Logistics cost in india

IF YOU WILL SEE GLOBALY,THE LOGISTICS INDUSTRY IS VALUED AT US $3.5 TRILLION AND INDIAN LOGISTICS INDUSTRY ESTIMATED AT US$90 BILLION.INDIA HAS ALWAYS BEEN A COMPETITIVE LOCATION FOR MANUFACTURING AND LOGISTICS AND SUPPLY CHAIN.LOGISTICS COST IN INDIA IS ONE OF THE HIGHEST IN THE WORLD.IN DEVELOPING COUNTRIES COST ARE 6% TO 8% OF THE TOTAL VALUE OF GOODS.IN CHINA THE COST IS ESTIMATED AT 10% OF THE TOTAL VALUE OF GOODS.LOGISTICS COST IS EFFECTING OUR TRADE.I DON’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

HOW WE CAN REDUCE LOGISTICS COST. WAREHOUSING:-THROUGH PROPER UTILIZATION OF SPACE,WORK METHOD AND MATERIALS HANDLING IN WAREHOUSING.IMPROVED TECHNIQUES OF FORECASTING AND PRODUCTION

SCHEDULING IF WE WILL DO THAN THERE WILL BE LESS INVENTORY.WAREHOUSING WILL REDUCED LOGISTICAL COST BECAUSE THE FULL PRODUCT ASSORTMENT CAN BE DELIVERED WHILE TAKING THE ADVANTAGE OF THE BENEFITS OBTAINED THROUGH CONSOLIDATION TRANSPORTATTION. CONSOLIDATE:-IF YOU HAVE MULTIPLE SUPPLIERS IN ONE COUNTRY CONSOLIDATES THEIR GOODS INTO ONE SHIPMENT.IN ADDICTION,IF YOU ALWAYS HAVE LCL[LESS THAN CONTAINER LOAD]SHIPMENT OUT OF ONE COUNTRY,TRY TO FIND ANOTHER LCL IMPORTER OF GOODS FROM THAT COUNTRY.