Novonous Interview for Market Research

2
NOVONOUS Questions to which they want us to respond in a telephonic interview: 1. What is the overall Indian Logistics market size and how it is poised to grow in the next 5 years (% wise)? a. Overall Indian Logistics market size is close to INR 7.15 lakh crores and it is likely to grow at 10% to reach INR 11.52 lakh crores by 2019-2020 b. Organised logistics market share will also increase owing to the greater confidence of manufacturers towards outsourcing to recognized players, and the need to focus on core business. Organised market share may reach 16-18% from the current 10-12% 2. What are the challenges faced by you in terms of government policies, availability of finances (loan/investment), manpower issues and poor infrastructure? a. Major challenges that we encounter are related to poor infrastructure which is affecting global and local supply chain performance. Global competitive strategy demands improvement in infrastructure with global facilities in logistics parks, warehouses, good quality roads and reduction administrative requirements. The Government needs to look into these areas of improvement. b. There are also many administration related hurdles like local taxes, way bills, large number of forms / documents, multiplicity of compliance etc. which makes logistics in India difficult and uncompetitive. c. People-skills are also a problem in this industry. Logistics industry largely consists of semi-skilled or unskilled labors because of which deployment of mechanization gets defeated. In addition to this, a major portion of this industry is serviced by unorganized players and the education system to support this stream is not much in demand as compared to other core education fields – thus negatively impacting the skilled talent pool.

description

interview

Transcript of Novonous Interview for Market Research

NOVONOUSQuestions to which they want us to respond in a telephonic interview:

1. What is the overall Indian Logistics market size and how it is poised to grow in the next 5 years (% wise)?a. Overall Indian Logistics market size is close to INR 7.15 lakh crores and it is likely to grow at 10% to reach INR 11.52 lakh crores by 2019-2020b. Organised logistics market share will also increase owing to the greater confidence of manufacturers towards outsourcing to recognized players, and the need to focus on core business. Organised market share may reach 16-18% from the current 10-12%2. What are thechallengesfaced by you in terms of government policies, availability offinances(loan/investment),manpowerissues and poor infrastructure?a. Major challenges that we encounter are related to poor infrastructure which is affecting global and local supply chain performance. Global competitive strategy demands improvement in infrastructure with global facilities in logistics parks, warehouses, good quality roads and reduction administrative requirements. The Government needs to look into these areas of improvement.b. There are also many administration related hurdles like local taxes, way bills, large number of forms / documents, multiplicity of compliance etc. which makes logistics in India difficult and uncompetitive. c. People-skills are also a problem in this industry. Logistics industry largely consists of semi-skilled or unskilled labors because of which deployment of mechanization gets defeated. In addition to this, a major portion of this industry is serviced by unorganized players and the education system to support this stream is not much in demand as compared to other core education fields thus negatively impacting the skilled talent pool.3. What are the major industrial sectors using 3PL (automobile, technology, etc)?a. Organised retail, automobile and engineering; are the major sectors using organised 3PL (65-70%)b. Sectors like FMCG, Chemicals, Telecom, Food products, Textile, Pharmaceuticals, Consumer durables, Cement, and IT Hardware account for another 19-20% c. Other remaining industries combined comprise of 14-15% of users of logistics services 4. What are thetechnologicalinnovations like WMS, GPS, TMS happening in the sector and their effectiveness?