Logistics services marketing

8/7/2019 Logistics services marketing

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Logistics - Services Marketing

Mangesh Sarfare

Joseph Selvaraj

Sikandar Pote

Shakti S Rathore

Sujal Shah

Suryaprakash Sharma

Jaspreet S NagiProf Gautam Agarwal


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Supply Chain Management

Supply Chain Management deals with themanagement of materials, information, and financial

flows in a network consisting of suppliers,

manufacturers, distributors, and customers.

(Stanford Supply Chain Forum)

Supply Chain Management spans all movement and

storage of raw materials, work-in-process inventory,and finished goods from point of origin to point of

consumption


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Logistics Management

Logistics is the process of planning, implementing,and controlling the efficient, effective flow and

storage of goods, services, and related information

from point of origin to point of consumption for

the purpose of conforming to customerrequirements*

Logistics involves the integration of information,transportation, inventory, warehousing, material

handling, and packaging, and security.

* Council of Logistics Management - UK


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Elements of Logistics Management

Transportation (Air, Land, water)

Order Processing

Warehousing Inventory Management

Packing

Material Handling Information Flow

Customer Service


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Importance of Logistics Management

Effective logistics management leads to:

Reduced Operational Costs

Improved Delivery Performance Increased Customer Satisfaction

Organizations become more competitive in termsof cost, quality, delivery & flexibility.


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Importance of Logistics Management

Todays Sc

enario Globalization sourcing, manufacturing &

distribution on a large scale.

Focus on core competencies.

Third Party Logistics gaining importance.


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Evolution of Logistics in India


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Logistics in India

The Indian logistics sector, as elsewhere, comprises theentire inbound and outbound segments of themanufacturing and service supply chains.

The Indian Logistics Industry is valued at approx US$140 billion and is expected to grow @ 20% yoy

However majority of the industry is unorganized andfragmented.

This fragmented segment comprises owners andemployees with inadequate skills, perspectives orabilities to organize or manage their operationseffectively.


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Logistics in India

Goods are transported predominantly by Road andRail.

Road transport contributes to approx 60% of thefreight transport.

It is preferred due to its cost effectiveness andflexibility

Rail, on the other hand, is preferred because of

containerization facility and ease in transporting ship-containers and wooden crates.

Sea is another complementary mode of transport.Ninety five per cent of Indias foreign trade happens

through sea.


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Logistics in India

Rail transport comes under the purview of the govt,however, the road transport in controlled by private

players.

Low cost has been traditionally achieved by

employing low level of technology, low wages, poor

maintenance of equipment, overloading of the truck

beyond capacity, and price competition.


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Steel, pharmaceuticals, food & agro-business, and autoare growing most rapidly in the national economy it isno surprise that their logistics costs have been increasing

at a faster rate. The distribution practice of pushing goods down the

channel might be responsible for high increase in theinventory and warehousing costs in the pharmaceutical

industry.


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Example


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Logistics in India - Issues

High Cost Low Margin business.

Absence of economies of Scale.

Non-uniform tax structure across states. Multiple check-posts & bureaucratic harassment.

Poor infrastructure.

Low penetration of IT & lack of propercommunication.

Lack of skilled and knowledgeable manpower.


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Logistics in India - Issues

It is estimated that while outsourced Logistics accounts for 54%of the total logistic spending in India, Organized player have only10% of the pie.

In road transportation, which accounts for biggest portion oflogistics spending, 74% of the operator are small time playersowning a single vehicle.

In outsourced warehousing 92% of players are from unorganizedsector.

E ven in Organized logistics, only a few have offering amongmultiple modes and services (Transportation, warehousing and

value added services such as packaging, cold chain and custom

clearance) On avg a commercial vehicle is runs at a speed of 20 miles per

hour in India as compared to avg speed of 60 miles per hour inwestern europe and USA.


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Logistics in India Future Prospects

Increased spending on infrastructure by thegovernment. EgGolden Quadrilateral, Free Trade

and Warehousing Zones, SEZs, etc

100% FDI is allowed in this sector.

Third Party Logistics business is growing at 30%

Indian Economy growing at approx 8%

Standard of Living growing at a face pace resulting

in an increase in spending on goods and services.


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Logistics in India Future Prospects

NHAI is investing about $650mn towards the developmentof an Intelligent Transportation System (ITS) which willmake transport services on the highways (like reducingcongestion, advance signaling, medical assistance, accident

management, etc.) efficient and automating many processeslike toll collection etc.

Increased spending by Service Providers on IT andinfrastructure.


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Leading Players in India DHL

TNT

AFL

GATI

BLUE DART

DTDC

ASHOK LEYLAND

FIRST FLIGHT

AGARWAL PACKERS AND MOVERS


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Cold Chain Logistics

Cold chain is a logistic system that provides a seriesof facilities for maintaining ideal storage conditions

for perishables from the point of origin to the point

of consumption in the food supply chain.

A well organized cold chain reduces spoilage,

retains the quality of the harvested products andguarantees a cost efficient delivery to the consumer

given adequate attention for customer service.


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Cold Chain Logistics

The Cold chain logistics infrastructure generallyconsists of:

Pre-cooling facilities

Cold Storages

Refrigerated Carriers

Packaging

Warehousing Information Management systems (Traceability and

Tracking etc.)


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Objectives of Cold Chain Solutions

Cold chains are a significant proportion of the retail foodmarket.

The success of implementing cold chain managementinvolves continual monitoring of product temperature

throughout distribution and having appropriate correctiveaction plans in place.

A streamlined, well maintained cold chain helps to:

Reduce costs

Improve product integrity

Increase customer satisfaction

Reduce wastage and returns of expired stock


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Industries requiring Cold Chain Solutions

Imported Fresh Fruits and Vegetables.

Exports by sea (Seafood, Meat, Poultry, Fruits and Vegetables)

Chocolate Industry

Dairy Industry

Meat & Poultry (Domestic)

Ice Cream Industry

Processed Foods

Frozen foods


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Customer Relationship Management

(CRM) Customer relationship management (CRM) is a

broadly recognized, widely-implemented strategy for

managing and nurturing a companys interactions

with customers, clients and sales prospects.

It involves using technology to organize, automate,

and synchronize business processes.

When an implementation is effective, people,processes, and technology work in synergy to

increase profitability, and reduce operational costs.


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Benefits of using CRM

Understand the customer better.

It increases Efficiency.

Gives a Competitive Advantage.

Boosts All Round Development as a single

application can help different departments.

Provides up-to-date information.

Helps serve the customers better.


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Customer Relationship

Management is a prerequisite for

today's business andorganizations simply cannot

afford to bypass this customerstrategy.


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Company Profile - GATI

One of the pioneers and leaders in ExpressDistribution & Supply Chain Solutions in India.

Provides total end to end logistics solutions for

businesses across varied verticals

It covers 98.69% of India.

Provides multi-modal network services (air, road,

Ocean & Rail).

Has a strong presence in Asia Pacific Region and

SAARC Countries.


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Company Profile - GATI

Strong IT backbone Oracle CRM, GATIEnterprise Mgmt System (GEMS), Warehouse

Mgmt System (WMS)


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Supply Chain Management @ GATI

Gati provides customized solutions by integrating all the

four stages of business procurement, production,

distribution, after sales service and reverse logistics.

It provides a Made Ready distribution channel with

standardization at all locations.

Helps enter new markets without a large capital investment

Provides companies with shelf space in over 200 locations.


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Supply Chain Management @ GATI


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CRM @ GATI G

ATI provides options for logging complaintsthrough their website as well as through the

customer care numbers.

Tracking of complaint status can be done online.

Customers can chat online with GATI CustomerCare officers in case of any query.

Online Requests can be given for Parcel Pick-up.

Customers can find the Rates and Transit Timeonline itself prior to booking.

Comparisons can be done online between their

various services.


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Innovations in the Logistics Sector

RFID Radio Frequency Identification.

Used to track-and-trace merchandise/assets

throughout the supply chain.

TELEMATICS

Used to monitor and control remote devices (e.g

Shipment Tracking, Vehicle Diagnosis)

Satellite tracking systems can enable operators toposition and track vehicles to assist real-time

planning.


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Value added services such as warehousing, co-packing, co-manufacturing, labeling, postponement

and mass-customization are expanding the role and

importance of logistics providers in the supplychain.

Concept of4th Party Logistics is gaining ground.

These companies own the computer systems andintellectual capital and tend to offer end-to-end

logistics services on a global scale.


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Green Logistics is another area where a lot ofefforts are being taken.

Efforts are being made to achieve a better integration

of forward and reverse chains to improve vehicle

utilization and reduce emissions.


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Advertising Strategies to be done bySurya


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Differentiation Strategies for GATI

Focus on Cold Chain Solutions as currently thereare only a handful of players in that segment.

Amongst the leading players, GATI is the cheapest

logistic service provider, hence a Cost LeadershipStrategy can be adopted by them.


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THANK YOU

Logistics services marketing

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