modern warehouse and transportation trends.pptx
TRANSCRIPT
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Modern warehousing and
Transportation trends
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Agenda
Environment
Warehousing
Transportation
3PL Market
Range of Services & Attractiveness
Key Growth Drivers
New Business Model & Opportunities
Areas of Improvement
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Logistics CostGlobal Trend
Country/Region Logistics Cost as
% of GDP
Share of
Organized
Logistics
Size of Logistics
Industry
($ Billions)
India 12-14% 3-4 % 145-160
China 18% Less Than 10% 800-950
USA 9.9% 34% 1200-1400
Europe 7.1% 54% 1100-1300
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Constituents of logistics cost - India
Constituents of logistics cost India
Transportation 35%
Warehouse & Handling 9%
Inventory 25%
Packaging 11%
Customers & Shopping 6%
Transit Losses 14%
Technology Cost
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Comparison of Key parametersIndia vs Global
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India & World Comparison
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Warehousing-Functions
Materials Handling Function
Loading and unloading
Materials Movement (to and from the Storage area)
Order filling
Breaking Bulk
CrossDocking
MixingPacking
Information Handling Function
Goods Inwards
Inspection and auditingGoods outwards
Excess Stocks
Invoicing
Consignment Tracking
Transit damage and breakage
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Maximum utilisation of storage space (floor and cubic space)
Higher labour productivity
Maximum Asset utilisation
Reduction in Materials Handling
Increased Inventory turnover
Reduced order filling time
Reduction in operating cost
WarehousingBasic Objectives
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Broad classification
Private warehouses
Public warehouses
Types
Bonded warehouses under customs / Excise Act
Field warehouse
Cold storage for perishable goods
Agriculture warehouse used for storing Agriculture produce
Distribution warehouse located close to the manufacturing concerns
Buffer storage warehouse Government owned
Export / Import warehouse located normally near ports
Types of Warehouses
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Basic considerations are
Principle of Popularity
Principle of Similarity
Item Turnover
Space utilisation
Product configuration
Product characteristics
Good Housekeeping
Safety and Security
Warehouse Layout Designs
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Warehousing - A Role Beyond Storage
Modern warehousing is in the process of evolutionary change
From an emphasis on storage to emphasis on flow through
From Inventories at rest to Inventories in motion
In logistical systems, warehouse are viewed as switching
facilities rather than storage facilities
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What is Happening in Warehousing
Environment ?
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Changing function of a warehouse
Warehousing function
changes from storage to flow
Increase in value added
services
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Changing function of a warehouse
Lease provides adaptability
Emphasis on cost management
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Initiatives to improve Transportation - Road
Deficit Targets FDI EnvisagedInvestment
Size
Roads / highways
65,590 km of
existing national
highways:Comprise only
- 2% of network
- Carry 40% of traffic
- Of which 12% is 4-laned;
50% is 2- laned; and 38% is
single laned
-6-lane 6,500 km in
GQ
- 4-lane 6,736
km NS-EW- 4-lane 20,000km
-2-lane 20,000km
- 1,000 km Expressway
100 % FDI
under
automatic
route
US$ 78.5bn
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Initiatives to improve Transportation - Rail
Deficit Targets FDI EnvisagedInvestment
Size
-Old technology
- Saturated routes
- Slow speeds
(freight: avg 22kmph;passengers: avg 50kmph)
- Low payload to tare ratio
(2.5)
-8132 km new rail
-7148 km gauge
conversion
- Modernize 22stations
-Dedicated freight
Corridors
100 % FDI
under
automatic
route
US$ 65.45 bn
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Initiatives to improve Transportation - Ports
Deficit Targets FDI EnvisagedInvestment
Size
Inadequacy of
-Capacity
- Rail / road
Connectivity
New capacity:
- 485 million MT in
major ports
- 345 million MT inminor ports
100 % FDI
under
automatic
route
US$ 22 bn
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Initiatives to improve TransportationAirports
Deficit Targets FDI Envisaged
Investment
Size
Inadequacy of
-Runways
- Aircraft handling capacity
- Parking space and terminalBuildings
-Modernize 4 metro
and 35 non-metro
airports
- 3 Greenfield in NorthEastern Region (NER)
- 7 other Greenfield
Airports
100% FDI under
automatic
route for
Greenfieldairports
US$ 7.74bn
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Share of 3 PL Market
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Evolution of Indian 3 PL Market
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Evolution of Logistics Model
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Range of Services
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Attractiveness of Sub-segments
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Rising Outsourcing & Consolidation
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Key Growth Drivers
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Key Determinants of Selecting LSP
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New Business Model
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Opportunities for Foreign Investors
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Areas of Improvement
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Thank You