The goods are then transported by and of the modes of
transportation rail road air etc. The transported goods are brought to a
warehouse and stored. The goods are then re-packed in the format to be sent to
the customer and then finally delivered to the customer. Logistics is a
critical component relevant across agriculture manufacturing and service
sectors and has to be optimally managed for smooth functioning of production
and distribution operations. Additionally logistics cost account for a major component
of the input in all sectors more so in the case of sectors such as cement steel
automobiles FMCG retail pharmaceuticals etc.
With rising
competition in the sectors that use logistics services it has become even more
important to enhance the efficiency of the system and use the cost benefit in
increasing the company’s competitiveness. Besides with increasing globalization
a larger number of multi- national companies MNCs are sourcing manufacturing
and distribution goods on a global scale and thus need more complex supply
chains to be managed. Given such developments the transportation logistics
warehousing and packaging sector is expected to become a more specialized and
niche expertise area where high premium will be charged for increased quality
and quantity of service delivered by logistics service provider.
Industry
size and growth of the transportation logistics warehousing and packaging
sector
The annul logistics cost in India is valued at Rs 6,750
billion u$$ 135 billion and it is growing at 10% annually. Logistics cost by
value accounts for around 13% of the GDP of India this is much higher than that
in the Us 9% Europe 10% and Japan 11% but lower than that in countries such as
China 18% and Thailand 16%. In particular the percentage wise share of
transport cost an important constituent of total logistics cost incurred by a
nation by value of GDP has been steadily increasing.
The high cost of logistics in India when compared to
developed nations may be attributed to poor quality of infrastructure and
inadequate service quality vis-à-vis counterparts such as US and Europe. The
transportation logistics warehousing and packaging sector in India is dominated
by the unorganized segment small truck owning companies linked to intermediate
brokers or transport companies small warehouse operators custom brokers freight
forwarders etc.
The organized segment accounts for less than 10% of the total
logistics market in India.
As is the case with
other industries the employment is distributes across worker or supervisor or
management levels in all segments with some unique feature particular to
specific segments such as third party logistic providers etc.
Related Link :
Packers and Movers Pune
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