Logistic Park Developer In India

India is burdened with high logistics costs which account for about 13% of the value of goods sold in the economy compared with 8% in major economies. Along with its efforts including the 'Make In India ‘ program and improvement in infrastructure , Government of India has made number of decisions aiming at transforming the country's logistics sector . Multi modal logisticsparks are a key policy initiative of the Government of India to improve the country’s s logistics sector by lowering overall freights costs, reducing vehicular pollution and congestion and cutting warehousing costs. The benefits that these logistic park developers in India is going to bring to the nation are –

• It will enable an effective transportation and timely movement of goods from one place to another.
• Reduce cost of production by minimizing the need for large inventors.
• Less capital required for warehouses.
• Value-added services such as customs clearance with bonded storage yards, quarantine zones, testing facilities, and warehousing management services are provided.

As Arun Jaitley said,”An effective multi modal logistics and transport sector will make our economy more competitive “. Industry is adopting new technologies to provide faster, cheaper, more reliable and sustainable delivery model. All mediums of logistics services like air transport, land transport, rail transport, water transport are going through a time of rapid and unrivalled transformation. It is hard to see how production structure can be improved radically unless India builds new logistics network.

Keeping pace with India’s rapid economic growth is the expansion of the country’s logistics sector. The movement of freight in the country in 2015 has nearly become double of that in 2008. Government expects physical process to transport communities in the country to continue its growth trajectory, with expected annual growth of 8%–10% over the next 10 years. According to a study commissioned by MORTH, the logistics sector as a whole is poised to expand at roughly 1.2 times the rate of India’s gross domestic product growth through 203. By this time it is expected to generate $360 billion in value added. The Logistics Performance Index (LPI), a ranking published by the World Bank to measure the logistics performance of countries, India managed to improve its performance in 2016. India’s LPI ranking rose to 35th in 2016, up from 46th in 2012. However, India's rank still lags behind some of its economic peers, including other Asian countries. The best logistics performer in Asia is Singapore. However, there remains a significant challenge to the development of the sector. Logistics costs are high in India are high relative to costs in developed countries.

Higher logistics costs in India are primarily driven by unfavorable inter-modal mix (60% of freight movement skewed toward road transport despite the lower freight cost of rail transport), Inefficient fleet mix (characterized by smaller, inefficient trucks), and underdeveloped material handling infrastructure (characterized by a fragmented industry consisting of small, unorganized warehouses with limited mechanism). Another major cause of underdeveloped road infrastructure (with a limited presence of national highways) is the lack of a national logistics policy, institutional and regulatory bottlenecks.

Supply Chain Industry in India And It’s Growth

The supply chain industry is creeping it’s impact on almost all aspects of trade and retail. As India is expanding its economy further, financing the improvement of this linkage sector is extremely necessary for business growth.

A modernized and efficient supply chain makes business very easy and accessible, reduces the costs of manufacturing, and accelerates rural and urban consumption growth due to better market access.

The main idea of supply chain management  revolves around ways apply a total system approach to manage the flow of information, materials and services from getting raw material suppliers through factories and warehouses to the end customer with satisfaction. Recent trends like outsourcing & mass customization are forcing companies to find more flexible ways to meet customer demand and satisfy their needs. The focus is on optimizing core activities to increase the speed of response to meet changes in customer expectations.   

Virtually every industry is broadening its product lines to provide the variety of choices to meet the customer’s demands. The challenge is not only to produce a variety of products but also to distribute the products to a global customer base.

Supply chain management  plays an extremely vital in business today. The term supply chain has it’s roots from from a picture of how organizations are connected together as viewed from a particular company. Many companies have attained significant success due to unique ways in which they have organized their supply chain.

The role of key components of supply chain for fulfilment of India Vision 2020 are as follows:-

·         Warehousing:- In India, the role of warehouses in the overall supply chain was always underestimated. But today, the concept of integrated supply chain management has to focus on all components like transportation, warehousing, inventories, information etc. . All of this to improve the efficiency of supply chain which is extremely vital to the economy of the nation.

·         Transportation:- The means of transportation carriers affects the pricing of products. It affects  delivery performance & conditions of the goods when they arrive the customers.

·         Radio Frequency Identification (RFID):- Radio Frequency Identification is an automatic data collection technology that was initially  tiny computer chips attached to objects that track products as RFID tagged items move through a supply chain. It is an electronic labelling & data collection system using radio frequency signals to identify & count even closely spaced items.

·         Inventory Management:- Inventory management will plays a key role as it affects customer satisfaction. Firms need to maintain the perfect balance between carrying too little inventory & carrying too much. Thus in managing inventory, firms need to balance the cost effectively from carrying larger to resulting sales & profits. 

In this Era of competition, the large Indian manufacturer are struggling not only to grasp control on cost but also to use all the components of supply chain management including logistics, warehousing as a tool of differentiation in both domestic & international market. Due to forthcoming road infrastructure, software capabilities, private telecom network, cheap labor work force and most importantly the availability of end market, the supply chain management is going to strike it’s coin in a big way for achieving India Vision 2020.