National Academy of Indian Railways Regional

Transcript:National Academy of Indian Railways Regional:
National Academy of Indian Railways Regional Cooperation Programme 19th Training Programme Integrated Transport and Logistics Logistics Parks and Terminals and Dry Ports-role of Integrated Multimodal Transport R Dayal Asian Institute of Transport Development Vadodara 9 March, 2016 Globalisation impacts logistics sector as no other branch of industry Logistics promotes and facilitates the process of globalisation. Logistics shifts from a purely cost centre to centre creating value. Effective logistics management helps companies gain competitive advantage through value enhancement and cost reduction. Trade is becoming more and more globalised, implying spatial expansion of the economy, more complex global economic integration, and an intricate network of global flows and hubs. To stay competitive in complex business, all stakeholders must collaborate seamlessly across time horizons and functional and geographical barriers. Globalisation... The globalization juggernaut on an inexorable march. There is easy movement of goods, people, information, and finance across national frontiers. Globalization in this context is euphemism for falling transport and trade costs. Freight costs have about halved in real terms since the mid-1970s, driven by investments in transport infrastructure, better capacity use, and technological progress. Falling costs of transportation and communication shave made the world smaller. But they have also made economic activity more geographically concentrated. More trade means lower costs of transportation which, in turn, has meant more trade. Emphasis is on integration of national and international production systems with a greater demand of a common web of integrated supply chain for speed, efficiency and reliability. Logistics – assuming importance Logistics business is no longer limited to basic transportation. It encompasses a gamut of services such as Warehousing distribution packaging labelling inventory management order processing. Not only suppliers and customers are participants in the distribution or marketing channel, but also third party logistics providers (3PL). A 4PL or lead logistics “manager” is sometimes seen as a supply chain “manager”, a coordinating intermediary between the shipper and 3PL. Evolution of logistics Key growth drivers The key growth drivers for the logistics sector such as increase in foreign trade, outsourcing of manufacturing activities and emergence of organised retail catalysing the growth of warehousing, supply chain management, cold storage and transportation. The changing business dynamics and the entry of global third-party logistics players (3PL) has led to the remodelling of logistics services in India. Rapid growth of warehousing The role of a warehouse has transformed from a conventional storehouse to an inventory management set-up with