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INTRODUCTION
INDUSTRY OVERVIE
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The Indian economy has been growing at an average rate of more than 8 per cent
over the last four years putting enormous demands on its productive infrastructure.
Whether it is the physical infrastructure of road, ports, water, power etc. or the
digital infrastructure of broadband networks, telecommunication etc. or the service
infrastructure of logistics all are being stretched to perform beyond their
capabilities. Interestingly, this is leading to an emergence of innovative practices to
allow business and public service to operate at a higher growth rate in an
environment where the support systems are getting augmented concurrently. In this
paper, we present the status of the evolving logistics sector in India, innovations
therein through interesting business models and the challenges that it faces in years
to come. Broadly speaking, the Indian logistics sector, as elsewhere, comprises the
entire inbound and outbound segments of the manufacturing and service supply
chains. Of late, the logistics infrastructure has received lot of attention both from
business and industry as well as policy makers. However, the role of managing this
infrastructure to effectively compete has been slightly under-emphasized.
Inadequate logistics infrastructure has an effect of creating bottlenecks in the
growth of an economy, the logistics management regimen has the capability of
overcoming the disadvantages of the infrastructure in the short run while providing
cutting edge competitiveness in the long term. It is here that exist several
challenges as well as opportunities for the Indian economy. There are several
models that seem to be emerging based on the critical needs of the Indian economy
that can stand as viable models for other global economies as well. Chandra and
Sastry ( have pointed towards two key areas that require attention in managing the
logistics chains across the Indian business sectors cost and reliable value add
services. Logistics costs (i.e., inventory holding, transportation, warehousing,
packaging, losses and related administration costs) have been estimated at 13-14
per cent of Indian GDP which is higher than the 8 per cent of USAs and lower than
the 21 per cent of Chinas GDP. Service reliability of the logistics industry in
emerging markets, like India, has been referred to as slow and requiring high
engagement time of the customers, thereby, incurring high indirect variable costs.
However, the Indian logistics story is one with islands of excellence though there
has been a general improvement on almost all parameters. It is this aspect that we
explore further in this paper. The paper is organized as follows: the next section
gives a brief introduction of some of the peculiarities of the Indian logistics sector.
In section 3 we discuss the determinants of growth in this industry. In section 4 we
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provide some interesting initiatives that point towards a renewal of the sector. The
challenges facing the sector are discussed in the last section.
The low change in order processing & administrative costs in the cement sector
could possibly be due to the use of call centers by various producers for order
processing and dispatch planning. Steel and pharmaceutical sectors have seen
maximum changes in component costs. The distribution practice of pushing goods
down the channel might be responsible for high increase in the inventory and
warehousing costs in the pharmaceutical industry. Investments in new cold chains
and losses might be the causes of high change in the warehousing, packaging &
losses related costs. Warehousing, has also been typically dominated by small
players with small capacities and poor deployment of handling, stacking and
monitoring technologies. While it has had detrimental effect on almost all sectors,
the food sector has been the one that has suffered the most due to low investment
in cold chains and allied machinery. Erratic power outages have also meant low
dependence on technology and a more manual operation. Another fact that has
affected both the location as well cost of operating a warehouse has been the
octroi tax1 . Firms have been locating warehouses outside city limits.
They delay moving goods into retail network as late as possible. It has also led to
the development of a unholy business-government nexus to avoid the tax and
extract rents. Use of technology is quite limited both IT and engineering
equipments in order to increase productivity and service. An in-appropriate
evaluation of the diverse benefits of technology has led to higher usage of manual
labour across the logistics industry whether it is in the distribution activities or
within plants. Many firms try to compete through the factor advantage of low
wages which have necessitated hiring low or no skill personnel thereby sacrificing
productivity related gains in the long run. Understanding the linkage between
inventory and transport planning is a key to reducing operational cost of
distribution. Chandra and Sastry (2004) identify transport & dispatch planning as
an area of concern in a survey of manufacturing firms in India. Ninety eight per
cent of sample firms in that survey have a contract with trucking companies for
making dispatches and only 11 per cent own their own fleet of trucks. While 36 per
cent of these firms use third party logistics (3PL) service providers for making
dispatches, about 30 per cent use 3PL service providers for procuring their material
from their suppliers. Somehow, transport planning has remained a unglamorous
area within Operations despite the fact that about 10 per cent of the cost of sales
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consistency in quality, price & delivery times) else material has to travel longer
distances if there is a common supplier to all plants.
The logistics challenge in such an environment is immense build the
infrastructure, manage the requirements of a changing structure of various sectors
supply chain, change industrial policies to facilitate efficient production and
movement of goods and services, deploy effective managerial practices and
technology to enhance the competitiveness through better management of logistics
networks, and develop new models for new sectors especially in the service sectors
as well as traditional areas like agri-business etc. It must be mentioned that the
logistics industry in India is transforming itself very interestingly despite its
peculiarities by developing innovative business models and by chipping away at
the such structural and policy based rigidities. In a later section, we discuss some
of these innovative initiatives that are leading the renewal of the logistics industry
in India.
3 The Changing Logistics Infrastructure
With rising consumer demand and the resulting growth in global trade, the role of
infrastructure support in terms of rails, roads, ports & warehouses hold the key to
the success of the economy. In this section we provide a quick overview of the
status of the logistics infrastructure in India and the current initiatives, both private
and public, in that area. Goods are transported predominantly by road and rail in
India. Whereas road transport is controlled by private players, rail transport is
handled by the central government. With the second largest network in the world,
road contributes to 65 per cent of the freight transport. Road is preferred because of
its cost effectiveness and flexibility. Rail, on the other hand, is preferred because of
containerization facility and ease in transporting ship-containers and wooden
crates. Sea is another complementary mode of transport. Ninety five per cent of
Indias foreign trade happens through sea (Deccan Herald, 2006). India has 12
major ports, six each on the West and East coasts and 185 minor ports. Table 2
maps the various modes on different performance indicators, clearly indicating the
vitality and importance of road transport in Indian economy. There is also evidence
of an, across the board, increase in freight traffic for all modes indicating an
increased logistics activity. For instance, the per cent change in road, rail, air and
sea cargo traffic has increased, between 2001 and 2005, from 5 to 14 per cent, 4 to
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7.5 per cent, 6 to 20 per cent and 3.5 to 11 per cent respectively (CMIE Database,
2006).
In keeping with the increasing demand for road transportation, the National
Highway Authority of Indian (NHAI) has been strengthening and widening
national highways in multiple phases. As part of the National Highways
Development Project, the work on the development of golden quadrilateral
(connecting Delhi, Mumbai, Chennai and Kolkata) and the North-South and EastWest links were started in 1998. It will build 13000 km expressways that would
connect the nation . NHAI is investing about $650mn towards the development of
an Intelligent Transportation System (ITS) which will make transport services on
the highways (like reducing congestion, advance signaling, medical assistance,
accident management, etc.) efficient and automating many processes like toll
collection etc.
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InSynergy was conceptualized by a small group of young professionals, who wanted to do away
with the conventional supply chain management procedures; and infuse the system with
strategic solutions based on the usage of innovative Information Technology. The aim was to
deliver efficiency and visibility in the supply chain management process. An effective, efficient
and a result-oriented amalgamation of fresh innovative ideas of the young and budding
professionals, ignited and coupled with strong value systems laid the foundation for InSynergy.
InSynergy Supply Chain Solutions (P) Ltd. is an integrated logistics service provider company
with its corporate office located at NOIDA (UP) India. The companys subsidiary, i.e., Amexpress
Worldwide Logistics is regarded as one of the largest volume-handling companies in the north
of India, and has been facilitated for the same by CONCOR (Govt. of India Undertaking) for
doing the volumes in Inland Sea Cargo, many times over the last decade. The competent and
dynamic team of InSynergy works to dispense their technical and operational expertise to
provide out of the box solutions for the clients. Being the leading freight forwarding company for
inbound and outbound sea shipments (as well as all other modes of logistic services); we
constantly strive to deliver highest levels of service excellence in order to meet the scheduled or
unscheduled client deadlines. Our motto is to serve the clients in a reliable and efficient manner
so as to augment the product values and create competitive benefit. Our excellent network of
associates and agents in India and overseas, allows us to deliver the best possible services at
most competitive rates. Our deliverables are geared to enhance reliability, render efficiencies
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and provide for time and cost savings for both B2B and B2C market segments. InSynergy takes
great care in choosing its associates and team players, and ensures that they too compliment
and share the same work and behavioural ethics and values, before deciding to take them as
members of its family. This careful selection makes it possible for InSynergy and its associates
to deliver outstanding services to their clients individually, and at an overall service delivery
platform.
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QUESTIONNAIRE
Employee Name
:.
Empoyee Occuption: .
B)No
B) No
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B)No
B)No
How(if yes)
B)No
B)No
B) No
B) No
B) warehousing
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CUSTOM CLEARANCE
Global commerce has grown in stature and importance in enabling a countrys economic
development. It plays a crucial role in terms of international security and customs, global
markets and employment. With such vital elements at stake, it is mandatory that all business
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and trade ventures must route through international regulations imposed by the countries and
must be well comprehended to trade in accordance with the laws of the land. To maintain
compliance with these requirements, one requires proper guidance. This is whereInSynergy
comes into spotlight for going the extra mile to assist customers through the modus
operandi.InSynergy Supply Chain Solutions(P) Ltd. is an authorized Customs House Agent
(CHA) and functions at various designated ports in India. As a service provider; InSynergys
name is synonymous to providing best in class and highly effective Custom Clearance Services,
that are not only fast and convenient but they also deliver the desired output and results. This
can be attributed to the innovative technologies employed by us. We are an authorised Customs
House Agent (CHA) in India and operate at all major ports. Our sound knowledge of laws and
the import export procedures help us deliver par excellence, thus taking away all the
complexities from the custom processes. Further by providing complete security for the goods
we offer insurance against all unforeseen incidents. Our expertise lies in providing our clients
with extremely critical and necessary Pre Shipment support along with real time and post
shipment help. These are not only limited to goods being shipped, but also extends to the air
and land transfers as well. Our services ensure that the clients abide by laws of the land and
are also saved from possibilities of prosecution owing to infringements of any local laws. In
other words we anticipate the needs of our clients much well in advance and are able to offset
any prospective issues. InSynergy keeps itself updated with all the custom notifications and
regulations of the CBEC and other nodal agencies; thereby ensuring maximum support to the
clients. Our expertise lies in thorough knowledge of complete custom related rules and
regulations, including but certainly not limited to the matters of Special Valuation Board (SVB),
License Registrations and Managements etc. This gives us a competitive edge over our
competitors and helps us to deliver per the customers requirements. InSynergy uses systems
that are upgraded periodically in regards to custom tariffs and procedures. Our practice of
optimally utilizing technology for providing Electronic Data Interchange and with the overall
logistic operations, helps us in transmitting data to vendors, which provides the all critical
transparency and accuracy to our transactions. Our sound domain experience helps us in
understanding the logistics process and delivering in accordance. With its undeniable market
presence and strong hold in freight and custom-handling procedures, InSynergy offers immense
benefits to all its clients, such as:
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Thorough knowledge of laws and regulations ensures swift and smooth handling of all
administrative tasks leading to subsequent ease of cargo clearance.
INTERNATIONAL FREIGHT
InSynergy provides a one stop solution for all your international freight and overseas cargo
handing requirements. Our services spell the best and the most effective conglomeration of
knowledge of international logistics, fused together with sophisticated information solutions and
global networking. All this ensures that the effectiveness and efficiency of the supply chain
requirements of our clients businesses are well maintained. Along with implementation of the
best trade practices and service optimization techniques, we are able to achieve this through
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our highly effective, proud and established network of the World Cargo Alliance (we are a proud
member of the WCA). We offer services for both air freight and ocean transfers for both Import
and Exports Services. With automated facilities we are able to provide online tracking facility to
our esteemed clients. This enables them to track their shipments and be regularly updated on
the concerned shipment and its related movement. With these automated systems the intricate
international freight systems are able to run efficiently and smoothly. Additionally the SMS and
email facilities provided by us; further keeps our clients updated about the status of their
shipments.
At InSynergy we provide most competitive, transparent, aggressive and comprehensive freight
rates that take care of all the ambiguous and hidden costs of service operations. Therefore all
Bunker Adjustment Charges, Fuel Surcharge, Peak Season Surcharge etc. are included in our
services charges. The No Surprise element in terms of billing further helps in building the ever
crucial trust and faith with the clients. Further, being a part of the Inter Global Logistics Network
(IGLN); we are able to provide for seamless worldwide network of reliable, efficient and cost
effective services. Our effectiveness lies in finding solutions for our clients that minimizes risks;
and also helps us in identifying new cost saving and better quality service delivery opportunities
for them.
Real Time tracking facility using updated system. Therefore shipments at all stages can
be traced.
Expertise in handling custom clearance by being conversant with domestic as well as
international custom rules and regulation.
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Provide Door to door services; which reduces the need for clearing agents and need for
arranging for transportation of goods to the final destination.
WAREHOUSING
The Warehousing facility provided by InSynergy is highly customer centric in terms of location,
pricing and services rendered. The services denote a hand and glove fitment for your
shipment. We operate in a manner where the inventory control and management is done
through our highly efficient Warehouse Management System and the data flow to the client is
managed through our effective application design and delivery. This facilitates the clients with
Real time inventory position both with the ERP system and with the help of secure web portals
connectivity. Team InSynergy tries to understand your business needs, and then working in
close association with you; thereby creating a holistic supply chain warehousing environment
that fully caters to your logistics needs and subsequently add value to your business.
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We provide the entire process of Consolidation, Crating, Kitting and assembly, Order Fulfillment,
Packaging, Pick and Pack, Supply Chain and Tagging. Our warehousing services are equipped
with Storage, Temperature Control Storage, Strong Room, Racking, etc. Our facilities employ
highly efficient technology friendly techniques like Bar-coding, European Article Numbers (EAN),
Radio Frequency and Identification Device (RFID) to ease out operations. Additionally we also
provide many Value Added Services like Packing, Re-Packing, Bundling, SKU Changing, Brand
labeling, etc. We provide both Bonded as well as unbounded warehousing solutions that cater
to both domestic as well as international clientele. InSynergy team is highly adept at catering to
both B2B and B2C business requirements. We ensure that the distribution network is arranged
in such a manner that it is charted and mapped to ensure smooth and convenient operations; all
available at the minimum cost and having the operations maintained via the effective WMS
systems. This robust and sophisticated system provides panoramic views of the warehouse
inventory in close proximity with the real-time scenario. This enables us to make accurate
decisions in terms of orders, availability, transports and storage modes for the goods.
We have the capacity to provide the following services, depending upon the needs of the clients
Dedicated Warehousing
Consolidated Warehousing
Shared Warehousing
Therefore, some of the crucial basic benefits and features of warehousing facility of InSynergy
are:
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DISTRIBUTION
Distribution Centres form the basis of an effective supply chain network as it allows for a single
location to stock a large number of products making it a critical constituent in the overall strategy
and deployment of supply chain solutions and management for any logistic service provider
organization. InSynergy provides for impeccable distribution channels that help in catering to the
needs of our clients; backed with state of the art technological support. This helps us in giving
visibility into our clients stock and inventory, and helps in providing time for them to plan for their
future business strategies more effectively.
We have a country wide network of established warehouses and feeder warehouses that are
aligned to the regional mother warehouses. Along with this, we offer the facility of selecting the
best configuration of transportation and suppliers to minimize the cost of operations. The
complete network is managed through integrated software which gives our customers a near
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real time inventory visibility at any given time. By providing an integrated solution for all our
clients distribution needs, we relieve them of the pressures and thereby enable them to focus
on other core business issues.
InSynergys Distribution services ensure that the goods reach the designated location in the
right form and at the right time. We undertake the following:
Benefits Include:
REVERSE LOGISTICS
Reverse logistics primarily stands for all operations relating to the reuse of products and
materials, thereby, obtaining optimum level of output and usage for the value of the goods and
products, or enabling proper disposition of the same. From the same perspective, reverse
logistics might also include remanufacturing and/or refurbishing activities. Essentially, in the
case of reverse logistics, the concerned product/good moves back (at least one step) in the
supply chain cycle.
InSynergy provides technologically enabled reverse logistics solutions, and it is one of the few
companies that have been able to do it at an international level. There are customized solutions
provided to the clients based on their individual requirements. In case required; we also enter
into service contracts with technical service providers for e.g. manufacturing and repairing units
in the telecom sector.
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InSynergy caters to both B2B and B2C routes through its location offices and franchisees that
are spread across the country. We have an in-depth understanding of the economic viability,
which helps us to provide the reverse logistic solutions with perfection. InSynergy understands
that the successful performance of Reverse logistics lies in data; therefore we have a strong
technological backbone that enables us with end to end data visibility of the products that are to
be returned to/from its origin point to its ultimate disposition, as the case be.
InSynergys core competencies lie in the following:
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Prior shipment arrival intimation, so that one can be prepared to handle it with ease and
convenience
Real time updates of shipments provided automatically
Pick up and Drop Off services
Cargo Insurance services. InSynergy provides protection against all physical
loss/damage of goods owing to external reasons. Our team of professionals provide for
quick and complete settlements. This further takes away tension from the transactions.
Cargo Pickup and booking services
Packing and Unpacking of goods as per customer needs
Consolidation and Forwarding
Letter of Credit Banking/Processing
Transportation of goods in Temperature controlled environments
Competitive rates with term flexibility options
Customized Packaging facility based on the kind of shipment along with its value and
composition.
Secure shipment with the use of skids and pellets to provide stability in handling
Streamlined process of distribution by eliminating and problem areas with multiple carrier
bills
Provide Expert Consultancy solutions for import and exports regulations. Our experts
provide consultations in regards to tax rates, duties, import and export restriction, and
exchange rates etc. These help the clients by giving them benefits in regards to exemption
and assistance with import/Export Policies.
Reverse logistics primarily stands for all operations relating to the reuse of products and
materials, thereby, obtaining optimum level of output and usage for the value of the goods and
products, or enabling proper disposition of the same. From the same perspective, reverse
logistics might also include remanufacturing and/or refurbishing activities. Essentially, in the
case of reverse logistics, the concerned product/good moves back (at least one step) in the
supply chain cycle.
InSynergy provides technologically enabled reverse logistics solutions, and it is one of the few
companies that have been able to do it at an international level. There are customized solutions
provided to the clients based on their individual requirements. In case required; we also enter
into service contracts with technical service providers for e.g. manufacturing and repairing units
in the telecom sector.
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InSynergy caters to both B2B and B2C routes through its location offices and franchisees that
are spread across the country. We have an in-depth understanding of the economic viability,
which helps us to provide the reverse logistic solutions with perfection. InSynergy understands
that the successful performance of Reverse logistics lies in data; therefore we have a strong
technological backbone that enables us with end to end data visibility of the products that are to
be returned to/from its origin point to its ultimate disposition, as the case be.
InSynergys core competencies lie in the following:
CONSOLIDATED SERVICES
InSynergy provides an end-to-end and a comprehensive bouquet of supply chain management
and logistics solutions to its clients. This consortium of solutions is provided by us by integrating
multiple vendor services and the same helps in reducing the problems and the pressures that
the clients usually tend to face throughout the logistics life cycle/environment. From the same
perspective, InSynergy, brings to your doorstep end to end supply chain solutions and also
provides for a one stop shop for all your supply chain needs. The services provided by us
depict a vast syndication of expertise and hard work geared towards perfection. Each service
rendered; is unique in its own way and delivers consistently via the combination of best trade
practices and extensive and enriched trade experience of our team members. With our captive
information technology facilities, we are able to effectively manage the workflow and offer
customization to our clients. We integrate our services in a manner where they are well
harmonized; and provide desired output to get the expected and satisfactory end result for our
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clients. InSynergys team ensures for total control over the clients supply chain needs. This is
done by providing warehousing facilities, accounts managements and transportation facilities
along with specialized freighting and custom clearance services. By sharing and coordinating
information flow, we are able to derive maximum benefit and thereby deliver the best services.
We cater to clients of different sizes, scope of services and business models, and with an
integrated supply chain management system in place, we are able to harness and improve upon
customer service delivery systems and minimize defects throughout the logistics life cycle. Our
integrated approach helps us in creating effective business, tariff and compliance services that
efficiently and perfectly deliver as per our customer needs.
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