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Logistics Project Final
Logistics Project Final
Operations Strategy
Term VI
MDI Gurgaon
Section B: Group-02
Agenda
Overview
Inter-relationship between
transportation and logistics
Forms of Logistics Operations
Outsourcing of Logistics Activities
Indian Logistics Industry - Growth
drivers
Issues in Current status of logistics
infrastructure in India
Overview
Definitions
As per Council of Logistics Management,
logistics:
Supply-chain management:
management
Interrelation Between
Transportation and Logistics
Forms of Logistics
Operations
Reverse Logistics
Two main reasons can be attributed to rise of reverse
logistics:
Globalization of markets
Policies for environment protection
Maritime Logistics
Maritime Industry has mainly 3 types of operations:
Liner Shipping: The business is based on the same ships, routes,
price and regular voyages
Tramp Shipping: It has irregular transport prices, unsteady
transport routes and schedules. Usually delivers goods like dry bulk
cargo and crude oil
Industry Shipping: Sometimes needs specialized containers, such
as high-pressure containers for natural gas since its main purpose
Land Logistics
It extends the delivery services for air and maritime from airports and
seas
Main transport modes are railway transport, road freight transport and
pipeline transport
Railway transport
Pipeline transport
Road transport
Advantages Advantages
Advantages High carrying
high capacity, less
cheaper
capacity, lower
efect by weather
investment funds,
influence by
conditions, cheaper
high accessibility,
weather
operation fee, and
mobility and
conditions, lower
continuous
availability
energy
conveyance
consumption
Disadvantages Disadvantages Disadvantages expensive
low capacity, lower
High cost of
infrastructures,
safety, and slow
essential facilities,
harder supervision,
speed
difficult and
goods
expensive
specialization, and
maintenance, lack
regular
of elasticity of
maintenance
transport
in efficiency and reliability, a revolution
To improve
the
land
urgent demands,
needs
of transport
policies and management is required, e.g. pricing
and
time
consumption in
Express Delivery
Involves more frequent delivery of materials, at the right
time and at the right place in the production process
The characteristics of express delivery are:
door-to-door service
Efficiency
Traceability
Just-In-Time (JIT)
Growing various delivery demands
E-Commerce
Considered to be the future trend of business
Brings many benefits for both companies and consumers:
Expansion of market area from regional to global
Usage of electronic techniques instead of traditional paper works, which
promotes the industries efficiency and competitiveness
Might reduce the number of warehouses and the stock cost and the
savings could be passed on to consumers in terms of lower prices
Outsourcing of Logistics
Activities
logistics network
activities
Logistics in India
Growth Drivers
Acceleration in industrial production and consumption
Population growth; Expanding upper-middle and middle classes
Expected growth: 7-8% per annum
Heavy outsourcing by automobile/telecom etc. Demand for focused
Supply Chain services
Change in tax system (VAT to GST) Should create national market
for many goods and services
Entry of MNCs in various sectors
Waterways
- Limited investments after
independence
- Loss of key routes following partition
This is despite the fact that 2/3rds of freight travel being more suitable for rail and waterways
65% is bulk; 75% transported over distances more than 400km
Roads are cheapest only for non-bulk and <400 km
Over reliance on roads leads to increased costs, high energy consumption and adversely
impacts environment
Reasons
Railways: Oversaturation of important networks, high tarifs, poor terminal quality, less flexibility
of wagons, uncertain transit times
Waterways: High turnaround times at ports, inadequate depths at ports, inadequate infrastructure
for Coastal Shipping
- Rail/Waterways potentially cheaper than
roads
Way forward
Change in modal mix
Increase investment in railways by reallocating from roads
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