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Logistics - Services Marketing
Mangesh Sarfare
Joseph Selvaraj
Sikandar Pote
Shakti S Rathore
Sujal Shah
Suryaprakash Sharma
Jaspreet S NagiProf Gautam Agarwal
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Supply Chain Management
Supply Chain Management deals with themanagement of materials, information, and financial
flows in a network consisting of suppliers,
manufacturers, distributors, and customers.
(Stanford Supply Chain Forum)
Supply Chain Management spans all movement and
storage of raw materials, work-in-process inventory,and finished goods from point of origin to point of
consumption
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Logistics Management
Logistics is the process of planning, implementing,and controlling the efficient, effective flow and
storage of goods, services, and related information
from point of origin to point of consumption for
the purpose of conforming to customerrequirements*
Logistics involves the integration of information,transportation, inventory, warehousing, material
handling, and packaging, and security.
* Council of Logistics Management - UK
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Elements of Logistics Management
Transportation (Air, Land, water)
Order Processing
Warehousing Inventory Management
Packing
Material Handling Information Flow
Customer Service
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Importance of Logistics Management
Effective logistics management leads to:
Reduced Operational Costs
Improved Delivery Performance Increased Customer Satisfaction
Organizations become more competitive in termsof cost, quality, delivery & flexibility.
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Importance of Logistics Management
Todays Sc
enario Globalization sourcing, manufacturing &
distribution on a large scale.
Focus on core competencies.
Third Party Logistics gaining importance.
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Evolution of Logistics in India
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Logistics in India
The Indian logistics sector, as elsewhere, comprises theentire inbound and outbound segments of themanufacturing and service supply chains.
The Indian Logistics Industry is valued at approx US$140 billion and is expected to grow @ 20% yoy
However majority of the industry is unorganized andfragmented.
This fragmented segment comprises owners andemployees with inadequate skills, perspectives orabilities to organize or manage their operationseffectively.
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Logistics in India
Goods are transported predominantly by Road andRail.
Road transport contributes to approx 60% of thefreight transport.
It is preferred due to its cost effectiveness andflexibility
Rail, on the other hand, is preferred because of
containerization facility and ease in transporting ship-containers and wooden crates.
Sea is another complementary mode of transport.Ninety five per cent of Indias foreign trade happens
through sea.
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Logistics in India
Rail transport comes under the purview of the govt,however, the road transport in controlled by private
players.
Low cost has been traditionally achieved by
employing low level of technology, low wages, poor
maintenance of equipment, overloading of the truck
beyond capacity, and price competition.
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Steel, pharmaceuticals, food & agro-business, and autoare growing most rapidly in the national economy it isno surprise that their logistics costs have been increasing
at a faster rate. The distribution practice of pushing goods down the
channel might be responsible for high increase in theinventory and warehousing costs in the pharmaceutical
industry.
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Example
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Logistics in India - Issues
High Cost Low Margin business.
Absence of economies of Scale.
Non-uniform tax structure across states. Multiple check-posts & bureaucratic harassment.
Poor infrastructure.
Low penetration of IT & lack of propercommunication.
Lack of skilled and knowledgeable manpower.
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Logistics in India - Issues
It is estimated that while outsourced Logistics accounts for 54%of the total logistic spending in India, Organized player have only10% of the pie.
In road transportation, which accounts for biggest portion oflogistics spending, 74% of the operator are small time playersowning a single vehicle.
In outsourced warehousing 92% of players are from unorganizedsector.
E ven in Organized logistics, only a few have offering amongmultiple modes and services (Transportation, warehousing and
value added services such as packaging, cold chain and custom
clearance) On avg a commercial vehicle is runs at a speed of 20 miles per
hour in India as compared to avg speed of 60 miles per hour inwestern europe and USA.
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Logistics in India Future Prospects
Increased spending on infrastructure by thegovernment. EgGolden Quadrilateral, Free Trade
and Warehousing Zones, SEZs, etc
100% FDI is allowed in this sector.
Third Party Logistics business is growing at 30%
Indian Economy growing at approx 8%
Standard of Living growing at a face pace resulting
in an increase in spending on goods and services.
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Logistics in India Future Prospects
NHAI is investing about $650mn towards the developmentof an Intelligent Transportation System (ITS) which willmake transport services on the highways (like reducingcongestion, advance signaling, medical assistance, accident
management, etc.) efficient and automating many processeslike toll collection etc.
Increased spending by Service Providers on IT andinfrastructure.
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Leading Players in India DHL
TNT
AFL
GATI
BLUE DART
DTDC
ASHOK LEYLAND
FIRST FLIGHT
AGARWAL PACKERS AND MOVERS
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Cold Chain Logistics
Cold chain is a logistic system that provides a seriesof facilities for maintaining ideal storage conditions
for perishables from the point of origin to the point
of consumption in the food supply chain.
A well organized cold chain reduces spoilage,
retains the quality of the harvested products andguarantees a cost efficient delivery to the consumer
given adequate attention for customer service.
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Cold Chain Logistics
The Cold chain logistics infrastructure generallyconsists of:
Pre-cooling facilities
Cold Storages
Refrigerated Carriers
Packaging
Warehousing Information Management systems (Traceability and
Tracking etc.)
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Objectives of Cold Chain Solutions
Cold chains are a significant proportion of the retail foodmarket.
The success of implementing cold chain managementinvolves continual monitoring of product temperature
throughout distribution and having appropriate correctiveaction plans in place.
A streamlined, well maintained cold chain helps to:
Reduce costs
Improve product integrity
Increase customer satisfaction
Reduce wastage and returns of expired stock
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Industries requiring Cold Chain Solutions
Imported Fresh Fruits and Vegetables.
Exports by sea (Seafood, Meat, Poultry, Fruits and Vegetables)
Chocolate Industry
Dairy Industry
Meat & Poultry (Domestic)
Ice Cream Industry
Processed Foods
Frozen foods
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Customer Relationship Management
(CRM) Customer relationship management (CRM) is a
broadly recognized, widely-implemented strategy for
managing and nurturing a companys interactions
with customers, clients and sales prospects.
It involves using technology to organize, automate,
and synchronize business processes.
When an implementation is effective, people,processes, and technology work in synergy to
increase profitability, and reduce operational costs.
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Benefits of using CRM
Understand the customer better.
It increases Efficiency.
Gives a Competitive Advantage.
Boosts All Round Development as a single
application can help different departments.
Provides up-to-date information.
Helps serve the customers better.
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Customer Relationship
Management is a prerequisite for
today's business andorganizations simply cannot
afford to bypass this customerstrategy.
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Company Profile - GATI
One of the pioneers and leaders in ExpressDistribution & Supply Chain Solutions in India.
Provides total end to end logistics solutions for
businesses across varied verticals
It covers 98.69% of India.
Provides multi-modal network services (air, road,
Ocean & Rail).
Has a strong presence in Asia Pacific Region and
SAARC Countries.
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Company Profile - GATI
Strong IT backbone Oracle CRM, GATIEnterprise Mgmt System (GEMS), Warehouse
Mgmt System (WMS)
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Supply Chain Management @ GATI
Gati provides customized solutions by integrating all the
four stages of business procurement, production,
distribution, after sales service and reverse logistics.
It provides a Made Ready distribution channel with
standardization at all locations.
Helps enter new markets without a large capital investment
Provides companies with shelf space in over 200 locations.
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Supply Chain Management @ GATI
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CRM @ GATI G
ATI provides options for logging complaintsthrough their website as well as through the
customer care numbers.
Tracking of complaint status can be done online.
Customers can chat online with GATI CustomerCare officers in case of any query.
Online Requests can be given for Parcel Pick-up.
Customers can find the Rates and Transit Timeonline itself prior to booking.
Comparisons can be done online between their
various services.
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Innovations in the Logistics Sector
RFID Radio Frequency Identification.
Used to track-and-trace merchandise/assets
throughout the supply chain.
TELEMATICS
Used to monitor and control remote devices (e.g
Shipment Tracking, Vehicle Diagnosis)
Satellite tracking systems can enable operators toposition and track vehicles to assist real-time
planning.
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Innovations in the Logistics Sector
Value added services such as warehousing, co-packing, co-manufacturing, labeling, postponement
and mass-customization are expanding the role and
importance of logistics providers in the supplychain.
Concept of4th Party Logistics is gaining ground.
These companies own the computer systems andintellectual capital and tend to offer end-to-end
logistics services on a global scale.
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Innovations in the Logistics Sector
Green Logistics is another area where a lot ofefforts are being taken.
Efforts are being made to achieve a better integration
of forward and reverse chains to improve vehicle
utilization and reduce emissions.
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Advertising Strategies to be done bySurya
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Differentiation Strategies for GATI
Focus on Cold Chain Solutions as currently thereare only a handful of players in that segment.
Amongst the leading players, GATI is the cheapest
logistic service provider, hence a Cost LeadershipStrategy can be adopted by them.
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THANK YOU