SHIVRAJ JINDAL -48

AMAN ANAND -07

ABHISHEK GUPTA -03
SANDEEP KOTTAWAR -42
ABHISHEK SINHA -04
AKSHAY GUPTA -06
INTIATIVES & FUTURE
PLANS BY GOVT. OF INDIA IN
LOGISTICS
PRESENTED BY
PRESENTED TO
RAVI KOWADKAR SIR
LOGISTIC
THE PHYSICAL FLOW OF MERCHANDISE
Logistic is that part of supply chain process that
plans, implements and control the efficient,
effective flow and storage of goods, services, and
related information from the point of origin to
the point of consumption in order to meet
customer requirements.
COMPONENTS OF LOGISTIC
Inventory management
Warehousing
Transportation
Packaging
Labeling
Customs documentation
Delivery of goods
LOGISTIC STRATEGIES
Pull logistic strategy:- In which orders for
merchandise level are generated at the store
level on the basis of demand data captured by
point of sale terminals
Push logistic strategy:- In which merchandise is
allocated to stores on the basis of historical
demand, the inventory position at the
distribution centre, and the stores need.
IMPORTANCE OF LOGISTIC
Logistic involves the processing & tracking of
goods during ware housing, inventory control,
transport & delivery to customers.
Providing effective gains through providing the
right product at the right time in the right
place.
Proper management of logistic cut the cost
without reducing the buyers appeal.
IMPORTANCE OF LOGISTIC
Realize the concept of just in time
Bridge the gap between manufactures and
customer
Increase the profitability by cutting cost,
managing cash, minimizing damage.

clickn pull of Sams club
Order fulfillment system linked to e-commerce.
Consumer nationwide can order from the range
of 2500 products to get delivery in 24 hours.
The minimum order should be of $250.
The e-mail informs the members when the
order is ready to pickup.
INDIAN LOGISTIC
Valued at $14.31 billion in 2004, expected
growth $19.54 billion in 2009.
The market size for supply chain in India is
mere $50billion/year.
Road transport contributes to 4% of GDP
Indias 13% of GDP is spend on logistic as
compared to global bench-mark of 10-11%.
Logistic contribute major sectors like
automotive, manufacturing, FMCG, retail &
health care.


INDIAN LOGISTIC
Govt. of India investing in highway projects,
privatizing ports & freight corridor.
40% of the cost is on transportation alone.
India has a road network of 3.3 million km.
Road transportation system handles 1176billion
tonnes of freight/annum.
7000 km of four lane.
Commercial vehicles growing at the rate of
10.2%/annum.
INITIATIVES OF FINANCIAL
MINISTRY
Public-private partnership.
Enable search engines to generate statistics of
LPP across nation.
Common repository of vendors registered,
blacklisted, electronic item catalogues,
specifications, authorized vendors, retail points
& contact details.
Sharing of procurement data at both state &
central government level.
INITIATIVES OF FINANCIAL
MINISTRY
Govt. has planned to convert many airport into
international airports.
Connecting rural area by road in all weather.
Setting high standard of road safety & travel
comfort.
Indias entry into WTO signing agreement on
AFTA.
INITIATIVES OF FINANCIAL
MINISTRY
National Mari Time Development Program
101 projects covering inland waterway,
shipping and ports.
Rs 7350 million allocated to department of
shipping.
RS. 4 billion invested by container train
operators for manufacturing of 2000 wagons.
Privatization of security of ports & airports.
INITIATIVES OF FINANCIAL
MINISTRY
Connecting states capital with national
highway.
Increasing the width of highway.
Greater connection to key market overseas by
focusing on air cargo.
Agreement of open sky policy with other
countries.
Investment in road sector of about Rs 152000
crore between 2006 & 2012.

COMPANIES EMPACTS
Contribution by FedEx express .
Concor, Gateway Distriparks Ltd (GDL),
Allcargo, Transport Corporation of India and
Gati will spend Rs 3,400 crore over the next
three year for cash in growth opportunities.
Golden opportunities through retail sector
because of :- Wal mart JV with Bharti ,
Reliance mega plan of Rs 30000 crore, Birla
plans to invests Rs 15000 crore.
BUDGET PROPOSAL
Golden quadrilateral project to be completed by
2007.
N-S&E-W corridors to be completed by end of
2008.
Separate rural project of 40billion.
Special package for road development in north
eastern region at cost of 46.18 billion.
1000 km of express highway to be developed on
design/build/finance/operate.
FUTURE PLANS OF GOVT.
Converting the meter gauge track into the
broad gauge track.
Developing port cities by road & rail
connectivity.
Converting two lanes into four lanes.
Govt. is going to charge service tax on toll tax.
SECTORIAL
REQUIREMENTS OF FUNDS
SECTOR Rs.Billion
National highways 2200
Railways 3000
Energy 5400
Airports 400
Ports 500

FUTURE PLANS OF INDIAN
RAILWAY
Budget outlay of 400 billion in 2007-08 as
compared to 237billion in 2006-07.
220 billion dedicated to only rail freight
corridor.
Special purpose vehicle for stock to be created.
Railway to support steel industry and ports.
Freight loading of more commodities to be
extended.
COMPANIES HAVE CORE
COMPETANCY IN LOGISTIC
TOYOTA:- Supply chain management
MARUTI:- Distribution channel
FEDEX :- Accuracy in delivery
COLGATE:- Distribution system
ITC :- Distribution channel
WAL MART:- Labeling & con

CHALLENGES IN LOGISTIC
SECTOR
Companies have to quickly imbibe latest
technologies, such as GPC/GIS tracking of
consignments.
Uncork new services to cater to corporates
seeking to outsource their logistics needs. Also,
the Government should come out with a sound
policy that facilitates the operations of the
logistics companies.
HPCL E-FUEL SYSTEM
(SATELLITE TRACKED FUEL DELIVERY)
GPS Tracking
Automated tank gauging
Automated fuel delivery
Densitometers for purity
Automated Billing
BENEFITS THROUGH GOVT
POLICIES

Good road network have reduced the
transportation cost.
Less material carrying cost.
Development in other business and commercial
complex.
Time saving
Frequent movement
Decrease in labor cost.
Decrease in damage of product.
Increase in govt. revenue through service tax.
Globalization, improvement in economy leads to
outsourcing of warehousing and distribution.
BENEFITS THROUGH GOVT
POLICIES
CONCLUSION
In logistic cost can be reduced without
compensating on efficiency.
Even Indian govt. Is doing a lot but still behind
the world.
Heavy investment is still required.
Innovation required in design & infrastructure.
Need to improve FCI distribution.
Age old audit procedures need a serious
revision.