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GHANSHYAMDAS SARAF

GIRLS’ COLLEGE

PROJECT ON
INFRASTRUCTURE DEVELOPMENT

PRESENTED TO
PROF. VIPIN SABOO
BY-

TYBMS – GROUP NO.3

SHIVANGI PUROHIT (46)


MARIUM BHALLA (05)
KALPANA JHA (21)
SIDDHI KARMAVAT (27)
POONAM UPADHYAY (67)
SONAL PAWADE (43)

INTRODUCTION
Imagine not being able to communicate with the other
elements of your supply stream, not being able to find out
what the status is.? Not knowing if or for how long they
would have power, it was impossible for anyone to make any
reliable delivery commitments.

Logistics is the management of the flow of goods,


information and other resources between the point of origin
and the point of consumption in order to meet the
requirements of consumers. Logistics involves moving
equipment, materials and supplies to where they will be
used.

Infrastructure is the basic physical and organizational


structures needed for the operation of a society or
enterprise or the services and facilities necessary for an
economy to function. The term typically refers to the
technical structures that support a society, such as roads,
water supply, sewers, power grids, telecommunications, and
so forth. Viewed functionally, infrastructure facilitates the
production of goods and services; for example, roads enable
the transport of raw materials to a factory, and also for the
distribution of finished products to markets.

In Keynesian economics, the word infrastructure was


exclusively used to describe public assets that facilitate
production, but not private assets of the same purpose. In
post-Keynesian times, however, the word has grown in
popularity. It has been applied with increasing generality to
suggest the internal framework discernible in any
technology system or business organization.

\Infrastructure in the logistics sector (like all sectors)


has surfaced as a critical component and a key
bottleneck requiring significant investment and build-
out. Logistics Infrastructure covers facilities like large
warehouses, distribution centers, logistics parks, free
trade warehousing zones, etc. The rapid evolution of
organized retail in India, a thrust for manufacturing through
proposed development of Special Economic Zones, the
emerging large food processing sector, and development of
modern 3PLs has made modern and well developed
warehousing and cold chain infrastructure indispensable.
Logistics Cost consists of almost 70% of the total cost
of a unit produced. Thus, understanding the
Infrastructure Development and its impact on
Logistics is important. So, let us now take each segment
of the infrastructure and study its benefits and impacts on
logistics.

Basically infrastructure is divided into two parts,


Hard Infrastructure and Soft Infrastructure. "Hard"
infrastructure refers to the large physical networks
necessessary for the functioning of a modern
industrial nation, whereas "soft" infrastructure refers
to all the institutions which are required to maintain
the economic, health, cultural and social standards of
a country, such as the financial system, the education
system, the health care system, the system of
government and law enforcement, as well as
emergency services.
Types of Hard Infrastructure:

The following list is limited to capital assets that serve the


function of conveyance or channeling of people, vehicles,
fluids, energy or information, and which take the form either
of a network or of a critical node used by vehicles, or used
for the transmission of electro-magnetic waves.
Infrastructure systems include both the fixed assets and the
control systems and software required to operate, manage
and monitor the systems, as well as any accessory buildings,
plants or vehicles that are an essential part of the system.
Also included are fleets of vehicles operating according to
schedules such as public transit busses and garbage
collection, as well as basic energy or communications
facilities that are not usually part of a physical network (oil
refineries, radio and TV broadcasting facilities).

Transportation infrastructure
“Transportation is the industry that connects other
industries”. Transportation infrastructure is the most critical
means that facilitates the movements of people and
products. The existence of cost-effective and competitive
transport modes assists in the restructuring of the trade an
industry.

The Role of Transportation in logistics

The role that transportation plays in logistics system


is more complex than carrying goods for the
proprietors. Its complexity can take effect only
through highly quality management. By means of well-
handled transport system, goods could be sent to the right
place at right time in order to satisfy customers’ demands. It
brings efficacy, and also it builds a bridge between
producers and consumers. Therefore, transportation is
the base of efficiency and economy in business
logistics and expands other functions of logistics
system. In addition, a good transport system
performing in logistics activities brings benefits not
only to service quality but also to company
competitiveness.

By road, rail, air or water - goods can arrive at their


destination in many ways.
The choice of the right means of transport depends
on many factors – including flexibility, costs and
transport volume. In order to choose the optimal means,
an understanding of the strengths and weaknesses of the
individual means of transport is essential. A distinction is
drawn among road transport, rail transport and pipeline
transport, inland waterway and ocean shipping and air
transport.
In choosing a transportation mode, shippers consider
five criteria; (1) speed - door to door delivery time,
(2) meeting schedules on time, (3) ability to handle
various products, (4) number of geographic points
served, (5) cost per tone-mile.

Types of Transportation Infrastructure

1. Road Transport Infrastructure


India has one of the largest road networks in the world (over
2.9 million km at present). The growth rate in road traffic
has been 10 percent since 1951 and would have gone higher
had there been a larger and penetrative road network.
Roads play a dominant role in India’s domestic
transportation sector. Thus, proper road
infrastructure is the need of the day to carry out
logistical activities in an organized manner.
Unfortunately, today, India’s road infrastructure is not
properly developed. The road freight industry is highly
fragmented and largely unorganized. The industry is highly
fragmented and largely unorganized. The unorganized
sector accounts for nearly 80% of the market share.
However, changing policies with regards to tax structure are
likely to give a competitive edge to the organized sector.
Road transport comprises of freight and passenger traffic. It
accounts for over 60% of goods traffic and over 80% of
passenger traffic.
STRENGTHS
 High flexibility in terms of transport jobs and changed
plans
 Fewer idles and waiting periods
 Relatively low transport times for short and medium
distances
WEAKNESS
 Limited transport volume
 Traffic jams
 Legal restrictions
 Weather effects
 Restrictions on transport of hazardous goods
 Ecological aspects
2. Rail Transport Infrastructure
Rail transport is suited for bulk shipping (several
wagonloads) of many types of goods (coal, raw
materials) over distances of 300 km and more
.Railways have become a cheap mode of
transportation. But still, Railway infrastructure,
monopolized by local governments, is relatively under-
developed in the region. Only 65% of the railway tracks are
operative due to poor investment and maintenance.
Consequently, the intermodal capabilities are limited and a
majority of the gross tonnage, which could ideally be
transported by rail, is being transported via trucks as road
infrastructure is quite well developed. Governments must
encouraging private participation, especially in railways, to
attract more foreign investments in order to improve overall
transport infrastructure.

STRENGTHS
 Higher speeds and economical solution for longer
distances
 Environmentally friendly
 No road traffic
 No driving bans (e.g., Sundays,holidays)
WEAKNESS
 Schedule and rail-network Inflexibility
 Inadequate for short-distant transports or with frequent
cargo changes
 High fixed cost due to expensive equipments
3. Marine Transport Infrastructure
Waterway transport is suited for large cargo shipments
covering longer distances
Together with rail and road transport, waterway
transport is considered to be a mode of transport
which can contribute to sustainable mobility and help
improve the sustainability of the transport system.
Per tonne-kilometre, waterway transport is extremely energy
efficient and is regarded as one of the most
environmentally-friendly modes of transport. Waterway
transport increases market access and competition,
increases market access for international good
transport. It creates favorable conditions for services and
development of new markets.

The Indian shipyards condition is not proper. According to


a recent report in Hindu Business Line, the shipping
infrastructure is not in a healthy state. Only 10 per
cent of Indian flag-vessels have been built in Indian
shipyards. The high cost of production can be
attributed to poor development of indigenous
ancillary industries, archaic labor laws and low
productivity owing to aging machines. The need for the
creation of dry-docks, one each on east and west coasts,
must be stressed. This could help take up repairs and
building large vessels
India should take advantage of its extensive river systems
and long coastline to develop inland waterways and coastal
shipping. In this era of integrated logistics and multi-
modal transportation, traditional ship owning is
getting commoditized. Some of the shipping majors
have established systems to take responsibility of
total logistics requirements of their clients. A
logistics and transportation service provider not only
has to build a large fleet of physical assets but also
build up assets such as IT infrastructure and
expertise over business processes much more
sophisticated and extensive than applicable in any
single sub-segment.

STRENGHTS
Economic
Environmentally friendly
Availability of specialized ships

WEAKNESS
Limited waterway network
High handling and transshipment costs
Dependency on weather (water level)
4. Air Transport Infrastructure

Air transport is still the costliest transport mode due


to its efficiency and timely deliveries. In many
remote, hilly and inaccessible areas of the country,
air transport is the quickest and sometimes the only
mode of transport available. This is especially true of
sensitive regions on the borders with our neighbors in the
west, north and north-east.
It costs higher than rail and truck but ideal when
speed is needed and distant markets have to be
reached. Products are perishables (fresh fish, cut
flowers), high-value, low-bulk items (technical
instruments, jewellery).

The airport infrastructure of India is quite good. The


infrastructure is user-friendly and provides a boost to
international trade and tourisms. But special
attention needs to be given to the speedy handling of
cargo and reducing its dwell time. The objective must
be to reduce dwell time of exports from the present level of
4 days to 12 hours and of imports for the present level of 4
weeks to 24 hours to bring us in line with internationally
achieved norms. Cargo clearance must be on 24-hour basis.

Infrastructures relating to cargo handling like satellite freight


cities with multi-modal transport, cargo terminals, cold
storage, automatic storage and retrieval systems,
mechanized transportation of cargo, computerization and
automation, etc., must be set up on top priority basis.

India—as an air cargo hub


India has a great potential for becoming a possible cargo
hub for SAARC and ASEAN countries and its strategic
location as a transit destination connecting the eastern-
western global corridors. The Civil Aviation
ministry has identified Nagpur as India’s national cargo hub
and has promised an aviation policy for providing significant
concessions for air freighter operations out of Nagpur. There
are also plans of creating a national grid for cargo hubs at
various airports in India with cold storage and warehousing
facilities. The Government has chalked out various policies
and plans for development of the air cargo infrastructure
thereby providing opportunities to the various entities
involved in the value chain. Civil aviation ministry proposal
to set up dedicated cargo airports and Government’s plan to
allow cargo airports within 150 kms radius of existing
airports through automatic routes are major steps taken to
the cause of developing India as a cargo hub.

Strengths
 High speeds, frequency and security
 Little capital tie-up
 Low risk of theft and damage
 Cost-efficient transport of light parts

Weakness
 High transport costs for bulk goods
 Relatively low transport capacity
 Need for development of a network
 Ground time is approx. 73 percent of
 Total transport time
 Ecological aspects
5. Pipeline Transport Infrastructure

Generally liquids like oils, crude, petroleum products


are transported in a pipeline. In India pipelines are
extensively used for transporting crude and
petroleum products. More than 5000km of pipeline exists
in India for crude and petroleum products. In addition to the
products above slurries, gases, vapors and solids in powder
form are also transported in pipelines.

The pipeline transportation is the most practical, safe


and most efficient way of moving petroleum products
and gases and, hence, is the preferred mode all over
the world. To facilitate this movement, the pipeline
infrastructure in India requires strengthening. As is
true for any other infrastructure developments,
pipeline projects do pose wide array of environmental
challenges.

Strengths
 Economic
 Safe
 Environmentally safe
Weakness
 Weaknesses
 Small pipeline network
 High fixed costs
6. Belt/Rope Transport Infrastructure

It is used for transporting materials in hilly and


otherwise inaccessible area. Fruits produced in hilly area
are brought to low land for further transportation to
consumption centers. This mode is good when gradients are
steep as road or rail would take a very long route to
negotiate the gradient. Ropeways cause minimum ecological
imbalance. Ropeways connect point of supply &
demand by shortest route.
Ropeway Infrastructure still needs to be developed
fully in India. It is mainly used in coal mines for
transporting coal in bulk. But due to lack of proper
development of this mode of transport, there have
been cases of extreme losses in Coal mines.

Strengths
 Transports bulk materials over short distance
 Lower capital costs
 Ideal for Hilly areas

Weakness
 Limited scope of operations
 Slowest mode of transport
7. Inter-Modal Transport Infrastructure

This method uses two or more carriers of different modes in


the through movement of a shipment, to take advantage of
the inherent economy of each mode.
a. Piggyback (Roadway + Railway)
b. Fishyback (Waterway + Railway)
c. Birdyback (Airway + Roadway)

Benefits of Proper Transportation Infrastructure

Availability of different modes of transport: The


existence in various options in transportation
(different modes to choose from) can improve the
economic activity and can result in system-optimum
pricing worldwide. A transportation option or a
combination of them (road, rail, sea, air, and pipelines) can
be chosen depending on the time, safety and price
sensitivity of the product that needs to be transported.
Transportation and logistics services cost, and
obviously rise in the retail prices of the products
shipped and handled. This additional cost can be
minimized if the transportation and logistical
infrastructure improves enough to cover the
forecasted demand. A low “wedge” between the prices
paid by consumers and prices received by producers means
a combination of the lower price for the consumers and a
higher profit for the producers. A better transportation
and logistical infrastructure means greater labor
demand and better wages.

Price reduction: An improved transportation and


logistical network has the ability to reduce the
regional price variability. Bad weather can cause
shortfalls and high prices in one region while other
region experience surpluses. Especially in cases where
the products are perishable (fruits and vegetables),
vulnerable in temperature or light condition-differences, and
fragile in any bad weather can be troublesome. The same
applies to the product that are time-sensitive in general
(electronics that loose their value continuously) and all the
products that sell in very competitive markets and their lack
of existence in the market that experiences shortfall
becomes a lost sale, instead of a backorder(which still
incorporates an additional cost).

The following figure shows the post harvest losses in


some of the Asian countries because of the bad
coordination and infrastructure.
40
35
30
Veitnam
25
Philippianes
20
Thailand
15
China
10
India
5
0
2008 2009

Increases Competitive Advantage: Higher value


commodities and more sophisticated manufacturers are very
sensitive and their quality and value depends linearly on the
shipping and handling techniques. Additionally, a low
quality transportation and logistical infrastructure
that provides poor service with a high cost will lead
to the loss of the competitive advantage that the
product would have if it were to be consumed at the
place where it was produced.

Increases Variety of the Product: Another advantage


of the improved transportation networks is that they
increase the available variety of the product. It is
noticeable that transport costs restrict a large number of
products to become available in remote regions with low
demand. Often it is unaffordable and inefficient to supply
products in Less-than-truck-load size for example. At the
same time, it makes it easier for the exporters to spread
geographically in a larger scale. The number of markets
accessible increases and economies of scale in shipping are
being created. Thus there is better response to business
cycle fluctuations in those markets.
Safety: Well integrated transportation infrastructure
can assure better safety in transportation, less
casualties and damages for people and products. In
the era of globalization, mobility should not be obstructed by
high levels of insecurities in transportation.

Environmental Benefits: Last but not least, a well


integrated transportation infrastructure can result in
environmental benefits and reduce externalities.

COMMUNICATION INFRASTRUCTURE

The Communication Infrastructure provides an expansion of


choices available to individuals. Communication
Infrastructure has become a vital organ of the ‘knowledge
society’ in which people live. Developing communication
infrastructure has become crucial to access
information (and knowledge) and resources for
enhancing the quality of logistical operations. It is
essential for the information flow, an important
aspect of Logistics.

Types of Communication Infrastructure

1. Postal Service Infrastructure


Postal Service is one of the oldest means of
communication. In the olden days, the royal horses were
used to convey the messages from one place to another.
Today, the Postal service infrastructure has grown include
Speed Posts, E-Payments, Instant Money Order Services,
Media Posts, Direct Posts, Business Posts, International
Money Transfer, and Logistics Posts.

Logistics Posts is a brand new service from India Post


great for sending parcels and large consignments
across the nation and around the world. Logistics
Post manages the entire distribution side of the
logistics infrastructure from collection to distribution,
from storage to carriage, from order preparation to
order fulfillment. Logistics Post is an ideal service for
sending large consignments including multi-parcels,
just-in-time parcels, bulk-break consignments and
goods of any weight. While Parcel Post offers weight
up to 35 kg, Logistics Post has no weight limit.
Logistics Post offers not only physical logistics
services but also provides comprehensive supply
chain management services, leading to improvement
in the service level efficiency.

2. Telecommunications Infrastructure
Telecommunications are systems used in transmitting
messages over a distance through electrical or
electromagnetic medium. It can be done via
telephone, mobile, e-mail, Internet conference etc.
The basic telecommunication infrastructure is quite
well developed in India. The telecom industry is one
of the prime contributors to India's GDP. The once
monopolistic market is today, highly competitive. This has
necessitated the growth of India telecom infrastructure.

Nowadays, a vast majority of the population has access to


telephone services. The highly competitive environment has
ensured low pricing of goods and services. Moreover, the
enhancement of India telecom infrastructure has also
widened the scope of the telecom sector to other allied
ventures like mobile services, Internet, cable TV services, E-
Commerce, and other forms of Information Technology (IT).
Due to telecommunication infrastructure, logistic and
supply chain management has become easier and
faster by many folds.

Benefits of Communication Infrastructure in logistics

Flow of Information: Proper communication infrastructure


helps in dealing with the flow of information within an
organizational unit between any numbers of organizations
that in turn create a value forming network.

Managing and Controlling: It helps in managing and


controlling the information handling processes optimally with
respect to time (flow time and capacity), storage,
distribution and presentation in the organization.

Helps in achieving the goals of Information Logistics:


It helps in achieving the goal of Information Logistics i.e. to
deliver the right information product, consisting of the right
Information Element, in the right format, at the right place at
the right time for the right people and all this customer
demand driven.

Information Storage: Proper Communications


Infrastructure helps in storing the information systematically
and reduces externalities.

Supports Data Warehousing: A Data Warehouse is a


repository of organization’s electronically stored data,
designed to facilitate reporting and analysis. A proper
Communication Infrastructure is connected to such Data
warehouses from where information can be directly sent to
any unit of the organization, hence enhancing logistical
operations.

INDUSTRIAL INFRASTRUCTURE

Industrial Infrastructure is the infrastructure which supports


the industry and its manufacturing requirements. An
industrial infrastructure differs from one industry to another
industry. It depends on which sector a particular industry
belongs to. It is the inside made-up of an industry. It helps in
carrying out proper manufacturing, processing of raw
materials. It is essential for proper inbound logistics.

Types of Industrial Infrastructure

1. Manufacturing Infrastructure

It is the basic infrastructure which supports the


manufacturing activities of an organization. It includes the
equipments, machineries and technologies used for
manufacturing and its strategic placement for proper
channeling of raw materials, work-in-progress and
finished goods.

It is necessary because companies are facing the fact that


productivity improvements and lower product and process
costs are not enough. To remain competitive in the next
decade, they must provide better value for their customers,
increase their customer base, and develop new business
areas as the old ones mature and become obsolete.

In short, manufacturing needs to move to the next level.

2. Industrial Parks
An industrial park is an area zoned and planned for
the purpose of industrial development. Industrial parks
are usually located outside the main residential area of a
city and normally provided with good transportation access,
including road and rail. Industrial parks are usually
located close to transport facilities, especially where
more than one transport modes coincide: highways,
railroads, airports, and ports.

3. Special Economic Zones


A Special Economic Zone (SEZ) is a geographical
region that has economic laws that are more liberal
than a country's typical economic laws. The category
'SEZ' covers a broad range of more specific zone types,
including Free Trade Zones (FTZ), Export Processing Zones
(EPZ), Free Zones (FZ), Industrial Estates (IE), Free Ports,
Urban Enterprise Zones and others. Usually the goal of a
structure is to increase foreign direct investment by
foreign investors, typically an international business
or a multinational corporation (MNC).
SEZ's are located in the states of Andhra Pradesh,
Chandigarh, Gujarat, Haryana, Karnataka, Kerala,
Maharashtra, Orissa, Rajasthan, Tamil Nadu, Uttar Pradesh &
West Bengal in India.
These are fully functional. All these SEZs are in various parts
of the country in the private/joint sectors or by the State
Government. But this process of planning and development
is under question, as the states in which the SEZs have been
approved are facing intense protests, from the farming
community, accusing the government of forcibly snatching
fertile land from them, at heavily discounted prices as
against the prevailing prices in the commercial real estate
industry. Also some reputed companies like Bajaj and
others have commented against this policy and have
suggested using barren and wasteland for setting up
of SEZs.

WAREHOUSING INFRASTRUCTURE

The warehouse is the most common type of storage


though other forms do exist (e.g., storage tanks,
computer server farms). Some warehouses are massive
structures that simultaneously support the unloading of
numerous in-bound trucks and railroad cars containing
suppliers’ products while at the same time loading multiple
trucks for shipment to customers.

Benefits of Warehousing Infrastructure in logistics

Protection and Preservation of goods: Warehouse


provides necessary facilities to the businessmen for
storing their goods when they are not required for
sale. It provides protection to the stocks ensures their
safety and prevents wastage. It minimizes losses breakage,
deterioration in quality, spoilage etc. Warehouses usually
adopt latest technologies to avoid losses, as far as
possible.

Regular flow of goods: Many commodities like rice, wheat


etc. are produced during a particular season but are
consumed throughout the year. Warehousing ensures
regular supply of such seasonal commodities
throughout the year.

Continuity in production: Warehouse enables the


manufacturers to carry on production continuously without
bothering about the storage of raw materials. It helps to
provide seasonal raw material without any break, for
production of finished goods.

Convenient location: Warehouses are generally located at


convenient places near road, rail or waterways to facilitate
movement of goods. Convenient location reduces the cost of
transportation.

Easy handling: Modern warehouses are generally fitted


with mechanical appliances to handle the goods. Heavy and
bulky goods can be loaded and unloaded by using modern
machines, which reduces cost of handling such goods.
Mechanical handling also minimizes wastage during loading
and unloading.

Useful for small businessmen: Construction of own


warehouse requires heavy capital investment, which small
businessmen cannot afford. In this situation, by paying a
nominal amount as rent, they can preserve their raw
materials as well as finished products in public warehouses.

Creation of employment: Warehouses create employment


opportunities both for skilled and unskilled workers in every
part of the country. It is a source of income for the people, to
improve their standards of living.

Facilitates sale of goods: Various steps necessary for sale


of goods such as inspection of goods by the prospective
buyers, grading, branding, packaging and labeling can be
carried on by the warehouses. Ownership of goods can be
easily transferred to the buyer by transferring the
warehouse keeper’s warrant.

Availability of finance: Loans can be easily raised from


banks and other financial institutions against the security of
the warehouse-keeper’s warrant. In some cases warehouses
also provide advance to the depositors of goods on keeping
the goods as security.

Reduces Risk of Loss: Goods in warehouses are well


guarded and preserved. The warehouses can economically
employ security staff to avoid theft, use insecticides for
preservation and provide cold storage facility for perishable
items. They can install fire-fighting equipment to avoid fire.
The goods stored can also be insured for compensation in
case of loss.

Types of Warehouse
1. Private Warehouse: This type of warehouse is owned
and operated by channel suppliers and resellers and used in
their own distribution activity. For instance, a major retail
chain may have several regional warehouses supplying their
stores or a wholesaler will operate a warehouse at which it
receives and distributes products.

2. Public Warehouse: The public warehouse is essentially


space that can be leased to solve short-term distribution
needs. Retailers that operate their own private warehouses
may occasionally seek additional storage space if their
facilities have reached capacity or if they are making a
special, large purchase of products. For example, retailers
may order extra merchandise to prepare for in-store sales or
order a large volume of a product that is offered at a low
promotional price by a supplier.

3. Automated Warehouse: With advances in computer


and robotics technology many warehouses now have
automated capabilities. The level of automation ranges from
a small conveyor belt transporting products in a small area
all the way up to a fully automated facility where only a few
people are needed to handle storage activity for thousands
of pounds/kilograms of product. In fact, many warehouses
use machines to handle nearly all physical distribution
activities such as moving product-filled pallets (i.e.,
platforms that hold large amounts of product) around
buildings that may be several stories tall and the length of
two or more football fields.

4. Climate-Controlled Warehouse: Warehouses handle


storage of many types of products including those that need
special handling conditions such as freezers for storing
frozen products, humidity-controlled environments for
delicate products, such as produce or flowers, and dirt-free
facilities for handling highly sensitive computer products.

5. Distribution Center: There are some warehouses where


product storage is considered a very temporary activity.
These warehouses serve as points in the distribution system
at which products are received from many suppliers and
quickly shipped out to many customers. In some cases, such
as with distribution centers handling perishable food (e.g.,
produce), most of the product enters in the early morning
and is distributed by the end of the day.

Infrastructure congestion: the key challenge

According to Data monitor, the logistics industry in India is


currently hampered due to poor infrastructure such as roads
(over 70 per cent of freight transportation in India is via
roads), communication, ports and complex regulatory
structures.

National Highways (NH) form only 2 per cent of the entire


road network in India, but handle over 40 per cent of the
national road freight traffic, putting enormous pressure on
the highway infrastructure. Also, on an average a
commercial vehicle in India runs at a speed of 20 miles per
hour (mph) compared to over 60 mph in the mature logistics
markets of Western Europe and the USA.

In addition, the twelve major ports of India handle volumes


higher than their full capacity, resulting in pre-berthing
delays and longer ship turn-around time compared to even
the East Asian counterparts like China and South Korea.

PACKAGING
Although packaging is recognized as having a significant impact on the
efficiency of logistical systems and activities such as manufacturing,
distribution, storage and handling throughout the supply chain, many
packaging dependent costs in the logistical system are frequently overlooked
by packaging designers

The concept of packaging logistics focuses on the synergies achieved by


integrating the systems of packaging and logistics with the potential of
increased supply chain efficiency and effectiveness, through the
improvement of both packaging and logistics related activities. One way to
achieve this is to concentrate on packaging development that benefits
packaging related activities in the logistical system, often called logistical
packaging. This one-sided way of approaching the packaging logistical
issues is dominating in literature and the logistics discipline. There have
been few efforts to present an adequate definition of packaging logistics, and
these have been fragmented and vague in available literature.

WITH THE BREAKDOWN IN OR THE INEFFECIENCY OF,


ANYONE OF THE FUNCTIONS, THE TOTAL PHYSICAL
DISTRIBUTION FUNCTION IS LIKELY TO BE ADVERSELY
AFFECTED. IT CAN EVEN BRING ABOUT MAJOR
CHANGES IN OTHER FUNCTIONS.
HERE IS AN EXAMPLE

In the case of Haiti EARTHQUAKE, the infrastructure was


completely destroyed. The main port and airport were not
operational for the first 48 hours, making it impossible for
aid to enter the country. Once the airport’s runway was
operational, there was chaos prioritizing which planes should
land.

Even after aid was on land, debris blocked roads with no


available equipment to clear them. This is the conundrum
that’s plaguing relief workers and frustrating and confusing
those donating money for recovery.

Innocently, donors earmark funds solely for supplies rather


than infrastructure and logistics.

Unless this changes, disaster after disaster, we will continue


to see a breakdown between when supplies arrive and when
they reach people in need.

Investing only in supplies is similar to having most of the


pieces of a car, but having neither the tools nor people
needed for assembly. We end up with pieces and no
operational whole.

This is the same for humanitarian logistics. Unless we invest


in and plan for people, equipment, and infrastructure, the
best-intentioned response will continue to be late and
ineffective.

There is a smarter way of doing this.

For example, investing just $10 out of $100 into an


inventory management system and other infrastructure
could allow relief organizations to deliver goods and services
on time to those in need compared to spending the entire
$100 on goods.
This allowance for “smart overhead” will require a
fundamental shift in thinking for donors, organizations and
others.

NGOs also need to work with neutral parties to develop


measures that consider the efficiency gains in the long run
from smart overhead or the trade-off between dollars spent
and the benefit achieved.

Government can develop approaches to collaboratively


improve infrastructure to be sustainable in the long term —
for example, building better roads to serve the population as
well as resort areas.
CONCLUSION

In a highly competitive, increasingly just in time, supply


chain driven world, barriers to the flow of goods across over
the road and rails can be just as important as those we focus
on through our plants and distribution centers.
The rapid growth of e-commerce demands fast response
deliveries. Increasingly, businesses seek to sustain
sophisticated short-cycle and bespoke manufacturing
processes to meet customer requirements directly. The
internationalization of transport activities requires co-
ordinate government action if efficient logistics systems are
to be achieved. However, financing transportation
infrastructure is increasingly challenging for governments as
private sector carriers and shippers demand improved
facilities to move goods on shorter and just-in-time delivery
schedules.
These trends are rapidly and continually changing supply
chain functions and demands. These changes necessitate
flexibility, the cost of which will need to be reflected in the
cost of infrastructure provision.
Existing road, rail, air, and port infrastructures are coming
under considerable pressure. Much of the European air
freight fleets will require new investment in order to comply
with new noise regulations. Rail networks are coming under
increasing pressure to accommodate more freight on key
routes at a time when passenger volume is also increasing.
Parts of the European road network are reaching capacity
constraints, particularly in major urban centres and on
motorways. The transport
sector, especially road transport, is under increasing
pressure to reduce its impact on the environment. At the
same time there is a growing need to improve decision-
making processes surrounding investments in transport
infrastructure, with focus being given to system-wide
priorities rather than
priorities being determined on a modal basis only. Further,
there is a need to increase investment in new ITS
technologies, develop standardized systems and hence
improve inter-operating efficiencies across all
infrastructures.

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