INDUSTRY PROFILE

The logistics sector in India is evolving rapidly and its growth is dominated by the interplay
of infrastructure, technology and new types of service providers that will determine whether
the industry is able to help its customers to reduce logistics costs and provide effective
services or not Changing government policies on taxation and regulation of service providers
is going to play an important role in this process The logistics sector has attracted a large
amount of investment in the past years and in future the sector could witness the same due to
rising demand for logistics driven by industries like automobile, retail, pharma etc There is
significant rise in the demand for third party logistics providers in the sector as well, which is
led by TVS Logistics today and has few capable competitors The sector provides lucrative
business opportunities today for new players in terms of margins, low-entry barriers and high
growth prospects Proper infrastructure support by the government and competition from the
unorganized sector are major challenges in the growth of the logistics sector.
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 (or the logistics management
regimen) 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.

Objective
Primary Objective
Lead and manage all procurement and materials management activities within the corporation
including order placement, supplier reduction/evaluation/certification, inventory control,
material handling, logistics, and compliance with customer specifications.
Secondary objective
1. Purchasing the items from a reliable source at economic price.
2. Reduction of costs by using various cost reduction techniques such as variety reduction,
standardization and simplification, value analysis, inventory control, purchase research etc.
3. Co-ordination of the functions such as planning, scheduling, storage and maintenance of
materials.

Review of literature
1. Materials management can define as an organizing function responsible for planning
and controlling the materials flow. This means that the materials management is a
planned procedure that involves from the initial purchasing, delivery, handling and
minimisation of waste of the material with the purpose to ensuring the quality,
quantity and time of the requirement should meet accordingly.( Arnold, J. R. and
Chapman ,2004,
2. Material management are the activities involved to plan, control, purchase, expedite,
transport, store, and issue in order to achieve an efficient flow of materials and that
the required materials are bought in the required quantities, time, quality and at an
acceptable price. (Stukhart ,1995)
3. The idea behind this paper is to describe the basic definition of material management,
objectives of the material management, benefits of the material management how it is

beneficial to the organization ,and the basic principles of material management. The
block diagram of the management system in what sequence the material management
works.( Siddharth Nair, 2014)
4. This paper has shown how profitability can be achieved through effective
management of materials with particular attention on sourcing, receiving, storing and
issuing materials. Prudent management of materials reduces depreciation, pilferage
and wastages while ensuring avai- lability of the materials as at when required. The
writer would like to re-emphasize that for a firm to achieve profitability the goal of
materials management should be properly carried out. In technical management
activities, this goes a long way to affect the profitability of the firm. (Elijah E.
Ogbadu, 5 August, 2009)
5. Materials management is one of the indispensable parts in enterprises activities, and
one of the most core functional modules of ERP system. Materials management level
will directly affect the process of enterprises production control. Firstly, this article
analyzes three important parts of materials management in foundry enterprises:
materials resource planning, materials procurement and materials inventory. Secondly,
a deep research is made on the data flow of materials management inner foundry
enterprises, the modules of materials management subsystem based on HZERP are
founded, which is designed for foundry enterprises by Center of InteCAST Software,
HUST. Finally, an application instance in an integrated foundry enterprise is given to
prove the availability of the system. (H. Wang, J. X. Zhou, 2013).
6. This paper attempts to provide the reader a complete picture of supply chain
management through a systematic literature review. It presents main activities of
supply chain and the step-by-step approach for understanding a complete picture of
supply chain(Rajendra Kumar Shukla JSS Academy of Technical Education, India)
7. The theoretical contribution of the thesis was the development of a three dimensional
impact factor model, where the impact factors for increased sustainability were the
strategic elements identified earlier. Metrics were developed in the form of simplistic
checklists under each of these strategic elements to be used as part of the evaluation
model.( Maarika Kulmala 2009)

8.

The literature review gives rise to a classification framework of the models along
nine structural dimensions that refer to the safety buffer treatment, the environmental
characteristics and the type of approach. On the basis of the classification framework,
the proposed model provides guidelines for approaching the problem of dimensioning,
positioning and managing safety stocks against demand uncertainty. M. Caridi, R.
Cigolini, (2002)

9. A broader definition is given by Raphael Kaplinsky and Mike Morris (2000)6 . Which
defines the value chainas the full range of activities which are required to bring a
product or service from conception, through the different phases of production
(involving a combination of physical transformation and the input of various producer
services), delivery to final consumers, and final disposal after use? The definition
recognizes the flow of services as well as products in value chains.
10. According to a USAID brief (2008)7 The premise underlying both value chain and
cluster approaches is that individual firms often face sector-level constraints that they
cannot address alone. Therefore, any effort to increase competitiveness must do more
than support individual firms, since inter-firm cooperation is important to achieving
this goal. These two approaches have common intellectual roots in Harvards Michael
Porter, who played a key role in developing both theories.
11. The differences between the approaches may be subtle. The value chain approach
considers a broad market system and the development of products/services from input
suppliers to end market buyers. Essentially, the value chain focuses on the flowof a
developmental process. It differs from a supply chain in its emphasis on creating
value in each segment of the chain (2008)
12. According to Jon Hellin and Madelyn Meijer (2006)9 the most important step in
doing a value chain analysis is mapping the market, If we want to understand more
about the rationale behind farmers decisions vis--vis the types of seeds that farmers
purchase etc. then we also need to know about the extraneous factors that influence

the way that the value chain works. This is where the market map comes in useful.
The market map is a conceptual and practical tool that helps us identify policy issues
that may be hindering or enhancing the functioning of the chain and also the
institutions and organizations providing the services (e.g. market information, quality
standards) that the different chain actors need in order to make better informed
decisions.
13. Organizations increasingly find that they must rely on effective supply chains, or
networks, to compete in the global market and networked economy. In Peter Drucker's
(1998)13 this concept of business relationships extends beyond traditional enterprise
boundaries and seeks to organize entire business processes throughout a value chain
of multiple companies.
14. During the past decades, globalization, outsourcing and information technology have
enabled many organizations, such as Dell and Hewlett Packard, to successfully
operate solid collaborative supply networks in which each specialized business
partner focuses on only a few key strategic activities (Scott, 1993).
15. Supply chain management is the systematic, strategic coordination of the traditional
business functions and the tactics across these business functions within a particular
company and across businesses within the supply chain, for the purposes of
improving the long-term performance of the individual companies and the supply
chain as a whole (Mentzeret al., 2001)
16. Global supply chain forum - supply chain management is the integration of key
business processes across the supply chain for the purpose of creating value for
customers and stakeholders (Lambert, 2008)
17. A supply chain, as opposed to supply chain management, is a set of organizations
directly linked by one or more of the upstream and downstream flows of products,
services, finances, and information from a source to a customer. Managing a supply
chain is 'supply chain management' (Mentzeret al., 2001)
18. In the 21st century, changes in the business environment have contributed to the
development of supply chain networks. First, as an outcome of globalization and the

proliferation of multinational companies, joint ventures, strategic alliances and

business partnerships, significant success factors were identified, complementing the
earlier "Just-In-Time", "Lean Manufacturing" and "Agile Manufacturing" practices.
Second, technological changes, particularly the dramatic fall in information
communication costs, which are a significant component of transaction costs, have led
to changes in coordination among the members of the supply chain network (Coase,
1998)
19. Supply chain management (SCM) is the management of a network of interconnected
businesses involved in the ultimate provision of product and service packages
required by end customers (Harland, 1996)11. Supply chain management spans all
movement and storage of raw materials, work-in-process inventory, and finished
goods from point of origin to point of consumption.
20. The supply chain, also known as value chain is a concept from business management
that was first described and popularized by Michael Porter in his book, Competitive
Advantage: Creating and Sustaining Superior Performance. Porter, M. E. (1985).