SVLL

Friday 22 May 2015

Growth drivers for Indian logistics industry –

Several initiatives undertaken by the Government of India as well as increased IT penetration have boosted the Indian logistics segment, which is set to grow manifold in the coming years

The Indian logistics sector, which was pegged at US$75.19 billion in 2009, has greatly evolved with enhancement and improvisation of logistics services. In the past, logistics was limited to movement of goods through rail, road and waterways from restricted number of cities and ports. Presently, logistics services are not only restricted to the movement of goods but have expanded to include warehousing, storage, packaging, disposal, tracking, supply chain management and much more.

The industry has grown rapidly since the past 10 years and various drivers have contributed to the rapid growth of the sector. Major drivers of this robust growth are initiatives undertaken by the government, increased usage of IT, improved service offerings and organised nature of retail and manufacturing sectors, among others.

Role of government

The Government of India (GoI) has played a significant role in providing the right impetus to this sector by implementing various laws and taxes. Some of the measures undertaken by the government include:

· Increase in private participation of rail freight

· Setting up of special economic zones (SEZs) resulting in increased trade

· Privatisation of inland container depot (ICD) for sea freight

· Airport expansion with dedicated cargo terminals

· Improved road infrastructure with better connectivity

· Foreign direct investments (FDI) in the commercial vehicle segment leading to usage of better quality vehicles

· Revision of import duty for fast moving consumer goods (FMCG)

· Bilateral agreements to promote export-import (EXIM) trade

Thursday 21 May 2015

The Advantages of Supply Chain Management Systems....

Effective supply chains give businesses a competitive advantage in the marketplace

and help mitigate risks associated with acquiring raw materials and delivering products or services. By implementing supply chain management systems, businesses are able reduce waste, overhead costs and shipping delays in a scientific way. The benefits of this systematic approach impacts areas ranging from product quality to order turn-around times.

Quality Assurance

Many manufacturers in the U.S. have relocated their operations to countries such as China, India and Russia in an effort to cut production costs. This has caused experienced domestic personnel to opt for other job assignments. As a result, product quality within the supply chain has become a pressing issue. Defects and rework attributable to poor systems are raising the costs of doing business. One of the advantages of supply chain management is that it incorporates quality techniques, such as quality management systems, to improve operations.

Inventory Buffers

In almost every type of business, there is variability in customer spending. This requires companies to manage their inventories in a way that minimizes holding costs while providing enough flexibility to meet customer demands. If inventory levels fall too low, businesses may have to pay overtime to produce products or lose out on revenue by making customers wait or shop somewhere else. Supply chain management systems typically include inventory buffer levels that are pre-determined with careful analysis of historical trends.

Saturday 16 May 2015

Logistics companies looking for funds to build scale & GST - ready .......

An expected roll out of Goods and Service Tax (GST) is pushing privately held logistics companies to look for funds from private equity firms, strategic investors and public listing in order to finance massive expansion in warehouses and fleet.The Logistics sector will see a slew of deals in the next one year as international and domestic investors scout for targets, while companies look to unlock value .