LOGISTICS AND SUPPLY CHAIN

MANAGEMENT IN INDIAN
ENVIRONMENT

SUBMITTED BY:
D.VALLI RUKMINI
A30101918026
CONTENTS

INTRODUCTION

FUNCTIONAL AREAS OF LOGISTICS

SUPPLY CHAIN MANAGEMENT

SUPPLY CHAIN COMPARISON

LOGISTICS AND SCM IN INDIA

INTRODUCTION
Logistics is generally seen as a differentiator in terms of
the final bottom line of a typical “hard and tangible
goods” organization; enabling either a lower cost or
providing higher value.

Logistics is concerned with both materials flow and

information flow. While the materials flow from the
supplier to consumer, the information flows the other
way round. It is not only concerned with inventory and
resource utilization, customer response also falls under
the ambit of logistics.
FUNCTIONAL AREAS OF LOGISTICS

INVENTORY
NETWORK DESIGN TRANSPORTATION
MANAGEMENT

1 2 3
SUPPLY CHAIN MANAGEMENT

supply chain management (SCM), the management of the flow of

goods and services,involves the movement and storage of raw
materials, of work-in-process inventory, and of finished goods
from point of origin to point of consumption.

Supply-chain management has been defined as the "design,

planning, execution, control, and monitoring of supply-chain
activities with the objective of creating net value, building a
competitive infrastructure, leveraging worldwide logistics,
synchronizing supply with demand and measuring performance
globally.
SUPPLY CHAIN MANAGEMENT
 SUPPLY CHAIN COMPARISON

SCM LOGISTICS

SUPPLIERS TRANSPORT
MANUFACTURERS WARE HOUSE
WAREHOUSES DATA
STORES MAN POWER
CUSTOMERS
LOGISTICS AND SCM IN INDIA
ENVIRONMENT
• India has become the prime destination for logistics service providers
all over the world. The demand for logistics services in India has been
largely driven by the remarkable growth of the economy.

• The growth is being projected at 9-10 per cent in next few years, with
the compounded annual growth rate (CAGR) expected to grow at a
rate of 7-8 per cent. This growth is expected to gain greater
momentum due to the exponential growth of the Indian economy.

• India is also experiencing a big retail boom as the buying capacity of

the middle and upper middle segment of the population has scaled
new heights. Many large multinationals from the retail industry are
planning to set up operation in India and large local retailers are also
planning to expand their operations.
SCM IN INDIA
• In today’s world, the long term survival of any business entity is dictated by the
efficient supply & delivery process that entity has implemented. To succeed in a
dynamic demand & supply environment, Indian Companies need to ensure that
proper coordination is in place between their suppliers & their customers until the
last of the supply chain demands are satisfied without delay. This necessitates the
need for tracking the inventory on hand augmented by a solid order & supply chain
management. This is very crucial to cost control, availability to supply on demand,
maintain market control & eventual profitability.

• To meet this critical need to handle the demand & supply effectively, supply chain
management is an important component. Companies are investing crores of rupees
in SCM product & applications with SCM, a business can estimate future demand for
its products, enabling planners to accurately estimate future needs for supply &
extends to execution with the planning of their plants, transportation & logistics.

• In any supply chain, there is one last entity on which the entire process depends on
“the customer” all manufacturers, suppliers, distributors & retailers will only be
successful if they collaborate with each other in satisfying the customer demand. If
one supply chain fails to meet the demand, there will be a chain reaction that will
eventually affect the end customer supply resulting in customer dropping their
business as well.
VISION 2020
Warehousing
• In India, the role of warehouses in the overall supply chain was always underplayed. But the
present concept of integrated supply chain management has to focus on all components
viz. transportation, warehousing, inventories, information etc. so as to improve the efficiency
of supply chain which is vital to the economy of the nation. The four major types of
warehousing in India are for the storage of Industrial goods, white goods, Agricultural goods
and Perishable goods.
• There is a trend to develop efficient warehousing to support the integrated logistics needs.
Older warehouses were mere godowns without proper material handling facilities leading to
wastages, damages, obsolescence and higher cost of operation, are steadily being
replaced by newer automated warehouses with advanced, computer controlled material
handling system requiring few employees. This will bring about transformation in the logistic
and warehousing industry. The entry of multi national companies in India have brought the
international logistics concept and the trends are to outsource the supply chain
management function to the third party logistics (3PL) service provider to provide world-
class services.
Transportation:-
• The choice of transportation carriers affects the pricing of products, delivery performance &
conditions of the goods when they arrive. In shipping goods to its warehouses, dealers &
customers, the firm would be choosing among 5 main transportation modes; Truck, Rail,
Water, Pipeline & Air alongwith an alternative mode for digital products ; the internet. In
choosing a transportation mode for a product, shippers would be balancing many
considerations, speed, dependability & availability cost & others. Thus, if a shipper needs
speed, Air & Truck are the prime choices for transportation.
Thank you!