This document discusses a study on logistics for better exports conducted by Rudresh Kumar Daheriya. It includes an introduction providing background on logistics and its importance. The objectives of the study are to understand India's logistics procedures for imports and exports and how logistics can be improved to minimize costs and transport products in the most efficient way. The methodology involves collecting and analyzing secondary data on logistics costs, transportation modes, and best practices.
2. 2
DECLARATION
I hereby declare that this Project Report title A STUDY ON
LOGISTICS FOR BETTER EXPORTS submitted by me to the
Department of Commerce, O.U., Hyderabad, is a bonafide work
undertaken by me and it is not submitted to any other University or
Institution for the award of any degree diploma / certificate or published
any time before.
Rudresh kumar daheriya
Name and Address of the Student
Signature of the Student
3. 3
ACKNOWLEDGMENT
On the very outset of this report, I would like to extend my sincere & heartfelt
obligation towards all the personages who have helped me in this endeavor.
Without their active guidance, help, cooperation & encouragement, I would not
have made headway in the project.
I am ineffably indebted to Mrs. Sahera Fathima for conscientious guidance and
encouragement to accomplish this project report.
I am extremely thankful and pay my gratitude to Mrs. Apeksha Gupta for her
valuable guidance and supporton completion of this project in its presently.
I extend my gratitude to Ethames Degree College for giving me this opportunity.
Thanking you,
Rudresh kumar
4. 4
TABLE OF CONTENTS
Acknowledgment Page No.
Chapter – 1
1.1 Project Background 5
1.2 Need and Importance of the Project 6
1.3 Objectives 7
Chapter – 2
2.1 Methodology 9
2.2 Sources of Data 10
2.3 Scopeofthe Project 10
Chapter – 3
3.1 Literature Review 12
Chapter – 4
4.1 Data Collection, Analysis and Interpretation 13
Chapter – 5
5.1 Findings 25
5.2 Conclusion 27
5.3 Suggestion 30
Chapter – 6
6.1 Summary 32
Chapter – 7
7.1 Bibliography 35
5. 5
CHAPTER 1
INTRODUCTION
1.1 PROJECT BACKGROUND
Logistics is generally the detailed organization and implementation of a
complex operation. In a general business sense, logistics is the management
of the flow of things between the point of origin and the point of
consumption in order to meet requirements of customers or corporations.
The resources managed in logistics can include physical items such as food,
materials, animals, equipment, and liquids; as well as intangible items, such
as time and information. The logistics of physical items usually involves the
integration of information flow, materials handling, production, packaging,
inventory, transportation, warehousing, and often security.
Logistics management is the part of supply chain management that plans,
implements, and controls the efficient, effective forward, and reverse flow
and storage of goods, services, and related information between the point of
origin and the point of consumption in order to meet customer's
requirements. The complexity of logistics can be modeled, analyzed,
visualized, and optimized by dedicated simulation software. The
minimization of the use of resources is a common motivation in all logistics
fields. A professional working in the field of logistics management is called
a logistician.
6. 6
1.2 NEED AND IMPORTANCE OF THE PROJECT
The recognition of the role and importance of logistics and the management
thereof in a company, for example with regard to outsourcing decisions, is
not a recent trend but has been receiving growing attention, particularly over
the last thirty years.
Several factors, including the pressures alluded to in Section 2.1.2, have
contributed to the growing focus on logistics management. The factor
underlying the recognition of the importance of logistics management
include the following:
• Advances in technological and quantitative techniques
• Significant opportunities presented by e-commerce potential
• Development of the systems approachand total costanalysis concept
• Recognition of the role of logistics in a company’s customer service
programme
• Erosion of companies’ profits because of their failure to examine
functional areas where costsavings might be realized
• Profit leverage resulting from increased logistics efficiency
• General economic conditions since the 1950s
• Recognition of the role of logistics in creating competitive advantage in the
marketplace, particularly in the face of domestic and foreign competition,
saturated markets, government regulation
• Consolidation of companies thus increasing the importance of sound
logistics practices and continued strategic planning as companies are
reorganized and productlines are combined
• Markets, and logistics policies and practices of suppliers of consumer
products, being driven by the large retailers
7. 7
• Distributors stocking less with respectto industrial products, and
depending more on their suppliers’ stocks than in the past
• Customer requirements for value-added services continuing to drive costs
up
• Increasing interest in third-party providers that handle all or part of a
company’s logistics function, particularly with increased penetration into
major trade areas
• Inventories continuing to be at high levels irrespective of improved
forecasting, inventory and make-to-order software available.
• Gaps in logistics supportleft by enterprise resource planning (ERP)
systems, resulting in the need for additional bolt-on systems in the near
future
• Customer service activities continuing to be centralized and consolidated
• Increased focus on computer technology and distribution software.
1.3 OBJECTIVES OF THE STUDY:
The objective of this report is to understand the logistics procedure of the
country and how logistics helps in the process ofimport export procedureas
well as how should we can improve the logistics system for better exports.
The overall logistics cost should be minimized for the better logistics
management and bestsuitable mode of transportation to reach the productas
soonas possible or on a given period of time.
therefore to minimize the total costs given the customer service objective
where total costs = transportation costs + warehousing costs + order
processing and information costs + lot quantity costs + inventory carrying
costs;where:
8. 8
• The costof customer service levels also refers to the costof lost sales, i.e.
the costassociated with alternative customer service levels. Management
must minimise the total of the other costcomponents, for a desired level of
customer service.
• Transportation costs are the costs associated with the transportation
function and can be identified in total and by segments, i.e.
inbound/outbound, and by vendor/customer/mode/carrier/product/channel.
• Warehousing costs are all the expenses that can decrease or increase as a
result of a change in the number of warehousing facilities. The number of
warehouses used in the logistics system will also have an impact on the
levels of inventory.
• Order processing and information costs are costs fororder transmittal,
order entry, order processing, related handling costs, and associated internal
and external communication costs.
• Lot quantity costs are production or purchasing costs that will change due
to a change in the logistics system. Productionlot quantity costs are
production preparation costs, capacity lost due to changeover, materials
handling, etc. Purchasing lot quantity costs are the costs ofbuying various
quantities.
• Inventory carrying costs are costs that vary with the level of inventory
stored and include capital, inventory service, storage space, and inventory
risk costs.
The logistics management process and the inputs of the logistics
management process also can be summarized as
follows:
Outputs of the logistics management process,are thus:
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• Competitive advantage for the organization resulting from a marketing
orientation and operational efficiencies and effectiveness
• Time and place utility
• Efficient movement to customer
• Proprietary asset of the organization
Inputs to the process, with respect to services or products (raw materials, in
process inventory, and finished goods), acquired from various suppliers,
include:
• Natural resources (land, facilities and equipment)
• Human resources
• Financial resources
• Information resources
1.4 METHODOLOGY
The present study is descriptive study. The analysis is based on Secondary
data collected from various organizational databases, websites, newspapers
and other necessary official records, books& magazines. The aim of this
study is to know the economic performance of the industry as a whole.
Research based on the secondary data would try and find out the costcutting
& the bestway of transportation of prevailing in the logistics management.
10. 10
1.5 SOURCES OF DATA
Exploratory research design has been used in the initial stage of the study to
explore the possibility of carrying out the research on the topic selected for
research study.
For this purpose, researcher undertook the extensive literature survey. The
exploratory research design was followed by descriptive research in which
described the various facts and responses received from respondent.
Research is also qualitative and quantitative in nature. Being qualitative
research, researcher has studied various qualitative aspects and attributes.
Research is quantitative in the sense that researcher has quantified the
responses received from respondents to draw the logical conclusions from
them.
1.6 SCOPE OF THE PROJECT
The Indian Logistics industry is going through a phase of rapid change and
high growth. With new projects coming up on a regular basis, the industry is
undergoing technological change. The major players are expanding their
operations and focusing on mass customization, Technological
advancement, etc.
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INVESTMENT IN LOGISTICS SECTOR:
The logistics industry of India is currently estimated to be around US$ 160 billion.
With implementation of GST the sectoris expected to benefit and touch US$ 215
billion over the next two years, as per the Economic Survey 2017-18.
The last couple of years have seen significant development for this industry which
is reflected in the global rankings. According to the Global Ranking of the World
Bank's 2016 Logistics Performance Index, India jumped to 35th rank in 2016 from
54th rank in 2014 in terms of overall logistics performance. The report also
showed that India’s logistics sectorhas improved its performance on all the six
parameters used in the ranking. This is a huge jump of 20 ranks and clearly
indicates the growth of the sector.
GROWTH IN THE SECTOR:
According to CRISIL (formerly Credit Rating Information Services of India
Limited) the future for the Indian logistics industry is going to shine even brighter.
The research firm suggests the logistics industry of India which stood at Rs 6.4
trillion in FY17 will grow at a CAGR of 13 per cent over the next three years and
will be at Rs 9.2 trillion by FY20.
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CHAPTER 2
Literature Review
The government of India is also taking significant steps to support the
sector and boost its growth in the times to come. The commerce and
industry ministry have decided to give a one-time funding of Rs 8
million to the sector for building up initial infrastructure and a phase-
wise support of Rs 33.9 million for four years.
The government’s focus going forward is to bring down the cost of
logistics which is at 14.4 per cent of India’s GDP at present. The aim is
to bring it down to 10 per cent level in the next four years. This is a very
significant move and will boost the competitiveness of the sector and
will be significant for its further growth.
13. 13
Going forward, strategic investment and government initiatives to
support the sector are going to be crucial for the logistics industry in
India. If the cards are played right, the sector has the potential to create
huge number of jobs for the countrymen and play a key role in driving
the economy on a high wave.
CHAPTER 3
DATA COLLECTION, ANALYSIS AND INTERPRETATION
The report focuses on three areas of application for data analysis by logistics
companies and other industries: operational efficiency, customer experience and
new business models. The report includes concrete examples that could be applied
in practice in each of these three areas.
"Big data" is the name given to the huge amounts of information that can be
systematically collected from various sources and then analyzed and evaluated
with the help of new technologies. The rapid increase in the quantity of available
data is primarily the result of automatic generation. Examples include the
recording of delivery data or prescriptions in the healthcare sector. Companies and
other organizations hope that the evaluation of such data will allow them to
recognize relevant trends at an early stage, giving them concrete competitive
advantages.
14. 14
"Big data and logistics fit together perfectly. Logistics companies manage a huge
flow of goods and thereby create massive volumes of data. Specific data about
millions of deliveries, including destination, size, weight and information about
contents, is recorded every day. That data offers huge potential for new business
models, among other things. That allows logistics companies to become search
engines for users from every conceivable.
15. 15
The aim of the report is to identify significant trends using scientific methods as
a starting point for innovative, logistics-specific big data concepts in three areas:
First, the aim in the field of operational efficiency is the real-time optimization of
package delivery routes taking into account the order of delivery, the traffic
situation and the availability of the recipient. Second, the ability to predict delays
in the supply chain, followed by the appropriate logistical service response, allows
for an improved customer experience. Finally, big data offers logistics providers
ideas for new business models, for example the analysis of correlations between
weather conditions, outbreaks of flu and the online purchases of consumers. Such
analysis reveals that bad weather leads to increases in the volume of purchases
made online. That, in turn, directly affects the volume of packages sent. In such
cases, big data models can help companies optimize processesto offer improved
customer service.
16. 16
Logistics MarketOverview:
Global logistics market is anticipated to register a CAGR of 3.48% from 2016 to
2022 to attain a market size of around $12,256 billion by 2022. The term Logistics
is generally the detailed organization and implementation of a complex operation.
It refers to the movement of goods and information between the provider and the
receiver. Moreover, logistics is the management of the flow of things between the
point of origin and the point of consumption in order to meet requirements of
customers or corporations. The resources managed in logistics can include physical
items such as food, materials, animals, equipment, and liquids; as well as abstract
items, such as time and information.
Increasing in global trade activities of the developing economies, rise in trade
related agreements and global logistics infrastructure and advancement in
information technology and transportation sectorare the prime factors responsible
for the growth of global logistics market. However, rise in pollution level and high
inventory cost& low warehousing spaceare restraining the market growth.
Irrespective of the challenges, rise in adoption of green logistics solutions is
creating an opportunity to the market growth.
SegmentOverview
The report provides valuable and in-depth overview of the global logistics market,
which includes integrated logistics services which are procurement, transportation,
warehousing and distribution. Furthermore, the research study defines a pathway to
the stakeholders to decide primarily which market segments to focus on for the
coming years in order to get highest returns. Key players need to focus on
performance efficient new productinnovations and subsequently aligning
investment efforts.
The logistics market is segmented on the basis of mode of transport, end-user and
geography. By mode of transport type, the market is segmented into railways,
roadways, airways, and waterways. Further, by end-user, the market is segmented
into healthcare, manufacturing, trade & transportation, telecommunication,
government & public utilities, banking & financial services, retail, media &
entertainment, information technology, and others. Based on geography, the
market is segmented into North America, Europe, Asia-Pacific, and LAMEA.
Global Logistics Market Segmentation
18. 18
EXPORTS
Logistic service providers can handle and manage all factors of sea
freight, air freight, land transport and shipments with flawless
integration of inbound receipts, warehousing, distribution, storage of
cargo & end-to-end as well as port to port service with excellent transit
times. They provide port-to-port and door to door freight services transit
times consistent throughout the year and to any location of the
manufacturer's choice. Their local experts work with the manufacturers
to book capacity and track their shipment anywhere anytime to ensure
goods arrive when needed.
The flexible services and their international network locations render an
inspiring opportunity for the manufacturers, suppliers, transportation
agencies, and warehousing companies to minimize cost of operation and
distribution. Their efficient door to door transport services refers to the
quick movement of goods from the door of the seller / shipper to the
door of the buyer. This type of transportation service may include
various modes of transportation including air, sea or road. Each mode of
transport is specialized and needs a professional excellence and thorough
understating of the warehousing and distribution services.
The logistic service providers offer absolute professionalism, loyalty,
and consistency with the essential services like:
1. Air Express Service, high priority (24 hours)
2. Value added service to any destination
3. Economical & timely distribution
4. Door to Door & Airport to Airport service with excellent transit times
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5. Full Container Load (FCL) & Partial Container Load (LCL) cargo
service
6. Worldwide delivery
Logistics and freight forwarder companies provide the ideal balance of
time, space, frequency and cost. They offer the most efficient and cost
effective solutions for the worldwide customer's freight needs while
meeting time critical schedules to meet their requirements.
The author is associated with RAK Logistics. RAK Logistics is
recognized as one of the leading freight companies in the UAE
providing reliable sea freight services port-to-port and door to door
freight services consistently; the company has prided itself on superior
price offering, transit times, services, and reliability
India's logistics sector to reach USD 215 bn by 2020: Survey
The country's logistics industry which is worth around USD 160 billion is likely to
touch USD 215 billion in the next two years with the implementation of GST,
Economic Survey today said.
With the implementation of GST, the Indian logistics market is expected to reach
about USD 215 billion in 2020, growing at a CAGR of 10.5 per cent," Economic
Survey 2017-18 tabled in Parliament said.
The Indian logistics industry which provides employment to more than 22 million
people has grown at a compound annual growth rate (CAGR) of 7.8 per cent
during the last five years, it said.
The Global Ranking of the World Bank's 2016 Logistics Performance Index shows
that India jumped to 35th rank in 2016 from 54th rank in 2014 in terms of overall
logistics performance.
India has improved its rank in all the six components of logistics performance
index, it added.
20. 20
Here follows the list of top 10 logistics companies in India
1. CTC Freight Carriers Private India Limited
CTC Freight Carriers Pvt Ltd was established in the year 2002, in
Navi Mumbai. The company has emerged as one of the best
logistics companies in India in the Indian logistics industry. This
top logistics companies in India is among the top logistics 10
companies in India, with a large warehouse and a well-connected
network across the country.
2. Trans Ocean Bulk Logistics
Trans Ocean Bulk Logistics is a key logistics companies in India
in the Indian logistics industry. The company was established in
1982. This logistics companies in India is among the top 10
logistics companies in India. This is one of the top logistics
companies in India that was founded in 1998 by Mr. Sudam Pawar.
3. Safexpress
Safexpress is a top logistics companies in India that began its
journey in 1997 with a mission of delivering best logistics
companies in India to its customers and ensuring their success.
Safexpress offers a wide range of services such as top logistics
companies in India, e-commerce logistics companies in India,
courier companies in India, and also features in the list of top 10
courier companies in India.
4. Global Express Logistics
Global Express Logistics is one of the top courier companies in
India in the list of top 10 courier companies in India. This is one of
the best logistics companies in India was founded 40 years ago and
has emerged a high-stake sweeper in the top 10 logistics
companies in India.
21. 21
5. DTDC
DTDC is one of the leading courier companies in India as well as
a top logistics companies in India among all leading Indian
logistics companies. This is one of the best logistics companies in
India and e-commerce logistics companies in India. DTDC was
founded in 1990 by Mr. Subhashish Chakraborty.
6. Agarwal Packers and Movers
Agarwal Packers and Movers is a top logistics companies in India,
established in the year 1987. This company is one of the best
logistics companies in India, serving excellent logistics services in
the Indian logistics industry. This top 10 logistics companies in
India is also a member of IAM (International Association of
Movers) in the USA and has 102 branches serving 1264 locations.
Agarwal Packers and Movers are the most used logistics company
in India by customer volume.
7. First Flight
First Flight is one of the top courier companies in India featuring
regularly list of top 10 courier companies in India. This company
was founded in November 1986 and now this leading logistics
company in India has over 1200 offices across the country and 9
international offices at prime locations.
8. Atlas Logistics Pvt Ltd
Atlas Logistics Pvt Ltd is an innovative logistics companies in
India among the best logistics companies in India. This top 10
logistics companies in India was launched in 1999 with 16 offices
in India and has become a leading e-commerce logistics companies
in India for the Indian logistics industry.
9. SAL Logistics Pvt Ltd
22. 22
SAL Logistics is another key logistics companies in India. This
company was founded in the year 1999 and is headquartered in
New Delhi to emerge as a top 10 logistics companies in India with
a sizeable share of the Indian logistics industry market size.
10.Falcon Freight
Falcon Freight is a leading logistics companies in India was
established in 1989 by a group of visionaries with a goal to excel
in the Indian logistics industry and are also a certified clearing and
handling agents (CHA)
Future Prospects of Indian Logistics Industry
The spending by India on logistics and transport infrastructure amounts to over
14% of the country’s GDP in comparison to under 8% by other developing
countries. The recent surge in the e-commerce sectorcoupled with plans for
expansion by the leading FMCG companies have widened the service boundaries
of the top logistics companies in India. The Indian transport market is predicted to
posta CAGR of over 13% and reach $30 billion in the forthcoming years till 2022,
fueled by the robust growth of various industries co-related to the logistics industry
in India. A total proposedroadways network of over 50,000 km has been initiated
to increase the speed of roadways transport system and also reduced traffic
congestion.
25. 25
CHAPTER 4
FINDINGS
The Indian logistics sectoris on a big growth tide. According to the domestic
rating agency ICRA, Indian logistics sectoris expected to grow at a rate 8-10 per
cent over the medium term. This is an improvement over the compound annual
growth rate (CAGR) of 7.8 per cent at which the industry grew during the last five
years. The logistics industry of India is currently estimated to be around US$ 160
billion. With implementation of GST the sectoris expected to benefit and touch
US$ 215 billion over the next two years, as per the Economic Survey 2017-18.
The last couple of years have seen significant development for this industry which
is reflected in the global rankings. According to the Global Ranking of the World
Bank's 2016 Logistics Performance Index, India jumped to 35th rank in 2016 from
54th rank in 2014 in terms of overall logistics performance. The report also
showed that India’s logistics sectorhas improved its performance on all the six
parameters used in the ranking. This is a huge jump of 20 ranks and clearly
indicates the growth of the sector.
Total investment (direct + Portfolio Investment) was 103 $US million at 1990-91
gradually increased to 15, 699 at 2003-04 and decreased to 21,313 $US million at
2008-09 due to some US crisis it affected the automobile industries and IT
industries. Annual rise = 8586.16 x 100 = 85 therefore 15 % decreased. Growth
rate= 32.17 % increased on direct investment, 48 % decreased in portfolio
investment and then 38 % increased in total investment.
26. 26
There is a lot of investment that the industry is attracting and as a result of the
transformations and changes led by these investments, the industry will stimulate
job creation. The experts predict that it can be the largest job creator by 2022.
The sectorcurrently provides employment to more than 22 million people in the
country. The report also emphasizes that improving the sector would result in a 10
per cent decrease in indirect cost, in turn leading to a growth of 5-8 per cent in
exports.
The Indian government has announced that it is working at the policy in order to
set up new logistics plan in the country. The intention is to devise the most cost-
effective method to transport goods by the year 2035.
Key Drivers
Indian logistics industry is a sunshine sector and there are multiple factors that are
driving this sector towards growth and boom.
The growth of logistics is two sided – led by demand supply. The demand led
growth is strengthened with the economic recovery and benefits from
implementation of GST. According to the rating agency ICRA, postGST
implementation the savings in terms of truck turnaround time has been
approximately 18-20 per cent.
Also, the outsourcing of non-core activities like warehousing and associated
activities to integrated players is leading to strengthen the organised players, which
in turn is good for the industry in long term.
27. 27
CONCLUSION
The purpose of this paper is to empirically examine the effect of
logistics on international trade. Using regression analysis, the
analytical framework in this study uses logistics data from sixty
countries, pooled for years 2007, 2010, 2012, and 2014. It
estimates an export and an import equation. The analysis is also
extended by investigating if the specific dimensions of logistics
performance (logistics specificities) matter for traders. In doing
so, the paper while complementing past studies on logistics-trade
relationship, sheds some new light on the importance of logistics
achievements in facilitating international trade.
The continuous growth in world trade depends on the efficiency of trade
support structures such as the logistics services. Despite logistics
integral role in supporting commercial activities, there has generally
been a low level of analysis and trade policy research focus from trade
practitioners. This paper explores the effect of logistics performance in
international trade. The analysis draws on overall logistics performance
as well as disaggregated measures of logistics specificities data for a
large sample of countries. The empirical analysis involved the
estimation of standard export and import equations incorporating
measures of logistics performance. The findings show that the overall
logistics performance is positively and statistically significantly
correlated with exports and imports. The analysis is also extended by
investigating if logistics specificities mattered for international trade.
The findings reveal that several dimensions capturing logistics
performance have statistically significant and positive effect, mostly on
28. 28
exports. The main policy implication is that continuous investment in
logistics infrastructure and services can positively impact international
trade.
Transport and logistics services facilitate international trade and play an
important role in the growth and development of the local economy. The
quality and efficiency of logistics services can matter for international
trade as a weak logistics infrastructure and operational processes can be
a major obstacle to global trade integration . On the contrary, an
improved trade related logistics, combined with a liberalized economic
environment, can increase trade volume and economies of scale and
scope in distribution and production activities .
Logistics services provide sectoral connections within the local
economy. It also connects the domestic economy to the international
economy. The connectivity of various inter-dependent production
sectors (agriculture, manufacturing, agri-food, tourism, amongst others)
of the domestic economy is strengthened through an efficient transport
and logistics systems as one of the motives of producers is to securely
transport their goods to consumers in a cost-effective way with
minimal time lags.
The Indian logistics industry is going to shine even brighter. The
research firm suggests the logistics industry of India which stood at Rs
6.4 trillion in FY17 will grow at a CAGR of 13 per cent over the next
three years and will be at Rs 9.2 trillion by FY20.
29. 29
The government of India is also taking significant steps to support the
sector and boost its growth in the times to come. The commerce and
industry ministry has decided to give a one-time funding of Rs 8 million
to the sector for building up initial infrastructure and a phase-wise
support of Rs 33.9 million for four years.
The government’s focus going forward is to bring down the cost of
logistics which is at 14.4 per cent of India’s GDP at present. The aim is
to bring it down to 10 per cent level in the next four years. This is a very
significant move and will boost the competitiveness of the sector and
will be significant for its further growth.
Going forward, strategic investment and government initiatives to
support the sector are going to be crucial for the logistics industry in
India. If the cards are played right, the sector has the potential to create
huge number of jobs for the countrymen and play a key role in driving
the economy on a high wave.
30. 30
SUGGESTION
Proper Planning
The first step to accomplishing a task is planning. Now, planning encapsulates
various factors. It involves procuring the goods, storage facilities, and delivery of
products to the exact location.
Proper planning is a wise plan, but an experienced manager will be able to prepare
for the unforeseen circumstances as well. These situations can be related to:
. The products
. Unavailability of the transportation
. Any internal issue in the organization
. Research and pick the correct LTL (Less then load) Freight class.
For this, a contingency plan should be there to avoid any logistics failure. Logistics
planning process is incomplete without an emergency plan.
Adopt Automation
In the age of automation, technology plays a major role in increasing the efficiency
of an organization. Automation has a vital role in the business process
optimization.
There is valuable software that can be deployed in the logistics process.
31. 31
For example, business process software can be integrated that provides timely
updates regarding the movement of goods. The operator and the client will get
details regarding:
1.The goods that are dispatched from the supplier
2.Procurement of the goods at the warehouse, and lastly,
3.Delivery of the goods at the destination .
This saves a considerable amount of time because manual interference is
eliminated. Moreover, accurate tracking help in improving overall process
management.
Efficient Transportation
Transportation department can be analyzed to decrease the expenses of the
logistics firm and at the same time, it can be revamped for faster delivery of the
products. Following factors should be considered for efficient transportation:
Determining the bestdelivery route. A logistics firm should opt for the shortest
yet safest route. This is beneficial for saving money as well as time.
Cost-effective packaging that ensures low investment and safety of goods as
well. Optimize the packaging so that it occupies less volume and it does not
increase the weight of the package.
Logistics network optimization is incomplete without integrating
measurement, analysis, and feedbacks.
32. 32
CHAPTER 5
SUMMARY
In this project I have cover the introduction objectives and trends of the logistics
sector and mentioned the statistical analysis through graphs and diagrams that’s
shows Logistics is generally the detailed organization and implementation of a
complex operation. In a general business sense, logistics is the management of the
flow of things between the point of origin and the point of consumption in order to
meet requirements of customers or corporations. The resources managed in
logistics can include physical items such as food, materials, animals, equipment,
and liquids; as well as intangible items, such as time and information. The logistics
of physical items usually involves the integration of information flow, materials
handling, production, packaging, inventory, transportation, warehousing, and often
security. Logistics management is the part of supply chain management that plans,
implements, and controls the efficient, effective forward, and reverse flow and
storage of goods, services, and related information between the point of origin and
the point of consumption in order to meet customer's requirements. The complexity
of logistics can be modeled, analyzed, visualized, and optimized by dedicated
simulation software. The minimization of the use of resources is a common
motivation in all logistics fields. A professional working in the field of logistics
management is called a logistician.
Logistics activities and fields
Inbound logistics is one of the primary processes of logistics concentrating on
purchasing and arranging the inbound movement of materials, parts, or unfinished
33. 33
inventory from suppliers to manufacturing or assembly plants, warehouses, or
retail stores.
Outbound logistics is the process related to the storage and movement of the final
productand the related information flows from the end of the production line to the
end user.
Given the services performedby logisticians, the main fields of logistics
can be broken down as follows:
Procurementlogistics
Distribution logistics
Global logistics
Domesticslogistics
RAM logistics
POS Material Logistics
EmergencyLogistics
ProductionLogistics
Digital Logistics
