Chandan VichorayB.E. MBA, Ph.D Thesis Submitted

Shri Ramdeobaba Kamla Nehru Engineering College, Nagpur

Plainly means Transport for Distribution

Has now evolved as a Prime Business Area

Is responsible for Opportunistic Gains or Losses

Logistics solutions can cut the cost of product making it more competitive

A materials Management Approach

Starts from Vendor of the Vendor and ends at the customer

Has a B to B Approach

Evolution of Supply Chain Planning and Control

Exports costs are higher in developing countries

Freight Costs are 70% than Developed countries (UNCTAD, 2003)

Costs include Distribution Expenses Border Related Barriers Transport Costs

Challenges Exist in Trade Costs and Uncertainties over supply of goods

Ships

Cargo Planes

Trains and Road Transport (in Some Cross border cases)

Transport costs in Landlocked countries higher by 55%

A delay of one day in Customs Clearance is equivalent to 70 kms of Bilateral Distance

Port facilities, Customs, Regulatory Environment and Service Facilities like Cold Storages for Food are four major points of contentions.

Stated by World Bank and measured on a scale of 1-5

Calculated using 6 different indicators such as:

Efficiency of the Clearance process by Customs & other border agencies (18%)

Transport & Information Technology Infrastructure (15%)

Local Logistics Industry Competence (16%)

Ease & Affordability of International Shipments (20%)

Facility to Track and Trace Shipments (16%)

Timeliness with Which Shipments reach their Destination (15%)

Business Globally spread use logistics as a means of supplying material at a lower cost

In industries like Food & Processed Food, it plays an important role in enhancing business opportunities

Faster Deliveries can fuel more profitability for everyone in the chain

Mode of Transport

Warehouses

Cold Storages

Material handling Equipment

Containers

Technical Support for Tracing and Tracking

Technology

Dominant power of big retailing companies

Supply Chain Consolidation

Outsourcing

Increased focus on traceability

Wider sourcing of supplies: more and more globally

Lower prices (low cost countries) Diversification of the product range beyond what can

be produced locally Year round product availability Advances in IT have increased the visibility of long

supply chain and therefore easier to manage

Spatial clustering of different agro-production chains

Spatial combination of agro-processing and non-agro functions (building, industrial estate or region)

Scale increase in production further enables industrial processing

Application of principles of industrial ecology, i.e. mutual use of waste and by-products

Reduction of transport and veterinary risks

CRUX: clustering provides context for sustainable Innovations Enhancing

Planning

3PL

System

3rd Party Logistics

The Vital link in the Supply chain

Onus of Regular Supplies alongwith Storage Capabilities

Insurance liability shifted from Company to 3PL

More Focus on Assured Business and Ancillarization

A Vital link in Exports

Missing Logistics support can dilute Opportunities

Logistics is like the Blood Vessels in the Human beings carrying Oxygen throughout the body and shunting out Carbon Dioxide

http://exportlogisticsguide.com/

http://www.economics.ox.ac.uk/Research/wp/pdf/paper439.pdf

www.unapcaem.org/Activities%20Files/.../022_ThailandLogistics.pdf

www.agricultureinformation.com

http://www.agricultureinformation.com/mag/?p=841