Logistics Sector in India Overview

Logistics Sector in India

• India's logistics sector is one of the largest globally, valued at approximately $215 billion and growing at a CAGR of 10.5%.
• The sector employs 22 million people, according to the Ministry of Commerce and Industry.
• Logistics costs in India are estimated at 14% of GDP, similar to other developing countries, while developed countries aim for 6-7%.

Indian Supply Chain Logistics Costs

• Transportation accounts for 40% of the total logistics cost.
• Warehousing accounts for 26% of the total logistics cost.
• Inventory accounts for 24% of the total logistics cost.
• Order processing/administration accounts for 10% of the total logistics cost.

Supply Chain Community

• The supply chain community involves various stages: raw material supply, manufacturer, distributors, wholesalers, retailers, and end-users.

Comparison of Logistics Modes

• Truck: Cost-effective for short distances, quick delivery. Limited by size and weight restrictions. Reliable but less fuel-efficient.
• Rail: Cost-effective for large volumes and long distances. Comparable speed to trucks, can transport large volumes.
• Water: One of the least expensive modes, but slow transit time. Limited to navigable waterways.
• Air: Fastest mode for long distances, but expensive and limited capacity, affected by weather.

Velotrade Terms

• Presents various terms related to the sale and transfer of goods in international trade (e.g., EXW, FCA, FAS, FOB, CFR, CIF, CPT, CIP, DPU, DAP, DDP).
• Clarifies the obligations, risks, and responsibilities for both the seller and buyer in a transaction.
• Uses a visual diagram to illustrate the concept and terms.

Supply Chain Network

• Highlights the different costs associated with each stage (material costs, transportation costs, manufacturing costs, and inventory costs) in a supply chain network.
• Depicts the various stages of production, warehousing, and distribution in a bird's eye view diagram.

Geographical Spread of Inland Logistics Network

• Shows a map with locations of raw materials, mines, plants, customer clusters, and satellite units.
• Indicates a strategy of optimizing locations for efficient customer service by placing facilities near raw materials, ports, or demand centers.

Logistics FG Material Movements and Flows

• Shows the flow of finished goods material.
• Uses a complex diagram to illustrate the different processes, locations, and associated logistic companies or departments.

Strategic Supply Chain Network Design Framework

• Discusses an operational, tactical, and strategic framework for supply chain network design.
• Outlines cost effectiveness and alignment for different supply chain stages (operational, tactical, and strategic).

Multi-Model vs. Multi-Node Model

• Discusses the cost/serviceability curve, and shows options of multi-model and multi-node approach to balance costs and service delivery.

Supply Chain Network Types

• Explains various types of supply chain networks - cross-docking, milk run, and hub & spoke models.

Physical Distribution & Satellite Units

• Presents a map with breakdowns of the physical locations of distribution centers (stockyards), dividing into zones (North, West, East, and South).
• Categorizes these locations by paving type (paved only, paved and covered, and neither paved nor covered).

Types of Supply Chains

• Illustrates different supply chain types including lean, agile, green, closed-loop, and sustainable principles along with risk supply chain strategies.

Customer needs and Supply characteristics matrix

• Explains different customer needs and how that influences the supply strategies.
• Categorizes supply strategies by predicable/unpredictable customer time characteristics. (LEAN, LEAGILE, AGILE, etc.)

1PL to 5PL Services

• Shows the different levels of logistics services, from direct delivery (1PL) to complete supply chain management by a logistics provider (5PL).
• Provides a market outlook graph showing growth trends.