Logistics and supply chain management in india
Author : Sumit hari wadmare
Logistics in India
SRIVASTAVA, S. K. (2006) provides an overview of the state of logistics and supply chain practices in India, based on extensive research encompassing field visits, discussions, interviews, and secondary data analysis. It underscores the influence of contextual factors such as industry type, firm size, regulatory environment, infrastructure, and competition on logistics practices. The study identifies emerging trends, including a focus on customer-centric approaches, collaboration within supply chains, and increasing attention to transportation and logistics. However, it also highlights areas of concern, such as limited visibility, the need for improved infrastructure, and low utilization of information and communication technology (ICT). The paragraph emphasizes the importance of aligning logistics objectives with business goals, enhancing collaboration and trust among supply chain partners, and addressing infrastructural bottlenecks. He suggests opportunities for improvement, such as facility network redesign and increased ICT implementation, and advocates for collaborative efforts among stakeholders to evolve efficient and effective supply chains in India.
Growth of logistics in India
SRINIVAS, K. and KRISHNA, K.(2006) discusses the evolution and significance of logistics management in the Indian context. It highlights how logistics has transformed from a supportive function to a strategic factor providing competitive advantage in today’s global marketplace. The expansion of the logistics industry now covers various activities such as warehousing, transportation, purchasing, distribution, inventory management, and customer service. To remain competitive, organizations must continually innovate their logistics strategies, especially as they globalize to access new markets and improve production efficiencies. The adoption of modern technologies is emphasized as crucial for efficient logistics operations, with examples including satellite transmissions, web-based ordering, bar coding, and automated storage systems. Successfully implementing these technologies can offer significant competitive advantages to logistics service providers.
Supply chain management with statastics
MUKHOPADHYAY, S. K. and BARUA, A. K. (2003) states that the evolution of supply chain management in response to globalization and changing customer demands, emphasizing the emergence of the supply chain cell (SCC) as a strategic function. The SCC integrates various activities such as production planning, dispatch order generation, and logistics planning to meet customer requirements efficiently. Challenges faced by organizations include reducing product life cycles and the need for flexible manufacturing to meet evolving customer needs. He presents a case study of an FMCG company in North India, highlighting its multilocation manufacturing operations and the challenges of integrating production across various locations the application of Analytic Hierarchy Process (AHP) in optimizing production quantity allocations to minimize total supply chain costs. The optimal allocation aids production planners in reviewing supply schedules to mitigate inventory-carrying costs. Notably, a 5% transportation cost saving, equivalent to INR 12 million, was achieved. Although tax rate variations limited further savings, the methodology positively impacted the company’s balance sheet, increasing inventory turnover and reducing inventory carrying costs by INR 30 million. Integration of production planning with logistics led to a reduction in average delivery lead-time from 6 to 4 days, resulting in a reduction of inventory in distribution channels by 2 days, equivalent to INR 20 million. Overall, the suggested approach offers a comprehensive framework
Third party logistics
MITRA, S. (2006) discusses the growth potential of the third-party logistics (3PL) industry in India. Despite being in its infancy and highly fragmented, there is significant potential for growth, as indicated by a survey of Indian logistics service providers. The main barriers to growth identified include poor infrastructure and a lack of awareness and trust among Indian firms. However, there is increasing awareness among Indian companies about the benefits of 3PL, leading to a trend of outsourcing logistics activities to service providers. The Indian government has initiated infrastructure development efforts, which could be further supported by private investments. Simplifying policies and procedures is also crucial to accelerate service delivery. The respondents view these developments positively, alongside steady GDP growth, as opportunities for the expansion of 3PL in India, which could contribute to economic growth and job creation.
Sustainable logistics
GOSWAMI, M. et al. (2020) aims to assist practitioners in the auto components logistics business by exploring the relationships between sustainable freight transport performance, externalities, and firm intrinsic characteristics, particularly when information exchange occurs between logistics operators and auto manufacturers. They develops a comprehensive construct based on literature review and employs a survey-based methodology to collect data from third-party logistics players in India. The research findings highlight several insights, including the importance of effective transport planning, distribution network design, and commodity considerations in enhancing sustainability performance. Additionally, the study emphasizes the significance of information sharing, particularly the inclusion of customer information alongside manufacturer information. They also suggests that green practices and environmental standards need governmental regulations to achieve sustainability objectives fully. However, the study reveals that information sharing support technology may not directly influence sustainable freight transportation performance positively. Despite Their contributions to the literature on environmental sustainability and information exchange theory, the study acknowledges limitations and suggests avenues for future research, such as incorporating other dimensions of sustainability and considering different reliability measures.
E-commerce logistics in India
KUMAR, A. and KHATRI, V (2022) presents innovative models of e-commerce logistics in India, showcasing the significant evolution in the last decade. It emphasizes the differences between traditional brick-and-mortar store logistics and the agile, cost-effective methods required for e-commerce fulfillment. The research identifies mature models alongside emerging ones, offering valuable insights for companies entering the e-commerce logistics sector. Advanced IT technologies like IoT, AI, Big Data Analytics, and Cloud Computing are highlighted as crucial components enhancing efficiency and effectiveness. Overall, they contribute both theoretically and practically, shedding light on under-researched areas in Indian logistics while providing guidance for logistics companies navigating a competitive landscape shaped by technological disruption.
Importance of green logistics
MALIK, R. K. and SINHA, G. K.(2019) discusses the critical role of logistics in fulfilling daily needs and running businesses, highlighting its environmental impact and the increasing pollution levels associated with transportation. They acknowledges government regulations and green initiatives by industries to address pollution concerns. They emphasizes the importance of green logistics initiatives, particularly in the automobile manufacturing sector.Focusing on the reduction of transportation needs through third-party logistics providers (3PLs) and its positive impact on pollution reduction. They also mentions the growing interest in Green Supply Chain Management (GSCM) and sustainability issues among researchers and practitioners, urging organizations to balance environmental sustainability with business growth. Additionally, they suggest further research in identifying green logistics preferences in industries and government initiatives to minimize pollution.
Cold store’s supply chain management
RATHORE, J. (2015) Inadequate and weak supply chains for food that requires temperature-controlled conditions to retain quality, safety and curb the decay process—the cold chain. Thus, the food retail supply chain is vital.There is a significant difference between the perceptions of relatively younger and older managers regarding operations.However, there is no significant difference between younger and older managers in their perception of management practices related to infrastructure, technology, people, and overall practices.Cold store management practices are found to be independent of the age of the managers.Similarly, there is no significant difference in the perceptions of professionally qualified and non-qualified managers regarding management practices.Cold store management practices are independent of the qualification of the store managers.There is also no significant difference between the perceptions of more experienced and less experienced managers regarding cold chain management practices.Cold store management practices are independent of the work experience of the managers.Lastly, the difference between the perceptions of managers working in older and newer cold stores about various management practices is not significant.Cold store management practices are found to be independent of the year of establishment of the store
Logistics service provider
GUPTA, S. and JIGEESH, N. (2019) discusses the importance of compatibility and suitability when selecting a logistics service provider for a manufacturing firm. It emphasizes that efficiency alone is not sufficient; the service must also fulfill the specific needs of the firm.They highlights a scenario where a firm’s distribution needs are divided between two service providers based on distance from the plant and seasonal demand. While one provider handles shorter distances efficiently, another is better suited for longer routes and peak seasons. They suggests that while the second provider may not be suitable for a large portion of the business, a trial period could be beneficial for certain routes. They concludes by outlining plans for future research, which aims to explore various factors influencing service provider selection using analytical techniques like Analytic Hierarchy Process (AHP) and fuzzy AHP, with a larger sample size
Sustainable food grain supply chain
MOGALE, D. G. et al (2020) focuses on sustainability within the Food Supply Chain (FSC) domain, aiming to address economic and environmental dimensions. Motivations include issues like storage capacity gaps, food grain stock increases, post-harvest losses, and environmental degradation. The main contribution is a bi-objective mathematical model aiding strategic and tactical decision-making for policymakers, considering cost and CO2 emissions trade-offs. The model is applied to various scale instances from India’s food grain supply chain, with results favoring the Multi-objective Particle Swarm Optimization (MOPSO) algorithm over Non-Dominated Sorting Genetic Algorithm (NSGA-II). Sensitivity analysis suggests the need for a balanced distribution of warehouses across producing and consuming states. They concludes with managerial insights and theoretical implications for enhancing the efficiency of the food grain supply chain.
Conclusion :
These studies collectively provide a comprehensive overview of logistics and supply chain management practices in India across various sectors. They highlight the evolving nature of logistics, emphasizing the importance of factors such as contextual influences, technological advancements, sustainability, and collaboration among supply chain partners. While challenges such as infrastructure limitations, poor visibility, and environmental concerns are acknowledged, opportunities for improvement through enhanced technology adoption, policy support, and strategic collaboration are identified. The studies underscore the critical role of logistics in driving business competitiveness, economic growth, and environmental sustainability, advocating for continuous innovation, information sharing, and efficient resource utilization within the logistics ecosystem.
References :
GOSWAMI, M. et al. (2020). Examining freight performance of third-party logistics providers within the automotive industry in India: an environmental sustainability perspective. International Journal of Production Research, [s. l.], v. 58, n. 24, p. 7565–7592, 2020. DOI 10.1080/00207543.2020.1756504. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=dd41c823-a134-3c5f-86ec-7cf7bde0f30c. Acesso em: 23 fev. 2024.
GUPTA, S. and JIGEESH, N. (2019). Selecting a Logistics Service Provider for a Manufacturing Firm: Issues and Suggestions. IUP Journal of Supply Chain Management, [s. l.], v. 16, n. 2, p. 68–79, 2019. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=35a8cc3e-9363-3df7-8356-e0c6627997ec. Acesso em: 23 fev.
KUMAR, A. and KHATRI, V. (2022). Fast and Determined: Innovative Tech-Enabled Operating Models of E-Commerce Last Mile Logistics in India. IUP Journal of Supply Chain Management, [s. l.], v. 19, n. 2, p. 42–58, 2022. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=57884add-6813-3b08-9990-5fa9cffa1fb0. Acesso em: 23 fev. 2024.
MALIK, R. K.and SINHA, G. K.(2019). Study of Green Logistics Practices: A Case of 3PL in the Automobile Industry. Optimization: Journal of Research in Management, [s. l.], v. 11, n. 1, p. 41–47, 2019. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=a7408738-fe73-3b85-83da-19556f91ba0a. Acesso em: 23 fev. 2024.
MITRA, S. A (2006) Survey of Third-party Logistics (3PL) Service Providers in India. IIMB Management Review (Indian Institute of Management Bangalore), [s. l.], v. 18, n. 2, p. 159–174, 2006. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=36f9d983-25fa-32d7-a2fe-74fb6ceda0b6. Acesso em: 23 fev. 2024.
MOGALE, D. G.; CHEIKHROUHOU, N.; TIWARI, M. K. Modelling of sustainable food grain supply chain distribution system: a bi-objective approach. International Journal of Production Research, [s. l.], v. 58, n. 18, p. 5521–5544, 2020. DOI 10.1080/00207543.2019.1669840. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=419db6d3-ae51-35cf-9506-032d5592bd40. Acesso em: 23 fev. 2024.
MUKHOPADHYAY, S. K. and BARUA, A. K. (2003) Supply chain cell activities for a consumer goods company. International Journal of Production Research, [s. l.], v. 41, n. 2, p. 297–314, 2003. DOI 10.1080/00207540210164468. Disponível em: https://research.ebsco.com/linkprocessor/plink?id=6ab15caa-674e-3f21-945c-8073080ae110. Acesso em: 23 fev. 2024.
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