Modern Warehouse and Transportation trends.pptx

8/14/2019 Modern Warehouse and Transportation trends.pptx

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Modern warehousing and

Transportation trends


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Agenda

Environment

Warehousing

Transportation

3PL Market

Range of Services & Attractiveness

Key Growth Drivers

New Business Model & Opportunities

Areas of Improvement


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Logistics CostGlobal Trend

Country/Region Logistics Cost as

% of GDP

Share of

Organized

Logistics

Size of Logistics

Industry

($ Billions)

India 12-14% 3-4 % 145-160

China 18% Less Than 10% 800-950

USA 9.9% 34% 1200-1400

Europe 7.1% 54% 1100-1300


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Constituents of logistics cost - India

Constituents of logistics cost India

Transportation 35%

Warehouse & Handling 9%

Inventory 25%

Packaging 11%

Customers & Shopping 6%

Transit Losses 14%

Technology Cost


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Comparison of Key parametersIndia vs Global


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India & World Comparison


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Warehousing-Functions

Materials Handling Function

Loading and unloading

Materials Movement (to and from the Storage area)

Order filling

Breaking Bulk

CrossDocking

MixingPacking

Information Handling Function

Goods Inwards

Inspection and auditingGoods outwards

Excess Stocks

Invoicing

Consignment Tracking

Transit damage and breakage


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Maximum utilisation of storage space (floor and cubic space)

Higher labour productivity

Maximum Asset utilisation

Reduction in Materials Handling

Increased Inventory turnover

Reduced order filling time

Reduction in operating cost

WarehousingBasic Objectives


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Broad classification

Private warehouses

Public warehouses

Types

Bonded warehouses under customs / Excise Act

Field warehouse

Cold storage for perishable goods

Agriculture warehouse used for storing Agriculture produce

Distribution warehouse located close to the manufacturing concerns

Buffer storage warehouse Government owned

Export / Import warehouse located normally near ports

Types of Warehouses


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Basic considerations are

Principle of Popularity

Principle of Similarity

Item Turnover

Space utilisation

Product configuration

Product characteristics

Good Housekeeping

Safety and Security

Warehouse Layout Designs


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Warehousing - A Role Beyond Storage

Modern warehousing is in the process of evolutionary change

From an emphasis on storage to emphasis on flow through

From Inventories at rest to Inventories in motion

In logistical systems, warehouse are viewed as switching

facilities rather than storage facilities


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What is Happening in Warehousing

Environment ?


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Changing function of a warehouse

Warehousing function

changes from storage to flow

Increase in value added

services


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Changing function of a warehouse

Lease provides adaptability

Emphasis on cost management


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Initiatives to improve Transportation - Road

Deficit Targets FDI EnvisagedInvestment

Size

Roads / highways

65,590 km of

existing national

highways:Comprise only

- 2% of network

- Carry 40% of traffic

- Of which 12% is 4-laned;

50% is 2- laned; and 38% is

single laned

-6-lane 6,500 km in

GQ

- 4-lane 6,736

km NS-EW- 4-lane 20,000km

-2-lane 20,000km

- 1,000 km Expressway

100 % FDI

under

automatic

route

US$ 78.5bn


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Initiatives to improve Transportation - Rail


Size

-Old technology

- Saturated routes

- Slow speeds

(freight: avg 22kmph;passengers: avg 50kmph)

- Low payload to tare ratio

(2.5)

-8132 km new rail

-7148 km gauge

conversion

- Modernize 22stations

-Dedicated freight

Corridors

100 % FDI

under

automatic

route

US$ 65.45 bn


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Initiatives to improve Transportation - Ports


Size

Inadequacy of

-Capacity

- Rail / road

Connectivity

New capacity:

- 485 million MT in

major ports

- 345 million MT inminor ports

100 % FDI

under

automatic

route

US$ 22 bn


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Initiatives to improve TransportationAirports

Deficit Targets FDI Envisaged

Investment

Size

Inadequacy of

-Runways

- Aircraft handling capacity

- Parking space and terminalBuildings

-Modernize 4 metro

and 35 non-metro

airports

- 3 Greenfield in NorthEastern Region (NER)

- 7 other Greenfield

Airports

100% FDI under

automatic

route for

Greenfieldairports

US$ 7.74bn


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Share of 3 PL Market


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Evolution of Indian 3 PL Market


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Evolution of Logistics Model


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Range of Services


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Attractiveness of Sub-segments


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Rising Outsourcing & Consolidation


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Key Growth Drivers


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Key Determinants of Selecting LSP


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New Business Model


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Opportunities for Foreign Investors


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Areas of Improvement


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Thank You

Documents

Modern Warehouse and Transportation trends.pptx