Logistics Costs and Supply Chain in India
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Questions and Answers

What is the estimated value of India's logistics sector as mentioned?

  • $150 billion
  • $215 billion (correct)
  • $215 million
  • $250 billion

    • What is the growth rate CAGR of the logistics sector in India?

  • 10.5 (correct)
  • 8.5
  • 7.5
  • 12.5

    • What percentage of GDP do logistics costs in India represent?

  • 12
  • 10.5
  • 14 (correct)
  • 18

    • How many people are employed in the logistics sector in India?

    <p>22</p> Signup and view all the answers

    What is the aspirational logistics cost percentage for developed countries?

    <p>6</p> Signup and view all the answers

    What type of supply chain network is specifically mentioned as 'Multi Model'?

    <p>Multi-Nodel Network</p> Signup and view all the answers

    Which of the following locations does not appear in the provided content as part of the layout?

    <p>Warehouse 5</p> Signup and view all the answers

    Which section in the content is associated with numbers 1 to 3?

    <p>Shed-10</p> Signup and view all the answers

    What does 'CRM' most likely stand for in the context provided?

    <p>Customer Relationship Management</p> Signup and view all the answers

    Which identifier is linked to the highest number in the series provided?

    <p>17A</p> Signup and view all the answers

    According to the layout, what type of network is explicitly labeled as being focused on 'serviceability'?

    <p>Serviceability Network</p> Signup and view all the answers

    What number is assigned to the section 'Cost' in the network diagram?

    <p>10</p> Signup and view all the answers

    Who is the presenter of the information provided?

    <p>Priyendu N Giri</p> Signup and view all the answers

    What is a significant difference between logistics costs in developing countries and developed countries?

    <p>Logistics costs in our developing countries approach 14% of GDP.</p> Signup and view all the answers

    Which of the following correctly summarizes the employment size of India's logistics sector?

    <p>It employs 22 million people.</p> Signup and view all the answers

    What might be inferred about the growth trend of the logistics sector in India?

    <p>It is continuously growing at a CAGR of 10.5%.</p> Signup and view all the answers

    How does the logistics cost in India compare to that in developed countries?

    <p>India's logistics costs are approximately twice as high as in developed countries.</p> Signup and view all the answers

    Which statement about the logistics sector's economic impact in India is likely true?

    <p>Logistics contributes significantly to India’s GDP at around 14%.</p> Signup and view all the answers

    What does the 'Type of Supply Chain Networks' section refer to in terms of supply models?

    <p>Multi Model</p> Signup and view all the answers

    In the content presented, which identifier corresponds to the layout section primarily focused on Serviceability?

    <p>10</p> Signup and view all the answers

    Which identifier is directly associated with the section labeled 'Direct Supply'?

    <p>13</p> Signup and view all the answers

    What is the lowest number given in the content layout that is associated with a direct supply chain model?

    <p>9</p> Signup and view all the answers

    Which section identifier corresponds to the column labeled 'CRM' in the layout?

    <p>7</p> Signup and view all the answers

    In the supply chain network layout, what section is identified with the number '2A'?

    <p>Cost</p> Signup and view all the answers

    Which option best defines the layout section indicated by the identifier '17A'?

    <p>Complex</p> Signup and view all the answers

    Which identifier directly relates to an unspecified number of supply chain components mentioned in the layout?

    <p>1</p> Signup and view all the answers

    What aspect of logistics costs in India is similar to most developing countries?

    <p>Costs are around 14% of GDP</p> Signup and view all the answers

    What is the primary implication of a CAGR of 10.5% for the logistics sector in India?

    <p>The sector will grow significantly</p> Signup and view all the answers

    In comparing logistics costs, what is the optimal target percentage for developed countries?

    <p>Approximately 6-7% of GDP</p> Signup and view all the answers

    Which of the following statements best reflects the employment scenario in India's logistics sector?

    <p>Employs approximately 22 million people</p> Signup and view all the answers

    What does the $215 billion estimation indicate about India's logistics sector?

    <p>It remains the largest in the world</p> Signup and view all the answers

    Which identifier is directly associated with the section labeled 'Multi Model' in the network diagram?

    <p>Cost</p> Signup and view all the answers

    In the layout, which section is indicated by the identifier '14' that features twice?

    <p>CRM Complete</p> Signup and view all the answers

    What does the identifier '7' represent within the content’s layout?

    <p>Complex</p> Signup and view all the answers

    Which identifier corresponds to the section related to 'Serviceability'?

    <p>10</p> Signup and view all the answers

    Which part of the content is connected to the identifier '8'?

    <p>CRM</p> Signup and view all the answers

    What is the relationship of identifier '12' to other sections in the layout?

    <p>Tied to the Cost section</p> Signup and view all the answers

    Which section identifier represents the highest numerical value in the layout?

    <p>17</p> Signup and view all the answers

    Which identifier corresponds to 'Shed-10' in the layout?

    <p>1B</p> Signup and view all the answers

    Study Notes

    Logistics Costs in India

    • India's logistics sector is substantial, valued around $215 billion, and growing at 10.5% annually.
    • The sector employs 22 million people, according to the Ministry of Commerce and Industry.
    • Logistics costs in India comprise 14% of GDP, similar to other developing nations. In developed countries, 6-7% of GDP is the typical figure.

    Indian Supply Chain Breakdown

    • Transportation accounts for 40% of total logistics costs.
    • Warehousing constitutes 26% of the logistics cost.
    • Inventory accounts for 24% of the logistical costs.
    • Order processing and administration make up 10% of total logistics costs.

    Supply Chain Community

    • The supply chain community encompasses raw material supply, manufacturers, distributors, wholesalers, retailers, and end users.

    Comparison of Logistics Modes

    • Truck: Cost-effective for short distances, quick delivery medium distances, limited by size and weight restrictions, extensive market reach.
    • Rail: Cost-effective for large volumes and long distances; comparable speed to truck; great for transporting large volumes at once.
    • Water: One of the least expensive modes; slow transit time; extensive coverage, but requires access to waterways.
    • Air: Fastest mode for long distances; high carrying capacity; expensive; easily impacted by weather.

    Velotrade Terms

    • Terms like EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DPU, DAP, and DDP are defined for seller and buyer obligations, and risk transfer in material handling.

    Bird's-Eye View of Supply Chain Network

    • Key stages/processes include material, transportation, manufacturing, and inventory costs.

    Geographical Spread of Inland Logistics Network

    • The network is strategicaly located close to mines and ports.
    • Goods are delivered within 2 days across pan-India through a network of warehouses and special processing centers (SPCs).

    Logistics FG Material Movements and Flows

    • Diagram illustrates the material handling processes from origin to destination ports within a structured framework.

    Strategic Supply Chain Framework

    • Operational Level: Defined supply chain framework, structural decisions, and operating policies, real-time inputs.
    • Tactical Level: Defined supply chain framework, time-based facility/product process framework, firm business plan.
    • Strategic Level: Corporate strategy, business plan, and investment window.

    Cost & Serviceability Relationship

    • The relationship between costs and serviceability of goods has an inverse relationship.

    Type of Supply Chain Networks

    • Direct Supply: A manufacturer delivers the goods directly.
    • Cross-Docking: Goods are moved efficiently between delivery points.
    • Milk Run: Goods are transported in batches along a fixed route.
    • Hub and Spoke: Centered on a central hub for distribution.

    Physical Distribution & Satellite units

    • Geographical locations of distribution and handling centers.

    Types of Supply Chains

    • Lean: Eliminates waste; no value-added processes.
    • Agile: Responds to changing conditions; increased flexibility.
    • Green: Reduces environmental impact; sustainable practices.
    • Closed-loop: Includes forward and reverse processes (collection, recycling).
    • Sustainable: Combines social and environmental responsibility.
    • Risk: Adapts to uncertainties, damage, or economic downturns.

    Supply Chain Matrix

    • A matrix depicting various customer needs, supply characteristics, and corresponding supply chains (lean, agile, etc.).

    Logistics Service Providers (Levels)

    • 1PL: Manufacturer delivers goods directly to electronic shop
    • 2PL: Courier delivers goods from manufacturer to shop.
    • 3PL: 3rd party logistics company; takes over logistics, from manufacturing to end-users
    • 4PL: Logistics company manages 3PL for manufacturer, in packaging and delivery
    • 5PL: Logistics company manages entire supply chain.

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    Description

    Explore the logistics costs and supply chain structure in India, a critical sector valued at $215 billion. Understand the breakdown of costs and the roles of various players within the supply chain community, including transport, warehousing, and inventory management.

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