INDIA : LOGISTICS SCENARIO

Transcription

1 INDIA : LOGISTICS SCENARIO Chander Agarwal Executive Director Transport Corporation of India 1

2 despite India's exports almost doubling in value ( ), its share of world exports only rose from 0.6% to 0.9%. The inadequate physical infrastructure represents a key obstacle to faster economic growth - possibly constraining GDP by up to 2 percentage points a year. -Drewry, Connecting India - Transport Challenges and Opportunities 2

3 Logistics Infrastructure Logistics Scenario Case Study : World Class in India 3

4 2 nd largest road network in the world Road Logistics 65% National Highways at 2% of the road length PPP projects took off in 2000 Golden Quadrilateral kms (2007) NS- ES Corridor kms (2010) Port Connectivity Sagar Mala (2009) Vehicles : Shift from 2 Axle to Multi- Axle/Articulated; Euro I to Euro III Substantial improvement in Law Enforcement INFRASTRUCTURE: ROAD 4

5 Also 2nd Largest Network in the world ( route km ) Freight : Mainly Commodities Private Container Operations would see additional 45% in capacity of rakes Train Operating Services by government run India Railway Containerization Levels Emerging Infrastructure project : Dedicated Freight Corridor (2013) INFRASTRUCTURE: RAIL 5

6 INFRASTRUCTURE: PORTS Coastline of 7300 kms 12 Major Ports handle 75-80% of traffic, with a high concentration at JNPT (Mumbai) High turnaround time for ships ; Increasing draft requirements Coastal Shipping is yet to be utilized to its potential 6

7 INFRASTRUCTURE: AIR Emerging in Passenger, yet to arrive in freight The 4 major Airports constitute 80% of the traffic and are the main hubs The main Delhi Mumbai are already under privatization Future : Hub-and-spoke? Concepts like MIHAN 7

8 INFRASTRUCTURE : WAREHOUSING 8

9 INFRASTRUCTURE : POLICIES & PROCEDURES Inter State Paperwork 28 States, 28 x N forms Local levies Vehicular Permits Bureaucracy in Rail Warehousing Establishment Process EXIM procedures Multimodal act : yet to be defined for domestic 9

10 DOCUMENTS FOR EXPORTING & Documents for exporting/importing IMPORTING Documents for export Documents for import Number of Documents Australia China India Indonesia Japan Korea Malaysia Singapore United 10

11 NUMBER OF DAYS TO BUILD A WAREHOUSE Days to build a warehouse Days Australia China India Indonesia Japan Korea Malaysia Singapore United Arab Emirates Integrated Supply Source: EIU Chain Solutions 11

12 COSTS OF BUILDING A WAREHOUSE Costs (% of income capita) Source: EIU % of income capita Australia China India Indonesia Japan Korea Malaysia Singapore United Arab Emirates 12

13 IMPACT TO CUSTOMERS Product Flow Information Flow Document Flow Financial Flow Velocity, Flexibility & Predictability Increase Visibility & Accelerate Decision Making Accuracy & Timeliness Transactional Speed & Savings Physical Distribution Challenges Compliance and Regulatory issues Fragmented supply chain Nascent Understanding of Logistics : not yet a discipline. Source: Supply Chain Analysis: Implications for WBG Operations, PSD Forum, Uma Subramanian, WBG Investment Climate Department 13

14 Logistics Infrastructure Logistics Scenario Case Study : World Class in India 14

15 LOGISTICS! A question of Understanding Outsourcing Core Competence Evolution VENDOR PROCUREMENT OPERATIONS PHYSICAL DISTRIBUTION CUSTOMER Trust Stage 2 Stage 1 Stage 3 15

16 Transportation : The common Interest Warehousing : Outsourcing v/s Competence VAS : Strategic v/s Compulsion Forging Partnerships TRANSPORTATION : THE STARTING BLOCK 16

17 A BRIGHT FUTURE! The Opportunity of Being in India! Maturing of Relationships Emphasis on Supply Chain as a Core Strategy 17

18 Logistics Infrastructure Logistics Scenario Case Study : World Class in India 18

19 Case Study : Indian OEM 3PL Inbound Logistics Spares Logistics CBU Logistics Sequening Center Local Milk Run Critical Parts ) DC Management FGS Management Line Feeding Reverse Logistics Empty Bin Trolley Distribution CBU Delivery 19

20 Supplier to OEM Local Suppliers (Milk Run) O E Upcountry Suppliers (Main Route) M Sequencing Center Local Suppliers (Jumbuki) 20

21 In-Plant: Receipts to Line Feeding Unloading of Bins Arrival at OEM Unloading of Trolleys 21

22 FGS, Dispatch & Deliver FGS Yards/ Dealers DELIVERY Control Center 22

23 Thank you 23