Impact of Information Technology Handling

Logistics Tracking
Dissertation submitted to College of Management & Economic Studies for the partial
fulfillment of the degree of
BBA (Logistics & Supply Chain Management)
Guided by:

Faculty:
Prof. Naveen Pandey
Associate Professor
College of Management and Economic Studies
University of Petroleum & Energy Studies
Dehradun 248 006

Submitted by:
Virendra Vikram Singh
Enrollment No: R380211041
SAP ID: 500017669

College of Management and Economic Studies

University of Petroleum and Energy Studies,
Dehradun, Uttarakhand, India
April, 2014

CERTIFICATE OF ORIGINALITY

This is to certify that this project work titled, Impact of Information Technology
Handling

Logistics Tracking Industry is a bonafide work

done by Virendra Vikram Singh, under my guidance. This report has not been
submitted earlier to University of Petroleum and Energy Studies or any
Institute for the fulfillment of the requirement of course of study.
This report is an original piece of work.

Date:

Signature

Prof. Naveen Pandey

Associate Professor
UPES

ACKNOWLEDGEMENT
I take this opportunity to thank everyone who has helped me during the course of this project.
At the very outset, I would like to express my gratitude to my mentor, Prof. Naveen Pandey for
his invaluable guidance and support throughout the project. His expertise, knowledge and critical
feedback helped me to develop my project in the most appropriate way.

Date:

Signature
(Virendra Vikram Singh )

--------------------

Contents

1. Chapter 1: Introduction

1.1 Introduction to the topic

1.2 Definitions and Global facts & figures
1.3 State of Information Technology handling logistics tracking in Indian
Logistics companies
1.4 State of Information Technology handling logistics tracking in Global
Logistics companies

2.

Chapter 2: Difficulties Faced by Indian logistics Companies

3. Chapter 3: Indian logistics Industry The Way Forward

4. Chapter 4: Research over Logistics Industries
5.

Chapter 5: Major players in The Indian Logistics Industry using

different technologies

6. Chapter 6: Conclusion

Executive Summary

Technology (from Greek techne, "art, skill, cunning of hand"; and Logia) is the making,
modification, usage, and knowledge of tools, machines, techniques, crafts, systems, and methods
of organization, in order to solve a problem, improve a preexisting solution to a problem, achieve
a goal, handle an applied input/output relation or perform a specific function. It can also refer to
the collection of such tools, including machinery, modifications, arrangements and procedures.

The human species' use of technology began with the conversion of natural resources into simple
tools. The prehistorically discovery of the ability to control fire increased the available sources of
food and the invention of the wheel helped humans in travelling in and controlling their
environment. Recent technological developments, including the printing press, the telephone,
and the Internet, have lessened physical barriers to communication and allowed humans to
interact freely on a global scale. However, not all technology has been used for peaceful
purposes; the development of weapons of ever-increasing destructive power has progressed
throughout history, from clubs to nuclear weapons. The word "technology" can also be used to
refer to a collection of techniques. In this context, it is the current state of humanity's knowledge
of how to combine resources to produce desired products, to solve problems, fulfill needs, or
satisfies wants; it includes technical methods, skills, processes, techniques, tools and raw
materials.

If we see in todays fast paced world, technology has totally transformed the routes business
operates. Right from electronics, computers, and telecommunications, logistic businesses use
every mode of communication in order to keep a better look over the latest business Trends.
Logistics Businesses fully depend on I.T. services to maintain high efficiency standards and
ensure good service to customers. Nowadays I.T. is playing the lead role in present scenario
currently logistics operation includes purchasing, distribution, and management of inventories,
packaging, manufacturing and customer servicing. The use of technology helps better managing
the flow of goods while optimizing costs and processing. It improves market Logistics by
providing you with more information on what is happening in the supply chain demand which
makes customer think them as a reliable service provider.
Technology improves market logistics by providing your company with more information on
what is happening in your supply chain - a process called supply chain visibility. Technology
also enables you to improve the security of products in transit using wireless tracking techniques.
Communication technology allows all members of your logistics network to collaborate easily,
leading to a potential reduction in costs.
5

RESEARCH METHODOLOGY:
Rationale of the study:
Technology plays a vital role in the cost saving of the firm. In recent years, the logistical
landscape has become a rapidly evolving business environment, and as such, more and more
enterprises are looking for that competitive edge to gain larger market share

Objective of the study:

1. To understand the existing processes and techniques to monitor quality & safety
parameter from production to consumption.
2. To commercialize a solution for the monitoring & controlling the daily dealings of
consignments.
3. To properly maintain the records of the vehicles and consignments doing and undoing.

Type of Research Descriptive

Descriptive Research:
Descriptive research includes surveys and descriptive fact-findings enquiries of all kinds.
Descriptive research is conclusive in nature and the research objectives are clearly defined. The
major purpose of descriptive research is description of the state of affairs as it exists at present.
The main characteristics of this method are that the researcher has no control over the variables;
he can only report what has happened or what is happing & which ultimately reflects the
outcome of the overall outcome of the perverse logistical process.

Universe:
Manufacturer and retailers is the universe for the data collection.

Sampling Unit:
All manufacturing plant and the retailers who all are involved in technology used in several
activities of the firm.

Sample Technique
Non probabilistic method of convenience sampling being used.

Non probabilistic:
Non probabilistic sampling is that sampling procedure which does not afford any basis for
estimating the probability that each item in the population has of being included in the sample
on probabilistic sampling in this type of sampling, item for the sample are selected deliberately
by the researcher, his/her choice concerning the item remains supreme.

Convenience sampling:
As the name implies the selection of the sample is left to the researcher who is to select the
sample. The researcher normally interviews person who are directly related to the inventory
management process i.e. the service lead who is responsible for booking the order. Here the
researcher performed interviews with the service lead & sales team. This type of sampling is
also called as accidental sampling as the respondents in the sample are included merely
because of their presence on the spot. As while conducting interviews, other people present on
the spot were also questioned and their views were also taken into account by the researcher.

Sampling size
This refers to the number of items to be selected from the universe to constitute a sample. This
is a major problem before a researcher, the size of sample should neither too large nor too small
it should be optimum. An optimum sample is one which fulfils the requirement of efficiency,
representativeness, reliability and flexibility.

Primary Data:
Primary data is one which is collected by the researcher him/herself for the purpose of a
specific inquiry or study. Such data is original in character and is generated by surveys
conducted by individual or research institutions. In this particular survey the primary data
collected is through self-analysis and questionnaire technique.

Review of Literature:
1). Adam.u (Fac. of Computer Science. & Inf. Syst., Univ. Teknol. Malaysia,
Skudai, Malaysia) 2010

This paper discusses some of the research that has been done previously by researchers towards
the issues of information technology in logistics. The purpose of this paper is to show that there
is a lot of research that had been done by many researchers in logistics that related to information
technology and can be seen as an opportunity to take into consideration to search any gap on it
and discover any potential for future research expansion.

2). David J. Closs, (Michigan State University), Katrina Savitskie, (University

of Memphis) 2003

While it is widely believed that information technology is a major differentiator of logistics

performance, there has been limited research that empirically tests or characterizes this
relationship. The current research investigates the relationship between logistics information
technology (LIT) and logistics service performance. The objective of this research is to develop a
framework for managers to understand logistics information technology applications and to
justify LIT expenditures. The results offer direction for characterizing logistics information
technology. The research describes how internal logistics information integration and customer
integration can influence customer service performance. These results begin to dimensionalize
logistics information technology and the impact it has on strategy and performance

3). Ivica Jujnovic (2011)

Business globalization increases physical distance between location of raw material production
and location of product and services consummation, by which logistics expenses and the entire
business costs increase. Achieving greater efficiency and competitiveness requires adoption of
numerous recent trends in logistics. It includes process approach to business using information
technology in the integration of logistics processes, especially technologies such as exchange of
8

electronic data, bar codes and radio frequency identification. A prerequisite for the integration of
logistics chain is a more considerable use of information technology in particular logistic
processes: inventory management, procurement, warehousing, transportation and return.
Information technology is the basic connection between logistics processes and it allows
continuous communication in real time, necessary for full integration of business processes
within the logistics chain.

4). Genevive J.S. Feraud, (Genevive J.S. Feraud is Matre de Conferences, Institute
dAdministration des Entreprises dAix-en-Provence, Puyricard, France) 1998

This research paper points out similarities between the strategic management of information
technology and logistics information management, then reports the results of an in-depth,
qualitative exploratory research in two large-size European companies about the role of logistics
to achieve competitive advantage through information systems. Offers an interpretation of its
results by using the logistics information and communication systems model and provides a
conceptual representation of the role of information-based logistics management as a competitive
tool. Concludes with the proposal of an operational framework for strategic decision making in
logistics management.

5). Marinos Themistocless, (Brunel University, London, UK), Gail Corbett, (California
State University, Chico, California, USA)

The purpose of this paper is to investigate whether business process integration is feasible. it
appears that enterprise application integration (EAI) technology can integrate business processes.
However, since it is not possible to generalize from a single case study, further research is
suggested to investigate this area. From the case study, it appears that EAI can easily integrate
the business processes when it is combined with enterprise resource planning (ERP) systems.

Chapter 1
Logistics management
9

It is that part of supply chain management that plans, implements, and controls the efficient,
effective forward and reverses flow and storage of goods, services and related information from
the point of origin to the point of consumption in order to meet customers requirements.

Logistics is defined by the Council of Logistics Management as:

The process of planning, implementing, and controlling the efficient, cost effective flow of raw
material in-process inventory, finished material and related information from the point of origin
to the point of consumption for the purpose of conforming to consumer requirements.
Tracking is a part of logistics system that provides the information about the location of vehicles
and consignments on their way from the point of origin to the point of consumption through the
Barcodes, GPS and RFID (Radio Frequency Identification) by placing a tracking device on the
vehicle and consignment. These tracking devices are placed in the vehicle can be detected with
the help of satellites. We can see the location of the vehicle on the route; even we can narrate the
vehicle to its destination if there is any disturbance on the present route by GPS (Global
Positioning System) which can show us different routes for the vehicle to prevent time. Now-adays vehicles are coming with GPS system inbuilt in it which makes drivers work easy as they
can see the routes and different options of routs in their vehicles only.
In recent years, the logistical landscape has become a rapidly evolving business environment,
and as such, more and more enterprises are looking for that competitive edge to gain larger
market share. . In India most of the logistics sector is unorganized, most of them are not using
many of the technology to track the goods but some companies are using many of the technology
to track the goods but some companies are using many of the technology to track the goods but
some companies are using it and they are implementing these technology at a large scale. The
success of implementing Information technology in logistics tracking involves continual
monitoring of product throughout distribution and having appropriate corrective action plans in
place, for reducing costs, improving product integrity, increase customer satisfaction and
reducing wastage & returns of expired stock.

Introduction to Technology

10

Technology is used to increase the efficiency and effectiveness of Logistics work by making it
faster , safer and cheaper. Technology increases the working speed in every sector of logistics
department from bringing Raw material to delivering finished goods. Technology, like any other
arena, is a crucial decider in logistics industry as well. However, the industry which is primarily
dominated by unorganized sector can transform into a more efficient one id appropriate
technologies are out to use. Role of technology in making a logistics company become
competitive in the growing markets.

With the entry of multi-nationals, doubled with phenomenal growth noticed across various
industries in India there has been an ever growing demand for smart logistics and efficient
supply chain management. Logistics industry in India is mainly dominated by the unorganized
sector and expecting quality service from these players was a distant dream for customers.
However, with the advent of technology-led solutions in this sector and emergence of organized
players, companies in this sector are striving hard to deliver quality services to their customers.

In this ever changing and rapidly growing business environment, every enterprise is looking for
ways and means to put forward their competitive advantages and capture a larger market share. It
is a proven fact that adoption of technology is the most important tool for any enterprise to keep
its competitive advantage intact. The survival of an enterprise in the age of knowledge-based
competitive economy depends on how the company improves their technological capabilities and
offers better and innovative services using them.

Even in the logistics sector, it is mandatory for every firm to adopt new technologies and
integrate the same into their operations to gain maximum benefits. Every firm in the modern day
is under pressure from their partners and customers to change their traditional styles,
operationally and organizationally and integrate them with modern systems and technologies to
help speedy delivery and perform better. It is noted that even logistics companies are investing
hugely on new information and communication technologies to perform better.

State of Information Technology handling logistics tracking in Indian

Logistics companies

11

Indian logistics Industry per year increases the Growth in this sector. India's gross domestic profit
(GDP) growing at over 9 percent per year and the manufacturing sector enjoying double-digit
growth rates. In the past, India has been the student rather than the expert when it comes to the
field of logistics. But with its current expertise, valuable human resources and positive plans, it
surely is walking on the path of being a service provider of class.

Problem Areas In Logistics Sector

Logistics industry till date is dominated by unorganized sector and penetration of technology is
very minimal. Most of the processes are paper based which are highly redundant, wastes lot of
time and is seen has a roadblock to expand operations beyond certain regional limits.
On one side though technology is making rapid strides towards advancement; lack of proper
infrastructure like roads, electricity and basic communication facilities is also seen as a major
hindrance for growth of this sector.

Solutions Available For Logistics Sector

With information technology sector evolving in India, many IT companies have developed
products and solutions which are helping logistics companies reap benefits from. In order
12

achieve high levels of efficiency, a logistics company needs a standardized express distribution
instruction, that helps make the distribution process more efficient and also reduce unwarranted
operational costs.
Any logistics company needs to adopt efficient identification technologies, like barcoding
and radio frequency identification (RFID); proper data acquisition technologies like optical
scanning, electronic notepads, voice recognition and robotics for information management and
control. These available technologies save a lot of time and money in foot printing and tracing of
products or shipments.
The technologies noted above are simple to implement and easy to integrate. Most of these
devices can be used as plug and play if an enterprise system already exists in the logistics
company. These technologies which are being evolved further on a continuous basis are widely
available even in India. Currently, logistics companies are either importing these systems from
abroad or are sourcing them locally. The latter which runs on RFID, is the most advanced version
which indicates origin of the shipment, current location, its destination and even the route
information. These are the kind of technologies which will play a prominent role in
development/growth of logistics sector in India.

Benefits Of These Technologies

13

The available technologies like barcoding; RFID; optical scanning; electronic notepads; robotics
and voice recognition equipment play an important role in the modern day logistics or supply
chain management. Among all, RFID is the most popular technology in logistics and retail
sectors, used for a wide array of applications.
With right technologies in place, a logistics company can aim to reduce operational expenses by
over 30 percent. These systems also help in reducing the lead time and facilitate express
distribution, reduce manual errors, and enables enterprises set-up lean structure for efficient
working models.
India is being treated as the destination of the future in the field of logistical service providers all
over the globe. Indian logistical market players have started to gear up and position themselves
in the global scenario. The true potential of these service providers is yet to be realized. India is
keen to offer transportation and logistical service to grow itself as an emerging marketplace. The
key sectors include fashion, gems, jewelry, pharmaceuticals, precision tools and engineering
goods, all of which need special shipping provisions.

State of Information Technology handling logistics tracking in Global

Logistics companies
14

With the rapid advance of globalization over the last century, now more than ever is our world
interconnected; every day, millions of people, ideas, culture, and goods move across international
borders, creating more diverse societies and more efficient economies.
As global business competition expands, companies large and small are finding the advantages
of sourcing, trading, and selling their products and services across vast distances, both nationally
and internationally.
Global Industry Overview is an essential resource for top-level data and analysis covering the
Global Logistics industry. It includes detailed data on market size and segmentation, textual
analysis of the key trends and competitive landscape, and profiles of the leading companies. This
incisive report provides expert analysis with distinct chapters for Air Freight, Marine, Rail
Freight and Road Freight
Retailers are facing unprecedented challenges as they respond to rapid shifts in consumer
behavior and economic forces. The recession, rising fuel and food prices, along with
government-imposed austerity measures have decreased discretionary spending worldwide just
as many retailers plan to open new bricks and mortar stores. Meanwhile, the rapid rise in online
shopping has many retailers scrambling to broaden their business practices to the Internet.
Tapping into new and emerging markets and embracing e-commerce is crucial to continued retail
growth. In particular, US retailers that are aggressively trying to grow their business outside the
US must understand the global trade and compliance implications of opening stores and shipping
goods to international locations. A global trade management (GTM) system can streamline and
automate the business processes associated with conducting global trade, including admissibility
reviews, restricted party screening and landed cost calculations.
Information is the key to developing efficiency in your logistics operations. With pressure on
costs, many companies have turned to low-cost production in emerging markets around the
world. As a result, you may find yourself trying to manage a global logistics operation. However,
uncontrolled logistics costs can spiral and wipe out any savings you made at the production level.

Chapter 2

Difficulties Faced By Indian Logistics Industry

15

Indian Logistics Industry is facing different difficulties in logistics sector. India has a demand but
the lack of infrastructure, transportation system makes it hard accomplish. The various
challenges faced by the logistics industry lead to high logistics cost incurred by the Indian
Economy. This is despite the fact that the cost of labor, one of the most significant contributors to
logistics cost in developed countries, is significantly cheaper in India.

INDIA

CHINA

USA

30%

TT Transportation

40%

Inventory

50%

60%

70%

80%

Warehousing

90%

others

Transportation
Transportation in India is done by different modes of Transportation
RAILWAYS, ROADWAYS, AIRWAYS, but 61% of transportation is done through Roadways.
30% by Railways .India has a road network of over 4,236,000 kilometers (2,632,000 mi) in 2011,
the third largest road network in the world. At 0.66 km of roads per square kilometer of land, the
quantitative density of India's road network is similar to that of the United States (0.65) and far
higher than that of China (0.16) or Brazil (0.20). However, qualitatively India's roads are a mix
of modern highways and narrow, unpaved roads, and are undergoing drastic improvement. As of
2008, 49 percent about 2.1 million kilometers of Indian roads were paved.
Trucks in India have to pass through multiple check points in their journey. Trucks have to stop
at state borders, for payment of toll taxes, for RTO inspections, Octroi etc. An estimate of the
time taken at the check points shows that in a journey of 2150 kilometers between Kolkata and
16

Mumbai a truck had to stop for as much as 32 hours at various checkpoints on 26 different
locations.
The table below describes the regulating bodies.

Road Classification

Authority Responsible

Total Kilometers(2011)

National Highway

Ministry Of Road Transport &

Highways (Central government)
State governments (state's public
works department)
Local governments, panchayats
and municipalities
Local governments, panchayats
and municipalities

70934

State Highway
Major & Other District Road
Rural Roads

163898
2577396
1433577

Lack of technology in road and rail transportation is causing loss n delay in the growth in
Logistics sector. The ratio of unorganished sector in india is 99%, that is the main reason the
indian transporters cant compete with MNCs . MNC are providing services cheaper and faster
because of their organised way of Transportation .

17

18

Many of the transportation companies prefer transportation through Road Over Rail: Following
are the reasons why the Indian logistics sector prefers road over rail for transportation of goods
Important rail networks are oversaturated. There has been no significant capacity addition to
Indian Rail since Independence (Refer the graph below)
Rail freight tariffs are comparatively higher
Transit times are long and uncertain
Rail terminal quality is poor
Less flexibility in carrying different types of Products
Railway carriage not easy for industries which cannot provide full train loads

19

The road movement in India has its own shares of problems. Those problems are Coverage of
road network is inadequate, Quality of the roads is inadequate Expressway road network is in its
infancy stage And Delays due to multiple checkpoint. The Challenges faced by Air
Transportation for the Logistics Industry vise-a-vise air transport are Rising Air Turbine Fuel
(ATF) prices, Ever growing congestion at Airports, Delay in cargo handling and clearances

Ports section In India

Indian Ports handles 90% of the trade done in India. There are 200
ports in India, but due to lack of connectivity with new technologies are generating challenges
for the growth of Indian Economy. India is Developing In this sector very well, but the
challenges remains the same. India has a vast natural peninsular coastline with around 200 ports
and a substantial volume, over 90 percent of India's trade, is carried out through these ports. The
ports are of significant importance for the growth of the trade and economy in India. The port
sector is growing at a steady pace with the cargo handling at the ports in India is expected to
grow at 7.6% until 2015. The development of port infrastructure in India is not on par with other
ports across the world. Trade in India has to face severe challenges due to inefficient port
services. The cost-inefficiency and non-competitiveness of the cargo has resulted in higher
through-port and transport costs. Shipping lines avoid touching ports in India because of the long
waiting time. The capacity of various ports including Mumbai has already been exhausted and
now capacities of other ports like JNPT are on the verge of exhaustion. The turnaround time at
ports in India is one of the biggest handicaps logistics service providers have to deal with.
Today there is a need of modern ports in the country. The major reason for the poor turnaround
time at Indian ports is that they are not comparable to global standards. The ports are plagued
with problems like congestion, poor connectivity and accessibility, lack of adequate facilities,
labor disputes, even mafia problems. These bottlenecks are proving detrimental to the economic
growth of the country. With growth in the economy and trade the need for large investments in
port infrastructure has become critical. With the resurgence in global economy the momentum is
bound to increase rapidly. According to the India Port Report "The roadmap to port reforms in
the country is littered with many a complex and befuddling issues that not only defy simplistic
solutions but also call for bold imagination and innovative solutions that are not easy to come
by." In the past, maritime activity was mostly under the control of the Government, but the
scenario has now changed with the gradual privatization of development and operation of ports.
The developments of minor ports are also being handed over to domestic and international
private investors. The Government has undertaken expansion and modernization of ports on a
priority basis in its five-year plan allocations in 2007 in continuance with its initiatives in
20

upgrading India's infrastructure and is expected to invest more than USD 9.7 billion by the year
2015. Apart from increasing the capacity of ports in the next ten years the government is also
focusing on improving port connectivity. The use of technology for the documentation work, the
use of heavy machinery for unloading and loading time for saving time which makes other ships
to wait outside the ports.

21

22

The Port Sector in India is facing many issues in competing with the global port sector. Indias
port section has High turnaround times which make other ships to wait on the coast of India.
Inadequate depth at ports is another problem faced by Indian ports, Lack of inadequate
depths at ports are wasting the time of the ships and Costal shipping is yet to take off in
India.

Warehousing
Warehouse is a place where we store raw material, unfinished goods and
finished goods an efficient warehousing operation hinges critically on high-quality supporting
infrastructure that includes a good national highway network, interstate roads and congestion
free city roads. The total share of organized warehousing space is less than eight per cent of the
total warehousing space in India. The industry is fragmented and largely unorganized and is
dominated by small players with small capacities not well-linked with the national highway.
Procurement of land in a strategic location with clear title and proper approvals is still a key
challenge for any new entrant to set up a warehouse. Government policies have intervened with
23

the help of various initiatives through various warehouses, the companies have to invest further
in order to upgrade the space and its specifications to standards that support their operations. As
we go forward, the demand from occupiers is expected to put pressure on developers and owners
to adopt the standards formulated by policymakers. Many of the ready-to-occupy off-the-shelf
basic warehouses do not easily lend themselves to up gradation in terms of technology
compliance or accommodating automated equipments.
Access to adequate and timely credit at a reasonable cost is one of the most critical problems
faced by this sector. The main reason for this has been the high-risk perception among banks
about the unorganized nature of this sector and the high transaction costs for loan appraisal.
Since a majority of the players in this sector are small or medium entrepreneurs, they are unable
to provide collateral in order to avail of loans from banks and are hence denied credit.
Fragmented market with unorganized players, Economies of scale cannot be explored as the
warehousing sector in India is dominated by small players with small capacities spread across
India. Also cold-chain logistics solutions are always driven through consolidation. All over the
world, cold-chain service providers have large fleet sizes and big warehouses with state-of-theart technology. So far, the current practices of fleet ownership and other policies in India have
not encouraged large ownership of fleets. Thus, the costs of cold chain supply are prohibitive at a
large scale in India.
Power outages are a major problem currently plaguing cold chains leading to huge wastages of
agriculture -products every year in India. The increasing cost of power adds further to the
warehousing cost for agriculture-products.
High costs due to long transit time, longer transit time and inadequate infrastructure also increase
transportation costs. This leads to collection of material directly at mini-warehouses distributed
across locations thereby defeating the purpose of augmentation and distribution.
Complex tax regime: The delay in the implementation of GST and the existing complex sales
and transport tax system tends to discourage the establishment of a national-level centralized
Distribution center or hubs, the likes of which are often seen in developed countries.

Procurement of land in a strategic location with clear title and proper approvals is still a key
challenge for any new entrant to set up a warehouse. Government policies have intervened with
the help of various initiatives through various agencies. The lack of existing clear land
classifications in Indian cities and the reclassification of land are major concerns as far as the
Development of warehouse zones is concerned. With land values peaking in the last three to five
years, the availability of affordable land is another concern for the industry. It is getting
increasingly difficult to procure land at affordable prices for building warehouses in India due to
escalating valuations even in the fringes of large cities. To add to the misery, further different
states have different rules regarding agricultural land acquisition, which create entry barriers and
have serious cost and time implications.
24

Lack of integration with complete supply chain: Though warehousing is an integral component
of the supply chain, currently warehouses are structured on a standalone basis. Warehousing
service providers often struggle with other supply chain stakeholders for integration of
Information and visibility. This disintegration in the upstream, downstream or both ends of
Warehousing leads to unpredictability of usage of space and facilities. In addition, this impacts
the value-added service performance level expected from warehousing service providers.
Lack of trained manpower: The lack of training institutes adds to the woes of the warehousing
sector. Evolving warehouse management processes and operations with more demanding
customers, lack of attraction for new recruits arising from poor working conditions, relatively
less attractive incentives and benefits, and the emergence of attractive alternate career options are
reasons that contribute to the skill shortage in the Indian warehousing sector.
Lack of IT penetration, the warehousing sector in India, with some exceptions, is characterized
by low technology levels that act as a handicap in the emerging Indian and global market.
Limited real-time visibility with manual inventor management, warehousing management,
documentation, billing and reporting has raised doubts on the sustainability of a large number of
Warehousing players. The existence of these will be in jeopardy in the face of international
competition from 3PL and 4PL service providers.
Lack of integration with complete supply chain: Though warehousing is an integral component
of the supply chain, currently warehouses are structured on a standalone basis. Warehousing
service providers often struggle with other supply chain stakeholders for integration of
information and visibility. This disintegration in the upstream, downstream or both ends of
Warehousing leads to unpredictability of usage of space and facilities. In addition, this impacts
the value-added service performance level expected from warehousing service providers.
The lack of training institutes adds to the woes of the warehousing sector. Evolving warehouse
management processes and operations with more demanding customers, lack of attraction for
new recruits arising from poor working conditions, relatively less attractive incentives and
benefits, and the emergence of attractive alternate career options are reasons that contribute to
the skill shortage in the Indian warehousing sector.
The warehousing sector in India, with some exceptions, is characterized by low technology
levels that act as a handicap in the emerging Indian and global market. Limited real-time
visibility with manual inventory management, warehousing management, documentation, billing
and reporting has raised doubts on the sustainability of a large number of players. The existence
of these will be in jeopardy in the face of international competition from 3PL and 4PL service
providers.

25

26

There are many Challenges related to the Storage Infrastructure, in India infrastructure in every
field is not developed. It is the main problem in India, that the base of doing anything is not
developed some of them are poor state of Inland Container Depot (ICD) & Container Freight
Stations (CFS) ,poor Warehousing Facilities, state of cold storages is poor and Multimodal
Logistics parks is yet to take off in India, that is not started yet.

27

Chapter 3
Indian logistics Industry The Way Forward
In the years to come, the Indian economy will be driven by sectors like manufacturing and retail.
So for these sectors to contribute effectively to the economy, the logistics industry in India will
have to improve upon its lacunae and deliver value enabling solutions. To achieve this, the
logistics industry needs to focus on the following fronts:
Expand distribution channels and increase consumer reach
Reduce operational cost & improve delivery time
Overcome infrastructure bottlenecks & implement E-Infrastructure
Efficient port utilization and decreasing the turnaround time
Increase investments in storage infrastructure i.e. warehouses & cold storages
Organize the trucking operations on a pan India basis
Adopt the latest technology
Address skill gaps issues

28

29

Chapter 4
Research over Logistics Industries
Background of the transport company

Study of the background of the transport company helps to know as to how much experience the
transport company had in road transportation did. The advantage of being an experienced player
is that they know every route they transport in very well which help in better utilization of most
convenient routes for saving time and cost of transportation. Experienced team of professionals
helps in transportation planning and execution and with flexibility to make real time adjustment
to transportation plan based on traffic, weather and last minute changes of the plan. We found the
establishment year of the companies which is shown below:-

Years

No. Of Companies

1960 1980

1981 1995

20

1996-2010

50

2011-2013

30

Branches Of The Transport Companies

Study of the branches of the transport companies helps to know about how big and expanded the
company is in term of operations all over India. The companies which are having their branches
in different types of places helps by getting to know about the local needs of transportation and
transporting according to the products and needs of the users. Branches helps in transportation in
different places as expertise advice can be availed from their braches according to the needs and
local preference of the customer.

Branches

NO. Of Companies

1-25

14

26-50

50+

Fleet Size Of The Transporter

Study of the fleet size of the transporter help in knowing how many trucks the transporter has in
terms of counting and how much can they transport in a given period of time. Fleet size of the
transporter helped us to know as how much business can be handled by the transporter. As big
the fleet size of the company, the company can handle big clients by getting into contract for a
particular project or by working with them 24*7 and catering the clients according to their
product needs and maneuvering the fleet according to their products. Many of the transporter
nowadays work on the principle of owned + attached fleet of vehicles, this helps the transporter
in using the fleet not owned by him for just bigger project and using his fleet in smaller project.
Only attached fleet of trucks is also a option which the transporter use in this a transporter
doesnt have a single fleet of trucks and he does his business by transporting the goods from
hiring the fleet, the advantage of doing this, the transporter have to only pay for the rented truck .

31

Manpower

Manpower is the set of individuals who make up the workforce of companies. Manpower
consists of skilled and unskilled individual with experience or fresher. Skilled manpower brings
specialized skill sets to the company which is essential in advancing industries through
developing new techniques or methods for improvement. Although skilled workers are more
expensive than other workers in the market, they provide tremendous value to companies willing
to employ them, skilled workers can improve many different processes in a company depending
on their expertise they also increase the no. of clients as they deliver quality work on schedule.
Unskilled labor is the cheaper and less technical portion of the workforce. This workforce plays
the important part of performing daily production tasks that do not require technical abilities
menial and repetitive tasks are the common workplace of unskilled labor.

Manpower in road transportation helps with improved method of transportation. With the help of
technology like GPS for trace and tracking, internet connectivity for the communication flow
with concerned authorities. It also helps in helps in loading and unloading of goods from trucks
with the use of technology or without technology helping with hands

Technology

Technology is human knowledge of how to combine resources to produce desired products, to

solve problems, fulfill needs, or satisfy wants; it includes technical methods, skills, processes,
techniques, tools and raw materials.
Technology, like any other arena, is a crucial decider in road transportation as well. However, the
industry which is primarily dominated by unorganized sector can transform into a more efficient
one if appropriate technologies are out to use. Role of technology in making a transportation
company become competitive in the growing markets.
With the growth and competition from multinational transportation companies there has been an
ever growing demand for smart logistics and efficient supply chain management. Road
transportation sector in India is mainly dominated by the unorganized sector and expecting
quality service from these players was a distant dream for customers. However, with the advent
32

of technology-led solutions in this sector and emergence of organized players and experienced
players, companies in this sector are striving hard to deliver quality services to their customers.
In this ever changing and rapidly growing business environment, every transporter is looking for
ways and means to put forward their competitive advantages and capture a larger market share. It
is a proven fact that adoption of technology is the most important tool for any enterprise to keep
its competitive advantage intact. The survival of an enterprise in the age of knowledge-based
competitive economy depends on how the company improves their technological capabilities and
offers better and innovative services using them.
Technology helps transportation in different kind of ways. Consignment tracking is the process
of determining the current and past location of the consignment and other related information of
the consignment. Vehicle tracking system is the process in which the device is fitted into the
vehicle and captures the GPS location information apart from other vehicle information at
regular intervals to a central server. Vehicle tracking systems are commonly used by fleet
operators for fleet management functions such as fleet tracking, routing, dispatching, on-board
information and security. When managing a fleet of vehicles, knowing the real-time location of
all drivers allows management to meet customer needs more efficiently. Whether it is delivery,
service or other multi-vehicle enterprises, drivers now only need a mobile phone with telephony
or Internet connection to be inexpensively tracked by and dispatched efficiently. Companies
needed to track valuable assets for insurance or other monitoring purposes can now plot the
real-time asset location on a map and closely monitor movement and operating status. Vehicle
tracking systems are widely used worldwide. Components come in various shapes and forms but
most utilize GPS technology. While most will offer real-time tracking, others record real time
data and store it to be read, similar to data loggers. System like these track and record and allow
reports after certain points have been solved. Internet is a major communication tool used by
road transporter. Internet connectivity helps in communication in operations and interactions
with clients and customers. The internet is used as a primary source of communication and
information services.

33

The technology used by the number of road transporter is shown below:-

Technology

No. Of Companies

Consignment Tracking

Vehicle Tracking

15

Internet Connectivity

30

34

Chapter 5

Major players in The Indian Logistics Industry using different technologies

The market is fragmented with thousands of players offering partial services in logistics; it is
estimated that there are about 400 firms capable of providing some level of integrated service
(Mahalaksmi, 2006). The economy is expected to grow around ten per cent over the next ten
years and sectors like chemicals, petrochemicals (especially distribution), pharmaceuticals,
metals and metal processing, FMCG, textile, retail and automobile are projected to grow the
fastest. New business models are emerging as new firms, both domestic and foreign, enter the
market. As a result of the ensuing competition, linkages with global supply chains and domestic
market growth promise to change the face of logistics industry beyond recognition.
Some of the large players to enter (or expand significantly) the Indian market recently have been
Reliance Retail, Big Bazaar Hypermart, Pantaloons and RPG in Retail; Nokia, LG, Samsung,
Motorola, Sony, Blue Star in Consumer Electronics; Bajaj, Hero Honda, Maruti, Honda, Toyota,
Audi, Volkswagen, Renault, Volvo in the Automotive sectors; Holmic in Cement; etc. It can be
expected that their operations will drive the growth of logistics industry. The liberalizing Indian
economy is experiencing entry of large domestic and global firms in new businesses as well as
enlargement of distribution network of many regional Indian firms. The announcement of large
retail projects by Reliance and Bharti (in collaboration with Wal-Mart) will bring new
technology, add additional warehouse capacity and will require fast and reliable movement of
goods across the country. Reliance is thinking of establishing large warehouses in Thailand to
take advantage of low cost sourcing from South-East Asia once the Free Trade Agreement with
Thailand (as well as ASEAN) gets finalized. Similarly, regional food & grocery retail leaders like
Subhiksha who are present very extensively in the South Indian market are now entering the rest
of the country with more than 600 new retail stores in 2007. Their logistics strategy and needs
are transforming very significantly with this nationwide expansion
The entry of large third party logistics (3PL) carriers like Federal Express and DHL and the
expansion of domestic networks of Indian firms like Gati and Shreyas Shipping is also
transforming the nature of services and the business practices across the sector. Table 4 gives an
idea of the investment plans announced by the various firms for the coming financial year and
gives a sense of their increasing activity. Another trend driving growth in this sector has been the
consolidation amongst the logistics player. Mergers & Acquisitions amongst Indian and MNC
logistics firms is starting to increase the reach of MNC 3PLs in the domestic market while
consolidating the business.
35

Some of the Domestic Companies who are trying to compete with these big fishes are:
1. Partima Logistics
2. S & S Logistics
3. Jaipur Golden Transport Companies
4. Sharma Transport Company
5. City Packers And Movers
6. Mithila express Logistics
7. Pragati Roadlines
8. Aryabhatta Packers and Movers
9. Krishna Packers and Movers
10. DTDC Courier and Cargo LTD.
11. Blazeflash Couriers
12. Safexpress Pvt Ltd
13. SRD Logistics Pvt Ltd
14. Lohia Transport Company
15. Ayush Cargo and Courier
16. Budhiraja Goods Transport Company
17. United Worldwide xpress
18. Agrasen packers and movers
19. First flight courier
20. United overseas Pvt ltd.
21. Mahindra Logistics
22. Unicity Packers and Movers
23. Sindhu Cargo movers
24. Uni Trade Logistics
25. Gonsai Logistics pvt ltd.
26. KGL Logistics
27. Spirelog
28. EXL express and Logistics
29. Ondot Cargo Ltd.
30. Leadedge Logistics Pvt ltd.
31. Vanguard Logistics
32. Signal Logistics
33. APG Logistics
34. Penguin Logistics
35. Alligate Cargo Logistics pvt ltd.

Chapter 6
Conclusion
36

With information technology sector evolving in India, many IT companies have developed
products and solutions which are helping transportation companies benefits from.
Any road transportation company needs to adopt efficient identification technologies, like barcoding and radio frequency identification (RFID); proper data acquisition technologies like
optical scanning, electronic notepads, voice recognition and robotics for information
management and control. These available technologies save a lot of time, money and tracing of
products or shipments.
The technologies noted above are simple to implement and easy to integrate. Most of these
devices can be used as plug and play if an enterprise system already exists in the logistics
company. These technologies which are being evolved further on a continuous basis are widely
available even in India. Currently, logistics companies are either importing these systems from
abroad or are sourcing them locally.
Among the upcoming and futuristic applications are, Warehouse Management and Distribution
System and Automated package movement system. The latter which runs on RFID, is the most
advanced version which indicates origin of the shipment, current location, its destination and
even the route information. These are the kind of technologies which will play a prominent role
in development/growth of road transport sector in India.

Bibliography

37

1. Baumann, Fred. Andraski, Joe. (2010, June). Collaborate, externally and internally: In
CPFR and S&OP, two planning vehicles are better than one. Industry Engineer, p37-40.
2. Christopher, Martin. Peck, Helen. (2003). Marketing Logistics. Massachusetts:
Butterworth-Heinemann
3. Chung, S.H., Chan, F.T.S. (2004). A multi-criterion genetic algorithm for order
distribution in a demand driven supply chain. International Journal of Computer
Integrated Manufacturing, Vol. 17, p339-351.
4. Road Goods transport Industry in India-A study its structure and Organization. 1994.
Pune: Central institute of Road Transport.
5. http://en.wikipedia.org/wiki/Technology
6. http://en.wikipedia.org/wiki/warehousing technologies

7. Sriraman, S., Venkatesh, A., Karne, M. Competition Issues in the Road Goods Transport
Industry in India with special reference to The Mumbai Metropolitan Region. 2006.
Mumbai.
8. Mohta, M., Thakkar, H,. Domestic Freight Transport Services. 2010. February.
9. http://www.softlinkglobal.com/resources/Expert%20Opinion/Amit_TTalkDec10.aspx?
Type=resources
10. http://pratibimbtapmi.wordpress.com/2012/11/04/indian-logistics-the-way-forwardchallenges-opportunitiesopportunities
11. http://en.wikipedia.org/wiki/ports sector in India
12. http://en.wikipedia.org/wiki/transportation
13. http://www.google.com

38

39