics is

different for each product category. For example, a TV unit that is manufactured in India and

sold in the domestic market will have a different requirement for logistics compared to the

same TV unit sold in the export market. For domestic consumption, the TV unit will have to

be warehoused close to one of the urban centres from where it can be delivered to the final

point of consumption. However, in case of export, it will have to be stacked in a container

that will be warehoused in a Container

Hub and Spoke Model

Increasing demand from consumers for better service levels has forced companies to locate

their warehouses as close to the consumers as possible. Such a strategy entails operating

multiple smaller sized warehouses catering to each region. The cost of maintaining multiple

warehouses is not only prohibitive but also inefficient in terms of transportation. This has led

to the evolution of the hub and spoke model of distribution in the supply chain management.

In the hub and spoke model, the distribution hub is the location that holds inventory for a

large region, with each spoke leading to smaller distribution centres that house inventory for

a smaller region. The main driver of the hub and spoke model is the proximity to the

customer, with the goal being supply to a maximum number of customers in minimum time.

Since the number of warehouses reduces significantly, massive cost saving in terms of rent,

utility, operational and administrative expenses is achieved.

14
 Logistics Industry Overview

INTRODUCTION OF LOGISTIC

Logistics management is that part of the supply chain which plans, implements and controls

the efficient, effective, forward and backward (reverse) flow and storage of goods, services

and information between the point of origin and the point of consumption in order to meet

customers' requirements rather to the customers’ delight. A professional working in the field

of logistics management is called a logistician.

Logistics, as a business concept, evolved only in the 1950s. This was mainly due to the

increasing complexity of supplying one's business with materials, and shipping out products

in an increasingly globalized supply chain, calling for experts in the field who are called

Supply Chain Logisticians. This can be defined as having the right item in the right quantity

at the right time at the right place for the right price and to the right target customers

(consumer); and it is the science of process having its presence in all sectors of the industry.

The goal of logistics work is to manage the fruition of project life cycles, supply chains and

resultant efficiencies. Logistics is concerned with getting (or transmitting) the products and

services where they are needed or when they are desired. It is difficult to accomplish any

marketing or manufacturing without logistical support. It involves the integration of

information, transportation, inventory, warehousing, material handling, and packaging. The

operating responsibility of logistics is the geographical repositioning of raw materials, work

in process, and finished inventories where required at the lowest cost possible.

15
ORIGIN AND DEFINITION OF LOGISTICS

The term "logistics" originates from the ancient Greek ("logos"—"ratio, word, calculation,

reason, speech, oration"). Logistics is considered to have originated in the military's need to

supply themselves with arms, ammunition and rations as they moved from their base to a

forward position. In ancient Greek, Roman and Byzantine empires, there were military

officers with the title ‘Logistikas’ who were responsible for financial management and

distribution of supplies.

The Oxford English dictionary defines logistics as: “The branch of military science having to

do with procuring, maintaining and transporting material, personnel and facilities.”

The American Council of Logistics Management defines logistics as “the process of

planning, implementing and controlling the efficient and effective flow, and storage of goods,

services and related information from the point of origin to the point of consumption for the

purpose of conforming to customer requirements.”

Types of logistics

1. Inbound logistics

As the name suggests, inbound logistics is concerned with activities related to the incoming

flow of resources needed to make a product or a service. Inbound logistics processes may

include managing suppliers, costs, inventory, and transportation to ensure the right

components or subassemblies arrive in your factory on time. Inbound logistics is generally

complex because hundreds of parts are coming in to manufacture one final product, therefore,

it tends to be more intricate than outbound flow.

Procurement is the major element in inbound logistics as it deals with sourcing and

transporting raw materials from the supplier to buyer’s factory.

16
2. Outbound logistics

Outbound logistics refers to activities in delivering the right product at the right time to

customers at a minimum cost. Customer satisfaction is the primary objective of outbound

logistics, that is why many organizations especially e-commerce companies are competing

for last-mile or same-day delivery to their customers. Companies bring out their value

proposition to their customers and back it up with their outbound logistics capability.

Distribution system plays a critical role in outbound logistics. The distribution channels and

transportation system should support the value the company is trying to provide to customers

(e.g. quick response to the customer, customer service level, etc.). The prevalence of e-

commerce in the retail industry intensifies the need for an optimized outbound logistics flow.

Retail e-commerce sector operates heavily in outbound logistics than any other industries.

Look at Amazon, Walmart, and Lazada, they take bold steps innovating technologies and

building facilities to accelerate their logistics performance.

3. Reverse logistics

Reverse logistics is the process of moving products from end-user back to the origin to

recover value or for proper disposal. The value is recaptured from products recovered from

customers through rework, refurbishment, reuse, scrap recycling, or government incentives

for recyclable products.

A refurbished iPhone is a good example of reverse logistics. If an iPhone sold to the customer

is found defective within the warranty period, the customer returns it to the carrier network

and then send it back to the Apple factory for refurbishing. Apple inspects the iPhone to

determine the issue and replace it with new parts or software. A new iPhone is then labeled

17
with a new serial or model number for reselling. A refurbished iPhone is re-sold to the

customer, thus, creating value to Apple.

Product returns come in different forms including the commercial return, recall,

refurbishment, or product’s end-of-life. Companies must have systems and infrastructure in

handling returns to minimize recovery costs, increase recaptured value, and increase

visibility. In e-commerce retail industry, the rising return rates make retailers suffer from

costs associated with returns because customers get refunded for returned products

(especially seasonal goods) that cannot be resold at the original price due to wear and tear,

obsolescence, or damage. Implementing a return policy can mitigate reverse logistics costs as

it controls and limits customers from returning goods.

The size and nature of procurement affects inbound logistics in many ways. For example, a

company who purchase simple items such as office supplies does not require much resources

to manage its inbound logistics. While a firm who buys machineries or perishable goods from

overseas would have a complex inbound logistics as products need to be handled, stored, and

transported according to required handling, packaging, or temperature.

OBJECTIVE OF LOGISTICS INDUSTRY

The primary objective of logistics management is to effectively and efficiently move the

supply chain so as to extend the desired level of customer service at the least cost. Thus

logistics management starts with ascertaining customers’ needs till their fulfilment through

product supplies. These can be described as follows:

1. IMPROVING CUSTOMER SERVICE

An important objective of all marketing efforts, including the physical distribution activities

is to improve the customer service. An efficient management of physical distribution can help

18
in improving the level of customer service by developing an effective system of ware housing

quick and economic transportation, and maintaining optimum level of inventory. Which will

help the customers to get the product easily and early and it will help in increasing the life of

product as well

2. RAPID RESPONSE

Rapid response is concerned with a firm's ability to satisfy customer service requirements in a

timely manner. Information technology has increased the capability to postpone logistical

operations to the latest possible time and then accomplish rapid delivery of required

inventory.

3. REDUCE TOTAL DISTRIBUTION COSTS

The cost of physical distribution consists of various elements such as transportation,

warehousing and inventory maintenance, and any reduction in the cost of one element may

result in an increase in the cost of the other elements. Thus, the objective of

the firm should be to reduce the total cost of distribution and not just the cost incurred on any

one element.

4. GENERATING ADDITIONAL SALES

A firm can attract additional customers by offering better services at lowest prices. For

example, by decentralizing its warehousing operations or by using economic and efficient

modes of transportation, a firm can achieve larger market share. Also by avoiding the out-of-

stock situation, the loss of loyal customers can be arrested. By logistics a company will

improve the supply chain management and will reduce the cost of the product hence, it will

result in increase in sales.

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5. CREATING TIME AND PLACE UTILITIES

The products are physically moved from the place of their origin to the place where they are

required for consumption; they do not serve any purpose to the users. Similarly, the products

have to be made available at the time they are needed for consumption. This will help in

fulfilling the demands of the product with its proper and fast supply and it will also helps in

reducing black marketing of the goods.

6. QUALITY IMPROVEMENT

The long-term objective of the logistical system is to seek continuous quality improvement.

Total quality management (TQM) has become a major commitment throughout all facets

of industry. If a product becomes defective or if service promises are not kept, little, if any,

value is added by the logistics. Logistical costs, once expended, cannot be reversed.

7. MOVEMENT CONSOLIDATION

Consolidation one of the most significant logistical costs is transportation. Transportation

cost is directly related to the type of product, size of shipment, and distance. Many Logistical

systems that feature premium service depend on high-speed, small shipment transportation.

Premium transportation is typically high-cost. To reduce transportation cost. It is desirable to

achieve movement consolidation.

LOGISTICS INDUSTRY FUNCTIONS:

Logistics is the process of movement of goods across the supply chain of the company. This

process is consisting of various functions, which have to be properly managed to bring

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effectiveness efficiency in the supply chain of organization. The major logistical functions

are as follows:

1. ORDER PROCESSING

The starting point of physical distribution activities is the processing of customers’ orders. In

order to provide quicker customer service, the orders received from customers should

be processed within the least possible time. Order processing includes receiving the order,

recording the order, filling the order, and assembling all such orders for transportation, etc.

2. WAREHOUSING

Warehousing refers to the storing and assorting products in order to create time utility. The

basic purpose of the warehousing activity is to arrange placement of goods, provide storage

facility to store them, consolidate them with other similar products, divide them into smaller

quantities and build up assortment of products. Generally, larger the number of warehouses a

firm has the lesser would be the time taken in serving customers at different locations, but

greater would be the cost of warehousing. Thus, the firm has to strike a balance between the

cost of warehousing and the level of customer service.

Major decision in warehousing is as follow:

• Location of warehousing facility. • Number of warehousing. • Size of warehouse. • Design

of the building. • Ownership of the warehouse.

3. INVENTORY MANAGEMENT

Linked to warehousing decisions are the inventory decisions which hold the key to success of

physical distribution especially where the inventory costs may be as high 15 as 30-40 percent

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(e.g., steel and automobiles). No wonder, therefore, that the new concept of Just-in-Time-

Inventory decision is increasingly becoming popular with a number of companies. The

decision regarding level of inventory involves estimate of demand for the

product. A correct estimate of the demand helps to hold proper inventory level and control

the inventory costs. This is not only helps the firm in terms of the cost of inventory and

supply to customers in time but also to maintain production at a consistent level. The major

factors determining the inventory levels are: The firm’s policy regarding the customer service

level, Degree of accuracy of the sales forecasts, Responsiveness of the distribution system

i.e., ability of the system to transmit inventory needs to the factory and get the products in the

market. The cost inventory consists of holding cost (such as cost of warehousing,

tied up capital and obsolescence) and replenishment cost (including the manufacturing cost).

4.TRANSPORTATION

Transportation seeks to move goods from points of production and sale to points of

consumption in the quantities required at times needed and at a reasonable cost. The

transportation system adds time and place utilities to the goods handled and thus, increase

their economic value. To achieve these goals, transportation facilities must be adequate,

regular, dependable and equitable in terms of costs and benefits of the facilities and

service provided.

5. INFORMATION

The physical distribution managers continuously need up-to-date information about

inventory, transportation and warehousing. For example, in respect on inventory, information

about present stock position at each location, future commitment and replenishment

capabilities are constantly required. Similarly, before choosing a carrier, information about

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the availability of various modes of transport, their costs, services and suitability for a

particular product is needed. About warehousing, information with respect to space

utilization, work schedules, unit load performance, etc.

6. FACILITIES

The Facilities logistics element is composed of a variety of planning activities, all of which

are directed toward ensuring that all required permanent or semi permanent operating and

support facilities (for instance, training, field and depot maintenance, storage, operational,

and testing) are available concurrently with system fielding.

Planning must be comprehensive and include the need for new construction as well as

modifications to existing facilities. Facility construction can take from 5 to 7 years from

concept formulation to user occupancy. It also includes studies to define and establish

impacts on life cycle cost, funding requirements, facility locations and improvements, space

requirements, environmental impacts, duration or frequency of use, safety and health

standards requirements, and security restrictions. Also included are any utility requirements,

for both fixed and mobile facilities, with emphasis on limiting requirements of scarce or

unique resources.

The Future Trends in Logistics

Likewise China, experts believe many foreign companies will make India as the

manufacturing centre for their Asia or global market, therefore changing logistics demand

and shipper characteristics dramatically. As such, India’s potential growth cannot be ignored

by global manufacturers and logistics players. As an impact, changes will be apparent in the

India’s logistics industry.

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Indian component manufacturers will move up the value chain as contract manufacturers and

deliver quality components at the OEM factory floor. As such, it will become crucial to

provide parts consolidation and transportation, and to manage the flow of critical part

delivery to ensure high service levels, customer satisfaction and inventory visibility. Frost &

Sullivan has estimated that the revenue of the logistics industry from the manufacturing

sector alone was $113.46 billion in 2019, and the market is likely to grow at a CAGR of

16.2% during the next five years. Chemicals, metal, FMCG, cement and textiles are expected

to be the top five contributors of the Indian logistics industry revenues. Besides that, India

will be facing the issue of strategic location of industries and the major concern of the B2B

connectivity to marketplaces in the future.

The growing technologies worldwide are expected to change the India logistics industry in

future. At the time, the concept of e-commerce and open buying on the internet (OBI) are

still in nascent stage in India due to the traditional mindset of the corporate and people, low

awareness, absence of strong infrastructure and secure payment system and also due to the

lack of privacy and safety on the net. However in the future, the growth of e-commerce and

its logistics needs will become inevitable and India will overcome these barriers. The

increasing online sales will force e-companies to forge strategic alliance with logistics service

providers that can provide cost effective and seamless distribution solutions. As such, India

can expect a shift in the retail logistics, B2B procurement practices and the way the

distributions are handled. The adoption of new technologies such as GPS and RFID will take

place rapidly in the future. The defence logistics will also emerge as an important area for

new technologies in India.

As for the logistics infrastructures in India, improvement and further development can be

expected in all the areas comprising roads, railways, seaports and airports. The air cargo

industry for example, will continue to undergo huge transformation with more participation

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in freight business. It is estimated that the air cargo market will grow at 7% per annum for

the next two years against global freight market’s projected 5.3% growth for the same period.

As part of global war against terrorism, India should also step up security at seaports, airports

and trains. Tighter security measures including the implementation of The International Ship

and Port Facility Security Code (ISPS), which requires ships and ports to implement a broad

range of security measures covering communications, port and ship access control,

monitoring people and cargo, and screening personnel, baggage, cargo and vehicles should be

in operation at all ports in India. Changes will also take place among the logistics players. It

is expected that the market for 3PL services is likely to grow at a Compound Annual Growth

Rate (CAGR) of 20.4% during the next five years, with the growth being fuelled by the entry

of MNCs and the export focus of Indian companies. The industry consolidation will

eventually result in a few large players. In the long term, Indian service providers will

develop restructuring strategies and some will become strong players. However, it is the

global service providers that will dominate the industry. They will play a larger role,

strengthening their domestic capabilities to leverage global client resources. Both local and

multinational service providers will become more specialized in industries served and

provide more customized services. The existing customers, on the other hand will reduce the

number of providers used and will begin to demand higher standards of reliability and quality

which includes state-of-art technology. The logistics solution available in future will also be

highly technology driven.

However, as India’s logistics outsourcing and investments to improve logistics efficiencies

are still at a nascent stage, these future trends will take place, but it will take longer time to

materialize. The resources needed for wholesale development will also take enormous

amounts of time and resources. However, India should recognize the extraordinary role

logistics plays in economic development and in enhancing the competitiveness of all sectors

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of the economy. As such, India should move forward for an integrated strategy towards

developing a world-class logistics industry.

The growing technologies worldwide are expected to change the India logistics industry in

future. At the time, the concept of e-commerce and open buying on the internet (OBI) are

still in nascent stage in India due to the traditional mindset of the corporate and people, low

awareness, absence of strong infrastructure and secure payment system and also due to the

lack of privacy and safety on the net. However in the future, the growth of e-commerce and

its logistics needs will become inevitable and India will overcome these barriers. The

increasing online sales will force e-companies to forge strategic alliance with logistics service

providers that can provide cost effective and seamless distribution solutions. As such, India

can expect a shift in the retail logistics, B2B procurement practices and the way the

distributions are handled. The adoption of new technologies such as GPS and RFID will take

place rapidly in the future. The defence logistics will also emerge as an important area for

new technologies in India.

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 Issues and Challenges In Indian Logistics Industry

With globalization, logistics is expected to play an increasing role in driving the Indian

economy. In 2019, India was ranked 25th in The World Bank LPI Index that ranks countries

based on their logistics performance — moving up from 54th in 2014. While this is reflective

of improvement in the sector, multiple challenges of infrastructural deficiency, lack of

integration amongst stakeholders, lack of skilled manpower and slow adoption of technology

continue to weigh it down.

1. Infrastructure - It is one of the biggest hurdles that has cramped growth of the logistics

sector. It gets reflected in inadequate and low-quality modal and terminal transport

infrastructure, suboptimal modal mix, inefficient and ill-designed storage facilities for cargo

and containers and inefficient operational and maintenance protocols, and poor

adoption/adaptation of technology. This leads to high and inconsistent cargo transit time,

inefficient use of resources and poor fleet management. The selection of the mode of

transport, or even storage and terminal handling protocols are rarely linked to cargo

characteristics (distance of travel, parcel size, density, etc.). As a result, there is overuse of

high-cost modes like road at the expense of cost-effective and sustainable modes like inland

waterways and railways. The continuing and prolonged suboptimal system, which

erroneously appears to be in equilibrium, needs to be changed. The way to strengthen the

Indian logistics infrastructure is about deconstructing the old and building a new rational

equilibrium.

2. Skill Development - India has a demographic advantage but the availability of

appropriately skilled manpower remains a challenge. This is particularly so in the logistics

sector as it is seen more as a support industry than a mainline one. Lack of skilled manpower

is the result of inadequate training and proper leadership and support. The sector needs to

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specifically build a pool of personnel comprising truck drivers, seafarers, warehousing

managers, quality inspection supervisors, among others. There are limited institutes for soft

skills, and operational and technical training. Also, due to the unorganized nature of the

sector, which is characterized by poor working conditions and low pay scale, it is not a

preferred choice among skilled personnel.

3. Information Technology - Slow adoption of new technologies has been another big

constraint. Awareness about the economic benefits of using digital technology is low and

collaboration among stakeholders far from satisfactory. As a result, the logistics ecosystem is

fraught with operational inefficiencies and poor asset utilization. Lack of technology systems

and insufficient technical knowledge add to the pain. Technological infrastructure has

remained inadequate, marked by slow network speeds, subpar performance, and unreliable

hardware and software — all leading to high costs and underperformance.

4. Regulatory Hurdles - The introduction of GST could change the contours of the logistics

sector completely but such disruptive reform requires proper implementation. Multiple

regulatory agencies, if not coordinated and brought under a single umbrella, could slow down

the creation and operation of logistics infrastructure. Obstacles in land acquisition and

consolidation, and change in land use still continue to be major impediments. Lack of

transparency in compliances further adds to the woes of the sector.

5. Performance Standards - With a diverse customer base, consumer behaviours and

expectations are also diverse. Both individual and corporate customers demand personalized

services, flexibility and faster services. Due to these complexities and prevalence of

fragmented suppliers, there is a need for integration of services in order to meet performance

standards. There is a need for standardized services, transparency and compliance. Therefore,

logistics service providers need to align their strategy with the business model and targeted

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customer segments. Additionally, initiatives such as real-time track-and-trace and other

value-added services, will help service providers cut cost, raise productivity and optimize the

supply chain. It is clear that the Indian logistics sector faces challenges and there is a lot to

act upon. Use of innovative models, new technological systems, international best practices,

research and adequate implementation approach can all help to improve the sector, which in

turn can stimulate growth and employment in the country.

According to the experts of Logistics sector in India and leading Logistics companies

there are some major problems of Indian Logistics Industry are:

• In the absence of a systematic and holistic approach, the use of different modes of transport

has remained skewed and inefficient.

• There is no single ministry to regulate the logistics sector, which is in dire need of being

accorded the status of an industry. Equally pressing is the need to set up a National Logistics

Commission to boost growth. Lack of coordination between central and state government

poses yet another challenge for the logistics sector to work holistically. Red tape-ism makes

both decision-making and procedures slow and lengthy.

• Logistics Performance Index is not an appropriate framework for appraising domestic

logistics segment where we can see how much money we are losing. It is more useful for

assessing international trade.

• IT systems and EDI (Electronic Data Interchange) facilities are inadequate. As such, it is

not always possible to rely on a standardized system to transfer information electronically,

which makes it difficult to get real-time status of operations and services.

• Additional workforce is needed to meet the growing demand. It is also important to invest

in their skill development to ensure quality and efficiency in services.

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• A wide customer base has led to demanding expectation, including personalized solutions.

There is little awareness about using proper modes of transport for different uses and about

environmental concerns.

• With deficient physical infrastructure, it is difficult to meet the growing demand despite the

increased planned outlay by the government. Private investment is necessary to boost the

sector, as is the presence of pan-India players to provide end- to-end logistics services and

integrated solutions.

• Under the GST regime, services in relation to transport of goods outside India where both

service provider and recipient are located in India shall be taxable. Earlier, these services

were not subject to levy of service tax.

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Impact of technology/applications to resolve issues of Indian
Logistics Industry

More and more businesses are taking advantage of something called process automation

which helps organizations integrate the processes and systems required to make order-taking

and fulfilment more efficient, The global supply chain is continually furthering and the

advances in technology, more specifically automation, prove to save materials and energy as

well as enhance the quality and accuracy of the business processes. Moreover, it ensuring

time and cost effectiveness, speeding up the growth process. Logistics managers are bringing

in the best value by focusing on more important issues as automation is now taking care of

everyday courses of action.

1. DIGITAL TWINS

Digital twins are possibly one of the most exciting logistics technology trends to keep an eye

on in 2021. As many logistics professionals know, products are never exactly the same as

their computer models. Modeling in its current state doesn’t take into account how parts wear

out and are replaced, how fatigue accumulates in structures, or how owners make

modifications to suit their changing needs. However, digital twins technology is changing this

once and for all: Now, physical and digital worlds can be melded into one, thus allowing us

for the first time to engage with the digital model of a physical object or part just like we

would with their physical counterparts.

The potential use cases for digital twins in logistics are vast. In the shipment sector, digital

twins can be used to collect product and packaging data and use that information to identify

potential weaknesses and recurring trends to improve future operations. Warehouses and

facilities can also use the technology to create accurate 3D models of their centers and

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experiment with layout changes or the introduction of new equipment to see their impact,

risk-free. Furthermore, logistics hubs are able to create digital twins and use those to test out

different scenarios and increase efficiency. In addition to that, delivery networks could use

the technology to provide real-time information that will improve delivery times and further

aid autonomous vehicles in their routes. It will be interesting to see what other impactful

logistics use cases develop over the next year.

2. REAL TIME SUPPLY CHAIN VISIBILITY

Supply Chain Visibility (SCV) is no longer just a great thing for logistics companies to have.

In 2021, it needs to take another step forward – becoming real-time. This real-time data is

now more in demand by customers and carriers than ever, which means logistics and supply

chain enterprises need to focus on implementing cutting-edge SCV solutions into their

operations. New supply chain visibility startups are providing technology that promotes quick

response to change by allowing companies to use real-time data. Such data includes traffic

patterns, weather, or road and port conditions which are used to take action and reshape

demand or redirect supply and optimize routes. Logistics companies that fully use integrated

supply chains are now reported to see 20% more efficiency than those without integration.

One can’t speak about supply chain visibility without also mentioning IoT sensor technology,

a crucial asset for tracking shipments. Connected IoT devices on parcels allow warehouses to

track inventory, vehicles, and equipment through cloud services. At the same time, container

management powered by IoT also becomes easier through real-time monitoring, increasing

fuel efficiency, implementing preventative maintenance and making container operations

proactive instead of reactive. With that in mind, partnerships between IoT startups and

logistics companies are another big trend to watch in 2021.

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3. ARTIFICIAL INTELLIGENCE

Over the past several years, the logistics industry has started to integrate Artificial

Intelligence solutions including intelligent transportation, route planning, and demand

planning in their operations — but this is only just the beginning. From last-mile delivery

robots and sustainability solutions, to warehouse automated picking systems and predictive

optimization software, AI is already making a huge difference in logistics. Shippers, carriers,

suppliers, and consumers can all expect to benefit from these logistics technology trends

continuing in 2021.

Along with AI, Augmented Intelligence is also expected to spike in use. Augmented

intelligence combines human intelligence with AI automated processes. For example, in

logistics planning, using Augmented Intelligence can even be superior to using AI alone,

since it can combine inputs from human planners (experience, responsibility, customer

service, flexibility, common sense, etc.) together with AI technology which is left doing the

repetitive and tedious work. According to Gartner, augmented intelligence is on path to create

$2.9 trillion of business value and lead to an increase of 6.2 billion hours of worker

productivity globally by the end of this year. Logistics companies can be expected to

implement more Augmented Intelligence solutions, which ultimately allow logistics

professionals to do their job more quickly while reducing mistakes and creating cost savings.

4. BLOCKCHAIN IN LOGISTICS

Documentation (and its verification) is one of the biggest challenges experienced by the

logistics players. This is precisely true for use cases such as procurement, transportation

management, order tracking, and customs collaboration. These different areas are where

Blockchain – the underlying technology that also powers cryptocurrencies – is making a

sizeable difference. For the uninitiated, blockchain is a distributed ledger system shared by

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the interacting parties or individual stakeholders. Its entries (in the form of blocks) are

synchronized throughout the network and cannot be altered once registered. If any

modification has to be done, another block with the desired adjustment needs to be added to

the string of blocks. So, data fabrication is by design impossible in the blockchain.

5. ELASTIC LOGISTICS

Elastic logistics refers to a model of conducting business that is flexible and agile enough to

upscale or downscale according to the demands of the market. This allows the supply chain

operations to expand or shrink in almost real-time, based on predicted (and even unpredicted)

happenings in the market.

In a world where toilet paper can sell out overnight, fidget spinners can have a demand of 50

million in two weeks, or people suddenly stop buying single-serve water bottles, it’s critical

to ensure that companies can grow or reduce capacity to meet constantly shifting demands.

We live in a fast-moving, quick-changing world, and business operations need to be able to

adapt and keep up. That sort of fast-paced responsiveness is the goal of elastic logistics.

In most lean business models, the goal is to minimize expenses, control waste, and better

match inventory requirements. Elastic logistics fall into the category of lean business, but it

fills in the gaps that a lot of businesses have: warehousing and middle- and last-miles of

operations. It is essentially the “lean” operations portion of a “lean” business model.

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 Suggestive Strategies

1. Creating an efficient and competitive logistics industry to support India’s

industrialization efforts

2. Developing the industry in particular transport modes to operate in a competitive

international environment.

3. Expanding and upgrading the capacity of the industry to enhance its participation

in global supply chains.

4. Ensuring an adequate supply of competent workforce to meet the long term

requirements of the industry.

5. Strengthening the institutional support through inter-ministry and agency

coordination in the planning, implementation and monitoring of policies and

measures affecting the industry.

6. Adopting more artificial automation and digitalization to improve the working

process of Logistics sector.

7. Changing old technologies with new technologies will help to improve the quality

and the standard of the work and will help in reducing the cost of the warehousing

and transportation.

8. Technologies like Digital twins, blockchain and real time supply chain visibility

will give more real image of the actual work and strategies.

9. Making more Logistics Hubs and park will improve the speed of the distribution

of the product.

10. Adopting technological forces in delivery process will also improve the working

process of Logistic industry such as delivery by drone and delivery by E-vehicle.

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 Learning Outcomes

• Understand the Logistics Industry and its important in business and economy

• Understand the objectives and functions of the Logistic industry or Logistics

management.

• Study about the issues and challenges of the Logistics industry.

• Study the impact of emerging technologies in Logistics sector.

• To understand the impact of technologies in Logistics sector and its problem.

• Learn how to correlate and integrate the technological factor on each functions of the

Logistics management.

• Learn the importance of Automatic Intelligence and digitalization in Logistic industry.

• Learn the importance and impact of Railways, Road, Air and Sea in Logistics

Industry.

• Learn the functioning of supply chain industry with respect to Logistics Industry.

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 Recommendations

Today we are essentially operating in a global market. In this era of crumbling economic

barriers, the customer reigns supreme. The successful enterprises in this fiercely competitive

economy are those which are able to ensure a high level of customer satisfaction and at a

considerably low cost. The focus today is not only on meeting the customer’s expectations,

but on exceeding them. The strategic role of logistics management in this regard becomes

vital.

• The need of the hour in an Logistics industry is to adopt the new technology and work

with them.

• Every organisation needs to understand the impact of logistics management for their

product and service quality and try to work on logistics principles.

• The Government of India should have to initiate the technological change in the

Logistics industry and should need to work with them.

• Government and Companies should treat Logistics industry as front sector for their

work.

• Logistics industry is the back bone of supply chain management and should not be

neglected by the government and organisations.

• To increase the working of Logistics industry government must have to invest more

on transportation sector.

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 Bibliography

Reference books:

• International Logistics - MR. Rajesh Mishra

• Warehousing Management- MR. Sanjay Nair

Journals:

• Knight Frank Research

• Technological Innovation in the Indian Logistics Industry- Kolluru Srinivas

• Analysis of the Logistics Research in India- White Paper IIT Delhi

Websites:

www.safeexpress.com

www.logisticsindia.net

www.allcargologistics.com

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