Final Tranportation Logistics Concluded

7/24/2019 Final Tranportation Logistics Concluded

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Project Report

On

A STUDY ON IMPORTANCE OF TRANSPORTATION INLOGISTICS

Submitted by:

Nithin M Pillai

MMS - Operations

Roll Number 68

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Pro12 +alashan3ar Ramdas

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Declaration

declare that this project report titled A STUDY ON IMPORTANCE OF

TRANSPORTATION IN LOGISTICS is my on ori9inal or3 and that allsources that hae consulted hae been duly ac3noled9ed2

*ate: ;;;;;;;;;;;;;;

Place: Nithin M Pillai


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CERTIFICATE OF APPROVAL

"his is to certi1y that the project titled A STUDY ON IMPORTANCE OF

TRANSPORTATION IN LOGISTICS as a part o1 the curriculum o1 Mastero1 Mana9ement Studies submitted by Mr2 Nithin.M.Pillai a student o1 Pillai nstituteo1 Mana9ement Studies and Research has been approed2

;;;;;;;;;;;;; ;;;;;;;;;;;;;;;

Pro12 +alashan3ar Ramdas *r2)25ijayara9aan

Facult Gui!e Director


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AC"NO#LEDGEMENT

My sincere and utmost 9ratitude 9oes to )od 1or the breath health and stren9th he 9ae methrou9hout the course o1 my studies2


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E0ECUTIVE SUMMARY

ndia is bein9 touted as the land o1 opportunity 1or lo9istics serice proiders all oer the orld2 "he

ndian lo9istics mar3et represents >?8@ billion and is 9roin9 at a rate o1 /8-. percent annually2"ransportation costs account 1or nearly 0.A o1 production costs lo9istics costs around /?A o1 )*Pcompared to 8A in the %S2 )roth in ndian economy is the major driin9 1actor 1or the demand inlo9istics industry2

!utomobile and en9ineerin9 9oods chemicals $M,) cement and te=tiles hae been identi1ied asthe top 1ie contributors to lo9istics reenues2

ndia has the second hi9hest and lar9est road netor3-?2? million 3m2 Road netor3 carry nearly

6@A o1 1rei9ht "he ndian Railays boasts o1 bein9 the orld


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TA'LE OF CONTENTS

Cha1ter

No.

Content Pa+e No%.

2. ntroduction /

Objectie o1 the study @

Reie o1 #iterature 6

Research Methodolo9y //

Need o1 study /

Scope o1 study /?

#imitations /0

3. ,ompany Pro1ile /@

Or9aniEation Serice /6

,ompany !ddresses /D

4. !nalysis and

nterpretations

/8

*isa99re9atin9 ndia


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Page 1

Cha1ter 26

Intro!uction an! Outline o7 the Pro8ect

#o9istics and supply chain practices are a set o1 actiities underta3en to promote e11ectie and

e11icient mana9ement o1 supply chains2 "hese include supplier partnership physical moement o19oods Flo9isticsG and in1ormation sharin9 throu9hout the supply chain in order to meet customerreHuirements2 Some o1 the 3ey lo9istics and supply chain practices that impact per1ormance arerelated to estimation o1 customers order e11icient and e11ectie deliery inte9ration and collaborationthrou9hout the supply chain sharin9 o1 ision and in1ormation usin9 1ormal and in1ormal methods asell as use in1ormation and communication technolo9yF,"G and arious specialist 1or per1ormin9speci1ic jobs across the supply chain2 !ll o1 these practices impact lo9istics the supply chainper1ormance2

Title o7 the 1ro8ect

9A %tu! on I(1ortance o7 Tran%1ortation in Lo+i%tic%:

t is irtually inconceiable in todayIs economy 1or a 1irm to 1unction ithout the aid o1transportation2 "ransportation is an essential and a major sub-1unction o1 lo9istics that creates timeand place utility in 9oods2 n 1act the bac3bone o1 the entire supply chain is the transportationmana9ement that ma3es it possible to achiee the ell 3non seen Rs- the ri9ht product in the ri9htHuantity and the ri9ht condition at the ri9ht place at the ri9ht time 1or the ri9ht customer at the ri9htcost2

"he importance o1 transportation should also be seen by loo3in9 at the impact o1 transportation on a

countryIs economy2 Studies reeal that in ndia the total lo9istics costs constitute nearly /. percent o1the )NP out o1 hich nearly 0. percent is because o1 transportation alone2 "he major in1rastructurereHuired 1or moin9 9oods 1rom one place to another in ndia inole the actie roles o1 Roads Road$rei9ht ndustry Railays Ports and Shippin9 and Pipelines all o1 hich are either mana9ed orre9ulated by the 9oernment in accordance ith the priate2


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Page 2

Tran%1ortation an! Lo+i%tic%6

"ransportation and lo9istics serices are 9enerally outsourced to third parties2 "ransportation ismainly by road and the lead-time o1 these supply chains is still as hi9h as nine to tele ee3s2 "hisis Huite understandable 9ien the siEe o1 ndia and the state o1 its in1rastructural 1acilities2

"ransportation and lo9istics is 9enerally throu9h their on 1leet2 n some cases it is outsourced2Routin9 and schedulin9 so1tare are increasin9ly bein9 used 1or these actiities2 $ie out o1 si= 1irmsuse standard &RP so1tare2 "here is hi9h 1ocus on trac3in9 o1 customer orders and customer care andtechnolo9ies li3e bar codes and )PS are bein9 employed2

n our on-site obseration o1 @. 1irms e 1ind that the primary 1ocus is on Huality cost and serice2Recently responsieness Fdeliery speed sa1ety olume 1le=ibility shipment ei9ht and innoationGis also catchin9 up mana9ement attention2 ,orrespondin9ly the major concern in all these 1irms andtheir supply chains are related to cost clarity o1 demand reliability o1 partners shortenin9 o1 delierycycle production and lo9istics 1le=ibility and innoation in supply chain practices2 Sharin9 o1

bene1its ithin the supply chains has not yet 9ained much attention2 $irm especially in theautomotie retail manu1acturin9 and $M,) sectors are increasin9ly optin9 to outsource theirlo9istics reHuirements to specialiEed serice proiders the positie business atmosphere and abur9eonin9 consumer mar3et are ma3in9 the shipper community push the lo9istic sericepropositions2


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Page 3

Lo+i%tic%

Ori+in an! De7inition o7 Lo+i%tic%6

"he term Jlo9isticsJ ori9inates 1rom the ancient )ree3 JKLJ FJlo9osJJratio ord calculationreason speech orationJG2 #o9istics is considered to hae ori9inated in the militaryIs need to supplythemseles ith arms ammunition and rations as they moed 1rom their base to a 1orard position2n ancient )ree3 Roman and +yEantine empires there ere military o11icers ith the titleQ#o9isti3as< ho ere responsible 1or 1inancial and distribution o1 supplies2

"he O=1ord &n9lish dictionary de1ines lo9istics as: "he branch o1 military science hain9 to do ithprocurin9 maintainin9 and transportin9 material personnel and 1acilities2 !nother dictionaryde1inition is: J"he time related positionin9 o1 resources2J !s such lo9istics is commonly seen as a

branch o1 en9ineerin9 hich creates Jpeople systemsJ rather than Jmachine systemsJ2222

Pro%1ect% o7 Gro)th in the In!u%tr

n years 9one by the traditional arehousin9 and lo9istics 1acility as located by railroad trac3s aater port andCor 1reeays usually in the least desirable parts o1 cities or lar9e tons2 "hisstereotype then 1aded as 9i9antic state-o1-the-art 1acilities be9an to sprout in more rural areas on theouts3irts o1 transportation and population hubs2 "he 4orld started be9innin9 to see such 1acilitiesshoin9 up in een less JtraditionalJ areas2 Modern arehouses no are bein9 located in care1ullymanicured industrial par3s that are sproutin9 as 1ast as the corn and heat once did in these open

spaces-o1ten in out-o1-the-ay places2 4hy the emphasis on such locations 1or lo9istics companies

Much o1 it is due to the 9reat 1lu= that the lo9istics industry has been under9oin9 in the 1irst threeyears o1 the /st century2 Most o1 these chan9es are bein9 drien by a 9roin9 trend in themanu1acturin9 and retail sectors to 1orm partnerships ith companies to hich they can outsourcenon-core lo9istics competencies-?P# proiders2


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Page 4

n turn ?P# proiders are continually loo3in9 to proide innoatie supply chain solutions tocustomers by 1ocusin9 on alue-added capabilities di11erentiatin9 themseles 1rom the competition2"hey 1ocus on 3ey objecties such as implementin9 in1ormation technolo9ies institutin9 e11ectiemana9ement processes inte9ratin9 serices and technolo9ies 9lobally and delierin9 comprehensiesolutions that create alue 1or ?P# users and their supply chains2 "his need to partner ith customers

and become more inte9rated into their supply chain processes has created the ancillary need to locateclose to these customers2

"hat isnIt to say the need 1or easy access to transportation hubs and di11erent modes o1 transportationonIt continue to be important2 +ut the aboe shi1t in business strate9y alon9 ith the adances intechnolo9y and enhanced communication has opened the door 1or lo9istics 1acilities to operatee11ortlessly in a myriad o1 location2

Pro1it arnin9s share price pressures mer9ers reor9aniEations relocations disposals pain1ul layo11sand 9reat 9eopolitical uncertainties can seep aay een the most comprehensie lo9istics strate9ies7 and that


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Page 5

O$8ecti,e% o7 the Stu!

"o 3no the current status o1 domestic transportation2

"o 3no the problems 1acin9 by the customers F1rei9ht 1orardersG ith transporters challen9es

ta3en to oercome them2

"o 3no the modern technolo9y used in transportation o1 9oods2


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Page 6

Re,ie) o7 Literature

Article 26

Co(1le*it in Tran%1ortation an! Lo+i%tic% S%te(% An Inte+rate! A11roach to Mo!elin+ an!

Anal%i%

"he basis 1or the thesis is to assess the use1ulness o1 describin9 and analyEin9 transportation and

lo9istics systems as bein9 comple= systems2 "he reason and assumption bein9 that in the 1uture more

inte9rated and sophisticated systems and solutions ill be demanded2 "he reHuirements o1 the 1uture ill

also be the reHuirements o1 a sustainable society and this also reHuires hi9her sophistication in thatindustry and consumers demand 1aster and cheaper solutions but ith less enironmental impact2

"he ultimate 9oal is to use comple=ity to meet the demand 1or more sophisticated approaches

models and methods both to better understand these systems and to be able to mana9e and control them

in the most e11icient ay2 n this thesis the concept o1 comple=ity is applied to the conte=t o1

transportation and lo9istics system in order to better understand the characteristics o1 these systems2 t is

an unorthodo= method ithin the research area o1 transportation and lo9istics but it is ar9ued that the

concept o1 comple=ity proides a alid and aluable model 1or the analysis o1 transportation and

lo9istics systems2 ,omple=ity is throu9hout the thesis treated as an important aspect o1 transportation

and lo9istics systems and is as a concept used to describe analyEe and model transportation and

lo9istics systems and their properties2

"he concept o1 comple=ity as ell as other related concepts is analyEed and a conceptual model o1

transportation and lo9istics systemsI comple=ity is deeloped2 "his model describes the comple=ity o1

transportation and lo9istics systems as residin9 primarily ithin three core properties: the netor3 the

process and the sta3eholder properties2 "hese properties in their turn are in1luenced by other e=tended

properties such as ariety connectiity co9nition etc2 "hree di11erent perspecties the netor3 the

process and the sta3eholder perspecties are used to describe and analyEe the transportation and lo9istics

systems2 "he netor3 perspectie 1ocuses primarily on the structure o1 the transportation and lo9istics

systems hile the process perspectie 1ocuses on the actiities and dynamics and the sta3eholder

perspectie 1ocuses on the perceptions represented by the di11erent sta3eholders2


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Article 36

E(er+in+ Glo$al Lo+i%tic% Net)or&%6 I(1lication% 7or Tran%1ort S%te(% an! Policie%

A'STRACT6 #o9istics chains are constantly chan9in9 to 1acilitate increasin9ly 9lobal moements2n Hualitatie terms lon9 term trends in lo9istics serices indicate a 9roin9 de9ree o1 productcustomiEation and an increased responsieness in order deliery2 "hese trends impact on thedeelopment o1 technolo9y and the 9roth o1 el1are in di11erent orld re9ions in di11erent ays2"his paper dra1ts a research a9enda hich ill help to improe understandin9 o1 the interrelationshipsbeteen trade lo9istics transport and re9ional deelopment at a 9lobal scale2 Rather than bein9 ane=haustie or detailed inentory o1 trends the paper proides a 1ocus on supply chain by thin3in92

"he 3ey startin9 point is the need 1or more and more e11icient transportation and sophisticatedlo9istics processes2 "hree subjects are treated: $irst the strate9ic implications o1 borderless supplychain mana9ement on the choice o1 alternatie lo9istics structures in supply chains are consideredsecond the possible impacts o1 the e=pected chan9es in supply chain processes upon re9ionaleconomic actiities are e=amined third the impacts o1 chan9es in 9lobal lo9istic processes on thetransportation system and in turn on the enironment are e=plored2 "his discussion leads to theidenti1ication o1 some ne research challen9es in the 1ield o1 transportation and lo9istics2

Article 46

In!ian 7rei+ht in!u%tr 1oi%e! 7or a re,a(1

' the en! o7 thi% !eca!e- the In!ian 7rei+ht in!u%tr %houl! $e )orth o,er ;4


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Page 8

!ccordin9 to a recent report released by the mar3et research company Novonous the Qfreight

transport market in India is expected to be worth US$ 307.70 biion b! "0"0 2< 4ith economic 9roth

e=pected to be si9ni1icant in the e-commerce $M,) retail and manu1acturin9 sectors the 1rei9ht

transport mar3et is li3ely to 9ro at /?2?@ percent ,!)R by the end o1 this decade2 "he study says

that here most deelopin9 countries spend about= 1ercent o7 their GDP on lo+i%tic%- In!ia %1en!%

nearl 2> 1ercent2

ndia has the potential to trans1orm its ine11icient and ill-eHuipped lo9istics netor3 by addressin9 the

in1rastructural challen9es hoeer dauntin9 they may be2 Narendra Modi


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Article 56

' the en! o7 thi% !eca!e- the In!ian 7rei+ht in!u%tr %houl! $e )orth o,er ;4


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Page 10

yearsNovonouse=pects the sea 1rei9ht mar3et to 9ro at / percent ,!)R2 !ir 1rei9ht a 3ey lin3

beteen international and domestic mar3ets represents only about / percent o1 the total 1rei9ht

mar3et in ndia2

!round 0 MM" o1 1rei9ht is transported ia aeroplanes2 n the recent years there has been better

participation o1 local serice proiders and improed in1rastructure at airports 1or handlin9 the

increased air car9o tra11ic alon9 ith the appearance o1 ne car9o centres2 +y the end o1 the decadeNovonous1re!ict% a +ro)th rate o7 23.> 1ercent,!)R as the demands o1 the e-commerce sector

are set to rise 1urther2 Si9ni1icantly tappin9 the immense potential o11ered by ndia


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Re%earch Metho!olo+

"o ma3e this project to approaches are used primary and secondary data2

Pri(ar Data6

"his in1ormation is collected by interiein9 those ho are or3in9 in 1or the lo9isticsand transportation industry2

Secon!ar Data6

"his data is collected 1rom arious sources such as internet di11erent boo3s nespapers andma9aEines on lo9istics and transportation industry2


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Nee! o7 Stu!

"his study is mainly conducted to analyEe the ho ital the transportation process is 1or a success1ullo9istics operations and ho necessary it is to improe the transportation process to bettertransportation process2

"o study about the domestic transportation o1 9oods its current status challen9es and reHuirements2


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Sco1e o7 %tu!

"he study ill help us to 3no the present status o1 the ndian lo9istics2

t helps to 3no the problems 1acin9 by the customers ith transporters2

"o 3no the modern technolo9ies used in transportation o1 9oods


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Li(itation% o7 Stu!

"he study as only on roadays and aterays

%naailability o1 sta112

"he report is on a broader concept2

#ac3 o1 time aailable 1or the research2


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Page 15

Cha1ter 36

Co(1an Pro7ile

INTRODUCTION OF T@E ORGANIATION

Matri= $rei9ht Systems Priate #imited as an nternational $rei9ht $orarder born in ndia

out o1 the e=perience and an ur9e to chan9e and attain better standards to suit customer needs ith

respect lo9istic serices supply chain and be a partner to your surial and 9roth2

Matri= $rei9ht aim to delier Huality serice 1or a competitie price and be 1le=ible enou9h to

meet customer special needs throu9h personaliEed serice2 t consists o1 a dedicated team o1 o11icials

bac3ed up ith decade lon9 e=perience and is also ell-3non to the industry2 ts primary aim is to

render serice to the standards e=pected and also try to delier your intrinsic needs 9oin9 beyond your

said e=pectation2 !ll our systems are 1ully automated and centrally controlled 9iin9 our clients added

adanta9e one indo operation 1or all their needs2

t associated ith multiple Shippin9 and !irlines and a orldide Netor3 o1 Partners to

serice your needs and reHuirements 1or any destination either 1or your mports or &=ports either by

Sea or !ir2 4e are licensed by Ministry o1 Shippin9 )ot2 o1 ndia as a Multi Modal "ransport

Operator and $ederal Maritime ,ommission F$M,G )ot2 o1 %nited States 1or O" #icense2 Matri=

is an actie Member o1 4,! $$$! $!"! and ndian Merchants ,hamber FM,G2

4e are happy to promote and represent personaliEed serices 1or and on behal1 o1 our

&steemed Oerseas Partners orldide 1or your shippin9 and lo9istics reHuirements orldide and

o11er a host o1 serices includin9 Sea $rei9ht !ir $rei9ht ,ar9o ,onsolidated and +uyers ,onsole

special eHuipment and door delieries 4e are happy to promote and represent personaliEed serices

1or and on behal1 o1 our &steemed Partner orldide 1or their shippin9 and lo9istics reHuirements 1or

mport and &=port to and 1rom the ndian Sub-,ontinent2


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Matri* Ser,ice%

SEA

FREIG@T BFCL

%S &ast ,oat and 4est ,oast

South !merica

&uropeCN2 ,ontinent and Med Ports

$ar &astC,hina

)ul1

Air Frei+ht

&=press Serice

*oor pic3-up and deliery

$rei9hter and ,hartered Serices

)arments on 'an9ers

S1ecialie!Ser,ice%

#,# ,onsolidation

,ommodity Shipment

'eay ,ar9o and Machinery

)arment on 'an9ers +uyerCSeller ,onsolidation

Peri1heral

Ser,ice%

4arehousin9 T *istribution

*oor to *oor

,ustoms

PO Mana9ement

Sel1 !MS and S$ $iler

Matri* Mana+e(ent

M.D./

U!V!N"! WR2 R!V

! Masters in

,ommerce ,alcutta

%niersity

More than/. years/D billion in transport in1rastructure beteen ..6-./.2

"hus demand 1or lo9istics serices ould be lar9ely drien by the 9roth o1 the ndian economy2

#o9istics is a mi=ture o1 seeral pro1essional disciplines such as:

/2 Plannin9


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Page 24

2 ,ontrollin9

?2 *irectin9

02 ,oordination

@2 $orecastin9

62 4arehousin9 and transportation

D2 $acility location

82 nentory mana9ement

!ll actiities that are inoled in the moement o1 9oods and serices 1rom the point o1 ori9in to thepoint o1 1inal consumption are 9rouped under the term Ilo9isticsI2 "he art o1 mana9in9 or superisin9all these actiities hen 9rouped to9ether as a collectie unit are placed under Ilo9isticsmana9ementI2 People ho are authoriEed or 9ien the tas3 o1 mana9in9 the aspect o1 lo9isticsmana9ement are re1erred to as Idistribution mana9ersI or Ilo9istics mana9ersI2

I(1ortance o7 lo+i%tic%

a2 #o9istics is the bed roc3 o1 trade and business2b2 4ithout sellin9 and or buyin9 there can be no trade and business2 +uyin9 and or sellin9 ta3es

place only hen 9oods are physically moed into and or aay 1rom the mar3et2c2 "a3e aay lo9istical support trade and business ill collapse

2 nte9rates lo9istical actiitiesa2 n conentional mana9ement enironment arious actiities o1 lo9istics or3 in isolation under

di11erent mana9ement 1unctions2 &ach poc3et tryin9 to sub optimiEe its objecties at the cost o1oerall or9aniEational objecties2 Purchasin9 tryin9 to purchase at minimum price at the cost o1 hatis needed by operations2 Operations produce lar9e Huantities at minimum production cost i9norin9demand leadin9 to doom inentory2 #o9istics 1unction o1 mana9ement brin9s all such 1unctions underone umbrella pullin9 don inter departmental barriers2

?2,ompetitie ed9ea2 n the 1iercely competitie enironment lo9istics proides the ed9e2 *ue to technolo9icalreolution most o1 the products are moin9 into commodity mar3ets2 n a commodity mar3et hereprice is controlled by competition here there is no product di11erentiation in terms o1 Hualityparameters li3e per1ormance T reliability here brands are almost irreleant competitie ed9e is

that o1 aailability o1 product and serice in terms o1 time place and Huantity202#o9istics ins or loses arsa2 +ritish lost !merican ar o1 independence due to poor lo9isticsb2 Rommel as beaten in the desert by superior lo9istics o1 !llies

@2Supports critical 1unctions li3e operations and mar3etin9Stron9 lo9istics support enables a company to moe toards U%S" N "M& production system 1orsurial in a hi9hly competitie mar3et


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Page 25

a/ Inter7ace )ith (ar&etin+

"hese days mar3etin9 a product is increasin9ly on the stren9th o1 aailability and 1le=ibility as ediscussed earlier2 Stron9er emphasis is on the last o1 1our Ps o1 mar3etin9 [product price promotionand place\2 #o9istics proides the inter1ace beteen production 1unction and mar3etin9 1unction2Mar3etin9 is tryin9 to sell the product in the mar3et place2 #o9istics ma3es the product accessible tomar3etin9 by actin9 as inter1ace beteen the 1unction that produces it and the 1unction that ma3es theconsumer buy it2

"his inter1ace is 9ainin9 importance due to 1olloin9 chan9es that are seepin9 the mar3et ma3in9many companies adopt U%S" N "M& production system2

d2 ,han9e in the customer: demandin9 3noled9eable conscious o1 ri9hts lac3in9 in brand loyaltychan9es pre1erences ery 1ast e=pects ery hi9h de9ree o1 sericee2 Many products are moin9 toards commodities mar3et: product di11erentiation in terms o1Huality o1 per1ormance is anishin9 and brands are losin9 their ma9ic2!s a result o1 aboe e 1ind that aailability is an important determinant o1 purchasin9 decision2

D2 #o9istical costs: $or indiidual businesses lo9istics e=penditures are @A to ?@A o1 sales dependin9

on type o1 business 9eo9raphical areas o1 operation ei9htCalue ratios o1 products and materials2"his is an e=pensie operation2 mproement in the e11iciency o1 lo9istics 1unction yields sain9s asell as customer satis1action

I(1ortance o7 lo+i%tic% (ana+e(ent in In!ia


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Page 26

/2 #iberaliEation and openin9 our door to competition2 )lobal business has lon9 supply T distribution lines?2 ,han9in9 ndian customer aare demandin9 and less brand loyal02 ,ompetition ensures that product di11erentiation in terms o1 Huality is di11icult@2 Product li1e cycles are shrin3in962 Our mar3ets are shi1tin9 1rom sellers< to buyers

Documents

Final Tranportation Logistics Concluded