The importance of logistics and SCM is increasing also due to globalization as more and more multi-national companies (NC) are sourcing, manufacturing and distributing n a global scale, making their supply chains very complex to manage. However, Outsourcing Logistics activities to experienced logistics service providers (LISP), also known as Third-party logistics (PL) providers, may enable companies get very efficient and customized logistical support while themselves focusing on the core organizational activities.
Today, there are many large multi-national Lisps that offer complete supply chain solutions across many diverse countries in terms of their socio-economic and political environments. Apart from core logistical activities such s transportation and warehousing, Lisps also offer value-added services such as customs clearance, freight forwarding, import/export management, inventory management, assembly/installation, packaging and labeling, distribution, after sales support, reverse logistics and so on. By outsourcing logistics, companies can leverage the expertise of Lisps while concentrating on their core competencies.
With the rapid advance of globalization over the last century, now more than ever is our world interconnected; every day, millions of people, ideas, culture, and goods move across international borders, creating more diverse societies and more efficient economies. As global business competition expands, companies large and small are finding the advantages of sourcing, trading, and selling their products and services across vast distances, both nationally and internationally – a process made possible through effective supply chain management.
Supply Chain Management Supply Chain management is a cross-functional industry that includes international trade, transportation, and logistics. It comprises all of the activities that take place to get a product in a consumers hands – from the time raw materials are extracted to he minute a consumer takes the final product home. Supply chain management links major business functions and processes within and across companies into a cohesive, high-performing business model.
Logistics is the part of a supply chain that plans, implements, and controls the efficient flow and storage of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. For individual companies an effective supply chain management system requires careful planning and operations administration, and often Involves sophisticated coordination and communication between a diversity of ratters.
As such, supply chain management professionals can be engaged In every facet of the business process – planning, purchasing, production, storage, India is emerging as one of the world’s leading consumer market. India is expecting to sustain a strong growth over the coming years and strives to become one of the top three economies in the world by the year 2050. The logistics sector plays a major role to support this cause and the connectivity and convenience in operations is the key for sustaining the global trade growth.
The recent economic changes are proof enough to establish India as an evolving super power. The seventh-largest nation in terms of geographical area and a prominent force among emerging countries in terms of technology and infrastructure, India is now well ahead on the growing curve of the world economy. In wake of this, India is witnessing a renaissance of sorts across all sectors, especially manufacturing, telecommunications, retail and services, as global as well as local players converge to cater to the world’s biggest marketplace.
As India surges ahead on transforming itself from a ‘developing’ nation to a ‘developed’ state, one of the core sectors that is a crucial part of an upward swing is – Logistics. As big money gets pumped into manufacturing and other growth-centric sectors, especially retail -the role and potential of logistics companies is on the upswing as crucial business operations like supply chain management and contract logistics become key issues of managing the titanic surge in national business, both locally, nationally and globally.
Currently Indian’s logistic sector is valued at around US $110 billion and is expected to touch IIS$200 billion by 2020. The cost of logistics in India is valued at 13 – 14% of GAP where as in developed nations the cost is in the range of 7-8% of their GAP. Since the cost of logistics is a key component in the overall cost of a product or service, manufacturers and providers of various services are always on a constant search for more efficient and cost effective logistics solutions, which would make them more competitive in the national and international markets.
Today in India, the concept of effective Logistics is still not understood and given proper due in most of the industries and large part of the industry still operates in unrecognized sector. There is an urgent need to address issues related Logistics to make it more efficient, organized and cost effective. This will benefit the Indian Industry to reduce the time and cost of Logistics. Another fact is that transport and logistics services in India, consume a large portion of energy, especially petroleum products. This share increases even more in India with the growth of economy and population.
Arbitration and fast industrialization also increase this consumption because of higher demand in freight and passenger transport. Additionally, higher income and government liberalizing measures led to a rapid growth in the number of automobiles, two- and three-wheelers, private and public uses and urban rail networks, as well as an increased demand for leisure-related travel. But despite the growth of the population of India and its economy in general the transport and logistics sector faces accompanying challenges with its infrastructure, environment pollution, increasing traffic density, policies and other inefficiencies in the system.
Logistics is part of supply chains. It connects the relationship between producing and consumption. It is essential for planning and operating a distribution system right times for the least costs. Logistics appears with the development of the economy and the appearance of goods and products, therefore logistics a traditional and old economic activity. Logistics process is a key to execution and achieving results. The objectives are accomplishing things and creating value.
Detailed speaking, logistics process coordinates all activities involved in acquiring, converting and distributing goods from raw materials source to target group to satisfy customers need. And deliver the required levels of customer service in an efficient, cost effective manner. Figure: Logistics process spans most functions of the business From figure, we can find Logistics process to include four big parts. They are Purchasing and Ordering, Warehousing, Transportation and Delivery, Reverse logistics at last. The Fairways Group of Companies was founded in 1956.
It established its Logistics wing in 1989 and thereafter has grown to offer complete door-to-door services to its Customers. The Vision of Fairways Logistics division is to be a leading logistics service provider by constantly innovating to build and operate an integrated world of logistics services that provides absolute customer satisfaction. We work with a mission to provide to the customer, a one-stop logistics solution. Fairways services have the technology, dedication and quality to satisfy their customer’s requirements.
