Logistics-Supply Chain

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LOGISTICS XPRESS

3. LOGISTICS XPRESS
Advisory Body:
Dr. S.J. Chopra (Chancellor)
Logistics Xpress is published quarterly. All
Editorial
correspondence
and
papers
for
publication should be addressed to the Chief
Dr. Parag Diwan (Vice Chancellor)
Dr.G.C.Tewari (Pro-Vice Chancellor)
Editor, Logistikas Society, UPES, Energy
Acres, Bidholi, Dehradun. The submitted papers
will be reviewed by members of the editorial
Utpal Ghosh, (Campus Director)
Dr. Anirban Sengupta(Director , CMES)
board and external references. Views expressed
in the articles are those of respective authors.
Retd. General (PVSM)
Neither e-Logistics Xpress nor Logistikas
S.P.S. Narang (Asso. Dean, CMES)
Society, UPES, Dehradun will accept any
responsibility for views expressed by the
author(s). All copyrights are reserved by
Dr. Atul Razdan (Asst. Dean, CMES)
Rakesh Mehrotra
respective authors. Unless authorized, no part of
the material published in e-Logistics Xpress
may be reproduced or stored in retrieval system
or used for commercial and other purposes.
All rights reserved.
(Former MD, CONCOR)
Arun Sharma
(Group Manager-Supply Chain
Copyright ©2012 by Logistikas Society.
Editorial/Subscription Address:
Chief Editor, Logistikas Society,
Operations, Apollo Tyres)
J.V.B Sastry (Sr. VP Logistics, ACC)
University Petroleum & Energy Studies, Energy
Acres, Bidholi
Pradeep Dubey
Dehradun-248 007
(GM,SNOWMAN)
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Email: nanand@ddn.upes.ac.in

4. LOGISTICS XPRESS
Vivek Tripathi
Mr. Loveraj Takru,
(Manager-HR,Jindal Steel)
(Industry Fellow-LSCM)
Prof. Janat Shah
Dr. Venkatasaiga Rao
(IIM-B)
(Industry Fellow-LSCM)
Kanakendu Chatterjee
Capt. Y. Bhattacharya
(Sr. Supply Chain Consultant)
(Industry Fellow-PSM)
Yuvraj Sharma
Managing Editor:
(Regional Director
Dr. K.K. Pandey, Asst. Professor, CMES
North, UT Worldwide)
Chief Editor:
Ravinder Singh
Dr. Neeraj Anand, HOD- LSCM, CMES
(Dy. Manager-Mahindra Group)
Publisher:
Prof. K.V. Mohana Rao
UPES, Dehradun
(HOD- PSM & AVM)
Administrative Support:
Prof. T.S. Marwah,
Brig. S.S. Dhillon
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(Industry Fellow-IB)

5. LOGISTICS XPRESS
EDITORIAL COMMITTEE:
Mr. Saurabh Tiwari (Lecturer)
Mr. Vimal Prasad Mathur ( Asstt professor, selection Grade)
Ms. Neha Grover, Doctoral Research Fellow
Cover Design
Pratham Walia
Design and Layout
Creative team
Core Committee
Gursharan Singh
Gurleen Singh
Kartikeya Sharma
Don Sebastian
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Pratham Walia

6. LOGISTICS XPRESS
FROM THE EDITOR’S
DESK
I feel elated in launching the current issue
VOLUME IV of our in house magazine
LOGISTICS
XPRESS.
We
have
incorporated the current news and the best
practices that are followed in the logistics
world .
As expected, the Budget was a damp
squib, and the deficit that had shot up was
brought down a little. The stance of the
government is quite clear: all the talk about
intent to rein in fuel subsidies was negated
by just one sentence in the Fiscal Policy
Strategy Statement, "With respect to
rationalisation of petroleum subsidy,
government has already decontrolled the
pricing of petrol."
Dr. Neeraj Anand
(HOD - MBA LSCM)
nanand.ddn@upes.ac.in
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This issue includes a report on the
“Future of 4PL” which has been presented
by our students Sagar Relan , Gurleen
Singh, Gursharan Singh, Niharika Singh and
Nishi Jaiswal in logistics talent hunt 2012
conducted by T2P Consultants on March 25,
2012 in which our students has secured first
position , I congratulate them from the
bottom of my heart.
____________________________________
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The fact that the petrol prices have
not changed in Delhi since November, even
as the crude basket price rises, speaks for
itself. To take another example, for all the
talk about encouraging foreign investment,
the turnaround in tax laws has stunned the
markets.

7. LOGISTICS XPRESS
FUTURE OF 4PL IN INDIA FUTURE OF 4PL IN INDIA
by
Gursharan Singh
INDIAN ECONOMY FROM THE
WORLD‟S PROSPECTIVE
Many investors living today have never
really had to see tough financial times. It is
difficult to meet someone who was old
enough during the Great Depression to recall
how tough that was,especially on investors.
Although there have been recessions since
but none of the was so disturbing magnitude
as the current one.
During the recession India‟s industrial
production rose by 2.6 percent 2008-09
down from 8.5 percent in 2007-08 when the
rest of the world was going through a bad
phase.Manufacturing output also dropped by
1.4 percent year on year to Rs.1.5 trillion in
January-March 2009 after rising by just 0.9
percent in 2008.On the other hand the rise in
industrial production by 1.6 percent was
witnessed. India‟s combined fiscal deficit of
the centre and the states at close to 10
percent of GDP in 2008-09 is amongst the
highest in the world.
INDIAN ECONOMY – THE WAY
AHEAD
India‟s relatively less dependence on
merchandise exports, its smooth functioning
financial system and comfortable finanacial
Niharika Singh
Nishi Jaiswal
reserves help In recovery from the
slowdown. The domestic demand has held
up relatively well ,there are signs that worst
might not be over yet. Forecasts by
organization for Economic Co-operation and
development
(OECD)
and
Asian
Development Bank are pessimistic about the
growth. OECD projects a further slowdown
of 5.9 percent in 2009 as a whole. The ADB
also forecasts that growth will again slow
this year to 5 percent. Looking ahead ,Ce
ntre for Monitoring Indian Economy
will bounce back to 9 percent growth by
2011,when impact of poor export demand
would overcome.
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Gurleen Singh
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Sagar Relan

8. LOGISTICS XPRESS
INDIA AS A GLOBAL
MANUFACTURING HUB
Demand for FMCG and Electronic products
in India is growing at a very high rate.
Multinational companies are showing
interest to set up their world class
manufacturing in India to cater to the needs
of domestic and export market as well. The
Indian automotive industry is one of the
major automobile manufacturing hub. Since
the deregulation and opening up of the
automotive industry, the industry has
witnessed
tremendous
changes
and
experienced a great boost. Jewellery, gems
and IT industry are also seeing an upward
swing. Undoubtly India is well poised to
emerge as a global manufacturing hub.
13% of the GDP out of Rs. 31297 billion
and is expected to be more than 5400 billion
by 2015, which is comparatively higher than
other developed countries.
India is among one of the world‟s leading
producer of horticulture products. To save
fruits and vegetable products from rotting up
before reaching in the market CONCOR
came forward with moving cold chain
logistics and is developing a cold supply
chain business in the global food market. It
has increased the share of processed food
from 6% to 20% in the country.
The air and marine transport sector has
contribution around 0.2 per cent of the
country‟s GDP, due to cost reduction and
improvement in organizational efficiency
the transport sector‟s contribution to the
GDP has been growing over the last couple
of years. Many Indian companies are
realizing the importance of supply chain
network due to which there is an uptrend in
the requirement of 3PL service provider. As
a result there is a prediction of growth in
3PL solution at a CAGR of 20 per cent in
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LOGISTICS INDUSTRY OVERVIEW
AND ITS CONTRIBUTION IN
COUNTRY’S GDP
Globalization, consolidation, technology
advancement and outsourcing have led a
remarkable growth of the Indian economy
especially in automotive, pharmacy,
manufacturing, retail and FMCG sector.
Logistics spend in India is approximately
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RELATIONSHIP BETWEEN
ECONOMIC GROWTH AND
LOGISTICS
Export led growth has been a crucial
component of sustainable economic growth.
There are many enablers of export oriented
economic growth who also facilitate
economic environment,establishing export
oriented zones like SEZs. The most
important enabler is the improvement in
transportation
infrastructure,
telecommunication and power which in turn
accelerates domestic demand.

9. Key growth drivers in logistics sectors are:
 Streamlining of indirect tax structure
 Increased demand of 3PL services
 Recognition of logistics management
as a strategic tool
 Globalization of manufacturing
systems
 Infusion of qualified work force
 Investments
in
transportation
infrastructure
The Indian railways has realized the
necessity to improve the infrastructure
provide better service. This includes laying
of optic fiber along railway tracks, utilizing
land and airspace for other commercial
purposes. 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. It represent
thousands of small customs brokers and
clearing & forwarding agents, who cater to
local cargo requirements, the railways have
to essentially devise plans to divert this
traffic to the rail.
Transport sector‟s contribution to
India‟s GDP is estimated to be around 6.6%
in 2005-06, and road transport has a
dominant role in this contribution with a
share of 4.7% in India‟s GDP. India has the
second largest road network in the world.
The aggregate length of roads in India
increased from 0.4m km in 1950-51 to
3.34m km by the end of 2006.India‟s
logistics sector attracted huge investments
excepting 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 for the food park
have been key factors in the growth of
Indian logistics industry. The Indian
logistics industry is further expected to grow
at the rate of 15 to 20% annually.
The setting up special economic
zones (SEZs) has led to increased logistics
activities around them. Because of the
excellent port, rail, road connectivity
logistics parks have come up at locations
like Mumbai, Kolkata, Chennai and
Hyderabad 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 take benefit of
the opportunities. Increase in foreign trade is
expected to further growth in the demand for
logistics services.
Future outlook of the logistics
industry is bright as it depends on the
economy which is expected to grow
continuously. Logistics industry need keep
pace with the growth of the external as well
as domestic trade. Increased participation of
both public and private sector, technology
deployment, investments in infrastructure
and integration of logistic services is
required for development of logistics and
supply chain management.
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the next few years. The Civil Aviation
Ministry‟s proposal to frame a policy for the
development of airports exclusively for
cargo operations is encouraging. Under this
policy, for the movement of perishable
cargo at the airports a centre for perishable
cargo (CPC) would be established.
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LOGISTICS XPRESS

10. LOGISTICS XPRESS
Now todays‟ customer is demanding a
“single point of contact” for all its services
and looking for “one stop logistics
shopping” because they are unable to have
co-ordination across their supply chain.
The models of logistics industry have
evolved over the changing needs the market
and vary based on scope of service
offerings, degree of collaboration, levels of
asset intensity and IT capabilities across the
supply chain.
The logistics model has been evolving from
a specialized function to fourth party
In the "PL" terminology, it is important to
differentiate the 3PL from the:
1PL, which are the shipper or the consignee,
2PL, which are actual carriers such as YRC
Worldwide, UPS, FedEx, DHL, Ceva
Logistics
4PL, which are consulting firms such as
CPCS, SCMO, BMT, Deloitte, and
Accenture
3PL: AT A GLANCE
A third party logistics provider is a firm that
provides service to its customers of
outsourced logistics services for part, or all
of their supply chain management functions.
Third party logistics providers typically
specialize
in
integrated
operation,
warehousing and transportation services that
can be scaled and customized to customers‟
need based on market conditions and the
demands and delivery service requirements
for their products and materials. Often, these
services go beyond logistics and included
value added services related to the
production or procurement of goods, i.e.,
services that integrate parts of the supply
chain. Then the provider is called THIRD
PARTY
SUPPLY
CHAIN
MANAGEMENT
PROVIDER .
CURRENT 3PL
MODEL
The old model of
customer
interaction was
for companies to
contact a 3pl and
9
For providing these services now the
logistics providers has used many new
techniques like consolidation, outsourcing
and also included technology in their
operations.
logistics and fifth party logistics companies.
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EVOLUTION OF LOGISTICS
INDUSTRY
As the needs of the clients are increasing
day by day as the organizations are now
more globalized so they are having big
operations for which they require enhanced
services.

11. LOGISTICS XPRESS
In INDIAN context the 3pl services are not
that much beneficiary as now firms are
demanding enhanced services for their
supply chain so they want a complete
solution for which.it can reduce their cost,
eliminate their wastage and enhanced their
productivity. So, what can be the better
solution for them, answer is a 4pl service
provider.
In to the service vacuum created by 3PLs,
the 4PLs has emerged. Using a 4PL, fourth
party logistics service provider, is different
than the traditional 3PL. much on 4PLs
discusses technology. Technology is not
only the point, but it is a part of the solution.
It is one element of success of process,
people and technology. 4PLs see the process
and what is required to make it succeed.
4Pl‟s combine process, technology and
process to manage. The 4PL is a business
process outsourcing, BPO, provider. This
AN IDEAL 4PL MODEL
4PLs should not recreate the wheel, but
should create platform that internal client
logistics departments can use to gain
visibility into their system. The 4PL then
focuses on data integration and web
development and allows multiple companies
to log into the same system. In this way the
platform begins to improve and the 4PL
keeps its cost down.
Following this approach, when a 4PL adds a
new client, its cost do not increase at the
same rate, because many of the feeds are
already built to major warehousing and
transportation and 3PL companies.
4PL SERVICE PROVIDERS
4PLs represent the next stage of
development in logistics service providers.
Consequently, while the traditional activities
of warehousing, inventory management and
transportation may be given out to one 3PL,
other processes like HRD, security and
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PROBLEMS OF 3PL
 Loss of control over the logistics
function
 Distance from clients
 Discontinuation of services
lead logistics provider will bring value and a
reengineered approach to the customer‟s
need. A 4PL is neutral and will manage the
logistics process, regardless of what carriers,
forwarders or warehouses are used. The 4PL
can and will even manage 3PLs that a
customer uses.
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then they have to wait for a long and a long
process to follow, with lots of promises
made, and efforts to “understand the client‟s
business” and then for a contract to be
signed and for the logistics management to
move from the client to the 3pl . this was
simply moving the location of where the
work in freight coordination was being
done. The client‟s logistics function then
became simply managing the 3pl for those
parts of the business that the 3pl had
obtained. This is not at all that helpful.

12. LOGISTICS XPRESS
The primary role of the 4PL is the
management of complexity and time. Two
key distinctions make the concept of 4PL
unique and set it apart from other supply
chain outsourcing options available in the
market today are:

A 4Pl provide a comprehensive
supply chain Solution.
A 4PL adds value to the entire
supply chain by managing all the
activities of the supply chain.
From above to concepts we can found that
the 4PL outsourcing have evolved because
of the problems faced by the 3PL service
providers. In other words, 4PL is the
evolution of supply chain outsourcing. The
convergence of technology and the rapid
acceleration
of
e-capabilities
have
heightened the need for an over-arching
integrator for supply of chain spanning
activities.
4PL IS A NON-ASSET BASED
LOGISTICS OPERATOR which has
chosen to become an outsourcing specialist assessing the entire supply chain and
contracting those best able to provide the
required services, all in order to reduce the
customer's investment in inventory.
4PL operators handle the client's entire
logistics function. It is not just about
reducing costs of warehousing and transport,
but rather about managing the logistics
functions and achieving optimization. 4PL
consultants are being used to analyze certain
areas and recommend solutions where
processes can be optimized.4PL service
providers now days become a long-term
partners, as they are directly involved in the
business processes and strategies.
The 4PL service provider manages and
coordinates the relationship between all the
different activities of the consumer. It must
be able to strategize and manage all the
different assets that are dedicated to a
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Today more and more business
processes are being outsourced. In the West,
processes like bill payment, credit tracking,
invoice generation, HRD, transport and
warehousing are all being outsourced.
Outsourcing of these activities may indeed
add considerable value to the product, but on
the flip side, even in a developed economy
like the US, there are no 3PLs that offer
every process with equal competence or
reach.
The 4PL is an integrator that
assembles the capital, technology and
resources of its own organization and other
organizations to design, build and run
supply chains. The typical 4PL would
eliminate complexity, share benefits of scale
and capital and can drive innovation due to
its overall view. In other words, a 4PL
manages other 3PLs.

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product development are done by other
3PLs. In effect, the activities done by a set
of internal departments are now being
carried out by a set of 3PLs. As a result the
companies now have to deal with a whole
set of 3PLs and each needs to be coordinated
with and linked via personnel and IT. The
number of transactions and the costs reduced
are thus offset to a great extent by the cost
and time of transacting with all these 3PLs.

13. LOGISTICS XPRESS
customer and, where possible, coordinate
break-bulk distribution by co-loading
different customers' products on the same
vehicle. This can be done when a 3PL
service provider has a great number of
customers, thus providing the critical mass
to allow break-bulk distribution.
OPERATIONAL ADVANTAGES OF
4PL
The 4PL planning in such a scenario plays a
great role in reducing costs. In essence, the
4PL logistics provider is a supply chain
integrator and assembles and manages the
resources, capabilities and technology of its
own
organization
with
those
of
complimentary service providers to deliver a
comprehensive supply chain solution.
The 4PL will integrate the client's supply
chain activities and supporting technologies
across these "best of breed" service
providers with the capabilities of its own
organization.
source:- www.hiplus.de
SERVICES OFFERED BY 4PL
SERVICE PROVIDERS
Zm1
BENEFITS OFFERED BY 4PL
SERVICE PROVIDERS:-



12

Only one vendor to manage = ease of
use & time savings.
Consolidated
customized
management reports for all suppliers
used.
It can proactively monitor all the
shipments of companies - no matter
size, service or supplier.
Cost reduction.
Easy accounting with consolidated
billing.
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

14. LOGISTICS XPRESS
Losing sight of original core-concept
of SCM due to loss of control.
 Customer relationships should not be
is missed on basis of efficiency.
 Strict
functional
organization
structure hinders integrated Supply
Chains.
 Resistance to change – the biggest
obstacle to implementation of new
approaches
OPPORTUNITY
The 4PL will serve as a single point of
contact for customer, managing a
comprehensive set of supply chain and
logistics service that are executed by other
providers. Where 4PL scores better than the
current approaches to supply chain
outsourcing is a unique ability to deliver
value to client organizations across the
entire supply chain. With 4PL focusing on
the entire supply Chain dramatic customer
services improvements can be attained. This
will allow the client to invest in their core
competencies. As its an non asset owned
service provider it only works with
intellectual capital and computer. Therefore
this model provides the greatest benefits,
however it is complex and a great challenge.
Also about 75% of the fortune100
companies & about 45% fortune 500
companies have now gone in for 4PLs
Snapshot of Indian Logistics Infrastructure:
Rail: The freight traffic carried by Indian
railways during 2010-11 was 833MT & it
was lower by 2% than the set target of
that period.
Ports: Major ports handled 530 MT of
cargo in 2010-11 which was 7.9% lower
than the target set the period.
Aviation: the five major Airports in the
country (Delhi, Mumbai, Kolkatta,
Chennai & Bangalore) handled 53382MT
of cargo during 2010-11, which was 3.4%
lower than the target set the period.
The above data helps us understand that
Indian infrastructure has a long way to go &
in order to achieve reduction in National
Logistics cost, the Govt. needs to bring ion
reforms that would help the infrastructure
improve. With an improved infrastructure,
services like 4Pl can be highly effective as
it‟s the case in developed economies.
CONCLUSION:
The logistics industry in India will continue
to grow & be a focal point in strategy
formulation, operational excellence &
information technology to make maximum
value addition to its customer.
SUGGESTION
India needs to work upon its Logistics
Infrastructure, in the 11th five year plan calls
Firms
can
increase
their
market
competitiveness by reducing their overall
13

Page
PROBLEMS FACED BY 4PL
INDUSTRY
for increase n the investment made by Govt.
from 4.6% of the GDP it needs to be
somewhere between 7-8% considering the
opportunities available. Also Govt. needs to
rethink upon contribution via FDI in
infrastructure

15. LOGISTICS XPRESS
logistics cost, which would further lower the
cost incurred to them. Here 4PL can make a
world of difference, USA whose firms have
adopted 4PL style of working has
successfully reduced its logistics cost by
9.5% by incorporating latest techniques
available. India has therefore got a huge
opportunity in reducing its Logistics cost by
studying & benefitting from the world
economy like adaptation of 4PL. But the
infrastructure condition needs to be
revolutionized, as Indian economy has
shown the potential to be the next big
logistics hub worldwide.
______________________________________________________________________________
REFERENCE :
-as-a-business-opportunity/1/16824.html
www.ship.gr/4pl/pr.htm
http://www.linkedin.com/answers/business-operations/supply-chain
management/OPS_SCH/313821-19822044
http://logistics.bafree.net/the-disadvantages-of-third-party-logistics-services-versus-logisticssoftware/
http://www.lgcns.com/pr-center/news/view/94/lg-eds-systems-commences-4-party-logisticsbusiness-through-bpo-in-canada
-india.html
-logistics.in/3pland4pl.html
ARTICLES :
Page
14
Science)

16. LOGISTICS XPRESS
USING LOGISTICS AND SUPPLY CHAIN TO BOOST INDIAN MARITIME
INDUSTRY
Mohit Sharma
MBA(ET) IInd Sem
The Logistics & Maritime sector were (and
still are) not perfectly integrated because of
following reasons: -
India is a diverse country in terms of
topography,
crops
grown,
products,
communities, religions, languages, climatic
conditions. This caused a heterogeneous mix
of various aspects which are important in the
flow of goods and services from the
production point to the destination point. As
the nature of each of the factor involved is
uneven this makes the flow of goods and
services difficult affecting both the quantity
and at times quality of goods in transit. The
money, effort and time involved also
increases as logistic network has to adapt to
dynamic nature of Indian market and
system. Some product which require
absolute uniformity in the transportation,
distribution processes became virtually
extinct from the Indian system.
2) Indian Economy Before 1991
Prior to 1991 reforms in Indian economy
mainly followed a socialistic approach. This
approach requires a government to get
almost total control and restrict the role of
private players (domestic as well as foreign)
in the economy. Under this, government
decided what commodity or service is
needed by the people of the country and in
what quantity. The distribution, warehousing
& transportation were under control of
government. As India follows a federal
system of government the state governments
15
As there are limited number of ports &
allied services due to which India lag behind
in trade even with the countries which are
geographically close to it. In the past, focus
of India was on the commodities in which it
has absolute advantage over others or
relatively greater comparative advantage
over other countries. Over the years the
commodities (and services) exported by
India were limited like Mica, Tea,
Handicrafts, Cash Crops etc. These factors
almost always caused Indian economy to
suffer negative Balance of Payments.
1) Diversity
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With a total coastline of over 7600
kilometers, India has a great potential in
international trade through coastal areas. As
per the report of Director General of
Shipping, Government of India (2011), there
are 13 major and over 187 non-major ports
only 7 per cent of the domestic cargo gets
transported through coastal shipping
compared to 15% in the US and 43% in EU
countries. 80% of this cargo comprises of
petroleum, oil and lubricants, thermal coal
and crude and the remaining being food
grains, cement, containerized cargo and
finished products. The number of ships
involved in coastal trade is around 700
vessels totally comprising of around 1
million gross registered tonnages (GRT).

17. LOGISTICS XPRESS
3) Transport and Warehousing
India lacks the sustained investment in
planned infrastructure like warehouses and
transport centers. A lot of surplus of various
products which can be exported is wasted
because of this. Inland waterways which
have great potential of linking many „land
locked‟ areas to the coastal areas but are not
fully exploited. In the same way there is
urgent need for domestic air cargo
processing space, in light of cargo capacity
enhancement at airports and arrival of wide
bodied jets capable of carrying substantial
cargo at economical costs. Modern agro
warehouses are also need of the hour.
Logistics centers can replace the existing
unorganized transport hubs at industrial
locations.
Increasing efficiency of Maritime Sector
with the help of Logistics
a. The process of corporatization of
ports has been undertaken both
nationally (Ennore Port) as well as
internationally (PSA Corporation).
The idea is to benefit from
accountability, to enforce best
b. Government can also provide
separate railway lines, customized
inland waterways (according to the
requirements), and domestic air
cargo facilities and reduce its
intervention in the overall transport
network.
c. Organized retail must be promoted to
move the chain of goods effectively
and maintain a healthy level of
demand and supply.
d. Central Government and State
Government should also develop an
infrastructure
with
efficient
supporting,
allied
activities,
networks.
e. Apart from the usage of Special
Economic Zones & Towns of Export
Excellence in the integration of
logistics and maritime, nearby small
villages and regions can be
developed according to their
16
It was a cumbersome task to set up a private
firm. One has to take permissions and
licenses from the government on different
levels. Even after setting up the firm
constant governmental intervention was
there. This monopolistic practice was also
termed as “License Raj”. It also delayed the
growth and infrastructural advantage India
was getting over other countries.
operational
practices,
better
organizational efficiency, wellresearched business decisions and
financial prudence. More private
players should be encouraged by the
government. Development of minor
ports has been a painstakingly slow
process. Corporatisationof major
ports can enforce business decisions
of controlling some of these high
potential
ports
with
better
management control and focus on
profitability
Page
were responsible for procuring important
material to their people.

18. LOGISTICS XPRESS
g. As explained above, Integrated
Logistics Convergence is necessary.
Telecom sector has been the first
sector to witness convergence of
emerging
technologies (to
facilitate customer utility) – between
landline, mobile and broadband
technologies. Similarly, convergence
or business integration is taking
17
f. Integration of companies which are
part of logistics process of transfer of
goods and are active in different
independent fields with government
as common link. This will create
economy of scale and reduce the
duplication of efforts.
place from shipping & ports to
maritime, logistics and supply chain
management (in that sequence) –
again driven by focus on facilitating
utility to the customer. Indian
regulators in telecom sector were
aware of the convergence issues and
were able to nimbly change the
regulations to attract large players,
generate competition and lower
tariffs. In maritime sector too, the
regulator
should
encourage
integrated players. It would also be
advisable to encourage local
shipping companies to get into
terminal business. SCI has already
expressed intent for bidding of the
fourth terminal at JNPT.Worldwide
many shipping companies are
becoming
integrated
logistics
operators.
Page
expertise which can use the already
existing infrastructure of adjutant
SEZ and TEE.

19. LOGISTICS XPRESS
OIL SECURITY FOR INDIA & RELATED GEOPOLITICS
Loveraaj Thakru
Industry fellow
Department of LSCM
CMES, UPES
India imports about 75% of its requirement
of crude.Since crude oil prices are governed
by demand and supply in the International
market let us examine the likely trend.The
worldwide consumption of oil is about 92
million barrels per day and growing at about
2-3% per annum(1 barrel is about 158.9
litres,1ton of crude is equivalent to 7.33
barrels).China and India are responsible for
a good part of that growth.Indian
consumption has increased by almost 50%
in the last decade and with a projected GDP
18
Micro- economics dictates that when the
price of an item increases the demand is
likely to decrease.Agreed that demand for
petrol is relatively inelastic but is there an
option to allowing free pricing of
petrol?There are currently 3 petro products
of mass consumption under the APM:Diesel,Kerosene and LPG.The combined
subsidy on these is running at about Rs.350
crore per day which is Rs.1,30,000 crore per
annum.Taken alongwith the subsidy the
Government gives to the agricultural sector
on inputs such as seeds and fertilizer and the
subsidy on foodgrains for the PDS, is it
practically possible for the Government to
manage the financial jugglery to meet the
budget deficit?No wonder we already hear
statements that the deficit is likely to be in
excess of 5.5% and some estimates have it
as high as 6.5%.Blaming the Government
for high inflation and simultaneously
expecting higher subsidies and support
prices are clearly contradictory.
Page
The recent hike in Petrol prices by the
OMCs had once again provoked expected
reactions from across the political
spectrum.While the UPA allies were by and
large supportive,the opposition as is their
norm, was highly critical.The exception was
the UPA ally the TMC, which used the
opportunity to extract its pound of flesh.It
was heartening to see that at least some of
the political parties understood the economic
logic of the price increase.Once petrol prices
have been taken out of the APM umbrella
the OMCs have no option but to raise prices
to compensate for higher crude landed
price.Landed prices are impacted by either
International prices or depreciation of the
Rupee against the US Dollar.Given the
existing duty/tax structure on petrol,the
OMCs cannot be expected to make losses on
a
decontrolled
item.Lambasting
the
Government shows complete ignorance of
Finance/Economics or rank political
opportunism or both.Now that prices have
been brought down, once again the political
furore will subside but the underlying
problem will stay intact.Which brings us to
the bad news – that petrol prices are not only
not going to come down but are actually
expected to keep rising in 2012.Gone are the
days of petrol under Rs.60 per ltr. in India.

20. LOGISTICS XPRESS
Country
Saudi Arabia
Venezula
Iran
Iraq
Kuwait
UAE
Russia
Libya
Kazakhstan
Proved
Reserves(billion
Barrels)
264
211
137
115
101
97
77
46
40
To put this in perspective the proved
reserves of USA,China and India are 30,15
and 9 Billion barrels respectively.This of
course does not mean that all of this is
extractable so the actual usable quantity is
likely to be lower.
In addition to the above the proved reserves
of Natural Gas are as below:
Country
Russia
Iran
Qatar
Turkmenistan
Usa
UAE
Venezuela
Nigeria
Algeria
Proved Reserves(Trillion Cubic M)
45
29
25
8
7.5
6
5.5
5.2
4.5
(1 Billion Cubic M = 0.9 Million Tons oil
equivalent)
19
As per the Hubbert Peak Oil theory global
oil production will hit a peak rate and then
keep declining as oil starts to run out.While
new
technology,discoveries
and
development of alternatives has so far
postponed the inevitable,it is a matter of
speculation that the peak will occur in the
next 40-50 years.As a nation we should be
concerned about our energy security in the
long term because we would like to keep up
the pace of development and therefore, what
should be our long term strategy?One of the
obvious answers is that we need to change
over to other forms of hydrocarbon fuels
such as Natural Gas.Other options are to
accelerate the development of non
conventional energy sources such as Solar or
Wind.Still another is the increased use of
Nuclear energy particularly for Power
generation (and there is enough controversy
on
this).Unfortunately,there
are
transportation applications where there is no
easy substitute for oil.
To be able to design an effective strategic
response,let us examine who is sitting on all
the oil resources.The table below gives the
proved reserves of oil for some of the major
players:
Page
growth rate of 8-10% the trend is likely to
be maintained.Chinese consumption has
almost
doubled
during
the
same
period.Given that our production has been
fairly constant the increased requirement
will have to be met by imports.China has
already surpassed the USA as the largest
importer of oil.While China has steadily
worked on tying up its crude oil import
requirements(since it imports about 250
million TPA of oil or 60% of its
consumption) and has aggressively locked
up supply sources in Africa,Central Asia and
the Middle East, we unfortunately lag far
behind.

21. LOGISTICS XPRESS
In this scenario,what should be India‟s
strategy?Besides the obvious steps like
increased exploration in Rajasthan and
offshore( KG basin),let me stick my neck
out and suggest additional areas we need to
cover:
1. If the Iranian natural gas pipeline via
Pakistan is not feasible (and we don‟t
trust Pakistan enough to put our eggs
in that basket) why not consider
building a pipeline via the Arabian
Sea? This solution will be expensive
but once oil prices start to go up(
which I think they will in years to
come) the picture will change. In any
case we will save the gas transit
charges of approximately US $ 300
million per annum which we would
have paid Pakistan year after year.
Isn‟t it time India spent some of the
huge forex reserves it has ? The US
will not be happy with this step by
20
If we look at the history of the world for the
last 50 years we begin to see a distinct
pattern.Nothing sums it up better than the
remark of the then US Energy secretary,Bill
Richardson,who said in 1998 “ This is
about America‟s energy security.It‟s also
about preventing strategic inroads by those
who don‟t share our values.We‟re trying to
move these newly independent countries
towards the West”.While this remark was
made in the context of Caspian Oil,this is
what the entire US policy has been about for
the last 50 years.They have always had a
substantial presence in Saudi Arabia,put the
Shah in power in Iran(unfortunately he,in
turn,was thrown out) and have only pursued
it more aggressively since.Iraq was widely
touted as having weapons of mass
destruction(which were never found,but then
public memory is short and who is going to
scold the policeman) and Libya‟s Gaddafi
was a terrorist and ran an oppressive
regime.The
NATO
partners
were
accordingly thrown this problem to handle
and now that Libya is out of the way we see
increased rhetoric on how dangerous the
Iran nuclear program is and how it is a
major threat to the peace and security of the
world
( this time Israel is the front
man).Presidential elections in the US are
due in 2012 and the timing is just
right.Venezuela‟s Hugo Chavez has
traditionally been a thorn in the US flesh(
the Western press is a willing partner in this
build up) but he is reportedly unwell and
that problem may solve itself.In case we
haven‟t yet figured it out – it‟s about the oil
stupid.Is it any surprise that all the problem
states/dictators figure in the list of the oil
rich?A further area of interest to the US is
the oil in the Caspian Sea region but
unfortunately the way out logistically for
this oil was planned via a pipeline through
Afghanistan and Pakistan and these
countries have not yet been tamed inspite of
years of effort.Iran is once again the obvious
alternative way out for a pipeline to ship
Caspian oil.
Page
Again ,to put it in perspective China and
India have proved reserves of 2.8 and 1.5
TCM
respectively.Based
on
these
China,with a consumption of 450 Million
TPA of oil and a domestic production of
200 Million TPA, is going to run out of oil
much faster than India and has hence
aggressively pursued strategic tie ups to
ensure supply of oil.

22. LOGISTICS XPRESS
3. Adopt a realistic Natural Gas pricing
policy for domestic gas. As long as
4. Strengthen our tie ups in Africa, the
Middle East and the Caspian region.
This involves a massive diplomatic
and financial effort but we must
ensure some degree of security for
oil and gas supplies. Since Iran also
forms an important link in the route
to bring out oil and gas from Caspian
region, we must work diplomatically
to ensure that the same whitewash as
was done in the case of Libya ( a UN
21
2. Accelerate development of shale oil
extraction
and
processing
technology. We know that Arunachal
Pradesh has huge reserves of Shale
Oil and it was claimed by Mr. C.
Ratnam, former Chief of Oil India
Ld that the reserves were sufficient
to meet Indian total needs of Crude
Oil for a further 100 years. If we
combine this knowledge with the
fact of the rapidly depleting Chinese
reserves, we know exactly why
China is interested that in claiming
ownership of Arunachal Pradesh ?
Our answer must be two pronged,
first
–
undertake
massive
development of that part of the
country, which is anyway necessary
given the abysmal lack of
infrastructure and second – put
enough security in place to ensure
against any misadventure by the
Chinese, given the poor state of our
border information systems as shown
during Kargil.
we keep expecting RIL to supply gas
at $ 4.2 per mmBTU(million British
Thermal Units, 1 barrel of oil =5.41
mmBTU) the current deadlock will
continue and RIL will be reluctant to
invest in expanding the production
and distribution of gas. While the
price of Iranian gas was increased to
$ 8.3 per mmBTU ( based on a crude
oil price $ 60 per bbl) we continue to
rigidly stick to the $ 4.2 per mmBTU
price for domestic gas. Our
agreements with the E & P private
companies must be flexible. In this
connection
the
recent
recommendation of the Soumitra
Chaudhuri committee on gas pricing
to have a price $ 7.5 to $ 8.0 per
mmBTU is welcome. Flexible
pricing will also send the right
message to other companies wanting
to bid and take up E & P efforts. We
must recognize that as oil/gas
become scarce they will have to be
explored at greater depths under the
sea and that is expensive and risky
business. Anyway, RIL will probably
be happy with a price of even $6.00
per mmBTU .
Page
India (considering sanctions imposed
on Iran) but then we are caught
between a rock and a hard place.
However in a situation where oil will
start to become more scarce and
expensive, energy security for 20 %
of the world‟s population has to take
precedence.The requisite technology
for such a pipeline will have to be
sourced.This will also enable us to
link up supplies of gas from Qatar in
the future.

23. LOGISTICS XPRESS
5. Currently about 7 % to 8 % of the
world oil production is offshore. As
we move ahead this figure is likely
to increase because fresh land based
finds of any magnitude will be
unlikely( 80% of the earth‟s surface
is covered by water). Also offshore
finds and further E & P will be at
greater depths and is likely to be in
International waters. We need to
access the technology to work in
International waters at greater depths
to increase our chances of finding
fresh oil. In this context our recent
face off with the Chinese in the
South China Sea is relevant. We
must be prepared to stand up for our
rights while respecting the territorial
integrity of others.
As home to 20 % of the world
population having only 0.7 % of the
world oil reserves, we will continue
to be heavily dependent on oil
imports and therefore subject to
international price fluctuations.
International crude oil prices are not
only never likely to come to below $
70 per barrel but 2012 will only see
increases across the world and
average Indian import prices will
range above $ 120 per barrel
particularly if there any further
adventurism by the US. It is unfair to
expect the Government of India to
both reduce the duties & taxes and to
maintain petroleum sector subsidies.
The Government has to generate
revenue for development from
somewhere. Soon the issue is likely
to move away from pricing of oil &
gas to availability of oil & gas. Since
this sector has very high lead times
and risk factors, it is time we identify
the potential areas of growth and
start work on them. However
recognizing the critical nature of
powerful geopolitics involved in
terms of the interest of China ( more
immediate than ours) and the US
attempt to control all the known
resources we will have to play our
cards right. The time for action is
now !
6. Consider dismantling of APM for
diesel, kerosene and LPG. While this
would be political suicide for any
party, isn‟t it at least possible to
completely decontrol diesel prices ?
Worldwide diesel retail prices are
about 10 to 20 % cheaper than petrol.
If we make the diesel price about Rs.
60 per ltr (or Rs. 10 per ltr less than
petrol) it would certainly increase
transport costs dramatically but that
is exactly what is needed to disturb
our comfort zone and force us to
look for more cost effective and
22
efficient transport solutions and
thereby bring about a reduction in
fuel consumption.
Page
resolution which though limited in
scope was used a cover for a NATO
invasion) is not repeated in Iran.

24. LOGISTICS XPRESS
The Rise in Cost and Scarcity of Raw Materials: A Global Perspective
Bh.Phanindra Kumar
MBA LSCM IInd Sem
Changes will effect all the Raw Materials:
To respond to the rising costs of raw
materials, the industry will need to make
certain changes affecting ingredients,
packaging, energy, labour and water.
Each category of raw material will offer
different opportunities and challenges for
the industry.
With high ingredient prices,
companies will need to first protect their
contracts and seek vertical integration to
help guarantee supply. At the same time,
they will seek alternative ingredients or
develop product innovations that are less
dependent on that ingredient. Alternatively,
they may also try to influence consumption
behaviour
or suggest
substitute
products.
Packaging:
With oil and
timber price
impacting
the cost of
packaging,
companies
will need to reduce the amount of
packaging, or focus on reusable packaging
(for instance, the use of refillable
packaging). At the same time, incentive
schemes will encourage more responsible
packaging.
Energy:
Energy is a big part of the cost
structure for products, impacting the full
cycle from harvesting and production to
distribution, retailing and recycling. The
opportunities for energy reduction (through
23
The cost of raw material, including
fuel, is rising and expected to continue in
rise. Anticipated population growth in China
and India will put pressure on water and
food supplies. The climate is expected to
become even more volatile, and the weather
will likely have an increasing impact on the
performance of the supply chain, causing
crop failures and food shortages.
Meanwhile, political instability may cripple
supply lines and severely reduce the number
of source countries for raw materials.
Ingredients:
Page
Seeing the change in the living economy
day-to-day we have been experiencing very
fast and vast changes in the lives of each
individual. This article will further discuss
and brief you about the rising costs in the
next decade‟s time and the scarcity of raw
materials that arises due to this. All of this
leads to a dangerous existence ahead in the
global perspective.

25. LOGISTICS XPRESS
more efficient assets or asset sharing) as
well as alternative forms of energy will be
plentiful. Many developments are already
going on in this area and more are expected
in the next 10 years.





Labour: Labour scarcity is a very real
challenge even today and that is expected to
continue to be the case in the coming years.
Switching production locations may not be
as easy in the future due to higher transport
costs, and this may give new impetus to
automation. At the same time, companies
will need a complementary strategy focused
on making the jobs more attractive through
training and new incentives, as well as
through flexible work schedules.
Water: Fresh water scarcity is expected to
become a reality in many areas, and
technologies that improve reuse of water or
filtering and desalination will need to be
further developed.

Collaborative
lobbying
of
government in areas such as
agricultural and water policy and
energy
strategies
for
mere
availability to all.
Educating the farmers and other rural
areas such that they know the role of
certain crops for bio-fuel and the
influence that it will have on food
production
Consumer education focused on food
substitution and energy conservation.
Working
together
on
shared
warehousing and shared logistics
solutions, as well as alternative
energy sources to reduce the
dependency on fossil fuel.
Research and development in
controversial areas such as cloud
seeding and nanotechnology.
Working together with co-operatives
to find better farming solutions.
Conclusion:
Every industry and company must
follow these initiatives and help create
consistent solutions that will enable to face
the challenges ahead. The above factors are
the main sources for the scarcity and
increase in cost of raw materials. Hence,
care must be taken in maintenance and
controlling the flow of these into and out of
an industry.
help them to coordinate with the suppliers
to have a fast, efficient and healthy supply
chain
24
For resolving the issue of raw
material costs and scarcity, the industry can
take actions in various places such as:
Page
Industry Actions and Initiatives:
Food processing being the major
aspect of every nation, the farmers must be
educated with the current technology and

26. LOGISTICS XPRESS
IT APPLICATION IN LOGISTICS
There are many ways in which information
technology will be helpful which includes
replacement of inventory with information,
making customers awareness, help in
planning and reduce variability in supply
chain, co-ordination of manufacturing,
marketing,
and
distribution
through
enterprise research planning they help in
order processing and reduce lead time.
Communication systems eg-voice based
order picking. Transaction processing
systems with point of sale system can be
logistics applications. Management
and
executive information system which involve
logistics information systems as a logistics
application. Another can be decision support
system with warehouse management
systems
being
a
logistics-related
application.So IT has its own importance in
logistics also.
25
Integrating information technology has
enhanced supply chain as a ongoing
challenge. Earlier the records were not
updated as a real time but IT has helped this
out in order management , warehouse
management, transportation management
and accounting .There are various supply
chain application which include ERPenterprise research planning ,WMS-
warehouse management system which focus
on consistency, economies of scale and
efficiency. with IT in communication has
helped effective and faster exchange of info
from firm locations and between suppliers
.IT has also helped logistics through RFID
in there counting and security checks .also
helped in collaborative planning and
replenishment which made exchange of
supply chain event accurate with accuracy.
Today all activities associated with
international trade have come under the
ambit of information technology. Yet, many
service providers are still not fully aware of
the potential and actual benefits that can
accrue from it.
Page
The advancement of IT sector with
technologies is at its faster rate.IT is playing
an important role in Logistics and supply
chain management also establishing a link
between
logistics
and
Information
technology. Earlier logistics sector faced
many problems due to unorganized and they
neglected IT which became one of the
biggest obstacle in their progress. Logistics
companies have lately woken up to the
importance of technology in delivering
quality services to their customers. The
advancement in technologies have made
possible for faster end to end solutions with
the help of software. Earlier were the days
where geographical conditions was one of
the factor in logistics and supply chain
management but with latest technology
service providers are no longer facing
problem by geographical limitations and can
very well expand there business of supply
chain with no boundaries limitations.
Technology has helped them to operated
from anywhere with high visibility and
control. The integration of information
technology has resulted in benefits from
internet and integration of logistics functions
through intranets/extranets.

27. LOGISTICS XPRESS
REPORT ON INTDUSTRIAL TOUR
Seshadri Kannan
MBA LSCM IInd Sem
ABSTRACT
As we reached New Delhi on the 16th Jan
2012, the class was split in 2 batches and the
first batch proceeded to UFLEX Ltd, Noida.
We were received by the staff on arrival and
After Pioneering the growth of the flexible
packaging industry in India, UFLEX has
gained an unchallenged identity. Since its
inception in the year 1983 it has turned into
a multi-billion company that values quality
and customer satisfaction amongst other
priorities. With consumers spread across the
world, UFLEX enjoys a global reach.
Headquartered in Noida (National Capital
Region, New Delhi) it has state of the art
manufacturing facilities in India & Dubai. It
has also established offices in UAE, Europe
and North America and enjoys a formidable
market presence in more than 85 countries.
UFLEX facility enjoys ISO 9001 and ISO
14001 certifications and has FDA and BGA
approvals for their products. It is also a part
of the D&B Global Database and winner of
various
prestigious
national
and
international awards like the top exporter of
BOPET and BOPP films, and the Worldstar
award for packaging excellence. FPA,
AIMCAL and the DUPONT Awards in
2004-2005 are the latest in this series.
26
UFLEX LIMITED
UFLEX AT A GLANCE
Page
This Report is framed in order to share my
learning and experiences during my
Industrial Tour as part of MBA LSCM
Batch 2013. As part of the tour we visited 2
Industries in New Delhi – CONCOR India
Ltd. (Dadri) and UFLEX Ltd. (Noida) and 3
Industries in Surat – L&T Heavy
Engineering, BPCL and GNB Port, all
located in Hazira.
The visit organized as part of our learning
curriculum, was undertaken from the 15th
Jan 2012 to 20th Jan 2012. We were
accompanied by three faculty members –
Mr.Saurabh
Tiwari,
Mr.
Jayanta
Mohapatra and Dr.Ratna Banerjee. The
purpose of the tour which was to get an
understanding of the operations involved in
these Industries along with the Business
processes relating to the Logistics and
Supply chain aspects, was accomplished. I
take this opportunity to thank our HOD Dr.
Neeraj Anand, the IR committee, our
coordinating faculties and the staff of the
industry for making this visit an excellent
learning experience for us.
we were taken to the Packaging and Films
division

28. LOGISTICS XPRESS
Being a multi faceted organization it has
integrated its operations from manufacture
of Polyester chips, Films (BOPET, BOPP
and CPP - both in plain and metalized form),
Coated
Film,
Laminates,
Pouches,
Holographic films Gravure cylinders, Inks
and adhesives to all types of packaging &
printing machines, offering total flexible
packaging solution.
exporter of a variety of Plastic Films in the
world.
UFLEX has always been committed to the
industry by providing technical know-how
and being the trend-setter in the flexible
packaging industry. Being on the edge of
innovation, UFLEX endeavors to be the first
to come up with advanced products that
cater to the changing demands of the
packaging industry.
UFLEX uses WPP- Weaving Polyproylene
and BOPP-Bio-organic poly propylene for
Packaging. The Films manufactured are
plastic film products one of them being
Modified Extension coated film. Various
packaging technologies like Laminate tubes,
cosmetics tubes, plastic/metal caps and
closures are used. Every line that is printed
on the package is based on customer
requirements.
Based
on
Customer
requirements, UFLEX also uses 2 or 3 Level
packaging, the stages of packaging being
1. Manufacturing the films
2. Engraving information on the
cylinder
3. Printing
4. Lamination
5. Slitting
6. Pouching
7. Packaging
UFLEX manufactures in-house Polyester
chips, BOPET / BOPP / COATED /
METALLISED / CPP Films, Packaging
machines, converting equipment, inks,
adhesives, Flexible Laminates and Pouches
and have emerged as a “one stop shop”
committed to providing customers with
competitive advantage, placing top priority
to “customer success”.
The Film Division of UFLEX Limited, is
one of the largest manufacturer, supplier and
A Supply Chain manager at UFLEX is
responsible for the demand forecasting of
orders, matching supply & demand to name
a few. To name the technology used,
UFLEX uses ERP and ORACLE for its
supply chain operations.
UFLEX participates actively in being
environmental friendly by recycling the
wasted film and turning it into seeds, which
27
FILMS DIVISION
Page
As part of the UFLEX Group, it has over
twenty years of experience in polymer
technology. Setting milestones of success
and innovation, UFLEX is widely known for
manufacturing and supplying products,
delivering apt services around the world.
Most of the products we use every day are
packaged at UFLEX. Some of them include
OLAY, FRITO LAY (Lays), PERFETTI
VAN
MELLE
(ALPENLIEBE),
CADBURY, TIDE and many more.

29. LOGISTICS XPRESS
are then flattened such that they can be
reused as films again.
manufacturing company. It is one of the
largest and most respected companies in
India's private sector.
L&T HEAVY ENGINEERING
More than seven decades of a strong,
customer-focused
approach
and
the
continuous quest for world-class quality
have enabled it to attain and sustain
leadership in all its major lines of business.
We proceeded to Surat and our first stop was
L&T HEAVY ENGINEERING, Hazira. The
Management at L&T gave us a warm
welcome and was enthusiastic in giving us a
presentation. We were lucky enough that the
presentation was presided by the Top
Management of L&T including the Vice
President, Mr.Venkataramanan, who was
kind enough to join a few of us over at Tea
later and shared his insights into managing
an organization as big as L&T.
The Presentation, helped us understand the
Logistical challenges they have faced in
transporting the heavy products to the
customers be it Boilers to other Industries or
heavy equipments to the Indian army or
drillers to the Oil and gas industry.
To quote how the tedious process is carried
out, L&T first involves in Route planning.
Then a Route Survey is carried out to study
the feasibility of transporting the product.
Then the vehicle is selected, after being
tested for load and other parameters.
They have faced challenges where in they
have come across weak bridges or narrow
roads en-route for which they have even
gone to the extent of building ancillary
structures to successfully transport the
product to its customers.
L&T has an international presence, with a
global spread of offices. A thrust on
international business has seen overseas
earnings grow significantly. It continues to
grow its overseas manufacturing footprint,
with facilities in China and the Gulf region.
The company's businesses are supported by
a wide marketing and distribution network,
and have established a reputation for strong
customer support.
L&T believes that progress must be
achieved in harmony with the environment.
A commitment to community welfare and
environmental protection are an integral part
of the corporate vision.
INDEPENDENT COMPANIES:
o Hydrocarbon
o Heavy Engineering
o L&T Construction
Larsen & Toubro Limited (L&T) is a
technology, engineering, construction and
Page
o Power
28
ABOUT L&T

30. LOGISTICS XPRESS
o Electrical & Automation
Industrial
o Information Technology
o Financial Services
o Shipbuilding
o Railway Projects
HEAVY ENGINEERING DIVISION
In engineering and construction, L&T's
technology capabilities include a strategic
mix of in-house strengths and the expertise
of its joint venture partners. Engineering
Centres at Mumbai, Vadodara and Delhi
carry out process design and simulation,
analysis of computational fluid dynamics,
mechanical design, failure analysis and
trouble shooting.
L&T has set up an engineering and project
management centre in Abu Dhabi, to
undertake oil and gas related projects as well
as engineering and consultancy services.
An engineering centre in Sharjah is an
extended arm in the Gulf. This is
supplemented through collaborations with
key partners: L&T-Valdel for engineering
services in the upstream hydrocarbon sector,
L&T-Chiyoda for the mid and down stream
sectors, and L&T Sargent & Lundy for the
power sector.
Pulveriser - A Pulveriser crushes coal and
breaks it into fine dust. This coal is then
used in boilers
Being such a large company, L&T faces
numerous challenges logistically while
transporting their products. For instance
when L&T transported the world‟s biggest
FCC regenerator – a 132o tonne behemoth
for a mega refinery in China and the massive
2400 tonne gas injection platform for the oil
fields of Abu Dhabi they had to face
challenges involving ODC constraints,
selecting the appropriate mode of
transportation, road constraints, vehicle
selection and clearance from government
authorities.
L&T implemented JQI|| (Juran on Quality
Improvement) for improving energy
consumption.
The
implications
of
implementing the same have resulted in
substantial savings and improvements in
many areas of its operation.
L&T also supplies aerospace equipment for
ISRO, nuclear equipments for the
Government of India and warships to Indian
Navy to name a few.
29
&
Page
o Machinery
Products
Some terms:
Outfitting – The vessel manufactured by
L&T is launched into the sea, unfinished.
Then the outfitting operation, which is
fitting electrical equipments and other
equipments for the completion of the
construction of the ship, is performed.

31. LOGISTICS XPRESS
Performance Analysis of Logistic and Supply Chain Sector during
Recession
Dr T.Joji.Rao
Ms Chandni Chaurasia
Without a sound and efficient logistics
system in the world it cannot have a healthy
economy. The Logistics sector of India
should not only be hassle free but it should
be able to meet new challenges posed by the
technology and any other external and
internal factors. In business, logistics may
have either internal focus (inbound
logistics), or external focus (outbound
logistics) covering the flow and storage of
materials from point of origin to point of
consumption. The main functions of a
qualified logistics professional include
inventory management , purchasing,
transportation, warehousing , consultation
and the organizing and planning of these
activities.
A
Logistics
Professional
combines an expert knowledge of each of
these functions to coordinate resources in an
organization. There are two fundamentally
different forms of logistics: one optimizes a
30
Logistics is a business concept which was
evolved in the 1950s because with the
increasing
complexity
of
supplying
businesses with materials and shipping out
products in an increasingly globalized
supply chain, which lead to a call for
specialists called supply chain logisticians.
Business logistics can be defined as "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", and is the discipline of process
and incorporates all business sectors. The
objective of logistics work is to manage the
fulfillment of project life cycles, supply
chains and consequential efficiencies.
Page
Logistics and Supply chain sector or Third
party logistics (3PL) companies are
becoming an important part of today‟s
supply chain. These companies offer
services that can allow businesses to
outsource part of all of their supply chain
management function. Many 3PL companies
offer a wide range of services including;
inbound freight, freight consolidation,
warehousing, distribution, order fulfillment
and outbound freight. The growth of 3PL
companies has been driven by the need for
businesses to become leaner, reducing assets
and allowing focus on core business
processes.

32. LOGISTICS XPRESS
steady flow of material through a network
of transport links and storage nodes; the
other coordinates a sequence of resources to
carry out some project.
Top 25 Global Logistic Companies for year 2009
SNo.
Logistics and Supply
Chain Company
Revenue (in Million $)
1
2
3
4
Exel PLC Ltd
Kuehne & Nagel Ltd
Schenker Ltd
DHL Global Forwarding Ltd
UPS Supply Chain Solutions
Ltd
Panalpina Ltd
CH Robinson Ltd
TNT Ltd
Expeditors Ltd
Schneider Logistics Ltd
TNT Ltd
Penske Ltd
Eagle Global Logistics Ltd
Nippon Express Ltd
Agility Logistics Ltd
Bax Global Ltd
UTi Worldwide Ltd
Ryder Ltd
Caterpillar Logistics Ltd
Kintetsu Ltd
Menlo
APL Logistics Ltd
Maersk Logistics Ltd
SembCorp Logistics Ltd
Fedex Trade Networks Ltd
13335
10700
10700
9500
31
7700
6320
5689
4270
3902
3852
3560
3171
3096
3000
3000
2899
2785
2181
2100
2025
1340
1290
800
713
672
Page
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25

33. LOGISTICS XPRESS
It is a recognized fact that logistics sector is
growing in the world as a whole, especially
in India. This is due to the increasing pace of
business with just in time (JIT) philosophy,
customer service, timely delivery of
products at right time in the right quantity in
the right place in the right condition to the
right customer. Therefore, as the logistics
and supply chain sector is growing day by
day and according to the supply chain
market reports this sector will boom in the
near future. The sector is leading with the
top companies, as according to the Global
Logistics and Supply Chain Strategies
magazine the ranking of world‟s largest
Logistics companies in terms of total
revenue for 2009 is provided in the below
table.
Chart 1: Overall Growth of Logistics
Sector (2005-2009)
Logistics sector is playing a big role in
shaping the modern civilization. Third-party
logistics or 3PL or Logistics companies is
growing around the world as more and more
corporations prefer to outsource their
logistics operations to the 3PL or logistics
service providers. For the period 2005 to
2009, the overall growth of logistics sector
may be represented in terms of revenue as in
Chart 1.
This represents that the Logistics and supply
chain sector is continuously growing from
2005 to 2008 and in the year 2008 it shows
the highest growth of 26% but falls in 2009
with the drop of 4 % due to the global
recession. The study of broad decision
making variables namely revenue, cash and
cash equivalent, current assets, current
liabilities, investing income, change in
investments, operating expenses, operating
profit, net profit, dividend paid and retained
earnings for the period 2005-2009 may be
represented as in the figure as below. This
graph also shows the highest growth of the
sector in the year 2008.
Growth of Logistics
sector in terms of
Revenue from 2005 to
2009
30%
25%
20%
15%
10%
5%
0%
23%
19%
26%
22%
10%
2007
2008
2009
32
2006
Page
2005

34. LOGISTICS XPRESS
Logistics sector growth from 2005 to 2009
60000000
50000000
40000000
30000000
20000000
10000000
0
-10000000
2005
2006
2007
2008
2009
33
same time they have been successful in
ensuring a consistent dividend payout.
Though the companies of logistics sector
have shown a consistent growth year by year
but it is of utmost importance for the
companies to identify the concern areas over
the segments and devise methodology to
optimize the operational output by proper
utilization of management techniques,
expertise and manpower.
Page
The analysis of the above shows that though
the logistic sector has been impacted by the
global recession in terms of output, revenue
and profitability whether it is in terms of
operating or net profit but it has been able to
successfully maintain the desired levels of
liquidity. Though the recession has
compelled the logistic companies to increase
the reserves for contingencies but at the

35. LOGISTICS XPRESS
CAMPUS BUZZ
were a lot of events organized on the day
NAVRITI 2012
which included both technical and fun filled
Department
of
Civil
Engineering
and
games. Students from various branches and
Environmental Sciences organized Navriti
streams in the college, as well as students
th
2012 on the 24 of February this year. There
from other colleges took active participation
in the event.
Inter
Urban Transport Crisis” were posters that
Collegiate
Poster
Presentation
competition. Some of the add ons of the day
included games like X-factor, Balance,
Volley Balloon and Blind Alley.
caught the attention of many.
34
“The Shrinking Ganga Glaciers” and “The
Page
The most notable event of the day was the

36. LOGISTICS XPRESS
MANAGEMENT
Logistics & Supply Chain Management
DEVELOPMENT PROGRAM
Department, College of Management and
Economic Studies (CMES), UPES. The
Demystifying
Supply
Chain
Vice Chancellor, UPES.
Management
Centre
for
MDP was inaugurated by Dr Parag Diwan,
Management
Development
Professionals from industry and academia
(CMD) organized a two day residential
shared
Management Development Program (MDP)
contemporary issues in Logistics and Supply
on
Chain
“Demystifying
Supply
Chain
their
expertise
Management.
on
various
Participants
from
Management”. University of Petroleum and
various industries like automobile, pharma,
Energy Studies is the academic partner of
oil and gas, steel and Directorate of
CMD for its support activities. The program
Industries,
was coordinated by Dr Neeraj Anand, Head-
program.
The sessions started by an overview of
Benetton India Pvt. Ltd. This was followed
Supply Chain Management by Mr Abhik
by two interactive sessions by Dr Etinder
Saha who is the Director of Supply Chain at
Pal Singh a Professor at Apeejay School of
the
35
attended
Page
Uttarakhand

37. LOGISTICS XPRESS
Management on “Outcome Driven Supply
and way ahead for formulating upstream
Chain Management” and “Supply Chain
supply chain strategy for Indian Oil & Gas
Strategy:
companies.
efficiency
vis-à-vis
Responsiveness”. The speaker focused on
the multiple perspectives of supply chain
management, outcomes that determine the
supply chain performance, risks involved
and achieving a trade-off between different
variables in the chain.
Chain Management and Dr Rameshwar
Dubey,
Secretary,
Asian
Council
of
retention and maintaining customer lifetime
value. The next session by Mr Dabashish
Sanyalo,GM-Supply Chain, Ranbaxy Ind
insight
about
SCM
Challenges and innovations of the future.
This session was followed by a session
taken by Prof Loveraj Thakru, Industry
Fellow, Department of Logistics & Supply
Chain Management, CMES, UPES focusing
on “Upstream Supply Chain strategy for
Indian Oil & Gas Industry”. Prof Thakru
discussed the supply chain of Oil & Gas
industry and gave an insight to participants
on world scenario of oil and gas industry
chain management cost reduction strategies.
With a powerful blend of academia and
corporate partners working together to
achieve excellence in business education,
the Management Development Program
proved to be a grand success and was very
much appreciated by the participants. Mr. K.
B. Lal, Director – Finance was the chief
guest
for
program
valedictory
was
ceremony.
supported
by
The
Prof.
G.C.Tewari, Emirates PVC, Dr. Neeraj
Rawat, Assistant Director – CMD, members
of Industry Relations and regional office,
Mumbai. KRK Associates, publisher of
Supply Chain India & Auto Logistics India
was associated as Media Partner for the
MDP.
36
discussed the use of CRM in customer
an
of Vendor Managed Inventory in Supplier
Page
from Dabur India Limited, Chandigarh
provided
Industries Limited discussed about the role
Logistics Management discussed supply
The third industry expert Mr Harish Sharma,
Ltd
Mr Ravi Inder Singh from Mahindra

38. LOGISTICS XPRESS
LOGISTICS AFFAIRS
Livingston International Inc. completes acquisition of part of Global
Trade
business of J.P. Morgan
By Jeff Berman,
Group News Editor
April 03, 2012
Livingston provides customs brokerage and
customs compliance services for many of
the major importers and exporters in the
pharmaceutical and medical devices
industry, as well as manufacturers of
telecommunications
equipment;
semiconductors and other electronics; motor
vehicles and automotive parts; and
agricultural, construction and mining
equipment, according to its corporate Web
site. It also offers customs and international
trade consulting services and international
freight forwarding across North America
and around throughout the world. In a letter
to customers in January, Peter Luit,
president and CEO of Livingston., said this
Livingston‟s
and service
States and
crucial and
business to
Based in Dulles, Va., Global Trade provides
shippers with various global trade
management services, focusing on the
information flows related to cross-border
components of importing and exporting
goods. Its various services and software
offerings are comprised of restricted party
screening and boycott/embargo screening,
landed
cost
calculation,
shipment
documentation, event management, export
compliance, import compliance, and trade
agreement optimization, among others. The
company was founded in 1991.
“What made this [deal] attractive was that
we developed a strategic plan for our overall
business and have been expanding our
business in the U.S. significantly,” Luit told
LM in an interview. “We were looking for
ways to expand it and grow faster.”
37
Toronto-based Livingston said in January
that it entered into an agreement to acquire
this part of JP Morgan‟s Global Trade
business. Financial terms of the deal were
not disclosed.
deal
greatly
expands
international trade expertise
offerings within the United
Canada, and extends this
growing part of Livingston‟s
Mexico, Europe and Asia.
Page
North American customs broker Livingston
International said this week it has completed
its acquisition of the customs and trade
compliance services of Global Trade
business (also known as the former Vastera
business) of JP Morgan Chase Bank, N.A.

39. LOGISTICS XPRESS
“Global Trade has offices in Mexico which
we did not, as well as offices in several
countries in Europe, which we did not, as
well as small offices in the Far East,” said
Luit.
“We are expanding our footprint in these
regions.
In terms of customer benefits as a result of
this deal, Luit said that they will see much
Luit said a combination of 500 full time
employees and contractors from Global
Trade‟s customs and compliance services
will be joining Livingston now that the deal
is complete.
When asked what the competitive
advantages of bringing Global Trade‟s
customs and compliance services into the
fold are for Livingston, Luit explained how
Livingston has a very unique market
positioning.
“If you compare us to [the competition], I
would say we have the broadest and the
deepest service offering of anybody,
certainly in the North American market and
Europe as well,” he said.
38
Livingston has offices in border crossings
and large cities and prior to this deal had
about 100 offices in Canada and the U.S.
and that Global Trade has about 20 offices.
quicker and more responsive to regulatory
changes, changes in trading patterns, as well
more quickly adapting to changes in
business patterns and supply chain changes
more quickly than either Livingston or
Global Trade‟s customs and compliance
services would be able to on its own.
Page
Luit also pointed out that Livingston has
made a number of M&A acquisitions in the
last year, which Livingston is excited about,
adding that this one is different from the
others. The reason for this is that Global
Trade‟s customs and compliance services is
very focused on large, multinational, U.S.headquartered companies. And he added that
Global Trade and Livingston had some
clients in common.

40. LOGISTICS XPRESS
Logistics Managers may be in short supply before long
Experts said the brand perception of the industry needs re-invigorating
and it is also seen as one of the most poorly paid and least diverse to
work in
Patrick Burnson,
Executive Editor
March 31, 2012
Panelists also predicted pay would continue
to be low in the majority of jobs in
comparison to other industries. In the UK
for example, the average salary of someone
in finance could be £51,620 but in T&L it‟s
£28,022 – 46 percent less. In the U.S., a
worker in the electricity/energy sector could
earn $65,150 on average, but in T&L this
would drop to $43,400.
Klaus-Dieter Ruske came to some of the
same conclusions drawn by scholars and
executive recruiters participating in our
annual Salary Survey:
“T&L companies need to take a critical
view of their remuneration systems,” he
said. “They should benchmark their salaries
against their peers and other industries and
recognize salary alone isn‟t the only way to
compensate employees.”
REFERENCE
http://www.logisticsmgmt.com/article/logistics_managers_may_be_in_short_supply_before_long/
39
PwC created 15 theses which were
presented to a panel of 94 senior executives
from 24 countries working in business,
government and the scientific arena. Over
the course of eight weeks they studied the
hypothesis and were asked to assess the
probability of each one on a scale of 0-100
percent. “These findings are hugely
significant for the T&L sector showing us
what must be done before the industry falls
into a critical state,” said PwC‟s global T&L
leader, Klaus-Dieter Ruske. Poor image,
poor pay and poor prospects are all
perceptions that currently choke the
industry. The reality is that there are
rewarding, multinational opportunities out
there that need tapping into.”
Page
A new report has warned the global
transportation and logistics industry (T&L)
is in urgent need of a radical transformation
by 2030 if it is to stay competitive. In
Winning the Talent Race, Volume 5 of
PwC‟s Transportation & Logistics 2030
series, experts said the brand perception of
the industry needs re-invigorating and it is
also seen as one of the most poorly paid and
least diverse to work in.

41. LOGISTICS XPRESS
TNT Express-UPS deal to come: sources
TNT Express has since reported weaker than
expected fourth-quarter results and given a
bleak economic outlook.TNT Express
declined to comment. UPS representatives
could not be reached for comment.
($1=0.7677 euros)
40
"I don't think it will take several more
weeks", one of the sources said.UPS had
four weeks after it approached Dutch-based
TNT Express to clarify its intentions under
Dutch takeover law."Lots of concessions
were made on the social front", said a
second source, who is close to UPS."TNT
performance is a big issue", the same source
added.Dutch unions sent a letter to TNT
Express's board after consulting employees
on their concerns regarding an acquisition
by UPS. Job protection, employment
contracts and the location of the future
company were among the main concerns,
said Marc van Kerkhoff, who represents
TNT Express employees. Price discussions
were put on hold after the Dutch parceldelivery firm rejected a 4.9 billion-euro
($6.38 billion) proposal from UPS last
month, and have yet to resume, the first and
the second source said.UPS is confident that
its bid for TNT Express will not meet
significant anti-trust hurdles and would be
approved by the European watchdog in
phase 1, the second source said. Some
shareholders are still hoping for an improved
offer, but UPS is seen as unlikely to improve
by much its last offer of 9 euros a share,
given TNT's poor results and the absence of
a counter bidder. Both parties have ruled out
a potential counter bid from FedEx Corp
(FDX.N) at this point, the sources said.
Page
(Reuters) - United Parcel Service (UPS.N)
and TNT Express (TNTE.AS) are unlikely
to announce a deal on Friday when they
need to update the market about the status of
their merger talks, but a deal could come
soon after that, sources close to the talks
said. The companies need more time to
hammer out final details, but they are getting
closer to an agreement and will say on
Friday that they remain in discussions, the
sources said.

42. LOGISTICS XPRESS
ANKIT LOGISUPPLY CROSS-WORD - II
Phanindra Kumar. Bh, MBA LSCM Sem-II
Page
41
This cross-word is of profound importance to us students of MBA Logistics and Supply chain
Management as we present it in memorium of our beloved friend, Late Ankit Bisht who passed
away recently in an unfortunate road accident.

43. LOGISTICS XPRESS
Across:
5. A wedge,made of hard rubber or steel,firmly 10. Pallets used in air transportation.
placed under the wheel of a trailer, truck, to
11. A railcar with a flat platform and sides
stop it from rolling.
7. A method of selecting and sequencing picking
lists to minimize the waiting time of the
delivered material.
9. merges the four distinctive competencies of
cost, quality, dependability, and flexibility.
three to five feet high, used for top loading
long, heavy items.
Down:
1. A term Toyota adopted to capture the
idea of horizontal transfer of information
and knowledge across an organization.
8. light assembly of components of parts
into units.
6. A business process diagram which
provides a way of indicating which
department or individual is responsible
for a given process or activity.
42
3. Labor management companies that
provide equipment and hire workers to
transfer containers and cargo between
ships and docks.
4. A technique in which a ERP system
traces demand for a product by date,
quantity, and warehouse location.
Page
2. A Japanese term for straighten,focuses on
the need for an orderly workplace.

44. LOGISTICS XPRESS
ANKIT LOGISUPPLY HUNT-I:
Phanindra Kumar. Bh, MBA LSCM Sem-II.
K
L
X K U
V
P
J
B
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V Q C
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A G E
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Agility
Backhaul
Cabotage
Haulage
Heijunka
Hopper
Jidoka
Keiretsu







KepnerTregoe
Nixie
Obeya
PokaYoke
Taguchi
Ubiquity
Wharfage
Page

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43
WORD LIST:

45. LOGISTICS XPRESS
Page
44
LOGISTOONS

46. Page
45
LOGISTICS XPRESS