India
Indicator
Technology & Skill Related Challenges: The logistics sector in India has suffered a lot due to the low rates of technology adoption and poor skill levels.
India
Transportation
35%
Warehouse & Handling Inventory Packaging Customers & Shopping Transit Losses
9%
Technology cost
< 1%
China
Brazil
South Africa
Documents to Export (Number)
8
7
8
8
Time to Export (Days) Cost to Export ( US $ per container) Documents to Import (Number)
17
21
13
30
1055
500
17907
1531
9
5
7
9
20
24
17
35
1025
545
1730
1807
There is a substantial opportunity to save on transportation and In Transit Losses with the Time to Import (Days) adoption of technology
Constituents of Total Logistics Cost
India
Cost to Import ( US $ per container)
Comparative Analysis of the KPI‖s of the Logistics Industry of Emerging Economies Source: Logistics Performance Index Report 2010
25% 11% 6% 14%
Source: Logistics Performance Index Report 2010
Indian logistics Industry – The Way Forward: In the years to come, the Indian economy will be driven by sectors like manufacturing and retail. So for these sectors to contribute effectively to the economy, the logistics industry in India will have to improve upon its lacunae and deliver value enabling solutions. To achieve this, the logistics industry needs to focus on the following fronts:
Expand distribution channels and increase consumer reach Reduce operational cost & improve delivery time Overcome infrastructure bottlenecks & implement E-Infrastructure Efficient port utilisation and decreasing the turnaround time Increase investments in storage infrastructure i.e. warehouses & cold storages Organise the trucking operations on a pan India basis Adopt the latest technology Address skill gaps issues
Pratibimb | October 2012 | 9
References Logistical
Bottlenecks in India: Government Interventions &Policy Initiatives – Dr Ram Singh – Assistant Professor, IIFT Delhi Logistics Industry: Global and Indian Perspectives – Subrata Mitra – Assistant professor – IIM Calcutta