- India represents a $50 billion logistics market that is growing 7% annually. Transportation costs account for 40% of production costs in India. - The country has extensive road, railway, sea, and air networks for transporting goods but railway freight and container shipping have seen impressive growth in recent years. - An efficient logistics information system is important for organizations to effectively process orders, track inventory levels, generate reports, and make prompt decisions. Computerization allows for rapid, error-free retrieval of information to support logistics operations and management.

1. BY
A.R.ROHINI

2. LOGISTIC IN INDIA
• India is being touted as the land of opportunity for
logistics service providers all over the world.
• The Indian logistics market represents $ 50billion and is
growing at a rate of 7 percent annually.
[source: Frost & Sullivan]
INDIA LOGISTIC
ROAD RAILWAYS SEA AIR

3. Features of Indian Logistics Industry
•A number of small-integrated players.
•Transportation costs account for nearly 40% of production
costs.
•Logistics costs around 13% of GDP, compared to 8% in the US.
•Growth in Indian economy is the major driving factor for the
demand in logistics industry.
•Chemicals, metals, FMCG, cement and textiles have been
identified as the top five contributors to logistics revenues.
TRANSPORTATION
WAREHOUSING
INVENTRY
CARRYING
ORDER
PROCESSING
ADMINISTRATION
24%
39%
27%
6%
4%
0
2
4
6
8
10
12
14
16
18
India China US Europe Japan
11.5
80.7
39%
10
11.7
17 Comparative logistic costL
o
g
I
S
t
I
c
C
o
s
t

4. INDIAN ROAD NETWORK
•India has the second
highest largest road
network-3.3 million km.
• US has the largest road
network with 6.4 million km
& China-1.8 million km.
•National Highways-2% of
total road length . But carry
40% of goods traffic of
India.
TYPES OF
ROADS
LENGTH
(Km)
% OF TOTAL
NATIONAL
HIGHWAYS
65,569 2.00
STATE
HIGHWAYS
131,899 4.00
MAJOR
DISTRICT
ROADS
467,763 14.10
VILLAGE AND
OTHER
ROADS
2,650,000 79.90
TOTAL 3,315,231 100.00

5. INDIAN RAILWAY LOGISTICS
• The Indian Railways boasts
of being the world’s
2ndlargest rail network
spread over 81,511 km and
covering 6896 stations.
• The freight segment
accounts for roughly two
thirds of railway’s revenues.
• The tonne/kilometer costs
for Indian rail freight at
three times that of China
[Tata Iron & Steel]
• Rail services have been
liberalized.
0
5000
10000
15000
20000
25000
30000
35000
40000
45000
2002-03 2003-2004 2004-2005 2005-2006 2006-2007
2623
27646
33480
36490
40320
RAILWAY FRIEGHT REVENUES
R
U
P
E
E
S
I
N
C
R
O
R
E
YEARS

6. INDIAN SEA LOGISTICS
• India has 12 major and 184 minor intermediate ports
spread across the vast coastline of 7517km.
• The 12 major ports handle about 76per cent of the traffic.
• India's West Coast ports handles almost 70% of traffic.
• India now has the largest merchant shipping fleet among
the developing countries
• India ranks 17thin the world in shipping tonnage.
• Indian share of maritime transport services is 1% of world
market.
• The container traffic has registered an impressive growth
of 15 per cent over the last five
years

7. INDIAN AVIATION LOGISTIC SECTOR
•Aviation holds a small share of India’ s freight
market.
•Air Freight is very expensive in India in
comparison to road and rail.
•The size of the world air cargo market is
estimated at 27 million tones valued at $200
billion.
•India accounts for meager 3% of the global air
cargo market

8. THE IMPORTANT LOGISTICAL REQUIREMENT OF
MODERN INDUSTRIAL ENTERPRISE
are,
• Sufficient land for the main industrial plant
• Sufficient water for the main plant
• Sufficient electric power supply
• Full movement and storage infrastructure
• Communication links
• Maintenance of law and order
• Sufficient supply of labor , technical aspects etc.

18. Every organization has an information
system wherein the following organized
operation takes place:
• Sources
• Collection of information
• Storage
• Retrieval
• Reports

19. Computerized Information system
• Computerization is often considered by many
managers to be cumbersome , costly and
often unnecessary
• Advantages:
Rapid , Prompt , decision-making, speed
and error free retrieval
• Computerization enable us to make a very
sound logistics information system

20. • Order processing system is only one aspect of
the total logistic information system .Does not
make decision it is only a decision assisting
system
• Control system makes specified adjustments
, given certain data received from the
environment and thereby initiates action
Ex: Inventory control , Computerized
material handling and storage system etc

21. Logistic information includes:
An  External information system
 Internal information system
• External information system :
Refers to the communication between the firm and
its customers and suppliers
• Internal information system :
Provides for an exchange of information between
functional departments within the organization and
for the processing the storage, retrieval and
manipulation of information.

22. LOGISTIC INFORMATION SYSTEM
DIAGRAM

23. ELEMENTS OF ORDER PROCESSING

24. LIS DESIGN
• The following are the four major consideration
to be taken into account for the design of an
optimal system
The decision to be made in the organization at
each level of management
The requirements of the system
The requirements of control over the system
Input and Output data

25. Typical sales order processing through
a warehouse

26. Total IS concept for order processing in
physical distribution management

27. Flow chart of an automated order
processing system

28. EXAMPLE 1

29. EXAMPLE2