A STUDY ON EFFECTIVENESS OF LOGISTICS AND

WAREHOUSING IN RELIANCES TRENDS

PROJECT REPORT
Submitted to Mahatma Gandhi University in partial fulfillment
of the requirements for the award of the Degree of

MASTER OF BSINESS ADMINISTRATION

Submitted by

AMALU VELAPPAN J
Reg. No. 190031000618

Under the guidance of

Dr. Neethu Ann Georgie

Faculty Guide

Accredited by NAAC with ‘A’ Grade

DEPARTMENT OF MANAGEMENT STUDIES
MAR ATHANASIOS COLLEGE FOR ADVANCED STUDIES
TIRUVALLA

2021
 MAR ATHANASIOS COLLEGE
FOR ADVANCED STUDIES
TIRUVALLA
Ph: 0469 2730323, Fax: 0469 2730317, [email protected]
www.macfast.org

CERTIFICATE

This is to certify that the project report entitled “A Study on Effectiveness of

Logistics and warehousing in Reliance’s Trends” is a bonafide report of the
project work undertaken by Amalu Velappan J, fourth semester MBA student of
our college during a period of 8 weeks commencing from 1st April to 30th
May,2021.

Dr. Neethu Ann Georgie Dr. Sudeep B. Chandramana

Faculty Guide Head, Dept. of Management Studies

Fr. Dr. Cherian J. Kottayil University Examiner

Principal, MACFAST
 DECLARATION

I hereby declare that this project report entitled “Study on Effectiveness of

Logistics and warehousing in Reliance Trends” is a bonafide report of the study
undertaken by me, under the guidance of prof. Neethu Ann Georgie., Department
of Management Studies, MACFAST, Tiruvalla.

I also declare that this project report has not been submitted to any other
University or Institute for the award of any degree or diploma.

Place : Tiruvalla
Date : AMALU VELAPPAN J
 ACKNOWLEDGEMENTS

First and foremost, I thank the almighty the light of my life, who helped me to make the main
project a success.
I would like to take this opportunity to express my sincere gratitude to all those who have helped
me throughout this project work. It gives me immense pleasure to acknowledge all those who have
rendered encouragement and support for the successful completion of this work.

I would thank the entire Management of Reliance trends Limited for giving me the wonderful

opportunity to work on a two-month project in their esteemed organization.

I am highly obliged to Mr. Rajesh, Store manager Kollam showroom for giving me this project

and guiding me throughout my summer project research. His encouragement, time and effort

motivated me to work sincerely in this project his constant follow-up, support, encouragement and

guidance to complete this project within the allotted time frame.

I thankful to our principal Fr. Dr. Cherian J Kottayil for giving me an opportunity for doing the
main project work

I also extended my sincere gratitude to Dr. Sudeep B Chandramana, Head of the Department
and my guide Dr. NEETHU ANN GEORGIE Mar Athanasius College For Advanced Studies
Tiruvalla, whose advice and guidance me in the successful completion of this study

AMALU VELAPPAN J
 LIST OF FIGURES

FIGURE TITLE PAGE NO:

NO
2:1 Functions of logistics management

2:2 Types of Warehouse

2:3 Indian logistics structure

5:1 Channel strategy

5:2 Supply chain of Reliance trends

5:3 Layout of ground floor
5:4 Layout of mens floor
5:5 SAP in Retail
5:6 Enterprise structure
5:7 Fish bone diagram of effective
logistics in Retail trends

/
 CONTENTS
ACKNOWLEDGEMENT :

LIST OF TABLES :

LIST OF FIGURES :

ABBREVIATIONS :

CHAPTER 1 INTRODUCTION 1-5

1.1 Background of the Study

1.2 Statement of the problem

1.3 Relevance & Scope of the Study

1.4 Objectives of the Study

CHAPTER 2 INDUSTRY PROFILE 6-42

- 2.1 Business Process of the Industry

2.2 Market Demand & Supply –

Contribution to GDP – Revenue
Generation
2.3 Level and Type of Competition –
Firms Operating in the Industry
2.4 Pricing Strategies in the Industry

2.5 Prospects and Challenges of the

Industry
 2.6 Key Drivers of the Industry

CHAPTER 3 REVIEW OF LITERATURE 43-68

3.1 Brief Theoretical Construct

related to the Problem
3.2 An overview of earlier studies

3.3 Uniqueness of Research Study

CHAPTER 4 METHODOLOGY OF THE 69-73

STUDY
4.1 Research Approach and design

4.2 Sources of Online Data

4.3 Sampling Design

4.4 Data Analysis Tools

4.5 Report Structure

4.6 Limitations of the Study

CHAPTER 5 DICUSSION 74-85

CHAPTER 6 FINDINGS OF THE STUDY 86-88

CHAPTER 7 CONCLUSION 89-90

 APPENDIX 91
 BIBLIOGRAPHY 92
 CHAPTER-1

INTRODUCTION

1
1.1 BACKGROUND OF THE STUDY

The project which is entitled as ‘A study on effectiveness of logistics and warehousing in Reliance
Trends in kollam showroom”. The project is undertaken with the aim of getting a clear picture
about the company and the industry. Primary data have been used for analysis. The Reliance
Group, founded by Dhirubhai H. Ambani (1932-2002), is India's largest private sector enterprise,
with businesses in the energy and materials value chain. Group's annual revenues are in excess of
US$ 66 billion. The flagship company, Reliance Industries Limited, is a Fortune Global 500
company and is the largest private sector company in India. Logistics management is that part of
the supply chain which plans, implements and controls the efficient, effective, forward and
backward (reverse) flow and storage of goods, services and information between the point of origin
and the point of consumption in order to meet customers' requirements rather to the customers‘
delight. A professional working in the field of logistics management is called a logistician.
Logistics, as a business concept, evolved only in the 1950s. This was mainly due to the increasing
complexity of supplying one's business with materials, and shipping out products in an
increasingly globalized supply chain, calling for experts in the field who are called Supply Chain
Logisticians. This can be defined as having the right item in the right quantity at the right time at
the right place for the right price and to the right target customers (consumer); and it is the science
of process having its presence in all sectors of the industry. The goal of logistics work is to manage
the fruition of project life cycles, supply chains and resultant efficiencies. Logistics is concerned
with getting (or transmitting) the products and services where they are needed or when they are
desired. It is difficult to accomplish any marketing or manufacturing without logistical support. It
involves the integration of information, transportation, inventory, warehousing, material handling,
and packaging. The operating responsibility of logistics is the geographical repositioning of raw
materials, work in process, and finished inventories where required at the lowest cost possible.

1.2 STATEMENT OF THE PROBLEM

Operations Management
Operations management is an area of management concerned with designing and controlling the
process of production and redesigning business operations in the production of goods or services.

2
LOGISTICS

Logistics is the management of the flow of resources between the point of origin and the point of
consumption in order to meet some requirements, for example, of customers or corporations. The
resources managed in logistics can include physical items, such as food, materials, equipment,
liquids, and staff, as well as abstract items, such as time, information, particles, and energy. The
logistics of physical items usually involves the integration of information flow, material handling,
production, packaging, inventory, transportation, warehousing, and often security.

A warehouse is a large building where goods are stored, and where they may be catalogued,
shipped, or received, depending upon the type. Though in the past, many warehouses, often
located in industrial areas sometimes next to major shipping ports, were teeming with workers,
the modern warehouse may be either completely or totally automated depending upon how
advanced the company is. Sometimes a manufacturing facility also has an attached warehouse,
where their manufactured goods are stored until shipped. It is a commercial building for storage
of goods. Warehouses are used by manufacturers, importers, exporters, wholesalers, transport
businesses, customs, etc.

1.3 SCOPE OF THE STUDY

As a part of completing the post graduate degree in Master of Business Administration, it is

required to undertake a project work on operations management, which is one of my specialization
subject. This study helped to familiarize the practical side of an organization. The study gives us
an overall view of the organization and functions carried out by operations department. Each and
every activities of the company is studied very carefully with the data available.aw3

The management of logistics is about having the right resources

in place at the right time to get the goods delivered to the right location in the correct condition. It
sounds simple but with ever more complex, longer supply chains around the world it only takes
one part of the world to sneeze and your entire supply chain can catch a cold. Timely deliveries
make for high customer and client satisfaction. Not only will receiving their goods on time please
them but courteous courier services will make for a pleasant delivery process. Certain goods have
an expiration date, which is why they may need to be delivered within strict timeframes.

3
 In the past, economic downturns have tended to hit the logistics industry
hard; but at the same time we need to recognize that the industry has broadly benefitted from the
key trends of the last half century – globalization, the growth of just-in-time supply chains and the
exponential growth of internet shopping. There is also a role both now and in the future for what
can best be termed mainstream logistics. In its simplest form, logistics is important because it is
needed to supply raw materials, goods and equipment to both the maker and the consumer.

Today’s supply chain really is the method of linking major business

processes both within and across companies to create a high-performance business model that
drives competitive advantage.

1.4 OBJECTIVES

 To gain a better understanding of the distribution and warehousing strategies used by

various retail markets, as well as how they can be used to gain a competitive advantag..

 Study about the logistics Activities with respect the retail sectors Reliance Trends.

 To analysis the warehousing strategy.

 To understand how the key business processes are carried out in the organization.

 To understand about the various products and services of the company.

 To gain an understanding about the working of the company

1.5 PERIOD OF THE STUDY

The study on the Effectiveness logistics and warehousing strategy held at RELIANCE TRENDS
Kollam has been conducted from 1/4/2021 to 31/5/2021.

1.6 CHAPTERIZATION

Chapters included in the project report are as follows:

Chapter 1 – Includes the statement, scope and objectives of the study

Chapter 2 – Mentions about the business process, pricing strategies, the challenges they are facing
and their demand and supply.

4
Chapter 3 – Describes about theoretical construct related to the problem and an overview of the
studies.

Chapter 4 – Mentions about the various tools and techniques used for collecting the data and their
limitations.

Chapter 5 & 6- About the interpretation and findings from the studies

Chapter 7 - Conclusion

5
 CHAPTER:2

INDUSTRY PROFILE

6
2.1 BUSINESS PROCESS OF THE INDUSTRY

Logistics is the management of the flow of resources between the point of origin and the point of
consumption in order to meet some requirements, for example, of customers or corporations. The
resources managed in logistics can include physical items, such as food, materials, equipment,
liquids, and staff, as well as abstract items, such as time, information, particles, and energy. The
logistics of physical items usually involves the integration of information flow, material handling,
production, packaging, inventory, transportation, warehousing, and often security. The complexity
of logistics can be modeled, analyzed, visualized, and optimized by dedicated simulation software.
The minimization of the use of resources is a common motivation

Seven R’s of logistics:

a. Getting the right product,

b. to the right customer,

c. in the right quantity,

d. in the right condition,

e. at the right place,

f. at the right time,

g. with the right cost.

A warehouse is a large building where goods are stored, and where they may be catalogued,
shipped, or received, depending upon the type. Though in the past, many warehouses, often located
in industrial areas sometimes next to major shipping ports, were teeming with workers, the modern
warehouse may be either completely or totally automated depending upon how advanced the
company is. Sometimes a manufacturing facility also has an attached warehouse, where their
manufactured goods are stored until shipped. It is a commercial building for storage of goods.
Warehouses are used by manufacturers, importers, exporters, wholesalers, transport businesses,
customs, etc.

7
Origin and Definition of Logistics:

The term "logistics" originates from the ancient Greek "λόγος" ("logos"—"ratio, word,
calculation, reason, speech, oration"). Logistics is considered to have originated in the military's
need to supply themselves with arms, ammunition and rations as they moved from their base to a
forward position. In ancient Greek, Roman and Byzantine empires, there were military officers
with the title ‗Logistikas‘who were responsible for financial management and distribution of
supplies.

The Oxford English dictionary defines logistics as: ―The branch of military science having to
do with procuring, maintaining and transporting material, personnel and facilities

The American Council of Logistics Management defines logistics as―the process of planning,
implementing and controlling the efficient and effective flow, and storage of goods, services and
related information from the point of origin to the point of consumption for the purpose of
conforming to customer requirements.

Objective of Logistics Management:

The primary objective of logistics management is to effectively and efficiently move the supply
chain so as to extend the desired level of customer service at the least cost. Thus, logistics
management starts with ascertaining customers ‘needs till their fulfilment through product
supplies. However, there are some definite objectives to be achieved through a proper logistics
system. These can be described as follows:

1. Improving customer service: An important objective of all marketing efforts, including the
physical distribution activities, is to improve the customer service. An efficient management of
physical distribution can help in improving the level of customer service by developing an
effective system of warehousing, quick and economic transportation, and maintaining optimum
level of inventory.

2. Rapid Response: Rapid response is concerned with a firm's ability to satisfy customer service
requirements in a timely manner. Information technology has increased the capability to postpone
logistical operations to the latest possible time and then accomplish rapid delivery of required
inventory.

8
3. Reduce total distribution costs: The cost of physical distribution consists of various elements
such as transportation, warehousing and inventory maintenance, and any reduction in the cost of
one element may result in an increase in the cost of the other elements. Thus, the objective of the
firm should be to reduce the total cost of distribution and not just the cost incurred on any one element.

4. Generating additional sales: A firm can attract additional customers by offering better services
at lowest prices. For example, by decentralizing its warehousing operations or by using economic
and efficient modes of transportation, a firm can achieve larger market share. Also by avoiding the
out-of-stock situation, the loss of loyal customers can be arrested.

5. Creating time and place utilities: The products are physically moved from the place of their
origin to the place where they are required for consumption; they do not serve any purpose to the
users. Similarly, the products have to be made available at the time they are needed for
consumption.

6. Price stabilization: It can be achieved by regulating the flow of the products to the market
through a judicious use of available transport facilities and compatible warehouse operations. By
stocking the raw material during the period of excess supply and made available during the periods
of short supply, the prices can be stabilized.

7. Quality improvement: The long-term objective of the logistical system is to seek continuous
ssquality improvement. Total quality management (TQM) has become a major commitment
throughout all facets of industry. If a product becomes defective or if service promises are not kept,
little, if any, value is added by the logistics. Logistical costs, once expended, cannot be reversed.
8. Movement consolidation: Consolidation one of the most significant logistical costs is
transportation. Transportation cost is directly related to the type of product, size of shipment, and
distance. Many Logistical systems that feature premium service depend on high-speed, small
shipment transportation. Premium transportation is typically high-cost. To reduce transportation
cost. It is desirable to achieve movement consolidation.

LOGISTICS MANAGEMENT FUNCTION

Logistics is the process of movement of goods across the supply chain of the company. This
process is consisting of various functions, which have to be properly managed to bring

9
effectiveness efficiency in the supply chain of organization. The major logistical function are
shown in figure

Logistics
function

Material
Order Inventory Information
Warehousing Transportation Handling& Packaging
processing Management Flow
Storage

Figure 2:1 functions of logistics management

1. Order processing: The starting point of physical distribution activities is the processing of
customers ‘orders. In order to provide quicker customer service, the orders received from
customers should be processed within the least possible time. Order processing includes receiving
the order, recording the order, filling the order, and assembling all such orders for transportation,
etc. the company and the customers benefit when these steps are carried out quickly and accurately.
The error committed at this stage at times can prove to be very costly.

Order processing activity consist of the following.

 Order checking in any deviations in agreed or negotiation terms

 Prices, payment and delivery terms
 Checking the availability in of the material stocks
 Production and material scheduling for storage
 Acknowledge the order, indicating deviation

2. Warehousing: Warehousing refers to the storing and assorting products in order to create time
utility. The basic purpose of the warehousing activity is to arrange placement of goods, provide
storage facility to store them, consolidate them with other similar products, divide them into
smaller quantities and build up assortment of products. Generally, larger the number of warehouses

10
a firm has the lesser would be the time taken in serving customers at different locations, but greater
would be the cost of warehousing. Thus, the firm has to strike a balance between the cost of
warehousing and the level of customer service.

Major decision in warehousing is as follows:

 Location of warehousing facility

 Number of warehousing
 Size of warehouse
 Design of the building
 Ownership of the warehouse

3. Inventory Management: Linked to warehousing decisions are the inventory decisions which
hold the key to success of physical distribution especially where the inventory costs may be as
high 15 as 30-40 per cent (e.g., steel and automobiles). No wonder, therefore, that the new concept
of Just-in-Time- Inventory decision is increasingly becoming popular with a number of companies.
The decision regarding level of inventory involves estimate of demand for the product. A correct
estimate of the demand helps to hold proper inventory level and control the inventory costs. This
is not only helps the firm in terms of the cost of inventory and supply to customers in time but also
to maintain production at a consistent level. The major factors determining the inventory levels
are: The firm‘s policy regarding the customer service level, Degree of accuracy of the sales
forecasts, Responsiveness of the distribution system i.e., ability of the system to transmit inventory
needs to the factory and get the products in the market. The cost inventory consists of holding cost
(such as cost of warehousing, tied up capital and obsolescence) and replenishment cost (including
the manufacturing cost).

4. Transportation: Transportation seeks to move goods from points of production and sale to
points of consumption in the quantities required at times needed and at a reasonable cost. The
transportation system adds time and place utilities to the goods handled and thus, increases their
economic value. To achieve these goals, transportation facilities must be adequate, regular,
dependable and equitable in terms of costs and benefits of the facilities and service provided.

5. Information: The physical distribution managers continuously need up-to-date information

about inventory, transportation and warehousing. For example, in respect on inventory,

11
information about present stock position at each location, future commitment and replenishment
capabilities are constantly required. Similarly, before choosing a 16 carrier, information about the
availability of various modes of transport, their costs, services and suitability for a particular
product is needed. About warehousing, information with respect to space utilization, work
schedules, unit load performance, etc., is required. In order to receive all the information stated
above, an efficient management information system would be of immense use in controlling costs,
improving services and determining the overall effectiveness of distribution. Of course, it is
difficult to correctly assess the cost of physical distribution operations. But if correct information
is available it can be analyzed systematically and a great deal of saving can be ensured.

6. Facilities: The Facilities logistics element is composed of a variety of planning activities, all of
which are directed toward ensuring that all required permanent or semi-permanent operating and
support facilities (for instance, training, field and depot maintenance, storage, operational, and
testing) are available concurrently with system fielding. Planning must be comprehensive and
include the need for new construction as well as modifications to existing facilities. Facility
construction can take from 5 to 7 years from concept formulation to user occupancy. It also
includes studies to define and establish impacts on life cycle cost, funding requirements, facility
locations and improvements, space requirements, environmental impacts, duration or frequency of
use, safety and health standards requirements, and security restrictions. Also included are any
utility requirements, for both fixed and mobile facilities, with emphasis on limiting requirements
of scarce or unique resources.

2.2 MARKET DEMAND &SUPPLY-CONTRIBUTION TO GDP –REVENUE

GENERATION

The Indian warehousing and logistics industry had an admirable run on 2020 as Covid-19 forced
businesses to focus on continuity plans and supply chain constraints. The growth momentum is
expected to continue in 2021 as sectors like e-commerce, FMCG and pharmaceuticals look to
penetrate deeper into tier II and III cities.

The global logistics market in its present state has come about as a result of an amalgamation of
supply side and demand side trends. The rapid proliferation of trade agreements among various
nations is the major demand driver of the global logistics market. Additionally, the initiatives

12
aimed at increasing globe trade activities have expanded the demand for logistics in order to keep
pace with the rising needs of importers and exporters. According to the latest report by IMARC
Group, titled “Logistics Market: Global Industry Trends, Share, Size, Growth, Opportunity and
Forecast 2021-2026”, the global logistics market reached a value of US$ 5.2 Trillion in 2020

The advancements in technology which involve automated material handling equipment,

biometrics, GPS, etc. aid organizations and businesses to work proficiently, thereby spurring the
growth of the logistics market across the globe. The upsurge in internet retailing and the increasing
popularity of online shopping are some of the other factors supporting the market growth. Looking
forward, IMARC Group expects the global logistics market to exhibit moderate growth during the
next five years.

Market Summary:

Based on the model type, the market has been segmented as 2 PL, 3 PL and 4 PL.

On the basis of transportation mode, the market has been segregated into roadways, seaways,
railways and airways.

Based on the end-use, manufacturing represents the largest segment, accounting for the majority
of the global share. Other major segments include consumer goods, retail, food and beverages, IT
hardware, healthcare, chemicals, construction, automotive, telecom, oil & gas, and others.

Region-wise, Asia Pacific accounts for the largest market share followed by Europe, North
America, Latin America, and Middle East and Africa.

The competitive landscape of the market has also been analyzed with some of the key players
being J.B. Hunt Transport Services, C.H. Robinson Worldwide, Inc., Ceva Holdings LLC, FedEx
Corp., United Parcel Service, Inc., Expeditors International of Washington Inc., XPO Logistics
Inc., Kenco Group, Deutsche Post DHL Group, Americold Logistics, LLC and DSV Air & Sea
Inc.

Logistics services market India is on a growth trajectory owing to rapid globalization and 100%
FDI allowance. Logistics services broadly encompass courier services, freight forwarding, third
party logistics and reverse logistics. Growth in international trade is providing huge impetus to the
demand for the logistics services. Growing competition in retail sector transcends need of reverse

13
logistics to handle returns and store up gradation. Third party logistics providers need to customize
their services and charge competitive rates to benefit from retail boom in India. One of the major
segments contributing to a rapidly growing logistics industry is the warehousing business. The
growth in international trade coupled with the rise in containerization levels has led to high demand
for warehouses. This creates tremendous opportunity for the private sector. The market, which is
valued at INR 20 bn, is expected to grow due to the demand generated by importers and exporters
for specialized services. The report begins with an overview of the industry indicating market size,
growth, current state of the market and the infrastructural resources available. The report highlights
various types of warehouses, categorized on the basis of ownership and usage.

THE ROLE OF THE WAREHOUSE IN THE LOGISTICS SYSTEM:

• The warehouse is where the supply chain holds or stores goods.

• Objectives of warehousing include

– Transportation

– consolidation

– Product mixing

– Docking

– Service

– Protection against contingencies

AN OVERVIEW OF LOGISTICS AND WAREHOUSE.

Logistics including transportation, inventory management, warehousing, materials handling &

packaging, and integration of information, is related to management of flow of goods between the
point of origin and the point of consumption. With the growing Indian economy and changing
business perspectives, the scope of the logistics industry has broadened from rudimentary
transportation of goods to include end-to-end supply chain solutions including warehousing &
express delivery.

The domestic logistics market is expected to grow at a CAGR of approximately 10%. Indian
logistics market is expected to be driven by the growth in the manufacturing, retail, FMCG and e-
14
commerce sectors. Development of logistics-related infrastructure such as dedicated freight
corridors, logistics parks, free trade warehousing zones, and container freight stations are expected
to improve efficiency. The industry is dominated by transportation, which accounts for over 85%
of total value, and its share is expected to remain high over the next few years. The sector provides
employment to more than 22 million people Improving logistics sector has significant bearing on
exports and it is estimated that a 10% decrease in indirect logistics cost could potentially increase
5-8% of exports. Currently the Indian logistics industry is highly fragmented and unorganized.
Owing to the presence of numerous unorganized players in the industry, it remains fragmented
with the organized players accounting for approximately 10% of the total market share. With the
consumer base of the sector encompassing a wide range of industries including retail, automobile,
telecom, pharmaceutical, heavy industries etc., logistics industry has been increasingly attracting
investments in the last decade.

The sector is facing challenges such as under-developed material handling infrastructure,

fragmented warehousing, multiple regulatory/ policy making bodies, lack of seamless movement
of goods across modes, minimal integrated IT infrastructure. In order to develop this sector focus
should be on new technology, improved investment, skills, removing bottlenecks, improving inter
modal transportation, automation, single window system for giving clearances and simplified
processes would be required.

Warehousing In Indian Scenario

The warehousing market in India is highly fragmented with most warehouses having an area of
less than 10,000 sq.f

t Approximately 90% of the warehousing space in the country is controlled by unorganized players
with smaller sized warehouses which have limited mechanization. Fragmented warehousing
footprint results in higher average invent holding, in addition to resulting in higher storage and
handling losses, driven by lower level of mechanization.

Warehouses have become one of the major segments of the rapidly growing Indian logistics
industry. Today they do not only provide custody for goods but also offer value added services
such as sorting, packing, blending and processing with evolution of an organized retail sector
modern warehouses for the storage of perishable goods have become essential.

15
The government’s initiatives to promote the growth of warehouses in the country through measures
such as Enactment of the Warehousing Act, 2007, investments in the establishment of logistic
parks and Free trade warehouse zones (FTWZs) together with the introduction of Goods & Service
Tax (GST) regime augurs well for the industry’s growth. Sensing the tremendous growth potential
of the warehouse sector, the private players (including both domestic & international) have
ventured with a view to bridge the gap between cost and efficiency of operations.

Types of Warehouses

Private Warehouse

Public Warehouses

Bonded Warehouses

Container freight stations (CFS) / inland container depots (ICDs)

Cold Storage

Figure 2:2 Types of warehouse

Government Storage

The primary objectives of any government storage are

1) to ensure food security,

2) enable trade movement both within and out of the country. Consequently, the Central
Warehousing Corporation operates 431 warehouses (storage capacity of 100.28 lakh MT)
including 44 custom bonded warehouses, 29 CFSs/ICDs, 3 Air Cargo Complexes (ACCs) (5,961
MT) and 3 cold storage warehouses (2,419 MT). Further, various State Warehousing Corporations
(SWC) manage a total capacity of 283.34 MT across 1,831 warehouses. The Food Corporation of

16
India (FCI) works for holding agricultural produce to meet the requirements of various government
schemes. FCI has its own storage capacity but also hires capacities from CWC, SWCs and the
private sector.

LOGISTICS INDUSTRY IN INDIA

India has become the prime destination for logistics service providers all over the world. The
demand for logistics services in India has been largely driven by the remarkable growth of the
economy. The growth is being projected at 9-10 per cent in next few years, with the CAGR
(compounded annual growth rate) expected to grow at a rate of 7-8 per cent. This growth is
expected to gain greater momentum due to the exponential growth of the Indian economy. India
is also experiencing a big retail boom as the buying capacity of the middle and upper middle
segment of the population has scaled new heights. Many large multinationals from the retail
industry are planning to set up operation in India and large local retailers are also planning to
expand their operations. But with the infrastructure largely under-developed and incapable of
catering to a growing economy, logistics management in India becomes too complex. The poor
condition of infrastructure directly translates to higher turnover, pushing up the operating costs
and reducing efficiency. There are other problems such as complex regulatory compliance and
limited adoption and utilization of technology, which has resulted in increased paperwork and
inability to communicate effectively with customers. In spite of dismal infrastructural scenario,
the hopes of the logistics sector are kept up by the various upcoming infrastructural projects like
logistics parks and hubs and other initiatives by public and private sector. The future of the logistics
sector depends not only on the continued development of infrastructure but also on the capability
of the service providers in adapting themselves and making optimal utilization of technology.

India is emerging as one of the world ‘s leading consumer market with the raise of middle income
group. Estimated at US$991 billion in 2020, Total consumption expenditure is expected to grow
to nearly US$ 3.6 trillion in 2020. Food, housing & consumer durable and transport
&communication are expected to be the top 3 categories, accounting for 65% of consumption
in2020. The FMCG sector alone is expected to grow at a base rate of 12 % annually to become an
INR 4000 billion industry by 2020. The logistics sector is expected to play an important role in
accessing this emerging market and enabling this growth.

17
INDUSTRY TRENDS

Transportation: Container cargo represents only about 30% (by value) of India ‘s external trade-
much lower when compared with the global containerized cargo average of 70-75%. At a growth
rate of 12%, India ‘s container cargo traffic is estimated to reach 15 million TEUs by FY16E from
about 7.5 million TEUs now (at 12 major ports). In comparison, China has created capacity at its
ports to handle more than 100 million TEUs a year. Out of the 15 mn TEUs of total container
traffic, we estimate EXIM rail container traffic to be 5 mn TEUs by FY16E. This would be a huge
opportunity and will significantly benefit container rail operators. Rising investment in the rail and
port spaces also fuels growth in allied industries like wagon manufacturing, port handling
equipment, railway electrification systems and construction companies. To reduce the
transportation cost and for quicker movement of cargo Multimodal transport operation is
introduced (MTO). MTO helps exporters with less documentation for instance single document
for all modes of transport.

Third Party Logistics (3PL): Outsourcing is everywhere. Logistics industry is no exception.

Logistics services like transportation, warehousing, cross docking, Inventory management,
packaging and freight forwarding all are part of third party logistic services. Companies in India
currently outsource an estimated of 52% of logistics. And 3PL industry is estimated to be
US$1.5bn in FY14. 3PL represents only 1% of logistics cost emphasis its significance in the
industry. Future is no doubt lying in outsourcing. As the growth in the 3PL market is expected to
be in the range of 25-30% CAGR over FY11-14E. As of now, the 3PL activity is limited to only
few industries like automotive, IT hardware, telecom and infrastructure equipment. The organized
3PL market in India can be categorized into three major segments – public sector, private sector
and foreign entrants. Some of the major players in each category are: TVS logistics, DIESL
(TATA), Panalpina, TCI, Gati, Allcargo, V Trans, Total, VRL and Reliance etc.

Private Participation: The industry is becoming more competent with the entry of global giants
like Gazeley Broekmen (Wal-Marts logistics partner), CH Robinson and Kerry logistics and large
Indian corporate houses like Tata, Reliance and Bharti group. A series of mergers and acquisition
like DHL acquired Blue Dart, TNT acquired Speed age Express Cargo Service and Fedex bought
over Pafex, are also leading to consolidation industry at various levels and segments. Many of

18
these companies are planning to broaden their areas of operation and are also planning to develop
their own logistic parks across the country. If the trend continues as per the estimates, the market
share of the organized logistics players is expected to double from 6% in2013 to approx. 12% by
2020.

Express logistics: Organized players have monopoly over the express logistics industry. 65%of
express business is in the hands of organized players, while semi-organized and unorganized
players accounts for 25% and the remaining 10% of the market by EMS Speed Post. But altogether
different picture can be witnessed in the domestic segment. In domestic front, unorganized players
hold 41% of the market share based on price advantage. While organized players accounts for 45%
and EMS Speed Post the remaining 14%.

Warehouses

Recently, warehouses have become key growth drivers in the logistics industry. Apart from
conventional storing services, warehouses now providing value-added services like consolidation
and breaking up of cargo, packaging, labeling, bar coding and reverse logistics etc. warehousing
and related activities account for approx. 20% of the total logistics industry. Most of the

warehousing space in India lies with unorganized players in domestic front, which is causing wide
supply and demand gap in storage space. According to KPMG, an additional120million square
feet of warehousing space is needed by 2013 to bridge this gap. Currently, the organized
warehousing industry in India has a capacity of approx. 80millionmetric tones and is growing at
35 to 40 per cent per annum. An investment of approximately US$ 500million is being planned by
various logistics companies for the development of about45million square feet of warehouse space
by 2013.Many players in this segment such as Multimodal Logistics Park, Mega Food Parks and
Free Trade Warehousing Zones have planned next generation storage models.

Logistic parks: About 110 logistics parks spread over approximately 3,500 acres at an estimated
cost of $1 bn are expected to be operational and an estimated 45 mn ft2 of warehousing space with
an investment of $ 500 mn is expected to be developed by various logistics companies
by2020.Majority of these logistics parks are planned in close proximity to state capitals. However,
availability of large land parcels at relatively low cost, connectivity to multiple markets across

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states and industrial clusters has led to the emergence of some tier-2 and tier-3 cities as favored
destinations for the development of logistics parks and warehouses.

Government Initiatives and regulations Initiatives: To emphasis the significance of

transportation in logistics industry and to increase the competence in the sector government
introduced private participation, especially in port sector. The major initiative in transport
infrastructure is introduction of National Maritime Development Program (NMDP) with an
investment of Rs 568bn. NMDP would be addressing the challenges of the growing international
traffic demand of the country along with developing the port facilities at par with world standards.
While liberalizing the railway services, government opened the doors of container business to the
private parties. A total of 15 players immediately entered the market.

FDI regulations

 In general 100% FDI under the automatic route is permitted for all logistic services
 FDI up to 100% subject to FIPB approval is permitted for courier services.
 FDI up to 49% under the automatic route is permitted for air transport services, including
air cargo services.
 100% FDI is permitted in Ports and Harbours under automatic route
 100% FDI is permitted under the automatic route for storage and warehousing including
warehousing of agricultural products with cold storage.
 100% FDI is permitted in transport and transport support services through automatic route.

Indian Logistics Industry- Future Trends

There have been several key indicators to the future trend in the Indian logistics sector. The
demand for logistics services has been largely driven by the remarkable growth of the Indian
economy. Logistics spend in India is estimated to be around 13% of the GDP, which is
comparatively higher than other developed countries.

The air transport sector‘s contribution has been around 0.2 per cent of the country‘s GDP, while
the transport sector‘s contribution to the GDP has been growing over the last couple of years.
India‘s air cargo is predicted to grow at over CAGR of 11.5 per cent in the next few years. The
contribution of the marine transport sector has also been around 0.2% to the country‘s GDP.
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The sector‘s contribution to the GDP has been increasing mostly because of the growing economic
developments in the country. The role of the shipping industry in the growth of Indian economy
has been very significant. Major ports in India together have handled around 500 million tonnes
of cargo in the past two years and this figure is growing significantly.

The Indian railways has realized the necessity to improve the infrastructure provide better
service. The plan to develop Logistics Parks or hubs has the potential to streamline and
optimize the supply chain and reduce the costs. Currently around 80% of the goods in India
move by road, the railways have to essentially devise plans to divert this traffic to the rail.
India ‘s logistics sector attracted huge investments, leaving behind some of the major
sectors including aviation, metals, and consumer durables. The growths in the retail and
manufacturing industry, commodity markets and development of SEZs have been key
factors in the growth of Indian Logistics Industry

Indian logistics Industry.

Recent studies have indicated that the Indian logistics industry is expected to grow annually at the
rate of 15 to 20%. A number of infrastructural projects involving warehouse and logistics parks
are being undertaken are expected to be operational in the next 2-3 years. The setting up special
economic zones (SEZs) has led to increased logistics activities around them. Several logistics
parks have come up at locations like Mumbai, Kolkata, Chennai and Hyderabad because of their
excellent port, rail, and road connectivity and are witnessing significant investment in
infrastructure. Many of the large logistics players are in the process of setting up warehouses,
container freight stations (CFS), inland container depots(ICD), logistics parks, distribution centers
and other facilities to leverage the abundant opportunities. Increase in foreign trade is expected to
further accelerate the demand for logistics services.

The future of the Industry is very bright and is sure to witness exponential growth in the coming
years. The increased participation of both public and private sector is crucial for developing
logistics and improving supply chain management. Not only do the logistics companies need to
create efficient business to thrive in the logistics sector, but they also need to explore ways for
investing energy, costs and time to grow a strong logistics system.

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INDIAN LOGISTICS STRUCTURE

Indian Logistics
Market

Road Freight Express Logistics Liquid Logistics Container Logistics

Inland Container
container Haulage Mutlimodal
Depot
Transport
(ICD)&Contyainer
Operator (MTO)
Freight Station

Figure2:3 Indian logistics structure

 The Indian Logistics Industry is estimated at US$ 125 billion in 2010.

 Generated employment for 45 million people.
 The industry is expected to grow annually at the rate of 15- 20 per cent, reaching
revenues of approximately $ 385bn by 2015.
 Highly Unorganized with organized sector responsible only for 6% Market share
of organized logistics players is also expected to double to approximately 12 per
cent by 2015.
 The size of the 3PL industry is estimated to be~US$1.5 bn in FY11 (1% of
logistics cost).
 The share of 3PL services is expected to increase from 6% in FY06 to 13% in
FY11, at a CAGR of 25%
 Logistics costs are 10-20% of GDP

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  Indian Infrastructure is rated 54th among the 59 countries -- Road : 56/59, Rail:
25/59, Seaport: 51/59, Airport: 40/59
 Elements of Logistics cost • Transportation 35% • Inventories 25% • Losses 14%
• Packaging 11% • Handling and Warehousing 9%

2.3 LEVEL AND TYPE OF COMPETITON

The markets for freight transportation and other logistics services are undergoing rapid
transformation: concentration of demand and supply in the hands of fewer, larger shippers and
service providers, new business models of highly integrated intermodal, “fourth-party” and supply-
chain wide logistics service offerings, and a dramatically increasing volatility in the general
economic environment are among the reasons for the changes. As a consequence, the “strategic”
task of assessing the opportunities and power of certain players in the markets, and the important
political and judicial task of assessing and maintaining competition in those markets have become
very difficult. Traditional ways of meeting the challenges involved with defining and “measuring”
markets and competitive intensity do not seem to be sufficient any more.

FIRMS OPERATING IN THE INDUSTRY

Logistics companies are the ones who plan, control, store, and execute the transport of goods from
the producer to the consumer. In business terms, it is described as an efficient method which helps
in the efficient flow of goods and its storage from producer to the customer. A proper supply chain
makes it even more beneficial and includes proper shipping, transportation, receiving, storage, and
management of the goods.

List of top listed Logistics company in India are as follows

a. ALLCARGO LOGISTICS LTD

Allcargo Logistics Ltd was established in the year 1995. It has gained massive success over the
years. Providing a multimodal transport system i.e. transport of goods through various modes of
transport such as truck, rail, ocean, and air. Being a part of the Avvaysha group, it offers top-notch
quality and professionalism which makes it one of the most preferred logistics companies in India.

Services Provided

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  Pan India container freight stations
 Third-party logistics
 Inland container depots
 Ship owing
 Warehousing
 Chartering

b. CONTAINER CORPORATION OF INDIA LTD.

Container Corporation of India Ltd. (CONCOR) was established in the year 1988 and started its
operations in 1989. It is a Navratna Public Sector undertaking owned by the Indian rail ministry.
It is one of the largest logistics companies in India due to its record of the highest sales in recent
years. It is also a multimodal logistics solution provider. Their main operations are through
railways but they have also been expanding to other modes of transport.

Services Provided

Following are 6 of the major services provided by CONCOR:-

 Coastal Shipping
 Distribution Logistics
 Cold chain Logistics
 First-mile Last-mile Connectivity
 Bonded Warehousing
 LCL Hub Services

c. DHL EXPRESS INDIA PVT. LTD.

DHL Express India Pvt. Ltd. is one of the most renowned companies in the logistics sector.
Established in 1969, it is a part of “Deutsche Post DHL Group” which is the world’s leading postal
and logistics company. It also comprises business units such as DHL parcel, DHL Freight, DHL
express, and so on.

Services Provided

The following are some of the major services provided by DHL Express India Pvt. Ltd.:-

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  International Express Delivery Solution.
 Global Forwarding.
 Express Delivery Solution.
 Freight Transportation.
 Supply Chain Solutions.

d. BLUE DART EXPRESS LTD.

Blue Dart Express Ltd. was established in the year 1983. It can remarkably be considered as one
of the top 10 logistics companies in India. Moreover, It is one of the most renowned South Asia
logistics company. This company has been voted as one of the most premier brands for the 9th
consecutive year. It is a part of the DHPDL group.

Services Provided

Following are some of the key services provided by Blue Dart:-

 Premier Courier Service

 Integrated Express Packaging services.

e. FEDEX EXPRESS TSCS INDIA PVT. LTD.

The company was established in the year 1971 is one of the world’s fastest and largest
transportation companies. Well known for overnight delivery services, FedEx remains in the list
of top logistics companies in India. Operational in 220 countries, it is a globally recognized brand
with a yearly turnover of approximately 5000 crores.

Services Provided

Some of the major services provided by FedEx are:-

 Air and Ocean Cargo Network

 Customs and Trade
 Supply Chain Services
 Shipments

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f. GATI LTD.

Gati Ltd. was established in the year 1989 and its headquarter is in Hyderabad, India. It is one of
the top 10 Logistics companies in India. This company is well known for its supply chain solutions
and express distribution. Its nationwide network delivers to almost every single district in the
country. They also have a well-established presence in many other Asian and SAARC countries.

Services Provided

Some of the major services provided by Gati Ltd. are:-

 International Courier Services

 Reverse Logistics
 Priority Courier
 Air Cargo
 Rail Cargo

g. TRANSPORT CORPORATION OF INDIA

Transport Corporation of India was established in the year 1958 with its headquarters in Gurugram.
It is a multi-modal logistics and supply chain solutions provider in India. Transport Corporation
of India has a huge International recognition which makes it more than qualified to be on this list.
The company has eight divisions, each of which handles different parts of the supply chain.

Services Provided

Some of the major services provided by TCOI are:-

 Courier Services
 Transport Facility
 Supply chain consultancy
 Inbound logistics
 International Inbound And Outbound Freight Handling

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h. SICAL LOGISTICS LTD.

Sical Logistics Ltd., owned by the Coffee Day group, was established in the year 1955, with its
headquarters that are spread up globally. The company is well known for its on or before time
delivery of goods. Sical has recently begun making logistics infrastructure purchases and is also
offering offshore support to the oil and gas industry.

Services Provided

Some of the major services provided by first flight couriers are:-

 Priority Courier
 E-Commerce Logistics
 Air Cargo
 Train Cargo
 Reverse Logistics

2.4 PRICING STRATEGIES

The combined effects of intense industry competition and rising transportation costs underscore
the importance of profitable freight and logistics pricing strategies. In most businesses, variations
of a dynamic pricing structure are among the best options for developing pricing strategies with
the flexibility to meet the needs of individual customers and differing cost-based situations.

The Significance of Pricing

A 2012 global pricing strategy study conducted by the strategy and marketing consulting company
Simon-Kucher and Partners shows successful freight and logistics businesses share similar pricing-
strategy characteristics. Most importantly, successful businesses charge prices that reflect the value
of their products and services. According to study results, logistics companies with reflective
pricing strategies achieve profit margins about 17 percent higher than competing businesses. In
addition, successful logistics businesses commit to creating effective pricing strategies while also
implementing strict guidelines that ensure sales people can’t adjust prices to meet sales quotas

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Pricing Strategy Options

In a dynamic pricing strategy, prices frequently change. These changes most often reflect
differences in the delivery area or location, the product, increasing or decreasing demand and
changing economic conditions. Within the realm of dynamic pricing, a number of strategy
modifications allow freight and logistics businesses to tailor pricing to align with profitability
goals. While the most appropriate strategy varies between businesses, revenue management, yield
management and geographical pricing are among the most common.

Revenue and Yield Management

Revenue management pricing is common with less-than-full truckload haulers. In addition to

basing prices on the destination point, revenue management works to optimize income by setting
prices based on the percentage of a full truckload the merchandise occupies, or if the customer
chooses, charging the rate for a full truckload regardless of the space merchandise occupies. A
yield management pricing strategy sets prices based on the need for quick, timely delivery, and is
often chosen by perishable goods transporters. Prices reflect variables like altering established
routes and changing drivers to get a load delivered within an acceptable time.

Geographical Pricing

Long-haul businesses often utilize geographical pricing. A geographical pricing strategy allows
freight and logistics businesses to account for differences in fuel costs, vehicle wear-and-tear,
driver’s wages, and in some cases, liability within the prices customers pay. Zone pricing, which
sets different prices for differing geographic locations, usually based on distance from a warehouse
or other shipping site, is a common example. Although less common, short-haul or local freight
businesses can adopt a variation called uniform delivery pricing that charges the same price for
every customer

SRP Basics

Manufacturers place suggested retail prices on goods to help maintain a reasonable price point in
the consumer market. This correlates with the manufacturer's need to sell goods to wholesalers and
retailers at a profitable price point. Additionally, manufacturers that emphasize exceptional quality

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and product attributes in branding rely on a certain price point to maintain a quality brand image.
Some even arrange minimum pricing agreements with resellers.

Fair Market Value Basics

Market value generally refers to the amount a "typical" or "reasonable" buyer would pay for a
given product in a competitive marketplace. Businesses may not know the exact value of a
particular good at a specific date and time. However, some industries offer access to comparative
pricing systems or software tracking tools that allow companies to see what products are going for
at competing providers. Prices that closely align with what the market is willing to pay tend to
produce a higher volume of sales.

Pricing Strategies

Some retailers follow SRPs closely. Convenience stores, for instance, often sell snacks and others
at the SRP listed on the product. However, discount retailers usually try to offer a relatively low
price compared to higher-end competitors. This often means promoting goods at a discount from
the suggested price. Low price providers that have efficient operations or low-cost advantages can
often make a reasonable profit even with below-SRP prices.

2.5 INDIAN LOGISTICS – KEY CHALLENGES

1.Geographical Coverage Insufficient: Insufficient distribution channels/infrastructure

bottlenecks restrict the scope to reach consumers of products nationwide.

2. Over-burdened ports : India has a long coastline. However, the country‘s port system isn‘t
utilized properly. 70% of the seaborne trade is managed by 2-3 of its 12 major ports. Remaining
185 minor ports in the country are largely underutilized

3. Warehousing investment is low :The infrastructure including roads, airports and seaports are
preliminary the main target areas of investment. However, warehousing, a facilitator for the
agricultural sector, has attracted lower investment that reduced its pace of growth in comparison
to rising farm output

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4. Technology Usage: Technology usage is still very low in India, which restricts the scope of
increasing efficiency and productivity

5. Cost/Quality of Service: According to industry analysts, logistics costs in India are among the
world ‘s highest and outside of the metros and a few cities, the delivery time is very uncertain
“Overburdened physical infrastructure is a major bottleneck currently faced by the Indian
Logistics and Transportation players”

MARKETING MIX IN LOGISTICS

Marketing logistics involve planning, delivering, and controlling the flow of physical goods to a
market as well as the material and information necessary to meet customer demands. The demands
of the customer must be met at a profit that increases revenue for the organization. Maintaining an
organization ‘s competitive edge means understanding and implementing an effective marketing
logistics strategy regarding product, price, place and promotion. These four functions of marketing
logistics help the organization to reach the target customers and deliver the products or services

PRODUCT

Each customer can have individualized needs so the logistical services provided may vary from
customer to customer. Regardless of these differences, the customers expect 100 percent
conformance and assured reliability at all times with every transaction. The goals of this aspect of
marketing logistics include filling the order, on-time delivery, precise invoicing and zero damage.

PROMOTION

Logistics industry to take people in favors through Word of mouth publicity, reliability showing
through long years of establishment and other services. Corporation participated in various
Exhibitions, Krishi Expos, Trade Fairs, etc., and prominent fairs.

PRICE

An organization bases pricing decisions on both internal and external factors. Marketing logistics
must recognize price drivers. The profile of the customer, the product and the type of order are
factors that drive the price. Discounts for quantities and the related logistical cost structure can
impact the price the customer will ultimately pay for the product or service. Additional factors

30
driving price include the shipping costs based on the size, weight and distance the organization
will ship the item.

PLACE

The function of place in marketing logistics allows the organization to simplify the transactions
between a logistics provider and the customer. The organization must execute logistics in such a
way that the customer is not aware of the complexities involved in the logistics process. Also the
location of the factory, warehouse and customer can greatly impact the marketing logistics process
by increasing or reducing costs. For example, locating a factory in Bihar might reduce the labor
costs associated with a product. However, at the same time locating the factory in Bihar might
increase the shipping costs and negate any cost savings.

SWOT ANALYSIS OF INDIAN LOGISTICS INDUSTRY

STRENGTH

1. Logistics industry contribute 10-13 % in GDP in India

2. Ranked at 46th position in world in 2012

3. Vital role in import and export business

4. Cheap labor available in India

5. Improve infrastructure like development of new roads, rail road, ports

6. 100% in FDI in India

7. Quality and reliability

8. Direct delivery capability

9. Currently industry use latest technology

WEAKNESS

1. Poor performance in infrastructure facilities in India

2. Lack of experienced people while taking strategic decisions

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3. Poor physical facilities like road, port, rail road, IT etc

4. State and central government policies over its industry like import restriction over certain
products and export for certain scare products

5. Competitors from international players like DHL, UPS, TNT, FEDEX, Blue Dart etc

6. Indian logistics company adopt inadequate technology compare to foreign competitors

OPPORTUNITIES

Growth and future of 3PL Market in India CRISIL Research has estimated the 3PL market in
India at Rs 47-50 billion in 2008-09, which is expected to grow at a CAGR of 27% to Rs162-165
billion by 2013-14.3PL penetration has been the highest in sectors such as cars and organized
retail. The segment is also gaining importance in other sectors such as IT hardware and FMCG.
The share of 3PL in the overall logistics market is expected to increase from around 1.5 - 2.0% in
2008-09 to around3.5 – 4% by 2013-14.

The Indian logistics market is expected to grow at a CAGR of 10.7 percent between 2020-2024,
and brands are only boosting this growth by leveraging cutting-edge technologies. Moving forward
in 2021, a number of trends will drive this growth and all will involve the adoption of technology

The benefits would accrue in the form of:

1. Reduction in warehousing space requirement

2. Improvement in efficiency due to better inventory management

3. Reduction in transportation cost due to higher capacity utilization The segment is also gaining
importance in other sectors such as Power, Infrastructure, IT hardware and FMCG.

THREATS

Key Challenges faced by the Indian Logistics Sector

1. Logistics has historically been a high-cost, low-margin business.

2. Economies of scale are absent in the Indian logistics industry. Even the organized sector that
contributes slightly more than 1% of the logistics cost, is highly fragmented.

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3. Indian freight forwarders face stiff competition from multi-national freight forwarders for
international freight movement. MNCs, because of their size and operations in many countries, are
able to offer low freight rates and extend credit for long periods. Indian freight forwarders, on the
other hand, because of their smaller size and lack of access to cheap capital, are not able to match
the same.

4. Poor physical and communications infrastructure is another deterrent to attracting investments

in the logistics sector. Road transportation accounts for more than 60% of inland transportation of
goods, and highways that constitute 1.4% of the total road network, carry 40% of the freight
movement by roadways. Slow movement of cargo due to bad road conditions, multiple check posts
and documentation requirements, congestion at seaports due to inadequate infrastructure,
bureaucracy, red-tapism and delay in government clearances, coupled with unreliable power
supply and slow banking transactions, make it difficult for exporters to meet the deadlines for their
international customers.

5. There is lack of skilled and knowledgeable manpower in the logistics sector. Management
graduates do not consider logistics as a prime job. To improve the status of the industry, service
providers have to move beyond the level of brokers and truckers to attract and retain talent.

2.6 KEY DRIVERS OF THE INDUSTRY

1. CONSUMER DEMAND

Ecommerce sales are rapidly gaining traction in almost all retail verticals. From banking to
healthcare to clothing, companies need to reach their end users on all digital platforms. However,
consumers don’t want to abandon the brick and mortar tradition. The answer to this dichotomy is
the omni-channel. Omni, a Latin word meaning “all”, describes an all- encompassing retail
strategy that includes both digital and physical forms of selling and delivery. The future of retail
lies in the hands of consumers and their electronic device of choice.

This phenomenon calls for faster, more robust supply chains to equip omni-channel retail
environments. Both 3PLs and carriers must prepare for an increase in just-in-time manufacturing
and shipping in response to buying expectations. Smaller shipments and lot sizes will increase

33
mixed freight LTL. Retailers will start to utilize local stores as secondary fulfillment centers to
execute same day, or in some cases same hour delivery. We see evidence of this in Amazon’s
acquisition of Whole Foods Market. This move by “The Everything Store” will certainly up the
ante for grocers but the strategic geographies of Whole Foods locations will simultaneously serve
as last mile DC’s for other Amazon products in wealthy urban centers.

More shippers will partner with 3PL companies to enhance agility, expand geographic access, add
capacity and improve visibility through technology. These partnerships also help mitigate risks for
shippers in volatile economic environments.

2. TECHNOLOGY

The logistics industry will benefit from technological advancements that improve speed, efficiency
and visibility. Two major disruptors of the 2020 logistics landscape include autonomous vehicles
and Blockchain.

Leading automotive manufacturers along with tech companies are racing to develop the best
driverless cars and trucks. With prototypes already tested, it is only a matter of time before these
vehicles become status quo. The logistics industry will most likely implement the use of driverless
vehicles ahead of others. Logistics companies can leverage autonomous vehicles in closed
environments such as warehouses and port complexes. Eventually, these vehicles will enhance last
mile delivery and regular line-hauls. In 2020 we can expect to see increased use of automation in
distribution centers but presence on the road will depend on demand by the public in conjunction
with cooperation between manufacturers and lawmakers.

Originally developed as a general ledger for Bitcoin, Blockchain also potentially benefits logistics
companies and shippers. This complex framework of computing nodes speeds up supply chains
by transferring titles and records through layers of the supply chain in real time. Blockchain
provides transparency for customers and auditors and greater security for all parties involved.
Transactions made on Blockchain platforms will openly track purchase agreements, customs
clearance information, title exchanges and shipment movement. Think of it as a hyper accurate
tracking system for data and transactions that will help eliminate waste and prevent fraud. Deloitte
predicts 10% of global GDP will reside in Blockchain enabled platforms by the year 2025.

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3. GLOBAL MARKETS

Growth in global markets will depend on increasing demand for traded goods along with
infrastructure development. PwC predicts that entering 2020, Asia will continue to lead the world
in export growth and market dominance. China’s One Belt, One Road initiative plans to inject
billions into maritime infrastructure increasing trade lane efficiency between Asia and Europe.
This initiative creates further trade access for 65% of the global population. China will most likely
benefit from the US’s withdrawal from the TPP. New trade agreements such as the RCEP will
spur rapid export growth out of other developing Asian markets such as Vietnam and Thailand.

Emerging markets in Africa will experience the largest percentage growth in transportation as
countries continually invest in relevant infrastructure. Latin American countries will continue
improving roads in response to growing GDP per capita. Supply chains will further rely on faster
modes of transportation requiring further development of railways and distribution centers
globally.

Natural gas trade will increase into 2020 as analysts predict the peak market for oil is on the
horizon. Ports and shipping companies increased capacity and capabilities for shipping LNG and
will continue this expansion over the next few years. The LNG spot market has created more room
for investors increasing LNG’s international popularity. BP forecasts LNG will become the leading
form of traded gas in the next twenty years.

Other popular commodities logistics companies will expect to move in 2020 include electronics,
machinery, vehicles and pharmaceuticals. Domestic carriers should expect more mixed loads as
companies increase the use of crossdocks and local fulfillment centers to service just-in-time
deliveries.

4. OCEAN AND AIR MARKETS:

Last year was tumultuous in the ocean freight market. Recent bankruptcies and excess capacity led
rates to plummet and steamship lines to keep vessels idle. Hanjin’s demise left billions of dollars
of cargo floating at sea for weeks. However, 95% of internationally trade goods still move on
ocean vessels. The ocean market is experiencing steady recovery in 2017. Recent consolidations

35
will regulate capacity and drive up rates at a moderate pace into 2020. Both ocean and air carriers
are limiting contractual space and increasing volume in the spot market. Shippers should expect to
increase their freight spend starting in 2018. The Ocean Alliance now consisting of Evergreen,
OOCL, Cosco and CMA CGM will dominate nearly 40% of the ocean freight market out of Asia.
China’s commitment to port infrastructure will catalyze increased ocean traffic between Europe
and Asia. Global ports will compete for business by further implementing automation for
efficiency and expanding in size to handle larger vessels.

Air markets suffered similar consequences from overcapacity last year. However, steady hikes in
demand out of Asia and Europe currently aid recovery. According to IATA, the largest airfreight
markets by tonnage worldwide in coming years will remain the United States, China, Germany,
Hong Kong and the UAE in that order. Some developing nations will contribute to growth in global
air freight including Vietnam, Bangladesh, Brazil and Peru. Rapid development in ecommerce and
just-in-time manufacturing will also benefit the air freight industry.

5. SUSTAINABILITY

Although President Donald Trump discontinued US participation in the Paris Climate Accord,
many cities, states and major corporations remain vigorously committed to abating greenhouse
gasses. Improving efficiency in logistics programs will help companies meet their sustainability
objectives. Efficient engines coupled with more consolidated freight and fewer dry runs will
naturally reduce overall emissions while companies cut costs in their supply chains.

Customers will also hold retailers and manufacturers accountable. Delivering great products at low
prices is not enough for many millennial buyers. The growing ethically conscious consumer base
possesses unparalleled access to information. Transparency and ethical integrity will gain further
importance in building credible brands that will survive in the marketplace of the future.

6. TALENT

Supply chains are becoming cornerstones of nearly every company’s success strategy. These
complex systems involve everything from engineering to finance to logistics to information
technology. The best supply chain leaders understand how all these factors harmonize to meet the
goals of their organization.

36
Deloitte reports growing demand in these supply chain skills: supply chain optimization, demand
forecasting, business planning, supplier management, risk assessment and implementation of
technology.

As logistics footprints become increasingly global, companies look to hire more compliance
analysts and managers with comprehensive experience in export compliance, government agency
requirements and customs brokerage. Wages for trade compliance managers are also increasing
upwards of $120,000 in technical industries.

Logistics professionals should expect job security and wage growth into 2020. However,
companies already demand higher caliber workers often with education beyond college. Language
skills will also be a plus. Many universities are racing to fill the logistics and supply chain talent
gap by offering industry certifications, specialized master’s degrees and focused MBA programs.
Many STEM certified supply chain programs integrate business and engineering to produce supply
chain professionals with robust capabilities. Educational institutions must keep pace with this
burgeoning industry that keeps evolving and demanding more.

2.7 COMPANY PROFILE

Reliance Group The Reliance Group, founded by Dhirubhai H. Ambani (1932-2002), is India's
largest private sector enterprise, with businesses in the energy and materials value chain. Group's
annual revenues are in excess of US$ 66 billion. The flagship company, Reliance Industries
Limited, is a Fortune Global 500 company and is the largest private sector company in India.
Backward vertical integration has been the cornerstone of the evolution and growth of Reliance.
Starting with textiles in the late seventies, Reliance pursued a strategy of backward vertical
integration - in polyester, fibre intermediates, plastics, petrochemicals, petroleum refining and oil
and gas exploration and production - to be fully integrated along the materials and energy value
chain. The Group's activities span exploration and production of oil and gas, petroleum refining
and marketing, petrochemicals (polyester, fiber intermediates, plastics and chemicals), textiles,
retail, infotel and special economic zones. Reliance enjoys global leadership in its businesses,
being the largest polyester yarn and fibre producer in the world and among the top five to ten
producers in the world in major petrochemical products. Major Group Companies are Reliance
Industries Limited, including its subsidiaries and Reliance Industrial Infrastructure Limited.

37
Reliance in retail Reliance Retail Limited (RRL) is a subsidiary of Reliance Industries Limited,
which is based in Mumbai. RRL was set up in 2006 and marks the foray of the Reliance Group
into organized retail. RRL has been conceptualized to include growth for farmers, vendor partners,
small shopkeepers and consumers. It is based on Reliance’s backward integration strategy, to build
a value chain starting from farmers to consumers.

BUSINESS DIVISION

Reliance Retail Ltd. has a number of company-owned outlets along with a franchisee format that
would be in collaboration with Kirana shop owners. Its various divisions are:

a) Reliance Mart
It is designed to be an all under one roof supermarket that again caters to household needs.
b) Reliance Fresh
It was the first amongst various format stores to be launched by Reliance Retail Ltd. The
ideology behind the initiative has been to bring “Farm to fork” thereby removing middle men
and benefitting both farmer and consumer. The stores would typically be of an area of around
3,000-5,000 sq ft. Each store is to provide fresh fruits, vegetables and also products of Reliance
Select and other related groceries.
c) Reliance Super
It will be a smaller version of the hypermarket format. It is to offer over 10,000 products in
various categories like grocery, home care, stationery, pharmaceutical products, apparels &
accessories, FMCG, consumer durables & IT, automotive accessories and lifestyle products.
Reliance Super stores are to be large supermarkets with an area of 4,000 to 10,000 sq. ft. and
will not sell fruits and vegetables like Reliance Fresh.
d) Reliance Digital
It is a consumer electronics concept mega store. It is designed to be a one stop shop for all
technology solutions in the field of consumer electronics, home appliances, information
technology and telecommunications. The stores are to cover an area of more than 15,000 sq.
ft. and offer a variety of over 4,000 products spread across 150 brands along with solution
bundles to meet diverse customer needs. The staff will counsel and guide customers not only
to buy products but also provide complete solutions to ensure consumers buy the right product

38
 at the right price. It will continue to offer Reliance One, a common membership and loyalty
program across all formats, which follows the philosophy ‟Earn Anywhere, Spend
Anywhere‟. It shall also provide finance options for purchases. Reliance Digital is to be a
large format store spread across 15,000 to 35,000 sq. ft. and is scheduled to come up in 70
cities in India in the near future. e) Reliance Wellness It is a chain of specialty wellness stores
that would offer pre-emptive, curative as well as health and beauty solutions. The store is to
add value to people’s lives, by providing products and services that will proactively work to
enrich people’s body, mind and spirit. It is to house world class products under one roof and
also educate consumers on their health needs, thus enabling them to take charge of their health.
It will sell international and national brands like H2O, Neutrogena, Olay, Sports Nutrition,
etc. They will also house alternate medicine, health books & music. The stores are to showcase
Wellness Events, Seminars, Workshops and Advisory camps on contemporary wellness issues
like diabetes, hypertension, fitness, diet and nutrition, weight management and skin care.

e) Reliance Wellness
It is a chain of specialty wellness stores that would offer pre-emptive, curative as well as
health and beauty solutions. The store is to add value to people’s lives, by providing products
and services that will proactively work to enrich people’s body, mind and spirit. It is to house
world class products under one roof and also educate consumers on their health needs, thus
enabling them to take charge of their health. It will sell international and national brands like
H2O, Neutrogena, Olay, Sports Nutrition, etc. They will also house alternate medicine, health
books & music. The stores are to showcase Wellness Events, Seminars, Workshops and
Advisory camps on contemporary wellness issues like diabetes, hypertension, fitness, diet and
nutrition, weight management and skin care.
f) Reliance Footprints
It is a specialty footwear store that would offer over 25,000 pairs of formal, casual, ethnic,
party wear and sports wear in men, women and children footwear. The store is to be spread
over 7,500 square feet and be dedicated to footwear, handbags and accessories. The design of
Footprint was conceptualized by Pavlik of USA which is one of the best design houses in the
world keeping in mind the taste and preferences of the Indian consumer. It shall offer brands
from Europe and America like Josef Siebel, Rockport, Hush Puppies, Lee Cooper Clarks,

39
 Levis, Nike, Adidas, Piccadilly, Dr. Scholl‟s and more. For kids, Crocs and Disney will be
showcased. The store plans a pan-India presence by opening over 15 more specialty stores.
g) Reliance Jewels
It is a stand-alone fine jewellery format. It is to be a one stop shopping destination for fine
jewellery. Reliance Retail ventured into gems and jewellery trade with the aim of launching
300 stores all over India within a 3 year time frame. With a growing demand for jewelry and
lower competition. The gold jewelry range shall include Kolkata Filigree, Rajkot minakari
jewelry, Kinden from Jaipur, Temple jewelers from Kerala, Jadau from Amritsar and more.
In Diamond jewelry, Reliance Jewels will offer the finest quality of diamonds and the widest
range of daily wear, party wear and wedding designs.
h) Reliance Timeout
With over 56,000 products Reliance Timeout will offer customer an extensive range of
merchandise in books, music, stationery, toys and gifts. It is to a format based on the ideology
to provide a place where a consumer can unwind and relax, browse and buy a book, sample
some music, choose a gift, and buy a toy or some exclusive stationery for themselves. Reliance
Timeout will offer a comprehensive range of products in these categories along with an
attempt to create a fascinating customer experience with a warm, lively ambience.
i) Reliance Trends
It is a specialty apparel store that will sell men, women and children’s garments. The store
will carry the best of national and international brands like John Players, Peter England, Indigo
Nation, Wrangler, Reebok, and Lee, apart from in-house brands. The store layout is to
compliment the evolving taste and preference of fashion savvy consumers, giving them an
opportunity to view /shop with ease, along with well trained customer service associates, to
compliment the entire shopping process. Reliance trends is operation with 123 stores across
the country, providing employment to so many people and planning to launch many new stores.

Basically RELIANCE’S Trends can be classified into TRENDS

TRENDS SMALL TOWN (TST)

and EXTINCTION

40
 Company Profile
Company: Reliance Retail

Subsidiary Company: Reliance Trends

Founded: 2007

Headquarters: Mumbai

Chairman and Managing Director: Shri Mukesh Ambani

Stores at Kollam: Reliance Trends at Kmall-kollam , Polayathoodu, Karungapally-SK mall,

Kottarakara

TST( Trends Small Town )

Punalur, Kundara, Anchal, Paripally

EXTINCTION -Trends Women’s

Kadappakada

The Apparel, Luggage and Accessories division of reliance retail has announced the launch of
their first Apparel specialty store “Reliance Trends”.

All the Reliance Trends stores located at different places across Kerala offer some of the best
Indian and International brands with each store‟s area of more than 16445sq.ft. of shopping area,
and has been designed and furnished by the best of the international design agencies to offer a high
style and lavish experience to the Indian consumer.

123cx The store layout compliments the evolving tastes and preference of fashion savvy
consumers, giving them an opportunity to view/shop with ease, along with an army of well trained
customer service associates to compliment the entire shopping process. Riding on the tremendous
success of Reliance Mart at various locations across India, the apparel division of Reliance Retail
is well on track to democratize fashion and make it attainable to the masses.

41
This is being possible by the extraordinary design pool of Indian and International designers,
integrating the international design trends and preferences of the Indian consumers.

The company is offering solutions to common maintenance problems through its state of the art
innovative products like Ever White Shirts, Anti Stain Trousers, Wrinkle free range of garments,
aromatic clothes for infants and quick-dry sports wear that ensures optimum moisture
management.

Product quality has been ingrained into the DNA of Reliance Trends and is integral to the mission
of “Grahak Devo Bhava”. The quality system are designed, implemented and monitored as per
international standards by a highly competent team of professionals.

To deliver the customer the best value for their money, only those products that demonstrate an
exemplary safety and quality meeting both implicit and explicit needs of the consumer are
approved for purchase.

Some of the quality standards that are being followed are American Association of textiles,
chemists and colourists. American Standard, ISO and BIS methods. For the first time in organized
retail, Reliance Trends is introducing Made to Measure tailoring service offering customized fits
to all the customers buying fabric from the store at prices compatible to neighborhood tailors.
Reliance Trends is offering a homogenous mix of private label of brands across men’s, women’s
and children’s category to fulfil every customers’ requirements. The Network range of garments
comprises of formal office wear and collection for men and women, while the Net play range,
showcases a smart casual collection for the evolving workplace. The DNMX range has been
developed with a clear focus on the youth of India, offering them exclusively crafted fashion
garments like Denims, T-shirts etc.

42
 CHAPTER :3

REVIEW OF LITERATURE

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3.1 Brief Theoretical Construct Related to the problem

“Logistics” was originally use as an military term which defined as “a branch of military science
having to do with producing, maintaining and transporting material, personnel and facilities.” in
Oxford English Dictionary. However, with the times goes by, in the modern days, it is used in a
business term. Department of Trade Industry (DTI) and The Chartered Institute of Logistics and
Transport (CILT) mentioned that the objective task of logistics is to distribute right products with
exact quantity and quality and moving it at the proper time to the right place with the right balance
cost (DTI 1993, CITL 2010). The US-based Council of Supply Chain Management Professionals
gives the definition of logistics management

“Logistics management is part of supply chain management that plans, implements, and controls
the efficient, effective, forward and reverse flow and storage of goods, services, and related
information between the point of origin and the point of consumption in order to meet customers’
requirements.”

3.2 An Overview of Earlier Studies

Magan also stated ‘8Rs’ of logistics in his book, namely, the right way, the right product, theright
quantity, the right quality, the right place, the right time, the right customer and the right cost
(Magan 2008:9). According to above, it is obviously to understand that the procedure of logistic
management is to make distribution more effectiveness, costs down the expenses in distribution
and stock volumes and decrease damage and waste of goods. Furthermore, with the perfect
application on logistics management, it will be much easier to manage the quality of products,
provide better service to customers and also more flexible to deal with a contingency or emergency.

Logistics function includes materials planning, purchasing goods or supplying raw materials,
internal transportation, warehouse (storage) and physical distribution. Materials requirement
planning is also known as MRP, it is viewed as a micro level of managing of inventory (Weele,
2002).

It starts with schedule a sales plan in the sales department and the plan is an estimation of the
quantities that will or can be sold in the forthcoming periods. MRP in logistics management may

44
help organizations to possess inventory volume and also can assist the manufacturing planning,
purchasing and delivering in the following steps. Purchasing in today is taken a broader view by
many researchers as “managing the supply” of materials, services, and information (Gundlach et
al., 2006). In other words, purchasing is no longer just blindly purchase but need to manage and
consider about the supply.

Furthermore, in Babbar & Prasad’s (1998) work, they also mentioned that the production
environment, costs and international business environment are related to purchasing issue. In
transportation part, transport is a main activities in logistics which concern in time and place utility
(Coyle et al., 1996 cited by Stefansson, 2005). In logistics, warehouse operation is also one of an
important section which provides a place for storage products such as raw materials, components,
processing goods and finished goods between origin and consumption points (Lambert et al, 1998
cited in Stefansson, 2005). In other words, warehousing includes receive, store, ship, and pick up
the goods. In addition, Stefansson’s mentioned that DC (operation of distribution centers) is
another term which usually used in association with warehousing. The difference between
warehousing and operation of DC is that DC focuses on receiving and shipping as an essential
activities. Lambert et al. (1998, cited in Stefansson, 2005) indicated DCs only carry smaller
quantity and fast moving products; however, warehouses hold large ones. Physical distribution:

THE GLOBAL LOGISTICS

In modern days, every works go globally, logistics management also takes advantage of a tend into
global (international) logistics. However, according to Zinn and Grosse research) (cited by
Cooper, 1993, US managers held the different opinion on global logistics, which means that US
managers did not expected much about global logistics channels but manufacturing facilities were
became more centralized. Even the result did not prove that global logistics is going to be a trend,
Capcino and Britt (1991) held a different view in their work, they mentioned that global logistics
management will have a gradually increase in 1990s.

Cooper (1993) also held the same view as Capcino and Britt, he stated that the evolution of
business globalization impacted the logistics went globally. And what are the impacts it brings
Houlihan (1987, cited in Babbar & Prasad, 1998) addressed that international logistics is the

45
concept of the extension of international supply chain management including purchasing, products
distribution and sales.

Also Wood et al. (1995 cited in Brewer et al, 2005:61) “international logistics is not the same as
domestic logistics with perhaps the addition of one or more international border crossings.” In this
situation, global logistics have to manage as efficiently as possible while produce and trade goods
globally.

Furthermore, Brewer et al. (2005:76) mentioned “there is a growing tendency in international

logistics towards supply chain management and time-based competition” and plenty of different
parties may involve in international logistics.

Christopher, Peck and Towill (2006) stated some reasons of global sourcing in international
logistics “the lure of cost savings, largely due to fewer regulatory controls and significantly lower
wages has prompted the mass-migration of manufacturing form the developed world to emergent
economies in other regions.”

In Bonin and Cross’s work (2010), they also supported that the main reason organizations look
global in logistics management is because the cost saving of materials. However, not everything
can work perfectly, the great distances between supplier and customers leads the high
transportation cost in global sourcing. For example, shipping price and seasonal shortage of
conveyance with a lot of manufacturers has increased dramatically due to a lot of organization
shifted the factory to China (Christopher, Peck and Towill, 2006).

While purchasing goes globally, enterprise must be aware of exchange rate fluctuations (Carter
and Vickery, 1998, Carter et al., 1993 and Vickery et al., 1992 cited in Babbar and Prasad, 1998),
countertrade (Forker 1992 cited in Babbar and Prasad, 1998). As mentioned above, time-based is
also need to be considered in global logistics. Customer may need the goods urgently due to
seasonal concerned or unpredictable orders, and sometimes suppliers have problem meet the lead-
times not only because of production but also because of the long distance shipping problems.
Also, when logistics goes globally, it will bring problems in to management. For example, as
mentioned earlier, materials or products are no longer shift domestically from one place to another
but cross from one country to another, which means that the goods will be moved to another

46
different environment. In this situation, it may lead some of the political or social problems such
as tax or logistic issue.

Bonin and Cross (2010) also mentioned that there are some risks may includes the culture
differences, language barriers, dissimilarity of values, discrepancy of organizational behavior and
delivery times. These are the problems which logistics went globally may faced. Capacino and
Britt (1991) suggested that logistics managers must be prepared for the issues what global logistics
has caused

Logistics

Logistics is widely known as the process of coordinating and moving resources such as equipment,
food, liquids, inventory, materials and people from one location to the storage of the desired
destination. It was originally a military-based term that was used to describe how the military force
obtained, stored and moved equipment and supplies. In the supply chain and business sense,
logistics is the management of the flow of things between the point of origin and consumption, so
to fulfil the requirements of consumers or corporations. The logistics of the aforementioned
resources involve the integration of production, packaging, warehousing, transportation, security,
materials handling and information flow.

The different categories of logistics are:

Third Party Logistics (3PL)

Fourth Party Logistics (4PL)

Inbound Logistics

Outbound Logistics

Reverse Logistics

Green Logistics

Construction Logistics

Digital Logistics

Military Logistics

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The Transformation of Logistics Management

The concept of business logistics has been said to have transformed since the 1960s. As the need
to supply companies with materials and resources grew over the years, so did the global expansion
of supply chains along with specialists who grew in their niche & skills. Moving further into the
modern era as well, the complexity of logistics processes have inspired the creation of logistics
management software and have launched businesses that focus solely on accelerating the
movement of resource along the supply chain. Manufacturing companies have even gotten to a
point where they choose to outsource the management of their logistics to specialists; a field that
is dominated by Third Party Logistics (3PLs) providers.

Furthermore, being the in the thick of the digital era too, the logistics and supply chain industry
has caught up and has taken strides towards digitizing internal and external processes. As
mentioned in our The State of Today’s Competitive Supply Chain: Digital, Smaller and More
Resilient article, 90% of the supply chain execution expenditure will be in support of logistics
digital applications and software by 2020. The IoT has already started allowing companies to
digitally connect physical assets and enable flow of data across the value chain, linking every piece
of the product lifestyle.

Digitized supply chains have also given customers insight and transparency into the logistics
process where they have been allowed feedback into their transactions. Every user now feels like
they are in control of the process, eventually leading to consumer satisfaction; a factor every
business should be striving for. Technology has offered numerous benefits and opportunities when
it comes to the supply chain and logistics field and these include advanced data analytics, ease of
scalability, data security, cost saving, integration of multiple platforms, real-time tracking and
automated procedures.

When speaking of logistics management joining forces with technology, software leads the
conversation because logistics processes cannot be highly optimized without the appropriate
software systems. Logistics Management Software aims to plan, implement, and control the flow
and storage of goods, services, and related information. It optimizes this process, allowing for a
larger bottom line through an increase in automation, visibility, communication and process
efficiencies.

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Different Types of Logistics Management

Supply: Supply management deals with the planning and coordination of materials needed in a
specific location at a specific time in order to provide support to production or activity. Supply
logistics must have transportation of the materials and storage along with plans in place for
evaluating the level of supply during different stages of the process; making sure that the flow of
materials aligns with the need.

Distribution: Distribution is about managing how a supplied and stored material is then sent out
to the locations where it is needed. The process includes issuing of material movement (loading,
unloading and transportation), tracking of stock, and accountability of use (noting down how the
supply is used and by whom).

Production: This type of logistics management oversees the stages of combining distributed
supplies into a product. This can entail coordination of a manufacturing or assembling process and
in the case of applications such as military production, the logistics of coordinating space and areas
for production to take place. In construction, production logistics will include the staging of
material to coordinate with the phase of building taking place.

Reverse: Reverse logistics management handles the recalling of material and supplies from a
production of assembly process. In the logistics management of a construction project for example,
reverse logistics plans for the removal of excess material and re-absorption of the material into a
stock supply.

Logistics activities and fields

Inbound logistics is one of the primary processes of logistics concentrating on purchasing and
arranging the inbound movement of materials, parts, or unfinished inventory from suppliers to
manufacturing or assembly plants, warehouses, or retail stores.

Outbound logistics is the process related to the storage and movement of the final product and the
related information flows from the end of the production line to the end-user.

Given the services performed by logisticians, the main fields of logistics can be broken down as
follows:

Procurement logistics

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Distribution logistics

After-sales logistics

Disposal logistics

Reverse logistics

Green logistics

Global logistics

Domestics logistics

Concierge service

Reliability, availability, and maintainability

Asset control logistics

Point-of-sale material logistics

Emergency logistics

Production logistics

Construction logistics

Capital project logistics

Digital logistics

Procurement logistics consists of activities such as market research, requirements planning,

make-or-buy decisions, supplier management, ordering, and order controlling. The targets in
procurement logistics might be contradictory: maximizing efficiency by concentrating on core
competences, outsourcing while maintaining the autonomy of the company, or minimizing
procurement costs while maximizing security within the supply process.

Advance Logistics consists of the activities required to set up or establish a plan for logistics
activities to occur.

50
Global Logistics: is technically the process of managing the 'flow' of goods through what is called
a supply chain, from its place of production, to other parts of the world. This often requires an
intermodal transport system, transport via ocean, air, rail, and truck. This is possibly one of the
more time-consuming and complicated forms of logistics.

Distribution logistics has, as main tasks, the delivery of the finished products to the customer. It
consists of order processing, warehousing, and transportation. Distribution logistics is necessary
because the time, place, and quantity of production differ with the time, place, and quantity of
consumption.

Disposal logistics has as its main function to reduce logistics cost(s) and enhance service(s) related
to the disposal of waste produced during the operation of a business.

Reverse logistics denotes all those operations related to the reuse of products and materials. The
reverse logistics process includes the management and the sale of surpluses, as well as products
being returned to vendors from buyers. Reverse logistics stands for all operations related to the
reuse of products and materials. It is "the process of planning, implementing, and controlling the
efficient, cost-effective flow of raw materials, in-process inventory, finished goods and related
information from the point of consumption to the point of origin for the purpose of recapturing
value or proper disposal. More precisely, reverse logistics is the process of moving goods from
their typical final destination for the purpose of capturing value, or proper disposal. The opposite
of reverse logistics is forward logistics."

Green Logistics describes all attempts to measure and minimize the ecological impact of logistics
activities. This includes all activities of the forward and reverse flows. This can be achieved
through intermodal freight transport, path optimization, vehicle saturation and city logistics.

RAM Logistics (see also Logistic engineering) combines both business logistics and military
logistics since it is concerned with highly complicated technological systems for
which Reliability, Availability and Maintainability are essential, ex: weapon systems and military
supercomputers.

Asset Control Logistics: companies in the retail channels, both organized retailers and suppliers,
often deploy assets required for the display, preservation, promotion of their products. Some
examples are refrigerators, stands, display monitors, seasonal equipment, poster stands & frames.

51
Emergency logistics (or Humanitarian Logistics) is a term used by the logistics, supply chain, and
manufacturing industries to denote specific time-critical modes of transport used to move goods
or objects rapidly in the event of an emergency.

The reason for enlisting emergency logistics services could be a production delay or anticipated
production delay, or an urgent need for specialized equipment to prevent events such as aircraft
being grounded (also known as "aircraft on ground"—AOG), ships being delayed, or
telecommunications failure. Humanitarian logistics involves governments, the military, aid
agencies, donors, non-governmental organizations and emergency logistics services are typically
sourced from a specialist provider.

The term production logistics describes logistic processes within a value-adding system (ex:
factory or a mine). Production logistics aims to ensure that each machine and workstation receives
the right product in the right quantity and quality at the right time. The concern is with production,
testing, transportation, storage, and supply. Production logistics can operate in existing as well as
new plants: since manufacturing in an existing plant is a constantly changing process, machines
are exchanged and new ones added, which gives the opportunity to improve the production
logistics system accordingly. Production logistics provides the means to achieve customer
response and capital efficiency. Production logistics becomes more important with decreasing
batch sizes. In many industries (e.g. mobile phones), the short-term goal is a batch size of one,
allowing even a single customer's demand to be fulfilled efficiently. Track and tracing, which is
an essential part of production logistics due to product safety and reliability issues, is also gaining
importance, especially in the automotive and medical industries.

Construction Logistics has been employed by civilizations for thousands of years. As the various
human civilizations tried to build the best possible works of construction for living and protection.
Now construction logistics has emerged as a vital part of construction. In the past few years,
construction logistics has emerged as a different field of knowledge and study within the subject
of supply chain management and logistics.

Military logistic In military science, maintaining one's supply lines while disrupting those of the
enemy is a crucial—some would say the most crucial—element of military strategy, since an
armed force without resources and transportation is defenseless. The historical
leaders Hannibal, Alexander the Great, and the Duke of Wellington are considered to have been

52
logistical geniuses: Alexander's expedition benefited considerably from his meticulous attention
to the provisioning of his army, Hannibal is credited to have "taught logistics" to
the Romans during the Punic Wars and the success of the Anglo-Portuguese army in the Peninsula
War was due to the effectiveness of Wellington's supply system, despite the numerical
disadvantage. The defeat of the British in the American War of Independence and the defeat of
the Axis in the African theater of World War II are attributed by some scholars to logistical
failures.

Militaries have a significant need for logistics solutions and so have developed advanced
implementations. Integrated Logistics Support (ILS) is a discipline used in military industries to
ensure an easily supportable system with a robust customer service (logistic) concept at the lowest
cost and in line with (often high) reliability, availability, maintainability, and other requirements,
as defined for the project.

In military logistics, Logistics Officers manage how and when to move resources to the places
they are needed.

Supply chain management in military logistics often deals with a number of variables in predicting
cost, deterioration, consumption, and future demand. The United States Armed Forces'
categorical supply classification was developed in such a way that categories of supply with
similar consumption variables are grouped together for planning purposes. For instance, peacetime
consumption of ammunition and fuel will be considerably lower than wartime consumption of
these items, whereas other classes of supply such as subsistence and clothing have a relatively
consistent consumption rate regardless of war or peace.

Some classes of supply have a linear demand relationship: as more troops are added, more supply
items are needed; or as more equipment is used, more fuel and ammunition are consumed. Other
classes of supply must consider a third variable besides usage and quantity: time. As equipment
ages, more and more repair parts are needed over time, even when usage and quantity stay
consistent. By recording and analyzing these trends over time and applying them to future
scenarios, the US Armed Forces can accurately supply troops with the items necessary at the
precise moment they are needed. History has shown that good logistical planning creates a lean
and efficient fighting force. The lack thereof can lead to a clunky, slow, and ill-equipped force
with too much or too little supply.

53
Business logistics One definition of business logistics speaks of "having the right item in the right
quantity at the right time at the right place for the right price in the right condition to the right
customer". Business logistics incorporates all industry sectors and aims to manage the fruition
of project life cycles, supply chains, and resultant efficiencies.

The term "business logistics" has evolved since the 1960s due to the increasing complexity of
supplying businesses with materials and shipping out products in an increasingly globalized supply
chain, leading to a call for professionals called "supply chain logisticians".

In business, logistics may have either an internal focus (inbound logistics) or an external focus
(outbound logistics), covering the flow and storage of materials from point of origin to point of
consumption (see supply-chain management). The main functions of a qualified logistician
include inventory management, purchasing, transportation, warehousing, consultation, and the
organizing and planning of these activities. Logisticians combine professional knowledge of each
of these functions to coordinate resources in an organization.

There are two fundamentally different forms of logistics: one optimizes a steady flow of material
through a network of transport links and storage nodes, while the other coordinates a sequence of
resources to carry out some project (e.g., restructuring a warehouse).

Nodes of a distribution network

The nodes of a distribution network include:

Factories where products are manufactured or assembled

A depot or deposit, a standard type of warehouse for storing merchandise (high level of inventory)

Distribution centers for order processing and order fulfillment (lower level of inventory) and also
for receiving returning items from clients

Transit points for cross docking activities, which consist of reassembling cargo units based on
deliveries scheduled (only moving merchandise)

Traditional retail stores of the Mom and Pop variety, modern

supermarkets, hypermarkets, discount stores or also voluntary chains, consumers' co-operative,
groups of consumer with collective buying power. Note that subsidiaries will be mostly owned by

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another company and franchisers, although using other company brands, actually own the point of
sale.There may be some intermediaries operating for representative matters between nodes such
as sales agents or brokers

Logistic families and metrics

A logistic family is a set of products that share a common characteristic: weight and volumetric
characteristics, physical storing needs (temperature, radiation,), handling needs, order frequency,
package size, etc. The following metrics may be used by the company to organize its products in
different families:

 Physical metrics used to evaluate inventory systems include stocking capacity, selectivity,
superficial use, volumetric use, transport capacity, transport capacity use.
 Monetary metrics used include space holding costs (building, shelving, and services) and
handling costs (people, handling machinery, energy, and maintenance).

Other metrics may present themselves in both physical or monetary form, such as the
standard Inventory turnover.

Handling and order processing

Unit loads are combinations of individual items which are moved by handling systems, usually
employing a pallet of normed dimensions Handling systems include: trans-pallet handlers,
counterweight handler, retractable mast handler, bilateral handlers, trilateral handlers, AGV and
other handlers .Storage systems include: pile stocking, cell racks (either static or movable),
cantilever racks and gravity racks.

Order processing is a sequential process involving: processing withdrawal list, picking (selective
removal of items from loading units), sorting (assembling items based on the destination), package
formation (weighting, labeling, and packing), order consolidation (gathering packages into loading
units for transportation, control and bill of lading) Picking can be both manual or automated.
Manual picking can be both man to goods, i.e. operator using a cart or conveyor belt, or goods to
man, i.e. the operator benefiting from the presence of a mini-load ASRS, vertical or horizontal
carousel or from an Automatic Vertical Storage System (AVSS). Automatic picking is done either
with dispensers or depalletizing robots.

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Sorting can be done manually through carts or conveyor belts, or automatically through sorters.

Transportation: Cargo

Cargo, i.e. merchandise being transported, can be moved through a variety of transportation means
and is organized in different shipment categories. Unit loads are usually assembled into higher
standardized units such as: ISO containers, swap bodies or semi-trailers. Especially for very long
distances, product transportation will likely benefit from using different transportation
means: multimodal transport, intermodal transport (no handling) and combined
transport (minimal road transport). When moving cargo, typical constraints are maximum weight
and volume.

Operators involved in transportation include: all train, road vehicles, boats, airplanes
companies, couriers, freight forwarders and multi-modal transport operators.

Merchandise being transported internationally is usually subject to the Incoterms standards issued
by the International Chamber of Commerce.

Configuration and management

Similarly, to production systems, logistic systems need to be properly configured and managed.
Actually a number of methodologies have been directly borrowed from operations
management such as using Economic Order Quantity models for managing inventory in the nodes
of the network Distribution resource planning (DRP) is similar to MRP, except that it doesn't
concern activities inside the nodes of the network but planning distribution when moving goods
through the links of the network.

Traditionally in logistics configuration may be at the level of the warehouse (node) or at level of
the distribution system (network).

Regarding a single warehouse, besides the issue of designing and building the warehouse,
configuration means solving a number of interrelated technical-economic problems:
dimensioning rack cells, choosing a palletizing method (manual or through robots), rack
dimensioning and design, number of racks, number and typology of retrieval systems (e.g. stacker
cranes). Some important constraints have to be satisfied: fork and load beams resistance
to bending and proper placement of sprinklers. Although picking is more of a tactical planning

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decision than a configuration problem, it is important to take it into account when deciding the
layout of the racks inside the warehouse and buying tools such as handlers and motorized carts
since once those decisions are taken they will work as constraints when managing the warehouse,
the same reasoning for sorting when designing the conveyor system or installing
automatic dispensers.

Configuration at the level of the distribution system concerns primarily the problem of location of
the nodes in geographic space and distribution of capacity among the nodes. The first may be
referred to as facility location (with the special case of site selection) while the latter to as capacity
allocation. The problem of outsourcing typically arises at this level: the nodes of a supply chain are
very rarely owned by a single enterprise. Distribution networks can be characterized by numbers
of levels, namely the number of intermediary nodes between supplier and consumer:

Direct store delivery, i.e. zero levels

One level network: central warehouse

Two level network: central and peripheral warehouses

This distinction is more useful for modeling purposes, but it relates also to a tactical decision
regarding safety stocks: considering a two-level network, if safety inventory is kept only in
peripheral warehouses then it is called a dependent system (from suppliers), if safety inventory is
distributed among central and peripheral warehouses it is called an independent system (from
suppliers). Transportation from producer to the second level is called primary transportation, from
the second level to a consumer is called secondary transportation.

Although configuring a distribution network from zero is possible, logisticians usually have to deal
with restructuring existing networks due to presence of an array of factors: changing demand,
product or process innovation, opportunities for outsourcing, change of government policy
toward trade barriers, innovation in transportation means (both vehicles or thoroughfares), the
introduction of regulations (notably those regarding pollution) and availability of ICT supporting
systems (e.g. ERP or e-commerce).

Once a logistic system is configured, management, meaning tactical decisions, takes place, once
again, at the level of the warehouse and of the distribution network. Decisions have to be made

57
under a set of constraints: internal, such as using the available infrastructure, or external, such as
complying with the given product shelf lifes and expiration dates.

At the warehouse level, the logistician must decide how to distribute merchandise over the racks.
Three basic situations are traditionally considered: shared storage, dedicated storage (rack space
reserved for specific merchandise) and class-based storage (class meaning merchandise organized
in different areas according to their access index).

Picking efficiency varies greatly depending on the situation For a man to goods situation, a
distinction is carried out between high-level picking (vertical component significant) and low-level
picking (vertical component insignificant). A number of tactical decisions regarding picking must
be made:

Routing path: standard alternatives include transversal routing, return routing, midpoint routing,
and largest gap return routing

Replenishment method: standard alternatives include equal space supply for each product class
and equal time supply for each product class.

Picking logic: order picking vs batch picking

At the level of the distribution network, tactical decisions involve mainly inventory
control and delivery path optimization. Note that the logistician may be required to manage
the reverse flow along with the forward flow.

Logistics outsourcing

Logistics outsourcing involves a relationship between a company and an LSP (logistic service
provider), which, compared with basic logistics services, has more customized offerings,
encompasses a broad number of service activities, is characterized by a long-term orientation, and
thus has a strategic nature

Outsourcing does not have to be complete externalization to an LSP, but can also be partial:

A single contract for supplying a specific service on occasion

Creation of a spin-off

Creation of a joint venture

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Third-party logistics (3PL) involves using external organizations to execute logistics activities
that have traditionally been performed within an organization itself. According to this definition,
third-party logistics includes any form of outsourcing of logistics activities previously performed
in house. For example, if a company with its own warehousing facilities decides to employ external
transportation, this would be an example of third-party logistics. Logistics is an emerging business
area in many countries.

The concept of a fourth-party logistics (4PL) provider was first defined by Andersen Consulting
(now Accenture) as an integrator that assembles the resources, planning capabilities, and
technology of its own organization and other organizations to design, build, and run
comprehensive supply chain solutions. Whereas a third-party logistics (3PL) service provider
targets a single function, a 4PL targets management of the entire process. Some have described a
4PL as a general contractor that manages other 3PLs, truckers, forwarders, custom house agents,
and others, essentially taking responsibility of a complete process for the customer.

Horizontal alliances between logistics service providers

Horizontal business alliances often occur between logistics service providers, i.e., the cooperation
between two or more logistics companies that are potentially competing. In a horizontal alliance,
these partners can benefit twofold. On one hand, they can " resources which are directly
exploitable". In this example extending common transportation networks, their warehouse
infrastructure and the ability to provide more complex service packages can be achieved by
combining resources. On the other hand, partners can "access intangible resources, which are not
directly exploitable". This typically includes know-how and information and, in turn, innovation.

Logistics automation

Logistics automation is the application of computer software or automated machinery to improve

the efficiency of logistics operations. Typically this refers to operations within a warehouse or
distribution center with broader tasks undertaken by supply chain engineering systems
and enterprise resource planning systems.

Industrial machinery can typically identify products through either barcode or RFID technologies.
Information in traditional bar codes is stored as a sequence of black and white bars varying in
width, which when read by laser is translated into a digital sequence, which according to fixed

59
rules can be converted into a decimal number or other data. Sometimes information in a bar code
can be transmitted through radio frequency, more typically radio transmission is used in RFID
tags. An RFID tag is a card containing a memory chip and an antenna that transmits signals to a
reader. RFID may be found on merchandise, animals, vehicles, and people as well.

Logistics: profession and organizations

A logistician is a professional logistics practitioner. Professional logisticians are often certified by

professional associations. One can either work in a pure logistics company, such as a shipping line,
airport, or freight forwarder, or within the logistics department of a company. However, as
mentioned above, logistics is a broad field, encompassing procurement, production, distribution,
and disposal activities. Hence, career perspectives are broad as well. A new trend in the industry
is the 4PL, or fourth-party logistics, firms, consulting companies offering logistics services.

Some universities and academic institutions train students as logisticians, offering undergraduate
and postgraduate programs. A university with a primary focus on logistics is Kühne Logistics
University in Hamburg, Germany. It is non-profit and supported by Kühne-Foundation of the
logistics entrepreneur Klaus Michael Kühne.

The Chartered Institute of Logistics and Transport (CILT), established in the United Kingdom in
1919, received a Royal Charter in 1926. The Chartered Institute is one of the professional
bodies or institutions for the logistics and transport sectors that offer professional qualifications or
degrees in logistics management. CILT programs can be studied at centers around the UK, some
of which also offer distance learning options. The institute also have overseas branches namely
The Chartered Institute of Logistics & Transport Australia (CILTA) in Australia and Chartered
Institute of Logistics and Transport in Hong Kong (CILTHK)] in Hong Kong. In the UK, Logistics
Management programs are conducted by many universities and professional bodies such as CILT.
These programs are generally offered at the postgraduate level.

The Global Institute of Logistics established in New York in 2003 is a Think tank for the
profession and is primarily concerned with intercontinental maritime logistics. It is particularly
concerned with container logistics and the role of the seaport authority in the maritime logistics
chain. The Institute has developed a community of over 8,500 logisticians who act a global
knowledge network committed to supporting the Institute's mission of contributing to the

60
resolution of legacy challenges in global logistics. Challenges associated with the traditional
approach of managing single transport modes, modal systems as stand-alone operations. The key
to overcoming these legacy challenges is for the individual stakeholder groups within the logistics
chain to actively engage with each other. The promotion of this agenda is the Institute's work.

The International Association of Public Health Logisticians (IAPHL) is a professional network

that promotes the professional development of supply chain managers and others working in the
field of public health logistics and commodity security, with particular focus on developing
countries. The association supports logisticians worldwide by providing a community of practice,
where members can network, exchange ideas, and improve their professional skills.

Global sourcing and third party logistics may include in global logistics.

According to Aertsen, 1993, Bowersox, 1990, Lieb, 1992 & Sink et al., 1996 (cited by Selviaidis
& Spring, 2007), there are some terms have been used interchangeably as third party logistics
which are used to defined the logistics activities that are not carry out in the organization but using
the contractual related work to other organization, such as “logistics outsourcing” “logistics
alliances” “contract logistics” and “contract distribution”. Leahy et al. (1995, cited by Selviaridis
& Spring, 2007) gives further information about third party logistics, according to their work, third
party logistics is not just about transportation or warehousing performance but generally associated
with providing multiple, bundled services. It is also based on short-term or long-term contract in
the relationship of purchasing in logistics services (Mruphy & Poist, 1998 cited by Selviaridis &
Spring, 2007). Outsourcing is a part of third party logistics activities. The reason why organization
sourcing materials from third party may includes the centrality of logistics function, the exchange
of cost and services, information technologies and relationships with logistics service provider
(Rao & Young, 1994 cited by Selviaridis & Spring, 2007). Van Damme and Ploos can Amstel
(1996 cited by Selviaridis & Spring, 2007) also gives four varieties of reasons to use outsourcing,
which are economic viability, demand variability, customer service, personnel and equipment
availability and extent of supplier dependence.

WAREHOUSING

Warehousing is one function in the logistics process that most products flow through. As
competition for many markets is spelled as “faster,” “cheaper,” “broader assortment,” “more

61
customized,” “home delivery,” etc. and markets at the same time are becoming more global, those
requirements will also impact a logistics function like warehousing. Furthermore, different
requirements from different sales channels (e-commerce, retail, indirect channels, omni-channels),
from different production philosophies (e.g., lean or agile), different managerial perspectives (e.g.,
economic efficiency, green performance and social responsibility), and the choice between old and
new technologies [e.g., radio frequency identification device (RFID) and bar coding, different
degrees of automation, decentralized control, cyber-physical systems, voice picking, warehouse
management systems (WMS), etc.] impose challenges and opportunities for the warehousing
operations. Warehousing is a critical component of the supply chains with the responsibility to
receive, store, pick, pack and ship stock keeping units (SKUs) between suppliers and customers.
The supplier and customer can be external companies or other departments in the same company.
In order to run the core operations of a warehouse, different supporting activities should also be
included. Warehousing should follow a proper strategy that determines the overall guidelines of
how operations are conducted; the design of the warehouse needs to be suitable for warehousing
activities and assure performance; resources such as space, employees, equipment and
technologies should be provided to run the business as planned. In addition, the performance of
the system needs to be evaluated either aggregated or within detailed operations. Finally, the
relation with other companies and departments should be managed to increase efficiency and
effectiveness of the warehouse.

TYPES OF WAREHOUSING

PRIVATE WAREHOUSE: Private warehousing facility is owned and managed by same enterprise
that owns the merchandise handled and stored at the facility. This facility may be owned or leased
as per the decisions about strategy, which best fits the financial aspect to the firm.

ADVANTAGES OF PRIVATE WAREHOUSING

 Flexibility to design to specifications.

 Greater direct control on warehousing activities.
 Housing of other offices.
 As companies trained employees handle the goods, there is no error or handling damages.
 If the volume is sufficient, this may workout cheaper.

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  For some force private warehouse may not be available in some strategic locations.

DISADVANTAGES OF PRIVATE WAREHOUSE

 Lack of geographical flexibility.

 Prohibitive costs may preclude some firms generating enough capital to build or buy a
warehouse. Permanent liability
 Cost of material handling, machinery and equipment.
 Cost of manpower.
 Office and other facilities expenses.
 Insurance premium

PUBLIC WAREHOUSING

Public warehouse It is operated as an independent business offering arrange of services such as

storage, handling and transportation. On the basis of fixed and variable free. They generally offer
relatively standardized services to all clients. Cost involved- • rent of the space hired, • Payment
of charges towards use of other facilities.

ADVANTAGE OF PUBLIC WAREHOUSING

 Less expensive and fixed cost are distributed among many distributors.
 Offer greater operating and management expertise.
 Public warehousing have lower variable cost as compare to the private sector.
 The are more flexible as the offer different plans to different customers.
 Facilities can be given up when not required.
 It is easy to ascertain the storage cost

DISADVANTAGE OF PUBLIC WAREHOUSING

 Effective communication may be a problem.

 Socialized services may not always be available in the desired location.
 Space may not be available were and when needed.

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CONTRACT WAREHOUSING

There is a long term contract signed Between the company and the party providing warehousing
services. The long terms contract could help in lower the cost. it is flexible. It also provides the
additional services such as transportation, order processes customer services, etc.

CO-OPERATIVE WAREHOUSING

These warehouse are owned, by managed and controlled by cooperative societies. They provide
warehousing facilities at the most economical rates to the members of their society

BASIC COMPONENTS OF A WAREHOUSING

1) Space-space allows for the storage of goods when demand and supply are unequal.

2) equipment’s- warehouse equipment’s helps in product, movement, storage and tracking.

3) people- the most critical components of warehousing. Space and equipment’s are nothing
without people.

FUNCTIONS OF STORES

1) Receive the material

2) Store the material properly

3) Remove the material when required

4) Deliver the material to right place

5) Keep the records perfectly in disciplines

6) Maintain good housekeeping

7) Keep proper control

8) Manage the people in perfect discipline

9) Avoid keeping surplus materials

10) Verification of stocks at regular intervals

11) Co-ordination and corporation.

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12) Mixing of material

13) Maintaining good housekeeping, -

14) Arranging transport

OBJECTIVES OF WAREHOUSE MATERIAL

1) To facilitate smooth and balanced flow of raw material.

2) To maintain optimum stock of material.

3) To achieve optimum utilization of storage space.

4) To reduce usage of handling materials.

5) To provide codification of stores items for easy recognition.

6) To enable flexibility.

7) To facilitate quantity purchase at discount prices.

8) To keep the accounts of all goods kept it stores.

9) To prevent theft, damage, wastage etc

10) To maintain the income of all materials.

TYPES OF MATERIAL STORED

1) Raw material stores

2) Component stores

3) Consumable material stores

4) Semi finished goods stores

5) Finished goods stores

6) Inward goods stores and transit stores

7) Holding stores

8) Spare parts stores

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9) Inflammable material stores

10) Tools stores

11) Stationery stores

Warehouse management system and control

Although there is some overlap in functionality, warehouse management systems (WMS) can
differ significantly from warehouse control systems (WCS). Simply put, a WMS plans a weekly
activity forecast based on such factors as statistics and trends, whereas a WCS acts like a floor
supervisor, working in real-time to get the job done by the most effective means. For instance, a
WMS can tell the system that it is going to need five of stock-keeping unit (SKU) A and five of
SKU B hours in advance, but by the time it acts, other considerations may have come into play or
there could be a logjam on a conveyor. A WCS can prevent that problem by working in real-time
and adapting to the situation by making a last-minute decision based on current activity and
operational status. Working synergistically, WMS and WCS can resolve these issues and
maximize efficiency for companies that rely on the effective operation of their warehouse or
distribution center

THE IMPORTANCE OF LOGISTICS AND WAREHOUSING FOR RETAIL BUSINESS

SUCCESS

In retail logistics, the prime criteria is the availability of top-quality products in stores, on time.
This means timely product supply and delivery in the best condition. Foods should be fresh; clothes
need to be in good shape; fragile items such as glassware and electronics need to reach undamaged.
As e-commerce grows in popularity, accurate home delivery is a crucial factor.

To ensure success and consumer satisfaction, packing, storing, transportation, and distribution play
critical roles in retail business. The slightest freight damage during transportation or storage,
delayed or wrong delivery can cost retailers their reputation and lead to business loss. This is why
logistics management is crucial.

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5 Key Components of Logistics Management

Logistics management today is a complex task that involves five inter-linked components to reduce
functional barriers.

Storage Facilities: proper freight storage in warehouses and distribution centers with customized
care ensures freshness and quality control.

Accurate Inventory: retailers must stock enough supplies to meet product demands. As consumer
demand changes, stocks need to be upgraded to align with the needs as soon as possible.

Transportation: from manufacturing to delivery, products need to be transported in containers of

different sizes and vehicles. The choice of transportation determines costs, delivery time, and
impact on the environment.

Packaging: packaging plays a big part in attracting consumer interest. Retailers must ensure that
products are well packaged, cost-effective, and easily to handle.

Communication: inter-communication helps in timely delivery. Retailers need to keep track of

the vehicle, stay updated about weather changes, keep an eye on the volumes, prices, and
movement for operational efficiency.

Many retail outlets have hundreds of stores in several locations, within a country or globally. There
could be thousands of product lines and millions of sales in a single day.
In retail logistics, outsourcing some of the functions such as shipping and warehousing to third-
party logistics service providers is common. What’s important is for retailers to ensure that the
3PL services effectively coordinate all parts of the process to minimize costs, errors, and delays.

IT and Reverse Logistics

In this age, successful retail logistics is not just about keeping a close eye on boxes and vehicles.
Retailers today look for active control in monitoring several aspects of logistics such as tracking
merchandise and distribution for which information data management (IT) is critical.
Retailers rely on a single, efficient network system that offers more transparency and control in
their services. The ultimate aim is to offer value in quality and cost, and quick response to
consumer requests at the store level.

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To managing this pipeline in modern times, reverse logistics (a process for companies to take a
more holistic view and become more environmentally efficient) is a crucial factor as impact on the
environment becomes an increasing concern. Vehicle design, fuel efficiency, proper disposal,
recycling, reusing and reducing materials are key to reverse logistics. Conscientious logistic
companies make it a policy to ensure proper cleaning of materials and high hygiene to reduce
packaging waste, while complying to legal requirements.
As a result, it is important for retailers to rely on strong logistics partnerships with companies with
a holistic outlook, locally and globally.

3.3 Uniqueness of Research Study

An organization is a social unit or a group of people structured in such a way that they work for
achievement of specific goal. Structure can improve the working condition of an organization and
a poor structure can ruin all the possibilities of openness, dynamism and decision making.
Organizational effectiveness is the extent to which an organization, given certain resources and
means, achieves its objectives without placing undue strain on its members. Another important
role is played by communication among the employees and the technology. More an organization
is able to adapt itself to the changing technology the better will be its efficiencies. Reliance’s
Trends structure was founded on the basis of cooperative system. The unique of the each store is
the core which delivers “fashion at great value”. Reliance trends offers a mix of private brands and
brand across men’s and women’s and children categories

In the present research paper, a relationship between the designs of an organization with its
operational efficiency indicators has been examined. It was found that these indicators play a very
important role in the success of the organization. The factors were studied in the context to a co-
operative form of organization and while comparing it with the corporate form, it was found that
the design of the Reliance structure is somewhat different as it believes in the federal form of
structure each unit is independent with other retail sectors.

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 CHAPTER:4

METHODOLOGY OF THE STUDY

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4.1 RESEARCH APPROACH AND DESIGN

Research is a process of systematic and in depth study or search of any particular topic, subject or
area of investigation backed by collection, computation, presentation and interpretation of relevant
data. According to Clifford Woody Research comprises of defining and redefining problems
formulating hypothesis, collecting, organizing and collecting data, making deductions and
research conclusions to determine whether they fit the formulated hypothesis.

Research methods help in arriving at solution by relating the available data with unknown aspects
of problem. Methodology refers to the procedure by which the research goes about their work of
describing, explaining and predicting phenomena. Methods are the way in which data are
collected, classified, hypothesis framed and laws formulated. The various methods used are
quantitative methods, experimental method, survey method etc.

Research methodology is a science that provides various steps that can be adopted by the
researcher in studying his research problem. The scope of research methodology is wider than that
of research methods. Research methodology deals with the objective of research study, the method
of defining the research problem, the type of hypothesis, the type of collected, methods used for
collecting and analyzing data etc.

Qualitative methodology was used for this research.

Qualitative research tends to employ the use of data from interviews, documents and participant
observation in order to gain some understanding of social phenomena. This study used a structured
questionnaire for conducting interview as well as for circulating among respondents. Their less
specific and precise manner was used to acquire varied response from respondents whiles pre-
venting them from being concerned to pre-determined options.

4.1.1 Descriptive Research

Descriptive research is defined as a research method that describes the characteristics of the
population or phenomenon that is being studied. This methodology focuses more on the “what” of
the research subject rather than the “why” of the research subject.

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In other words, descriptive research primarily focuses on describing the nature of a demographic
segment, without focusing on “why” a certain phenomenon occurs. In other words, it “describes”
the subject of the research, without covering “why” it happens.

For example, an apparel brand that wants to understand the fashion purchasing trends among New
York buyers will conduct a demographic survey of this region, gather population

data and then conduct descriptive research on this demographic segment. The research will then
uncover details on “what is the purchasing pattern of New York buyers”, but not cover any
investigative details on “why” the patterns exits. Because for the apparel brand trying to break into
this market, understanding the nature of their market is the objective of the study.

4.2 SOURCES OF ONLINE DATA

The secondary data consists of information collected from:
 Google Books
 Websites
 CMIE Report
 Business magazines
 Trade guides
 Shodganga
 Google Scholar
 Campus Website
 Articles/ Journals

4.3 SAMPLING DESGIN

The questionnaire was created and data was collected from the store manager through an
interview method. The population and sample are the same.

4.4 DATA ANALYSIS TOOL

The analyses used in this study were Fish bond diagram (cause and effect diagram)

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4.5 REPORT STRUCTURE

The main sections of the standard report structure are as follows

Title Section – This includes the name of the author(s) and the date of report preparation.

Summary – There needs to be a summary of the major points, conclusions, and recommendations.
It needs to be short as it is a general overview of the report. Some people will read the summary
and only skim the report, so make sure you include all the relevant information. It would be best
to write this last so you will include everything, even the points that might be added at the last
minute.

Introduction – The first page of the report needs to have an introduction. You will explain the
problem and show the reader why the report is being made. You need to give a definition of terms
if you did not include these in the title section, and explain how the details of the report are
arranged.

Body – This is the main section of the report. There needs to be several sections, with each having
a subtitle. Information is usually arranged in order of importance with the most important
information coming first.

Conclusion – This is where everything comes together. Keep this section free of jargon as most
people will read the Summary and Conclusion.

Recommendations – This is what needs to be done. In plain English, explain your

recommendations, putting them in order of priority.

Appendices – This includes information that the experts in the field will read. It has all the
technical details that support your conclusions.

4.4 LIMITATIONS OF THE STUDY

This survey although carried out with fullest possible efforts and devotion, the limitation of the
time, resources available and limited area chose may lead to limited representation of the universe.
The major limitations from which the study suffers are as follows.

Time Constraint: Time factor has been a very big limitation in the research/survey like this.

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Biasness in Information: It was felt that retailers did not come up with true responses, in several
cases the retailers answered the questions with the help of other members and it was mostly in case
of less educated persons.

Financial Constraint: The financial aspect, which includes the traveling cost, cost of
administrating questionnaire and collection of data through other resources was also costly.

Constraint regarding the use of technique: The deeper statistical techniques such as analysis
using variance, multiple regressions etc., could not be adopted due to the constraint of time and
efforts.

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CHAPTER:5
DISCUSSION

74
5.1 OBSERVATION BY THE CANDIDATE FROM LITERATURE REVIEW
–COMPARISONS.

Reliance Trends is fashion and accessories brand of Reliance Retail. Reliance Trends was set up
in the year 2008, today it houses almost 100 brands across key markets in the country, owing
approx. 16 brands in the retail chain. It aims to offer good quality fashion at a remarkably low
price. The store layout compliments the evolving tastes and preference of fashion savvy
consumers, giving them an opportunity to view/shop with ease. Riding on the tremendous success
of Reliance Mart at various locations across India, the apparel division of Reliance Retail is well
on track to democratize fashion and make it attainable to the masses. this is being possible by the
extraordinary design pool of Indian and International designers, integrating the international
design trends and preferences of Indian consumers.

CHANNEL STRATEGY
Reliance trends has adopted a very wonderful and cost saving channel strategy. the steps they are
follows;

According to Reliance Trends demand the vendors supply the garments to the distribution center
in guragon. Mostly from Tumkur (Karnataka) to the Reliance Trends kollam showroom. the
products are being transferred from the distribution centers to the stores according to the order. All
the products are being transferred through the carriers

CHANNEL STRATEGY

CHANNEL
STRATEGY

IN HOUSE BRANDED

Figure 5.1 channel strategy

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 S1

TUMKUR RELIANCES
S2 TRENDS
CENTRAL
DC

S3

BRANDED
SUPPLIERS
BANGALORE

Figure 5.2 supply chain of Reliance trends

DISTRIBUTION SYSTEM

In reliance trends can be classified into North zone and South zone. In North zone they have only
one distribution center (Gurgaon) for Delhi –NCR . In my study was con ducted in south zone. In
south zone have only one distribution center Tumkur (Karnataka) for Bangalore. first the product
come to the distribution center then it is supplier to the Reliance Trends store in Delhi.NCR region
according to their demand and the branded products are directly supplied to the Reliance Trends
by the suppliers, only in house or local brand come through the DC. They maintain 50-60 thousand
inventory per month.

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RELIANCES TRENDS-KOLLAM SHOWROOM

Every reliance trends store has its own on-store code, which can be found in the kollom showrrom
in Kmall. The shop code in kollam is 8067. It has a total area of 16445 square feet. There are two
departments in the Kollam showroom: men's and women's. One store manager and department
managers make up a store. Because there are two departments here, there are two department
managers

LAYOUT OF KOLLAM SHOWROOM

Figure :5:3 Layout of ground floor (woman’s wear)of reliance trends Kollam showroom

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 Figure 5:4 layout of mens wear Kollam showroom

1.Which mode of transportation do you depend on?

A mode of transport is a solution that makes use of a particular type of vehicle, infrastructure, and
operation. There are two types of products in Reliance's trends: Reliance's own brand and external
brand. The Tumkur distribution Centre provided the reliance own brand. (TUMKUR Y524) In

78
dependence trends, there are two methods for stock to enter the store: one from the distribution
Centre, and the other from an external brand. Reliance Transportation and third-party courier
services like as Speedex are the most commonly used modes of transportation in DC. The
transportation in the external brand is different since they rely on EB for too much of their
transportation, they are Safe Express. Delivery Courier, Spoton, Bluedart.

2.Which software is used Reliance Trends?

Reliance's Trends uses SAP software. SAP software is simple to use, and the department head may
simply access all data in any shop using SAP.SAP Retailing is a completely integrated retailing
system.it maps the complete set of business processes required for competitive assortment
strategies, different retails formats and logistics and distribution. It also provides all the functions
necessary for modeling business process in the company

Key Retailing Process in IS Retail.

1. Enterprise Structure
2. Partner Determination
3. Site Master Data
4. Article Master Data
5. Assortment and Listing
6. Pricing
7. Promotion Merchandise Distribution
8. Inventory Management
9. Requirement Planning
10. POS

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 30%
Major
concept
s in
Retail

10%War 30%Mat
ehousing SAP IN erials
Manage
ment RETAIL Manage
ment

30%
Sales
and
distribut
ion

Figure5.5 Sap in Retail

ENTERPRISE STRUCTURE

Figure 5.6 Enterprise Structure

80
3. How many ways the stock came from manufacturer?

There are two types of products in Reliance's trends: Reliance's own brand and external brand. The
Tumkur distribution Centre provided the reliance own brand. (TUMKUR Y524) In dependence
trends, there are two methods for stock to enter the store: one from the distribution Centre, and the
other from an external brand. Reliance Transportation and third-party courier services like as
Speedex are the most commonly used modes of transportation in DC. The transportation in the
external brand is different since they rely on EB for too much of their transportation, they are Safe
Express. Delivery Courier, Spoton, Bluedart

4.How do you choose warehousing facilities?

Reliance Trends divides into two zones: North and South. Tumkur is home to the South Zone
warehouse. In addition, each store has its own little warehouse for goods storage. They were
referred to as BOH ( Back of house). Workforce availability, storage, and movement are all
elements to consider when selecting a warehouse. Need for storage arises both for raw material as
well as finished products. STORAGE involves proper management for preserving goods from the
time of their production or purchase till actual use. When this storage is done on a large scale and
in a specified manner it is called WAREHOUSING.

Storage

 Materials to be stored properly, securely, and in a fashion that the operational efficiencies
are maintained at a very high level.
 Stocks are liquid assets
 Proper maintenance of quality in storage has also to be taken care of Warehouse
Management
5.Is it different transportation for DC and EB?

Yes, A mode of transport is a solution that makes use of a particular type of vehicle, infrastructure,
and operation. There are two types of products in Reliance's trends: Reliance's own brand and
external brand. The Tumkur distribution Centre provided the reliance own brand. (TUMKUR
Y524) In dependence trends, there are two methods for stock to enter the store: one from the

81
distribution Centre, and the other from an external brand. Reliance Transportation and third-party
courier services like as Speedex are the most commonly used modes of transportation in DC. The
transportation in the external brand is different since they rely on EB for too much of their
transportation, they are Safe Express. Delivery Courier, Spoton, Bluedart.

6.How many brands are available in reliance trends Kollam showroom?

32 External brands and 22 own brand products are available in Reliance Trends.
Reliance own brand are: Avaasa, fushion,Team spirt, Dnmx, Fig, Point cove, Friends,
Netplay,Network, Performax, U and Me.
External brands killer, Peter England, basics, USpolo, flying machine, proline, jockey, only
vima,
Indian terrain, parts, gocolours, indigonation, sin, lee cooper
7.What are the factor should have considered before DC entered to the store?

Speedex courier delivered the items from the Distribution Center. We may verify the invoice
number, invoice date, invoice amount in words and numbers, GST number, LR(lorry receipt)
number, Trip sheet number, Trip sheet box, date, and HU (handling unit) sheet number with the
help of an invoice. After that, assuming all of the details are correct, we can get the box and verify
that the HU number in each box is correct.

8.How many days to took the GRN (Goods Receiving Note) process of reliance goods?

It won't take you days. It simply measures in hours and is computed on the basis of when the time
of receiving the couriers’ is 24 hours, the stock is GRN, and the stock is placed up on the floor.

9.What is door to floor process of EB (external brand)?

The term "door to floor" refers to the procedure that begins when stock arrives at the door and ends
when it enters the floor. When the stock arrived to the store, GRN procedure took care of the stock,
tagging the goods, and properly setting up the store

Retailers have slashed costs, pumped-up sales, streamlined activities and re-engineered
processes throughout their pipeline. Now they're going back to basics. Leading retailers routinely
examine the fundamental practices of their retail operations, ensuring the best practices are being
utilizedwithinthestore'sfour walls. Best practices for moving merchandise door to floor aren't

82
necessarily cutting edge. In fact, most of you could probably recite them in your sleep. However,
the trick for most retailers -- even the most astute -- is revisiting the basics and ensuring each and
every step is enforced. Sometimes we overlook the simple solutions for more complex ones, even
at the risk of terrific results.

10.How to handle Zink age?

If a zinkage occurs in the material handling time tool that is utilized as a physical inventory,
Physical inventory is a process where a business physically counts its entire inventory. A physical
inventory may be mandated by financial accounting rules or the tax regulations to place an
accurate value on the inventory, or the business may need to count inventory so component parts
or raw materials can be restocked. Businesses may use several different tactics to minimize the
disruption caused by physical inventory.

 Inventory services provide labor and automation to quickly count inventory and minimize
shutdown time.
 Inventory control system software can speed the physical inventory process.
 A perpetual inventory system tracks the receipt and use of inventory, and calculates the
quantity on hand.
 Cycle counting, an alternative to physical inventory, may be less disruptive.
11.System movement is easily useful in replishment?
Yes, we can quickly identify which stock is low and how many products are placed up in the floor
using a computer and SAP software

12.How SAP is useful in ward and outward?

Reliance's Trends uses SAP software. SAP software is simple to use, and the department head may
simply access all data in any shop using SAP. It's also quite convenient and simple to put all of the
product's details in the goods receipt note SAP Retailing is a completely integrated retailing
system.it maps the complete set of business processes required for competitive assortment
strategies, different retails formats and logistics and distribution. It also provides all the functions
necessary for modeling business process in the company

83
13.External brands payment is system based?
External brand product associated with trustworthiness The store is not responsible for the payment
of external brand products. Head offices and financial teams are in charge of everything

14. How to manage cash for store expenses?

Reliance gives each store cash on the basis of petty cash for meet store expenses all the expenses
related to store .The store expenses are water bill, newspaper bill, loading chargers, medicines etc.

15.How to identify missing product in your store?

In the store, there are two types of product missing. The first is when the goods are missing
throughout the GRN process. At that time, we conduct a physical inventory and manually count
the products. Another issue is missing items on the floor. Every reliance store undergoes a GRN
process every 6 months PA. Then we can figure out which products are lacking and put them on a
short list.

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 FISH BONE DIAGRAM

Fishbone Diagram is another name for the Cause and Effect Diagram or the Ishikawa Diagram
which got its name from the fact that it looks like a fish skeleton. The fishbone diagram or
Ishikawa diagram is a cause-and-effect diagram that helps managers to track down the reasons for
imperfections, variations, defects, or failures. The diagram looks just like a fish’s skeleton with
the problem at its head and the causes for the problem feeding into the spine.

Figure5:7 fish bone diagram of effective logistics in reliance trends

85
CHAPTER:6

FINDINGS

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6.1 FINDING OF THE STUDY

 Reliance Trends is the largest apparel retailer and the dominant player in retail space having
an Excellence Logistics network.
 The efficient management of warehouses helps to optimize the existing production and
distribution processes and greatly assist in the goal of cost reduction and service
enhancement
 Stock replacement is simple with the help of system movement.
 Staff receives proper training on a weekly basis, and all employees are aware of the store's
sales and goals.
 Company also provide the job opportunities for physical unfit peoples.
 A greater emphasis on the client. In the current reliance trend of paying more attention to
the customer, the staff receives additional training in order to better serve the consumer.
 Customers' data will not be shared by the company. Customers' personal information, such
as phone numbers and addresses, is kept in strict confidence.

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CHAPTER:7

CONCLUSION

88
CONCLUSION

I have studied and analyzed The effectiveness of Logistics and Warehousing at Reliance Trends –
Kollam Showroom by considering different aspects of the markets, outlets, distribution. This
project report concludes that Reliance Trends having of a strong as well as efficient logistics and
warehousing. At Reliance Trends they strongly believe in “Bettering the lives of the customers
every day” and as a part of this brand promise they try to help their customers save maximum and
make aspirational products affordable to every Indian Household. They try to fulfill their dreams
by giving them nothing less than what they deserve at the best price with effective logistics and
warehousing. This logistics and distribution network channel of Reliance Trends strong and even
though the most important thing

The efficient management of warehouses helps to optimize the existing production and distribution
processes and greatly assist in the goal of cost reduction and service enhancement. In today's
competitive environment, Reliance’s Trends must operate at maximum efficiency and provide
superior service to ensure profitability.

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APPENDIX

Questionnaire

1.Which mode of transportation do you depend on?

2.Which software is used Reliance Trends?

3. How many ways the stock came from manufacturer?

4.How do you choose warehousing facilities?

5.Is it different transportation for DC and EB?

6.How many brands are available in reliance trends Kollam showroom?

7.What are the factor should have considered before DC entered to the store?

8.How many days to took the GRN (Goods Receiving Note) process of reliance
goods?

9.What is door to floor process of EB (external brand)?

10.How to handle Zink age?

11.System movement is easily useful in replishment?

12.How SAP is useful in ward and outward?

13.External brands payment is system based?

14. How to manage cash for store expenses?

15.How to identify missing product in your store?

90
BIBLIOGRAPHY

BOOKS

1) Kothari C R, 2004, Research methodology methods and techniques, New Delhi, New age
International publishers.

2) Agrawal Rashmi, 2001, Research methods concepts, process and practice, New Delhi, Shipra
publications.

3) Rardin L Ronald, 2018, Optimization in operation research, Person India Publications.

4) Sharma J K, Operations Research Theory and Applications, Laxmi Publications pv Ltd.

5) Aswathappa k, 2010, production and operation management, Himalaya publication.

6) Sharma Sanjay, 2014, Manufacturing Operation management, CRC publication.

7) Heizer Jay, Render Baray, Munson Chunk, 2019, Principles of operation management
sustainability and supply chain management, published by person.

8) Yosef Sheffi, 2012, Logistics Clusters: Delivering Value and Driving Growth, MIT Press (MA)

9) Sunil Chopra, Peter Meindl, 2020, Supply Chain Management: Strategy, Planning, and
Operation

10) Donald J. Bowersox, David J. Closs, M. Bixby Cooper, 2002, Supply Chain Logistics
Management, McGraw-Hill

REPORTS

RELIANCE REPORTS

WEBSITES

 www,google.com
 www.reliance.com
 shodhganga.inflibnet.ac.in

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 www.slideshare.net
 en.wikipedia.org
 www.coursehero.com
 cmuscm.blogspot.com
 logisticssupplychainforum.blogspot.com
 digital.hbs.edu
 www.ijser.org
 www.ambitionbox.com
 www.magzter.com
 commercialvehicle.in
 books.google.co.in
 www.ibef.org
 www.researchgate.net
 www.walkthroughindia.com
 www.statista.com
 www.investindia.gov.in
 www.pwc.in

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