REPORT-Supply Chain and Logistics

8/6/2019 REPORT-Supply Chain and Logistics

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REPORT

ON

SUPPLY CHAIN

ANDLOGISTICS INDUSTRY

(CREDIT SEMINAR)

INSTITUTE OF AGRI BUSINESS MANAGEMENT,

SK RAJASTHAN AGRICULTURE UNIVERSITY

Submitted to: Submitted by:Dr. Rajesh Sharma Ashish Singhal,

M.B.A (AB), 1st year IABM



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Contents

Sr.No. Particulars Page No.

1 Introduction 3

2 Definition 4

3 Indian and Global scenario 4-5

4 Types and elements of supply chain 6

5 Supply chain in different sector 7-12

6 Agribusiness supply chain models 12-14

7 Case on ITC e chaoupal 15-16

8 Bull whip effect 16

9 Modes of logistics 17-18

10 Elements of logistics cost in India 19

11 3PL 19

12 Growth drivers 20



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13 Major players 20-21

14 Government policies 21

15 Impact of WTO 21-22

16 Contemporary issue 22-23

17 References 24

Introduction:

To be successful in today¶s competitive environment, firms are required to coordinate well

with their suppliers and customers. An important driver for successful supply chain is infor-

mation sharing. Although there are many possible ways to share information among supply

chain members Increasing global competition and increasing customer demands motivate

every firm to work on products with new technology and advanced features, which shrinks

product/service life and gives less time for product developments. The requirement for new

or updated vehicle model is triggered by new technology developments, changing expectation

from customers, products offered by competitors, and the existing products having limitations

to withstand the Competition. To achieve the agile features of reacting quickly and effec-

tively, automotive manufacturers are investing time in reengineeringManufacturing and product Development process. When a product, such as an agrochemical,

is dependent on its Supply chain operations, making the firm's process agile alone will not

produce the desired result of an agile manufacturing system.

Supply chain



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Supply chain is a network of facilities and distribution that performs the functions of pro-

curement of material, transformation of these materials into intermediate and finished prod-

ucts and the distribution of these finished products to customers. Supply chain activities

transform natural resources, raw materials and components into a finished product that is de-

livered to the end customer. In sophisticated supply chain systems, used products may re-

enter the supply chain at any point where residual value is recyclable. Supply chainslink value chains.

Supply Chain Management:

Market liberalization and increasing consumer demand in OECD countries offer attractive

opportunities for agricultural exporters from developing countries. Trade in fishery products,

exotics, pre-cut products, organic products and off-season fresh fruits and vegetables extend

altogether new options for businesses. Yet, global market standards are stringent. Consumers

in these countries and in urban areas in developing and transition economies demand safe and

nutritional food, excellent quality and just-in-time delivery. This presents major challenges to producers and countries that lack state-of-the-art technologies and infrastructure. Particularly

for producers in these countries, collaboration between trade partners has become increas-

ingly important for the success of cross-border trade in the competitive market. Supply chain

management is a powerful tool to achieve this collaboration. Through supply chains, produc-

ers in developing countries and emerging economies can access market information and

knowledge to hone their value-added activities. It is the integration of supply chain activities

through improved supply chain relationship to achieve and attain sustainable competitive

advantage. Supply Chain is a set of three or more companies directly linked by one or more

of the upstream and downstream flows of products, services, finances and information from

source to a customer.

WHY SUPPLY CHAIN:

Now a day maximum companies, whether they are Indian or global are adapting a supply

chain process .Here is some important aspect to perform these functions

y Improve operations:

y Optimizing transportation costs:

y Competitive advantage:

y Efficiency towards globalization:

y Increasing importance of e-commerce :

y Manage inventories:

GLOBAL SCENAR IO:

This section gives an overview of the size of the global logistics industry and its current

status and prevailing dynamics. The annual cost of supply chain and logistics in the world is

$500 billion (2009) . USA constitutes 25 % of the global industry but spends only 9 % of its



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GDP on suppl chain and logistics services while other countr ies spend li e Europe is 11%

Japan is 11.4 % and China is 16- 20 % .

INDIAN SCENARIO:

This section gives an overview of the si e of the Indian logistics industry, its competitive dy-

namics and future prospects. almost 99% is accounted for by the unorgani ed sector (such as

owners of less than 5 trucks, aff iliated to a broker or a transpor t company, small warehouse

operators, customs brokers, freight forwarders, etc.), andslightly more than 1% is contr i b-

uted by the organi ed sector. So, one can see that the logistics industry in India is in a nascent

stage. Indian supply chain and logistics industry accounts for 2 % of the global supply chain

and logistics industry .India spends 13 % of its GDP on supply chain and logistics industry.

Logistics accounts for 15 ± 25 % of the cost of goods in India. About 65 ± 70 % of the prod-ucts are still transpor ted by road and 30 ± 35 % by rail.

SUPPLY CHAIN MANA EMENT:

SCM is the integration and management of supply chain organi ations and activities through

cooperative organi ational relationshi ps, effective business processes, and

high levels of information shar ing to create high-performing value systems that provide

member organi ations a sustainable competitive advantage.



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A supply chain management is a much defined process. It starts from supplier of raw materi-

al. In reference to agriculture raw material is like pesticide, fertilizer, seed etc.

These raw materials are being supply through supplier to purchaser.

Purchaser gets their raw material from supplier of raw material. In agriculture, purchaser is

farmer. They forward this material into production process. After production of finished goods like agriculture product they goes to consumers through

marketing channel and distribution process.

TYPES OF SUPPLY CHAIN AND CHANNEL R ELATIONSHIPS:

1. Basic Supply Chain - It consists of a company, an immediate supplier and an immediate

customer directly linked by one or more of the upstream and downstream flows of products,

services, finances and information.

2. Ultimate Supply Chain- It includes all the companies involved in all the upstream and down-

stream flows of products, services, finances and information from the initial supplier to the

ultimate customer.

3. Partnerships or Alliances- Dyadic Relationships or Co-operative Relationships between two

companies that are distinct from supply chains, because this type of relationship does not in-

volve any one company in simultaneous upstream and downstream relationships.

ELEMENTS OF AGR I-SUPPLY CHAIN:

y Transfer of product from farmers to consumers:A farmer whatever he is producing in production process finally it goes to ultimate users.

y Transfer of money from consumers to farmers:

A consumer gives money to farmer in exchange of a product.

y Transfer of ownership from farmers to consumers:

A farmer transferring his ownership through supplying their product.

y Transfer of information from consumers to farmers:

A consumer forwards some feedback about their product. This is important information for

farmer and suppliers.

TYPICAL AGR I SUPPLY CHAIN:

A typical agriculture supply chain is a much defined process .It happen in a two way.

1. Assemble all of production factor and optimum utilization of resources. The production

process is may be a crop production, livestock, fisheries etc. they may go in storage form be-

fore going in production process or go directly in production process.



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Af ter production of f inished goods these product go in storage form .then supplied to con-

sumer through marketing, sales, distr i bution and transpor t.

2. Another path is that assemble all of production factor and optimum utili ation of resources.

Af ter production of f inished goods these product go in storage form .then supplied to con-

sumer through marketing, sales, distr i bution and transpor t.

FOOD SUPPLY CHAIN CLUSTER:

India has a huge oppor tunity to become a leading global food supplier if only it has the r ight

marketing strategies and of course agile, adaptive and eff icient supply chain. India has diver-

sity in terms of its population with several religious groups with different food

Habits and culture. This diversity should be used to advantage to become the ³Halal Food

Hub´, the ³Organic food hub´, the ³Vegetar ian food hub´ the ³Sea food hub´ amongOthers.

Food chain clusters (See Figure1) are formed with the par tici pation of all stake holders such

as farmers, seed growers, merchants, transpor ters, wholesalers, retailers, f inancialinstitutions,

and insurance companies. Information shar ing is essential for generating theeff iciencies. The

Internet and mobile communications are used to enable information andf inancial transfer be-

tween the stake holders. In India, there are very few large food manufacturers. Amul, R uchi

Soya, Nestle, MTR , ITC, Dabur, Br itannia, HLL¶s food and beverages section, beverage

companies such as Coke and Pepsi are some of the big names. In poultry Godre j Agrovet,

Suguna, Pioneer and Venkateswara hatcher ies are some of the companies integrating opera-



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tion s end to end from breeding to ready to eat chicken foods. High taxes on processed food,

high import duties, nascent contract forming, make the profitability a big issue in India. There

are several regulatory changes that need to be made all along the supply chain so that they are

consistent and mutually reinforcing.

SUPPLY CHAIN MODEL FOR FR UITS AND VEGETABLE:

A supply chain for fruit and vegetable is a much defined process. It complete in a defined

step-

1) Institution: An institution may be a agriculture university, krushi vighyan Kendra or any

other institute. They work in these area-

y According to need of a customer these institute produce a product on demand and utility.

y They procure and supply of raw material to farmer which are going to use in farming

process.

y Some helping center like KVK provide some information to farmers.thy work with diffu-

sion of innovation.

2) Grower and production: they acquire a good agriculture practices and try to get a good

benefit.

3) Distribution: there is a master schedule of a distribution process.

4) processing: processing center may be a different according to need of a product. in pro-

duction process here is a some safety and healthy measure like HACCP,ISO,OHSAS,SA

18000.

5) Consumer: consumer is a ultimate user of a product.



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OPPOR TUNITIES FOR IMPR OVING THE FOOD SUPPLY CHAIN

1. Investments in real estate and cold chain infrastructure (100% FDI allowed).

2. Increasing role of third par ty logistics.

3. Incentives for setting up of processing plants in agr i-expor t zones (100% FDI allows in

food processing industry).4. Size of Indian retail industry (US$ 350 billion).

Seed suppl chai :

A seed supply chain a is regulated through a government and pr ivate agencies. Here is a some

government agencies like SSC, NNSC, SFCI, SAI etc. on the requirement of breeder seed

they forward the information to government .then information forward to ICAR . ICAR for-

ward the information to ICAR institute and state agr iculture institute.

On the demand of a breeder seed agr iculture institute produce breeder seed and supplythrough ICAR than GOI than state government. State government forward a breeder seed to

some specif ied agencies and af ter production of foundation seed these agencies for ward these

seed to other specif ied agencies for producing a cer tif ied seed. Cer tif ication is done by a gov-

ernment agency in regulated process.



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FER TILIZER SUPPLY CHAIN:

A fertilizer supply chain is a simple and defined process.

In a fertilizer supply chain here is a two zone.

1. Primary zone-In this zone fertilizer produces and consumes in a place, where it produces.

Starting from a factory production, a factory produces a specified fertilizer. That goes firstly

to dealer and further forward to distributor. Finally fertilizer goes to farmers.

2. Secondary zone- when fertilizer forward to other place like in a other state, it goes to for

storage in warehousing. Then goes to dealer and distributor. Finally it goes to farmers.



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SUPPLY CHAIN MODEL FOR A RO CHEMICALS:

A typical agro-chemical supply chain depend on these factors-

� Campaign & Demonstration

� Life Cycle of Pest & Disease

� Climatic Factors

� Mode of action of the chemical



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A defined process start from suppliers of a raw material required for a chemical production.

After a production of a agro-chemical that supply to dealers and then suppliers. Finally goes

to farmers.

SUPPLY CHAIN FOR OR GANIC FAR MING:

Supply chain of a organic food fall in a much systematic manner-

y grower produce a organic food production

y growers groups collect all organic food through different growers

y these organic food forward to trader of origin, who are engaging in export of organic

food in different countries through a agent or a marketing chaneel.

y trader of exporting countries supplies it to wholesaler and than retailer.

y finally that goes to consumer

AGR IBUSINESS SUPPLY CHAIN MODELS:

1. ITC e-Chaoupal & Chaoupal Sagar-

Chaoupal Sagar is one of the first organized retail forays into the hinterland. It has opted for

self service, stocking its merchandise on shelves lining the neat aisles. It stocks a breadth of

products no supermarket can. It offers almost everything - from toothpastes to televisions,



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hair oils to motorcycles, mixer-grinders to water pumps, shirts to fertilizers. It is just a very

sharply thought-out rural store. ITC is hoping to capture the rural folks' out-of-village shop-

ping. But the farmers will come here only after every harvest. To ensure that they keep com-

ing to Chaoupal Sagar even at other times, the company is offering a slew of other goodies.

2. GodrejAadhar (Godrej Agro vet)- Godrej Aadhaar is the India¶s first agri service cum rural retail venture of Godrej Agrovet.

The first issue that sustainable companies are focusing on is the design and production of the

product. Interface Corporation is a leading maker of materials for commercial interiors. In its

new Shanghi carpet factory a liquid had to be circulated through a standard pumping loop

similar to those used in nearly all industries.

3. Haryali Kisaan Bazaar(DSCL)-

Three broad areas in which haryali perform-

y a.farm advisory

y

b. rural retailingy c. Farm produce linkage

4. TATA Kisan Sansar:

y Phase 1: Tata Kisan Kendra as a retailer of Agri-inputs

y Phase 2: Repositioning of Tata Kisan Kendra to Tata Kisan Sansar thereby considering

TKS as a µseed to produce¶ business.

y Phase 3: TKS as a solutions provider that helps farmer enhance his productivity and an

agent that changes the face of Indian farming

5. Mahindra Subh Labh- Mahindra Agribusiness integrates the agriculture and food chain from agri inputs right

through to agri commodities.

The Company's business is to establish agri centres in various districts of the country either

under the Mahindra Krushi Vihar franchisee model or directly as Mahindra Agribusiness.

Currently, the Company's operations cover about 100,000 acres across 8 states. Its primary

focus is on crops like basmati, maize, barley, cotton, lentils, soybeans, durum, hyola and oth-

er oilseeds such as sunflower and mustard.

Steps are also being taken to develop the high value segment of Indian high value segment of Indian farming: contract farming of crops with organic cultivation, aromatic medicinal crops

like geranium, patchouli, etc. and other crops like pomegranates, grapes, gherkins, garlic,

onions, potatoes as well as crops destined for organised retail as well as for the Seed Industry.



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6. HUL¶s Shakti ±

Today it has resulted in a network of 35,000 entrepreneurs reaching 100 million rural con-

sumers in 1-lakh villages. HLL aims to reach 600 million consumers in five-lakhs villages

through one-lakhs entrepreneurs by 2010. The basic objective of Project Shakti is to econom-

ically empower underprivileged rural women by creating income-generating capabilities and

providing a sustainable micro-enterprise opportunity in addition to improving rural living standards through health and hygiene awareness. ³It is both a sales and a distribution initia-

tive that delivers growth and a communication medium in the form of Shakti Vani, a pro-

grammed that spreads awareness of health and hygiene and builds brands. With the purpose

of increasing penetration and market shares for HUL brands, Project Shakti is already ac-

counting for 15 per cent of HUL's rural business.

GR EEN SUPPLY CHAIN:

Currently, supply chain management argues that a company needs to develop a strategy to

meet its industrial and social environment in a globalized world with severe competition andgreat uncertainty.

o Environment- Environment mainly refers to industrial and social environ-

ment of the company. One important aspect of the industrial environment is

clock-speed, the speed of change in the industry Social environment is related

to governmental policy and socioeconomic condition. A country with probusi-

ness economic policies, good infrastructure, and highquality labor forces

would be a natural candidate for outsourcing and becomes part of the supply

chain of a multinational corporation.

o Current strategy- Current strategy in supply chain management is based on

the balance between cost and customer service. The basic strategy a firm can

take is either cost, differentiation, or a combination of cost and differentiation

in a competitive market. In supply chain management, cost strategy is seeking

internal cost efficiency, and differentiation strategy is to improve the customer

service and design better products /services to meet customers¶ needs.

A Green supply chain can be defined in this perspective-

y

The process of using environmentally friendly inputs.y Products can improve or be recycled and improved.

y Outputs that can be reclaimed and re-used at the end of their life-cycle thus, creating a

sustainable supply chain.



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LIMITATIONS OF SUPPLY CHAIN:

A supply chain is not a advantageous in all way but here is a some negative point, which is

essential to consider ing here-

Uneconomic scale of operation

Lack of consistency in supply and quality Inadequate and inappropr iate storage and distr i bution infrastructure

Lack of technical suppor t for the agro-industr ial sector

TRADITIONAL SOYBEAN SUPPLY CHAIN:



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Before re-engineer ing in supply chain of a special commodity like soyabean farmerdirectly

sell their product in mandies on a discovered pr ice. Then a mandi forward to ITC or other

buyer. Finally ITC forward it for production of ultimate product or intermediate product.

In reengineer ing processed farmers directly sell their product to ITC through a inter mediator.

Inter mediator is E-CHAUPAL. E-CHAUPAL is a place where a sanchalak is competent to

operate computer through internet. He broadcast required information to desired farmerswho

want know about a product pr ice, whether condition etc. then ITC purchased agr i-product

from farmers on a reasonable pr ice.

BULL WHIP EFFECT:

Small changes in consumer demand result in large var iations in orders placed upstream

Dramatic order size var iation

Amplif ication of order size var iation as one moves up the supply chain



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Logistic Industry:

Logistics is the management of the flow of goods and services between the point of origin

and the point of consumption in order to meet the requirements of customers. Logistics in-

volves the integration of information, transportation, inventory, warehousing, material han-

dling, and packaging, and occasionally security. Logistics is a channel of the supply

chain which adds the value of time and place utility. Today the complexity of production lo-

gistics can be modelled, analyzed, visualized and optimized by plant simulation soft ware.

Logistics management is increasingly becoming a topic of interest among academicians and

practitioners since it may lead to reduced operational costs, improved delivery performance

and increased customer satisfaction levels. The global logistics industry is estimated to be

worth USD 300 billion. Though most of the large service providers are headquartered in

Europe, the biggest market is the US, which captures about one-third of the world market.

The global logistics industry is characterized by high costs of operations, low margins, short-

age of talent, infrastructural bottlenecks, demand from clients for investing in technology and

providing one-stop solutions to all their needs, and consolidation through acquisitions, merg-

ers and alliances.Though, in India, the industry is still in its infancy, there is immense potential for growth.

The Indian logistics industry is currently plagued with low demand, poor infrastructure, high

costs, government regulations etc. However, it is going to turn around on the back of robust

GDP growth, globalization, FDI in logistics and increasing government support

MODES OF LOGISTICS

Logisticsmodes

Road Railways Sea Air



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INDIAN R OAD NETWOR K:

India has the second highest largest road network of 3.3 million km.

US have the largest road network with 6.4 million km & China 1.8 million km.

National Highways-2% of total road length.

But carry 40% of goods traffic of India.

RAILWAYS:

The Indian Railways boasts of being the world¶s 2nd largest rail network spread over 81,511

km and covering 6896 stations.

The freight segment accounts for roughly two thirds of railway¶s revenues.

The tone/kilometer costs for Indian rail freight at three times that of China.

SEA:

12 major pots

187 minor ports

7517 km coastline Major ports± 76 % of traffic

West coast ports- 70% of traffic

AVIATION:

The size of the world air cargo market is estimated at 27 million tonnes valued at $200

billion.

India accounts for meagre 3% of the global air cargo market - garments, pharmaceuticals,

dyes, chemical, perishables [fruit, vegetables, flowers, fish and meat].



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ELEMENTS OF LO ISTICS COST IN INDIA:

Thi d Party L istics (3PL :

Use of outside company to perform all or par t of company¶s mater ialmanagement and distr i-

bution function is termed as Third-par ty Logistics. 3 PL is one of the Paradoxes of Business

in Logistics as a framework for Strategic Alliances to Perform Wor ld Class Business. It pro-

vide a company to focus on company¶s par ticular area of exper tise, leaving the logistic exper-

tise to the logistic companies.

y China & India -- 13-15%

y U.S. -- 57%

y Europe -- 30-40%

y Japan -- 80%

(Source SSKI survey titled Indian logistics industry)

ADVANTA ES:

Focus on core competencies

Best practices

Enhanced technological capabilities

35%

5%

9%

11%

14% 6%T nsp

n

Inven y

S Source ---Edelweiss

Research, Cygnus Research, Cygnus

Research e: Edelweiss Research, Cygnus ResearchSource:

Edelweiss Research, Cygnus Research



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3PL in the country could touch $90million by 2012, current $58 million.

GR OWTH DR IVER S:

y General growth of the Indian economy

y Manufacturing boom-for exports as well as for domestic market

y Expected rise in International trade from India

y MNC¶s setting up manufacturing in India-Nokia, Flextronics

y Implementation of VAT will lead to growth in warehousing business

y Opening of organized retail sector -attracting retail chains like Wal-Mart and Carrefour in

addition to Indian players like Pantaloon and Reliance.

GOVER NMENT INITIATIVES:

The Indian government is making great efforts by -

y Privatizing ports and airports

y Increasing the number of gateway ports

y Investing in highway projects

y Streamlining customs and excise procedures

y Improving the rail network

y The government planned to invest $17 bn in transport infrastructure between 2006-2010

y Establishing free trade & warehousing zones (FTWZ)

IMPOR TANT PR OJECTS:

y Amend in the National Highway Act to expedite land acquisition, permit private financing

and allow tolling.

y Improvement in rural access by launch of the Prime Minister¶s Rural Roads Program.

y Reduction of congestion on rail corridors and improvement of port connectivity by launch of

National Railway Development Program.

y Up gradation of infrastructure and connectivity in the country's twelve major ports by initiat-

ing the National Maritime Development Program.

y Establishment of Tariff Authority for Major Ports to regulate tariffs.

MAJOR PLAYER S:

y Adani group

y National bulk handling corporation (NBHC)

y National collateral management services ltd (NCMSL)

y Global agri. system

y TCI group

y Shree Subham logistic limited(SSLL-Kalptaru)

y GATI



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ADANI LOGISTICS LIMITED (ALL):

y Adani Logistics Limited (ALL) provides integrated logistics solutions for movement of

commodities. Adani has secured an all-India license to manage container train operations on

Indian Railways. In order to provide pan-India multi-modal-logistics services, Adani Logis-

tics Limited, has developed the facilities for movement of goods in containers by train, road

and sea.

y Adani Logistics offers comprehensive end to end logistics solutions for handling a wide

range of cargo including containers, break bulk dry and liquid cargo, perishables and project

cargo, in the form of full train load, full container load and less than container load.

GOVER NMENT POLICIES:

Food and Agriculture are important national activities and affect the well being of its

population of every country. In formulating the policies of farming, production, processing,

distribution and retailing and also in financing these activities the Governments play leading

role. This becomes all the more important in view of the globalization of the food industry.

Allowing foreign operators for food production, distribution and retailing is a decision of na-

tional importance.

The Government of India (GOI) has accorded high priority to the establishment of cold

chains and encourages major initiatives in this sector.

1. Scope of exemptions from Excise Duty enlarged to include equipments needed for storage

and warehouse facilities on agricultural produce.

2. In FY 2012 40 lakhs tones storage capacity .

3. In FY 2012 -24 new cold storage projects sanctioned .

4. Full exemption from basic Customs Duty to bio-asphalt and specified machinery for applica-

tion in the construction of national highways.

5. Indian Infrastructure spending to be up by 23%.

6. Rs 30,000 crores tax-free infrastructure bonds for Railways.

7. Exemption from Import Duty for spares and capital goods required for ship repair .

8. Two Committees set up for greater transparency and accountability in procurement policy

and for allocation, pricing and utilization of natural resources.

IMPACT OF WTO:

The globalization of business is perhaps the most significant development in the field of sup-

ply chain management during the last 30 years. GLOBALIZATION HAS penetrated all fac-

ets of business to include banking, insurance, patent and trademark protection, environmental

responsibility, immigration/labour law, and information technology. Each of these areas is

important to continued expansion.

1. A reduction in tariffs allows for wider access to foreign markets, making less expensive products available to a larger customer base.



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2. Removal of non-tariff trade barriers²import license requirements, inspections, and move-

ment of product.

3. The removal of tariff and non-tariff barriers to trade has encouraged direct investment by

foreign companies in both existing and emerging markets.

4. While companies once exported and imported through agents or distributors, globalization

compelled many organizations to establish their own offices in foreign markets.

CONTEMPORARY ISSUE:

1. ER P(Enterprise R esource Planning) for the Supply Chain- There are a growing number

of software suites that can help companies maximize efficiencies in their supply chain. Enter-

prise resource planning (ERP) software has been implemented by a large number of Fortune

500 companies in the last twenty years. The common database and real-time processing has

allowed companies to benefit from reacting to situations in the supply chain that would not

have been possible without ERP software. The market leader in ERP software is the German

company, SAP.

2. India Aims to invest $100 Billion in Ports, Shipping - India aims to invest 4.52 trillion

rupees ($100 billion) by 2020 to build new ports and develop its shipping industry in a bid to

boost trade, Shipping Minister G.K. Vasan said. The investment will likely more than triple

India¶s annual port handling capacity to 3.2 billion tons, Mr. Vasan said.

3. Tata plans umbrella logistics firm-

The Rs.3.2 trillion Tata group, with 90 firms spread across businesses ranging from salt to

software and tea to telecom, plans to consolidate all its logistics arms into one unit, a move

that would enable it to service companies that are increasingly farming out functions such as

transportation.

³The process has started and it will take a while (to take shape),´ one of the two senior offi-

cials familiar with the development said. Both requested anonymity pending a formal an-

nouncement.

4. India's logistics sector worth $125bn by 2010- The Indian logistics industry is set to become

a $125 billion industry by 2010, an increase of about 17 percent on the current level, accord-

ing to industry body Assocham.

5. India targets more links in Africa¶s food supply chain- Currently India is South Africa¶ssixth-largest Asian trading partner, with total trade between the two countries reaching $4.4

billion in 2008, thanks to rise in both exports & imports of agriculture, food and technology

based products.

6. Many large Indian corporate such as Tata and Reliance Industries have been attracted by the

potential of this sector and have established logistics divisions.



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7. Large express cargo and courier companies such as Transport Corporation of India (TCI) and

Blue Dart have also started logistics operations.

8. Indian shippers are gradually becoming more aware of the benefits of logistics outsourcing.

9. The Indian government has focused on infrastructure development.

10. In India, 100% FDI is allowed in logistics whereas in China foreign investment was not

allowed in domestic logistics.



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R EVIEW OF LITERATUR E:

Tayur & Ganeshan & Michael (1999) has mentioned that supply chain management is a

much important and defined process. Here is a different supply chain model which shows a

strong network with farmers. Green supply chain is a very important process proving envi-

ronmentally friend.

Ganeshan & Harrison (2010) has stated that a supply chain is not only in a general sector like

automobile, but it is as important as in agri-supply chain. Here is a different agri-supply chain

model like seed supply chain, fertilizer supply chain etc.

talib & rahaman (2010) has mentioned that logistic is a part of a supply chain. Here is a

specified modes through a transportation going on. Defined a relationship between farmers

and consumers.

banerjee (2011) has mentioned that supply chain is important but there is a some limitation in

supply chain. here a important mentioned a case study on e-chaupal.

http://www.mofpi.nic.in,http://www.mofpi.nic.in/ContentPage.aspx?CategoryId=112.has

mentioned a major player which are engaged in supply chain management, mentioned a gov-

ernment policies and impact of WTO.



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R EFER ENCES:

banerjee, rahul(2011). Importance of supply chain and agriculture. Financial express, pp12

Ganeshan, Ram & Harrison, Terry(2010). An ¡

nt ¢ £

¤

¥ ¦

ti£

n t £

§

¥

ppl ̈

Ch©

in M ©

nagement.

Disha publication, volume-4, pp4-8

http://www.mofpi.nic.in.

http://www.mofpi.nic.in/ContentPage.aspx?CategoryId=112

talib, faisal& rahaman, zisupllur, qureshi(2010). Total quality management and supply chain

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Tayur, Sridhar& Ganeshan, Ram& Magazine, Michael (1999). Quantitative Models for Sup-

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Documents

REPORT-Supply Chain and Logistics