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Indian outlook on Public sector Logistic providers
Indian outlook on Public sector Logistic providers
The logistics sector has grown into over a $100 billion industry and contributes substantially to the development of the Indian economy. Across various sectors leading Indian firms have no doubt huge outlays on logistics. Sectors such as FMCG, cement, consumer durables, electronics and automobiles spend over Rs 2,000 crore each every year. The total Logistics spend is currently 13% compared to 8.7% of other developed countries and hence enough Scope to reduce the Logistics Spend which would require growth of 3PLs and 4PLs and improvement in Infrastructure.
Public sector Companies in India
Currently there are 3 major agencies in the public sector which are engaged in providing logistic services: Food Corporation of India (FCI), State Warehousing Corporation (SWC) and Central Warehousing Corporation (CWC). Other Public sector logistic providers are Indian Railways and CONCOR.  If we look at warehousing, the public sector dominates and accounts for a significantly large share of the total capacity available in the economy.
The Public sector companies in India have the following functionalities:
Acquire and build go downs and warehouses at suitable places.
Arrange facilities for the transport of agricultural produce and inputs.
Subscribe to the share capital of State Warehousing Corporations.
Does purchase sale, storage and distribution of agricultural produce and crops by acting as government's agents.
Government initiatives
Privatization of ICD
Setting up of National Highways Authority of India (NHAI)
Proposal of setting up a NMDP (National Maritime Development Programme) for improving Port Infrastructure.
Setting Up of Integrated Railways Modernization Plan(IRMP)
Capacity Expansion of Delhi/ Mumbai Airport; Setting up of International Airports at Bangalore/ Hyderabad.
100% FDI Allowed for Port, Greenfield Airports, Road.
Challenges
The Indian economy is striving for improvements in supply chain management and logistics services to gain a competitive edge and it would help if the government takes a more cohesive approach, feel industry chiefs.
Inefficient infrastructure could be the single most critical issue India faces today. Despite impressive economic growth, India's dilapidated roads, congested ports, inadequate power and complex State regulations are impeding development in the supply chain and logistics sector.Â
Global Outlook
As the world is getting flatter day by day because of globalization and liberalization, all the companies need to work on a world class platform and implement world class process. Same goes for logistic providers as well.
Pilot Freight Services, one of America’s largest independent transportation and logistics companies, provides a full range of domestic and international air, land and sea capabilities. Our 65 North American locations offer customizable services, including a worldwide network of partners servicing over 190 countries.
Emerging trends in logistics
 Yesterday's logistics and warehouse
- Conventional warehouses using only forklifts and manual stacking
- Software-MRP(materials requirements planning)
- Today's logistics districentre / Hub & technologies in use
- Â ASRS, Aircon/Non-Aircon Conventional, Refrigerated Warehouses
- Web-based Tracking (OMS, WMS, TMS)
- Radio Frequency Technology(RFID)
- Integrated End-to-End Pipeline Solutions
- Two dimensional bar coding system
- Use software that minimizes carbon emissions and enhance cost savings eg DHL
- Use of WMS(warehouse management system)
- Use of TMS(transport management system)
- Electronic data interchange
- Global positioning, onboard computers, AGV (automatic guided vehicles), automated warehouse.
Salient Features of new trends in logistics
• Shorter, More Predictable Supply Chain
• Increasing Outsourcing of Logistics Services
• Greater Collaboration Among Supply Chain Firms
• Move to Strategic Sourcing and Supply Management
• Add Final Value to Product Closer to Customer
• Leveraging on Information Technology
Next generation logistics trends
- DTD-DDP/DDU-Delivered terms
- Change from 'need based ' to 'expection based' service providers
- Full supply chain integration-value chain included
- High consumer interface
- Simultaneous online processing and information flow
- Servicing at both the ends -including intermediates.
- Post delivery services & value added services
- Reverse logistics & purchase order management
- Intermediate storage and distribution
- Vendor managed inventories: more interplant movement and more overseas manufacturing.
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