| Topic : Logistics as a source of competitive advantage |
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Logistics & Warehouse management
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Activity:
0 comments
189 views
last activity : 07 06 2010 20:18:04 +0000
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Important developments in Indian cargo logistics industry:
The privatization of the ports and the opening up of cargo movement by rail are the two developments for which full marks must be given to the government. These developments have led to a near explosion in the growth of the cargo logistics industry. Now there are more players, more competition and greater efficiency and better utilization of resources. With more players sometimes margins are affected but eventually consolidation will take place and at the end of the day the stronger players will outlast the others.
In India logistics space is fragmented among road transporters, warehousing companies and distribution networks. The rail and costal shipping is not also integrated. Someone seeking a logistics solution has to expend considerable energy to link all the components. The contract period for logistics solution is short and is price driven which means the players are unwilling to invest in infrastructure. Shortage of land and high cost of land also act as a deterrent for people to invest in infrastructure.
Cold chain logistics is not taking roots even though there have been various efforts by both private and public players towards that. Here again infrastructure is the problem. While private sector is building cold stores in the urban centres there should be cold stores built near farming areas so that the current high wastage of farm produce is reduced. These cold storages in turn should be linked to urban centres. Transportation cost is also very high. There should be more reefer containers moved by rail.Are you satisfied with the growth of Indian logistics industry? Why?
I feel it can grow even faster if better infrastructure was available. I would like to know from community members on how far is India from offering world-class logistics services? What are the missing pieces that we lack the most?
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Sir, please clearly mention the sides and give a bit of explanation so that we can give proper comments. |
Yes I agree with you. But Mumbai does not have a healthy environment. |