A PROJECT REPORT ON RESEARCH STUDY AT

BHAIRAV DISTRIBUTORS VERNA, GOA

SUBMITTED TO:

K.L.E. SOCIETY’S

COLLEGE OF BUSINESS ADMINISTRATION

LINGRAJ COLLEGE (CBALC) BELGAUM

AUTONOMOUS

SUBMITTED BY:

MELVIN D’SOUZA
(BBA 0317051)

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 K.L.E Society’s

COLLEGE OF BUSINESS ADMINISTRATION

LINGRAJ COLLEGE (CBALC) BELGAUM

AUTONOMOUS

RE-ACCREDITED AT THE LEVEL “A” BY NAAC

CERTIFICATE

This is to certify that Mr. Melvin D’souza completed the

organizational study at “Bhairav Distributors” from 12th
December to 12th January 2018 prescribed by the institution on
fulfilment of the course curriculum.

Internal Guide Principal

Prof. Abhilasha Patravali Prof.P.R.Kadakol

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 ACKNOWLEDGEMENT

The satisfaction and euphoria that accompany the successful completion of any task
would be in complete without mentioning of the people who made it possible. So, with
gratitude I acknowledge who served as “Beacon” and crowned my efforts with success.

The Research report on “The working & Organisation based research at Bhairav
Distributors/Logistics, Verna Industrial Estate, Goa” has been an enriching experience.

The learning’ s of the project will go a long way enabling me in my future endeavours.
I would like to express my profound sense of gratitude to Prof. P. R. Kadakol,

Principal, CBALC forgiving me this opportunity to take up this study and his support,
encouragement and valuable timely advice for providing me all the facilities and
assistance without which this Research would not have been success.

I would like to thank Mr. Prashant Mahatme for giving me the opportunity to do the
project in Bhairav Distributors/Logistics and for providing me all the facilities and
assistance without which this research would not have been success.

I am also indebted to contribution of all other staff members of CBALC in giving shape
to my project study.

Melvin Dsouza
Date: -

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Company Certificate

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 DECLARATION

I, the undersigned hereby declare that the project report entitled ‘Organisation Study’ is an
independent work carried out by me during the in-plant training under the guidance of the
internal guide Prof. Abhilash and the proprietor Mr. Prashant Mahatme of Bhairav
Distributors Verna, Goa.

This study was fully prepared by my own efforts and has not been published elsewhere until
now. I also declare that this project report has not been submitted to any other university or
for any award of degree or diploma.

Place: Belgaum Mr. Melvin D’Souza

Date: Date:

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 Table of Contents
Sl. No Topic

1 Executive Summary

2 Introduction

3 Industry Profile

4 Company Profile

5 Organisation Study

6 Strength and Weakness Analysis

7 Conclusion

8 Annexure

Executive summary
In today's global marketplace, effective supply chain management is seen as a significant
competitive advantage for a business. The enterprise that conducts robust supply chain
planning activities, delivers increased efficiencies. Supply chain managers plan, schedule,
and control that flow of goods to help the company stay competitive and control costs. They
build the bridges between suppliers, companies, and consumers. Bhairav Distributor’s one of
the leading organization in Goa has been contributing to the economy by providing quality
consumer services in a comparatively reasonable price. If the winning factor for Bhairav
Distributors has been investigated, the result would be its outstanding supply chain and
logistics management. The report tries to highlight how the supply chain activities of Bhairav
Distributors help the company to be more efficient and competitive in the market.

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 Industry profile

Introduction to Logistics and Supply Chain Management

What is Logistics and Supply Chain Management?

The term “Supply Chain Management” was coined in 1982 by Keith Oliver of
Booz, Allen and Hamilton Inc. But the discipline and practice has been in existence
for centuries.

The terms Logistics and Supply Chain Management are used interchangeably these
days, but there is a subtle difference that exists between the two.

‘Logistics’ has a military origin, and used to be associated with the movement of
troops and their supplies in the battlefield. But like so many other technologies and
terminologies, it entered into the business lexicon gradually and has now become
synonymous with the set of activities ranging from procurement of raw materials,
to the delivery of the final polished good to the end consumer.

In a typical business scenario, many organizations work in tandem (knowingly or

unknowingly) to get the final product in hand of the end consumer. The supply
chain is a network of these organizations that coalesce with each other
(downstream or upstream) to make the final shipment successful.

A group of farmers, a cotton mill, a designer and a tailor is the least number of
stakeholders you can expect from a regular shirt you wear every day.

Logistics is generally seen as a differentiator in terms of the final bottom line of a

typical “hard and tangible goods” organization; enabling either a lower cost or
providing higher value.

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While a lower cost is mostly a one-time feel good factor and has been the
traditional focus area in logistics, high value comes into the picture much later and
may be tangible or intangible in a good’s initial stages.

So, while an organization like Zappos may look costly at a first glance, the
extraordinary customer service due to robust policies is a value which more than
offsets the slightly higher cost.
Logistics is concerned with both materials flow and information flow. While the
materials flow from the supplier to consumer, the information flows the other way
around. It is not only concerned with inventory and resource utilization; customer
response also falls under the ambit of logistics.

In simple terms, logistics can be seen as a link between the manufacturing and
marketing operations of a company. The traditional organizations used to think of
them separately, but there is a definite value addition in integrating the two dues to
the interdependence and feedback channel between the two.

The level of coordination required to minimize the overall cost for the end
consumer gets tougher to achieve as the number of participants in a supply chain
increase, as an extremely efficient flow of material and information is required for
optimization.

Logistics cover the following broad functional areas: network design,

transportation and inventory management.
Manufacturing plants, warehouses, stores etc. are all facilities which form key
components in the network design. Transportation: the cost and consistency
(reliability) required out of the transportation network determines the type and
mode of the movement of goods and also affects the inventory.

Buffer (or safety) stock is the reserve stock held to safeguard against shortages or
unexpected surge in demand, to avoid “stock-outs”. Fewer inventories with
negligible stock-outs — the hallmark of an efficient logistical system.

What is Supply Chain Management?

Supply chain management, as explained by Michigan State University professors

Donald Bowersox, David Closs and M. Bixby Cooper in Supply Chain Logistics
Management, involves collaboration between firms to connect suppliers,
customers, and other partners as a means of boosting efficiency and producing
value for the end consumer. The book considers supply chain management
activities as strategic decisions, and set up “the operational framework within
which logistics is performed.”

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It is the efforts of a number of organizations working together as a supply chain
that helps manage the flow of raw materials and ensure the finished goods provide
value. Supply chain managers work across multiple functions and companies to
ensure that a finished product not only gets to the end consumer but meets all
requirements as well. Logistics is just one small part of the larger, all-
encompassing supply chain network.

What is Logistics?

The Council of Supply Chain Management Professionals defines logistics as “part

of the supply chain process that plans, implements and controls the efficient,
effective forward and reverses flow and storage of goods, services and related
information between the point of origin and the point of consumption in order to
meet customer’s requirements.”

Bowersox, Closs, and Cooper define logistics as activities – transportation,

warehousing, packaging and more – that move and position inventory and
acknowledge its role in terms of synchronizing the supply chain.

The objective behind logistics is to make sure the customer receives the desired
product at the right time and place with the right quality and price. This process can
be divided into two subcategories: inbound logistics and outbound logistics.

Inbound logistics covers the activities concerned with obtaining materials and then
handling, storing and transporting them. Outbound logistics covers the activities
concerned with the collection, maintenance and distribution to the customer. Other
activities, such as packing and fulfilling orders, warehousing, managing stock and
maintaining the equilibrium between supply and demand also factor into logistics.

Key Differences

It is important to remember that while the terms should not be used

interchangeably, they do supplement each other. One process cannot exist without

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the other. Here are some key differences between the two terms that will help you
keep from blurring the lines between them.

 Supply chain management is a way to link major business processes within and across
companies into a high-performance business model that drives competitive advantage.
 Logistics refers to the movement, storage, and flow of goods, services and information
inside and outside the organization.
 The main focus of supply chain is a competitive advantage, while the main focus of
logistics is meeting customer requirements.
 Logistics is a term that has been around for a long time, emerging from its military
roots, while supply chain management is a relatively new term.
 Logistics is an activity within the supply chain.

Origin of the term and definitions

In 1982, Keith Oliver, a consultant at Booz Allen Hamilton introduced the term
"supply chain management" to the public domain in an interview for the Financial
Times.
In the mid-1990s, more than a decade later, the term "supply chain management"
gained currency when a flurry of articles and books came out on the subject.
Supply chains were originally defined as encompassing all activities associated
with the flow and transformation of goods from raw materials through to the end
user, as well as the associated information flows. Supply-chain management was
then further defined as the integration of supply chain activities through improved
supply-chain relationships to achieve a competitive advantage.
In the late 1990s, "supply-chain management" (SCM) rose to prominence, and
operations managers began to use it in their titles with increasing regularity.
Other commonly accepted definitions of supply-chain management include:

 The management of upstream and downstream value-added flows of materials, final

goods, and related information among suppliers, company, resellers, and final
consumers.
 The systematic, strategic coordination of traditional business functions and tactics
across all business functions within a particular company and across businesses within
the supply chain, for the purposes of improving the long-term performance of the
individual companies and the supply chain as a whole.
 A customer-focused definition is given by Hines (2004: p76): "Supply chain strategies
require a total system view of the links in the chain that work together efficiently to
create customer satisfaction at the end point of delivery to the consumer. As a
consequence, costs must be lowered throughout the chain by driving out unnecessary
expenses, movements, and handling. The main focus is turned to efficiency and added
value, or the end user's perception of value. Efficiency must be increased, and
bottlenecks removed. The measurement of performance focuses on total system
efficiency and the equitable monetary reward distribution to those within the supply
chain. The supply-chain system must be responsive to customer requirements."
 The integration of key business processes across the supply chain for the purpose of
creating value for customers and stakeholders (Lambert, 2008)

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 According to the Council of Supply Chain Management Professionals (CSCMP),
supply-chain management encompasses the planning and management of all activities
involved in sourcing, procurement, conversion, and logistics management. It also
includes coordination and collaboration with channel partners, which may
be suppliers, intermediaries, third-party service providers, or customers. Supply-chain
management integrates supply and demand management within and across companies.
More recently, the loosely coupled, self-organizing network of businesses that cooperate
to provide product and service offerings has been called the Extended Enterprise.
A supply chain, as opposed to supply-chain management, is a set of organizations
directly linked by one or more upstream and downstream flows of products,
services, finances, or information from a source to a customer. Supply-chain
management is the management of such a chain.
Supply-chain-management software includes tools or modules used to execute
supply chain transactions, manage supplier relationships, and control associated
business processes.
Supply-chain event management (SCEM) considers all possible events and factors
that can disrupt a supply chain. With SCEM, possible scenarios can be created and
solutions devised.
In many cases, the supply chain includes the collection of goods after consumer use
for recycling. Including third-party logistics or other gathering agencies as part of
the RM re-patriation process is a way of illustrating the new endgame strategy.

Functions
Supply-chain management is a cross-functional approach that includes managing
the movement of raw materials into an organization, certain aspects of the internal
processing of materials into finished goods, and the movement of finished goods
out of the organization and toward the end consumer. As organizations strive to
focus on core competencies and become more flexible, they reduce their ownership
of raw materials sources and distribution channels. These functions are
increasingly being outsourced to other firms that can perform the activities better or
more cost effectively. The effect is to increase the number of organizations
involved in satisfying customer demand, while reducing managerial control of
daily logistics operations. Less control and more supply-chain partners lead to the
creation of the concept of supply-chain management. The purpose of supply-chain
management is to improve trust and collaboration among supply-chain partners
thus improving inventory visibility and the velocity of inventory movement.

Importance
Organizations increasingly find that they must rely on effective supply chains, or
networks, to compete in the global market and networked economy. In Peter
Drucker's (1998) new management paradigms, this concept of business
relationships extends beyond traditional enterprise boundaries and seeks to
organize entire business processes throughout a value chain of multiple companies.
In recent decades, globalization, outsourcing, and information technology have
enabled many organizations, such as Dell and Hewlett Packard, to successfully
operate collaborative supply networks in which each specialized business partner
focuses on only a few key strategic activities (Scott, 1993). This inter-

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organisational supply network can be acknowledged as a new form of organisation.
However, with the complicated interactions among the players, the network
structure fits neither "market" nor "hierarchy" categories (Powell, 1990). It is not
clear what kind of performance impacts different supply-network structures could
have on firms, and little is known about the coordination conditions and trade-offs
that may exist among the players. From a systems perspective, a complex network
structure can be decomposed into individual component firms (Zhang and Dilts,
2004). Traditionally, companies in a supply network concentrate on the inputs and
outputs of the processes, with little concern for the internal management working
of other individual players. Therefore, the choice of an internal management
control structure is known to impact local firm performance (Mintzberg, 1979).
In the 21st century, changes in the business environment have contributed to the
development of supply-chain networks. First, as an outcome of globalization and
the proliferation of multinational companies, joint ventures, strategic alliances, and
business partnerships, significant success factors were identified, complementing
the earlier "just-in-time", lean manufacturing, and agile
[19]
manufacturing practices. Second, technological changes, particularly the
dramatic fall in communication costs (a significant component of transaction
costs), have led to changes in coordination among the members of the supply chain
network (Coase, 1998).
Many researchers have recognized supply network structures as a new
organisational form, using terms such as "Keiretsu", "Extended Enterprise",
"Virtual Corporation", "Global Production Network", and "Next Generation
Manufacturing System".[20] In general, such a structure can be defined as "a group
of semi-independent organisations, each with their capabilities, which collaborate
in ever-changing constellations to serve one or more markets in order to achieve
some business goal specific to that collaboration" (Akerman’s, 2001).
Supply-chain management is also important for organizational learning. Firms with
geographically more extensive supply chains connecting diverse trading cliques
tend to become more innovative and productive.
The security-management system for supply chains is described in ISO/IEC 28000
and ISO/IEC 28001 and related standards published jointly by the ISO and
the IEC. Supply-Chain Management draws heavily from the areas of operations
management, logistics, procurement, and information technology, and strives for
an integrated approach.

Historical developments
Six major movements can be observed in the evolution of supply-chain
management studies: creation, integration, and globalization (Movahedi et al.,
2009), specialization phases one and two, and SCM 2.0.
Creation era
The term "supply chain management" was first coined by Keith Oliver in 1982.
However, the concept of a supply chain in management was of great importance
long before, in the early 20th century, especially with the creation of the assembly
line. The characteristics of this era of supply-chain management include the need
for large-scale changes, re-engineering, downsizing driven by cost
reduction programs, and widespread attention to Japanese management practices.

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However, the term became widely adopted after the publication of the seminal
book Introduction to Supply Chain Management in 1999 by Robert B. Handfield
and Ernest L. Nichols, Jr., which published over 25,000 copies and was translated
into Japanese, Korean, Chinese, and Russian.
Integration era
This era of supply-chain-management studies was highlighted with the
development of electronic data interchange (EDI) systems in the 1960s, and
developed through the 1990s by the introduction of enterprise resource planning
(ERP) systems. This era has continued to develop into the 21st century with the
expansion of Internet-based collaborative systems. This era of supply-chain
evolution is characterized by both increasing value added and cost reductions
through integration.
A supply chain can be classified as a stage 1, 2 or 3 networks. In a stage 1–type
supply chain, systems such as production, storage, distribution, and material
control are not linked and are independent of each other. In a stage 2 supply chain,
these are integrated under one plan and enterprise resource planning (ERP) is
enabled. A stage 3 supply chain is one that achieves vertical integration with
upstream suppliers and downstream customers. An example of this kind of supply
chain is Tesco.
Globalization era
It is the third movement of supply-chain-management development, the
globalization era, can be characterized by the attention given to global systems of
supplier relationships and the expansion of supply chains beyond national
boundaries and into other continents. Although the use of global sources in
organisations' supply chains can be traced back several decades (e.g., in the oil
industry), it was not until the late 1980s that a considerable number of
organizations started to integrate global sources into their core business. This era is
characterized by the globalization of supply-chain management in organizations
with the goal of increasing their competitive advantage, adding value, and reducing
costs through global sourcing.
Specialization era (phase I): outsourced manufacturing and distribution
In the 1990s, companies began to focus on "core competencies" and specialization.
They abandoned vertical integration, sold off non-core operations, and outsourced
those functions to other companies. This changed management requirements, by
extending the supply chain beyond the company walls and distributing
management across specialized supply-chain partnerships.
This transition also refocused the fundamental perspectives of each
organization. Original equipment manufacturers (oems) became brand owners that
required visibility deep into their supply base. They had to control the entire supply
chain from above, instead of from within. Contract manufacturers had to manage
bills of material with different part-numbering schemes from multiple oems and
support customer requests for work-in-process visibility and vendor-managed
inventory (VMI).
The specialization model creates manufacturing and distribution networks
composed of several individual supply chains specific to producers, suppliers, and
customers that work together to design, manufacture, distribute, market, sell, and

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service a product. This set of partners may change according to a given market,
region, or channel, resulting in a proliferation of trading partner environments, each
with its own unique characteristics and demands.
Specialization era (phase II): supply-chain management as a service
Specialization within the supply chain began in the 1980s with the inception of
transportation brokerages, warehouse management (storage and inventory), and
non-asset-based carriers, and has matured beyond transportation and logistics into
aspects of supply planning, collaboration, execution, and performance
management.
Market forces sometimes demand rapid changes from suppliers, logistics providers,
locations, or customers in their role as components of supply-chain networks. This
variability has significant effects on supply-chain infrastructure, from the
foundation layers of establishing and managing electronic communication between
trading partners, to more complex requirements such as the configuration of
processes and work flows that are essential to the management of the network
itself.
Supply-chain specialization enables companies to improve their overall
competencies in the same way that outsourced manufacturing and distribution has
done; it allows them to focus on their core competencies and assemble networks of
specific, best-in-class partners to contribute to the overall value chain itself,
thereby increasing overall performance and efficiency. The ability to quickly
obtain and deploy this domain-specific supply-chain expertise without developing
and maintaining an entirely unique and complex competency in house is a leading
reason why supply-chain specialization is gaining popularity.
Outsourced technology hosting for supply-chain solutions debuted in the late 1990s
and has taken root primarily in transportation and collaboration categories. This has
progressed from the application service provider (ASP) model from roughly 1998
through 2003, to the on-demand model from approximately 2003 through 2006, to
the software as a service (saas) model currently in focus today.
Supply-chain management 2.0 (SCM 2.0)
Building on globalization and specialization, the term "SCM 2.0" has been coined
to describe both changes within supply chains themselves as well as the evolution
of processes, methods, and tools to manage them in this new "era". The growing
popularity of collaborative platforms is highlighted by the rise of trade
card’s supply-chain-collaboration platform, which connects multiple buyers and
suppliers with financial institutions, enabling them to conduct automated supply-
chain finance transactions.
Web 2.0 is a trend in the use of the World Wide Web that is meant to increase
creativity, information sharing, and collaboration among users. At its core, the
common attribute of Web 2.0 is to help navigate the vast information available on
the Web in order to find what is being bought. It is the notion of a usable pathway.
SCM 2.0 replicates this notion in supply chain operations. It is the pathway to
SCM results, a combination of processes, methodologies, tools, and delivery
options to guide companies to their results quickly as the complexity and speed of
the supply-chain increase due to global competition; rapid price fluctuations;

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changing oil prices; short product life cycles; expanded specialization; near-, far-,
and off-shoring; and talent scarcity.
SCM 2.0 leverages solutions designed to rapidly deliver results with the agility to
quickly manage future change for continuous flexibility, value, and success. This is
delivered through competency networks composed of best-of-breed supply-chain
expertise to understand which elements, both operationally and organizationally,
deliver results, as well as through intimate understanding of how to manage these
elements to achieve the desired results. The solutions are delivered in a variety of
options, such as no-touch via business process outsourcing, mid-touch via managed
services and software as a service (saas), or high-touch in the traditional software
deployment model.

Business-process integration
Successful SCM requires a change from managing individual functions to
integrating activities into key supply-chain processes. In an example scenario, a
purchasing department places orders as its requirements become known. The
marketing department, responding to customer demand, communicates with several
distributors and retailers as it attempts to determine ways to satisfy this demand.
Information shared between supply-chain partners can only be fully leveraged
through process integration.
Supply-chain business-process integration involves collaborative work between
buyers and suppliers, joint product development, common systems, and shared
information. According to Lambert and Cooper (2000), operating an integrated
supply chain requires a continuous information flow. However, in many
companies, management has concluded that optimizing product flows cannot be
accomplished without implementing a process approach. The key supply-chain
processes stated by Lambert (2004) are:

 Customer-relationship management
 Customer-service management
 Demand-management style
 Order fulfilment
 Manufacturing-flow management
 Supplier-relationship management
 Product development and commercialization
 Returns management
Much has been written about demand management. Best-in-class companies have
similar characteristics, which include the following:

 Internaland external collaboration

 Initiativesto reduce lead time
 Tighter feedback from customer and market demand
 Customer-level forecasting
One could suggest other critical supply business processes that combine these
processes stated by Lambert, such as:
Customer service management process

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Customer relationship management concerns the relationship between an
organization and its customers. Customer service is the source of customer
information. It also provides the customer with real-time information on scheduling
and product availability through interfaces with the company's production and
distribution operations. Successful organizations use the following steps to build
customer relationships:

 Determine mutually satisfying goals for organization and customers

 Establish and maintain customer rapport
 Induce positive feelings in the organization and the customers
Procurement process
Strategic plans are drawn up with suppliers to support the manufacturing flow
management process and the development of new products. In firms whose
operations extend globally, sourcing may be managed on a global basis. The
desired outcome is a relationship where both parties benefit and a reduction in the
time required for the product's design and development. The purchasing function
may also develop rapid communication systems, such as electronic data
interchange (EDI) and Internet linkage, to convey possible requirements more
rapidly. Activities related to obtaining products and materials from outside
suppliers involve resource planning, supply sourcing, negotiation, order placement,
inbound transportation, storage, handling, and quality assurance, many of which
include the responsibility to coordinate with suppliers on matters of scheduling,
supply continuity (inventory), hedging, and research into new sources or programs.
Procurement has recently been recognized as a core source of value, driven largely
by the increasing trends to outsource products and services, and the changes in the
global ecosystem requiring stronger relationships between buyers and sellers.
Product development and commercialization
Here, customers and suppliers must be integrated into the product development
process in order to reduce the time to market. As product life cycles shorten, the
appropriate products must be developed and successfully launched with ever-
shorter time schedules in order for firms to remain competitive. According to
Lambert and Cooper (2000), managers of the product development and
commercialization process must:

1. Coordinate with customer relationship management to identify customer-articulated

needs;
2. Select materials and suppliers in conjunction with procurement; and
3. Develop production technology in manufacturing flow to manufacture and integrate
into the best supply chain flow for the given combination of product and markets.
Integration of suppliers into the new product development process was shown to
have a major impact on product target cost, quality, delivery, and market share.
Tapping into suppliers as a source of innovation requires an extensive process
characterized by development of technology sharing, but also involves managing
intellectual property issues.
Manufacturing flow management process
The manufacturing process produces and supplies products to the distribution
channels based on past forecasts. Manufacturing processes must be flexible in
order to respond to market changes and must accommodate mass customization.

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Orders are processes operating on a just-in-time (JIT) basis in minimum lot sizes.
Changes in the manufacturing flow process lead to shorter cycle times, meaning
improved responsiveness and efficiency in meeting customer demand. This process
manages activities related to planning, scheduling, and supporting manufacturing
operations, such as work-in-process storage, handling, transportation, and time
phasing of components, inventory at manufacturing sites, and maximum flexibility
in the coordination of geographical and final assemblies’ postponement of physical
distribution operations.
Physical distribution
This concerns the movement of a finished product or service to customers. In
physical distribution, the customer is the final destination of a marketing channel,
and the availability of the product or service is a vital part of each channel
participant's marketing effort. It is also through the physical distribution process
that the time and space of customer service become an integral part of marketing.
Thus, it links a marketing channel with its customers (i.e., it links manufacturers,
wholesalers, and retailers).
Outsourcing/partnerships
This includes not just the outsourcing of the procurement of materials and
components, but also the outsourcing of services that traditionally have been
provided in-house. The logic of this trend is that the company will increasingly
focus on those activities in the value chain in which it has a distinctive advantage
and outsource everything else. This movement has been particularly evident
in logistics, where the provision of transport, storage, and inventory control is
increasingly subcontracted to specialists or logistics partners. Also, managing and
controlling this network of partners and suppliers requires a blend of central and
local involvement: strategic decisions are taken centrally, while the monitoring and
control of supplier performance and day-to-day liaison with logistics partners are
best managed locally.
Performance measurement
Experts found a strong relationship from the largest arcs of supplier and customer
integration to market share and profitability. Taking advantage of supplier
capabilities and emphasizing a long-term supply-chain perspective in customer
relationships can both be correlated with a firm's performance. As logistics
competency becomes a critical factor in creating and maintaining competitive
advantage, measuring logistics performance becomes increasingly important,
because the difference between profitable and unprofitable operations becomes
narrower. A.T. Kearney Consultants (1985) noted that firms engaging in
comprehensive performance measurement realized improvements in overall
productivity. According to expert. Internal measures are generally collected and
analysed by the firm, including cost, customer service, productivity, asset
measurement, and quality. External performance is measured through customer
perception measures and "best practice" benchmarking.
Warehousing management
To reduce a company's cost and expenses, warehousing management is concerned
with storage, reducing manpower cost, dispatching authority with on time delivery,
loading & unloading facilities with proper area, inventory management system etc.
Workflow management

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Integrating suppliers and customers tightly into a workflow (or business process)
and thereby achieving an efficient and effective supply chain is a key goal of
workflow management.

Theories
There are gaps in the literature on supply-chain management studies at present
(2015): there is no theoretical support for explaining the existence or the
boundaries of supply-chain management. A few authors, such as Halldorsson et al.
(2003), Ketchen and Hult (2006), and Lavassani et al. (2009), have tried to provide
theoretical foundations for different areas related to supply chain by employing
organizational theories, which may include the following:

 Resource-based view (RBV)

 Transaction cost analysis (TCA)
 Knowledge-based view (KBV)
 Strategic choice theory (SCT)
 Agency theory (AT)
 Channel coordination
 Institutional theory (int)
 Systems theory (ST)
 Network perspective (NP)
 Materials logistics management (MLM)
 Just-in-time (JIT)
 Material requirements planning (MRP)
 Theory of constraints (TOC)
 Total quality management (TQM)
 Agile manufacturing
 Time-based competition (TBC)
 Quick response manufacturing (QRM)
 Customer relationship management (CRM)
 Requirements chain management (RCM)
 Dynamic Capabilities Theory
 Dynamic Management Theory
 Available-to-promise (ATP)
 Supply Chain Roadmap®
However, the unit of analysis of most of these theories is not the supply chain but
rather another system, such as the firm or the supplier-buyer relationship. Among
the few exceptions is the relational view, which outlines a theory for considering
dyads and networks of firms as a key unit of analysis for explaining superior
individual firm performance (Dyer and Singh, 1998).

Supply chain
In the study of supply-chain management, the concept of centroids has become an
important economic consideration. A centroid is a location that has a high
proportion of a country's population and a high proportion of its manufacturing,
generally within 500 mi (805 km). In the US, two major supply chain centroids
have been defined, one near Dayton, Ohio, and a second near Riverside, California.

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The centroid near Dayton is particularly important because it is closest to the
population centre of the US and Canada. Dayton is within 500 miles of 60% of the
US population and manufacturing capacity, as well as 60% of Canada's
population. The region includes the interchange between I-70 and I-75, one of the
busiest in the nation, with 154,000 vehicles passing through per day, 30–35% of
which are trucks hauling goods. In addition, the I-75 corridor is home to the busiest
north-south rail route east of the Mississippi River.
Wal-Mart strategic sourcing approaches Direct sourcing from suppliers-In 2010,
Wal-Mart announced what would be a big change in its sourcing strategy. Initially,
Wal-Mart relied on the intermediaries in the sourcing process. It bought only 20%
of its stock directly but the rests were bought through the intermediaries (Cmuscm,
2014). Therefore, the company came to realize that the presence of many
intermediaries in the product sourcing was actually increasing the costs in the
supply chain. To cut these costs, Wall-Mart decided to do away with intermediaries
in the supply chain and started direct sourcing of its goods from the suppliers.
Eduardo Castro-Wright the then vice president of Wal-Mart set an ambitious goal
of buying 80% of all Wal-Mart goods directly from the suppliers (Lu, 2014).
Walmart started purchasing fruits and vegetables on a global scale where it
interacted directly with the suppliers of these goods. It later engaged the suppliers
of other goods such as cloth and home electronics appliances directly and
eliminated the importing agents. One advantage of this strategy of direct sourcing
is that the supplier and the purchaser collaborate in finding goods of the highest
quality that would appeal to the consumers. Moreover, the purchaser in this case
Wal-Mart can easily direct the suppliers on how to manufacture certain products so
that they can be acceptable to the consumers (Gilmore, 2010). Thus, Wal-Mart
through direct sourcing manages to get the exact product quality as it expects since
it engages the suppliers in the producing of these products hence quality
consistency (Lu, 2014). Using agents in the sourcing process in most cases lead to
inconsistency in the quality of the products since the agent's source the products
from different manufacturers which have varying qualities.
Creation of procurement centre’s- Walmart adopted this strategy of sourcing
through centralizing the entire process of procurement and sourcing by setting up
four global merchandizing points for general goods and clothing. The company
instructed all the suppliers to be bringing their products to these central points that
are located in different markets (Gilmore, 2010). The procurement team assesses
the quality brought by the suppliers and buys the goods and distributes them to
various regional markets. The procurement and sourcing at centralized places
helped the company to consolidate the suppliers.
Efficient communication relationship with the vendor networks to improve the
material flow is another sourcing strategy Wal-Mart uses. The company has all the
contacts with the suppliers whom they communicate regularly and make dates on
when the goods would be needed so that the suppliers get ready to deliver the
goods in time (Wisner, Leong, & Tan, 2005). The efficient communication
between the company’s procurement team and the inventory management team
enables the company source goods and fill its shelves on time without causing
delays and empty shelves (Roberts, 2002). In other words, the company realized
that in ensuring a steady flow of the goods into the store, the suppliers have to be
informed early enough so that they can act accordingly to avoid delays in the

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delivery of goods (Lu, 2014). Thus, efficient communication is another tool which
Walmart is using to make the supply chain to be more efficient and cutting the
costs. Cross-docking is another strategy that Walmart is using to cut costs in its
supply chain. Cross-docking is the process of transferring goods directly from
inbound trucks to outbound trucks (Cmuscm, 2014). When the trucks of from the
suppliers arrive at the distribution centres, most of the trucks are not offloaded to
keep the goods in the distribution centres or warehouses, but they are transferred
directly to another truck designated to deliver goods to specific retail stores for
sale. Cross-docking helps in saving the storage costs (Gilmore, 2010). Initially, the
company was incurring considerable costs of storing the suppliers from the
suppliers in its warehouses and the distributions centres to await the distribution
trucks to the retail stores in various regions.

Circular supply-chain management

Circular Supply-Chain Management (CSCM) is "the configuration and
coordination of the organisational functions marketing, sales, R&D, production,
logistics, IT, finance, and customer service within and across business units and
organizations to close, slow, intensify, narrow, and dematerialise material and
energy loops to minimise resource input into and waste and emission leakage out
of the system, improve its operative effectiveness and efficiency and generate
competitive advantages". By reducing resource input and waste leakage along the
supply chain and configure it to enable the recirculation of resources at different
stages of the product or service lifecycle, potential economic and environmental
benefits can be achieved. These comprise e.g. A decrease in material and waste
management cost and reduced emissions and resource consumption.

Components
Management components
SCM components are the third element of the four-square circulation framework.
The level of integration and management of a business process link is a function of
the number and level of components added to the link. Consequently, adding more
management components or increasing the level of each component can increase
the level of integration of the business process link.
Literature on business process re-engineering buyer-supplier relationships, and
SCM suggests various possible components that should receive managerial
attention when managing supply relationships. Lambert and Cooper (2000)
identified the following components:

 Planning and control

 Work structure
 Organization structure
 Product flow facility structure
 Information flow facility structure
 Management methods
 Power and leadership structure
 Risk and reward structure

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 Culture and attitude
However, a more careful examination of the existing literature. Leads to a more
comprehensive understanding of what should be the key critical supply chain
components, or "branches" of the previously identified supply chain business
processes—that is, what kind of relationship the components may have that are
related to suppliers and customers. Bowersox and Closs (1996) state that the
emphasis on cooperation represents the synergism leading to the highest level of
joint achievement. A primary-level channel participant is a business that is willing
to participate in responsibility for inventory ownership or assume other financial
risks, thus including primary level components (Bowersox and Closs, 1996). A
secondary-level participant (specialized) is a business that participates in channel
relationships by performing essential services for primary participants, including
secondary level components, which support primary participants. Third-level
channel participants and components that support primary-level channel
participants and are the fundamental branches of secondary-level components may
also be included.
Consequently, Lambert and Cooper's framework of supply chain components does
not lead to any conclusion about what are the primary- or secondary-level
(specialized) supply chain components (see Bowersox and Closs, 1996, p. 93) —
that is, which supply chain components should be viewed as primary or secondary,
how these components should be structured in order to achieve a more
comprehensive supply chain structure, and how to examine the supply chain as an
integrative one (See above sections 2.1 and 3.1).
Reverse supply chain
Reverse logistics is the process of managing the return of goods. It is also referred
to as "aftermarket customer services". Any time money is taken from a company's
warranty reserve or service logistics budget, one can speak of a reverse logistics
operation. Reverse logistics is also the process of managing the return of goods
from store, which the returned goods are sent back to warehouse and after that
either warehouse scrap the goods or send them back to supplier for replacement
depending on the warranty of the merchandise. 3

Global applications
Global supply chains pose challenges regarding both quantity and value. Supply
and value chain trends include:

 Globalization
 Increased cross-border sourcing
 Collaboration for parts of value chain with low-cost providers
 Shared service centre’s for logistical and administrative functions
 Increasingly global operations, which require increasingly global coordination and
planning to achieve global optimums
 Complex problems involve also midsized companies to an increasing degree
These trends have many benefits for manufacturers because they make possible
larger lot sizes, lower taxes, and better environments (e.g., culture, infrastructure,
special tax zones, or sophisticated OEM) for their products. There are many
additional challenges when the scope of supply chains is global. This is because

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with a supply chain of a larger scope, the lead time is much longer, and because
there are more issues involved, such as multiple currencies, policies, and laws. The
consequent problems include different currencies and valuations in different
countries, different tax laws, different trading protocols, vulnerability to natural
disasters and cyber threats, and lack of transparency of cost and profit.

Supply chain consulting

Supply-chain consulting is the providing of expert knowledge in order to assess the
productivity of a supply-chain and, ideally, to enhance the productivity.
Supply chain Consulting is a service involved in transfer of knowledge on how to
exploit existing assets through improved coordination and can hence be a source of
competitive advantage.
Hereby the role of the consultant is to help management by adding value to the
whole process through the various sectors from the ordering of the raw materials to
the final product.
On this regard, firms either build internal teams of consultants to tackle the issue or
use external ones, (companies choose between these two approaches taking into
consideration various factors).
The use of external consultants is a common practice among companies. The whole
consulting process generally involves the analysis of the entire supply-chain
process, including the countermeasures or correctives to take to achieve a better
overall performance.

Certification
Skills and competencies
Supply chain professionals need to have knowledge of managing supply chain
functions such as transportation, warehousing, inventory management,
and production planning. In the past, supply chain professionals
emphasized logistics skills, such as knowledge of shipping routes, familiarity with
warehousing equipment and distribution centre locations and footprints, and a solid
grasp of freight rates and fuel cost. More recently, supply-chain management
extends to logistical support across firms and management of global supply
chains. Supply chain professionals need to have an understanding of business
continuity basics and strategies.
Roles and responsibilities
Supply chain professionals play major roles in the design and management of
supply chains. In the design of supply chains, they help determine whether a
product or service is provided by the firm itself (insourcing) or by another firm
elsewhere (outsourcing). In the management of supply chains, supply chain
professionals coordinate production among multiple providers, ensuring that
production and transport of goods happen with minimal quality control or
inventory problems. One goal of a well-designed and maintained supply chain for a
product is to successfully build the product at minimal cost. Such a supply chain
could be considered a competitive advantage for a firm.
Beyond design and maintenance of a supply chain itself, supply chain professionals
participate in aspects of business that have a bearing on supply chains, such

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as sales forecasting, quality management, strategy development, customer service,
and systems analysis. Production of a good may evolve over time, rendering an
existing supply chain design obsolete. Supply chain professionals need to be aware
of changes in production and business climate that affect supply chains and create
alternative supply chains as the need arises. Individuals working in supply-chain
management can attain a professional certification by passing an exam developed
by a third party certification organizations. The purpose of certification is to
guarantee a certain level of expertise in the field.
Education
The knowledge needed to pass a certification exam may be gained from several
sources. Some knowledge may come from college courses, but most of it is
acquired from a mix of on-the-job learning experiences, attending industry events,
learning best practices with their peers, and reading books and articles in the field.
Certification organizations may provide certification workshops tailored to their
exams. There are also free websites that provide a significant amount of
educational articles, as well as blogs that are internationally recognized which
provide good sources of news and updates.
Rankings
The following North American universities rank high in their master's education in
the SCM World University 100 ranking, which was published in 2017 and which is
based on the opinions of supply chain managers: Michigan State University, Penn
State University, University of Tennessee, Massachusetts Institute of
Technology, Arizona State University, University of Texas at Austin and Western
Michigan University. In the same ranking, the following European universities
rank high: Cranfield School of Management, VlerickBusiness
School, INSEAD, Cambridge University, Eindhoven University of
[56]
Technology, London Business School and Copenhagen Business School. In the
2016 Eduniversal Best Masters Ranking Supply Chain and Logistics the following
universities rank high: Massachusetts Institute of Technology, KEDGE Business
School, Purdue University, Rotterdam School of Management, Pontificia
Universidad Catolica del Peru, Universidad Nova de Lisboa, Vienna University of
Economics and Business and Copenhagen Business School.[57]
Organizations
There are a number of organizations that provide certification exams, such as
CSCMP (Council of Supply Chain Management Professionals), IIPMR
(International Institute for Procurement and Market Research), APICS (the
Association for Operations Management), ISCEA (The International Supply Chain
Education Alliance) and ioscm (Institute of Supply Chain Management). APICS'
certification is called Certified Supply Chain Professional, or CSCP, and ISCEA'S
certification is called the Certified Supply Chain Manager (CSCM), CISCM
(Chartered Institute of Supply Chain Management) awards certificate as Chartered
Supply Chain Management Professional (CSCMP). Another, the Institute for
Supply Management, is developing one called the Certified Professional in Supply
Management (CPSM) focused on the procurement and sourcing areas of supply-
chain management. The Supply Chain Management Association (SCMA) is the
main certifying body for Canada with the designations having global reciprocity.

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 The designation Supply Chain Management Professional (SCMP) is the title of the
supply chain leadership designation

Basic concepts of Logistics and SCM

Inventory Planning

Organizations want to minimize the inventory levels due to its almost linear
relationship with the cost. Yet if the demand is forecasted accurately, there would
ideally be no need for inventory and the goods will move seamlessly from
warehouses to customers.

o That would have been awesome, but it is deep into the ideal world zone. In the
real world, the forecasted numbers can only take you so far and some inventory has
to be maintained to satiate any surges in demand; the cost of unhappy consumers
who are not serviced is often huge, and is immeasurable in most cases.

o Yet overstocks lead to increase in working capital requirements, insurance costs

and blocked resources which could have been productive someplace else.

o Making a business forecast has largely been a gut-based process, but is

changing rapidly in the era of data-based decision making. The forecast depends on
the historical baseline for sales, seasonality (soft drinks have higher sales volume
in May), recent trends (Samsung is losing out to competitors when it comes to
phones, a declining trend), business cycles (economies go through expansion and
contraction every few years), promotional offers (up to 50% off can drive the
average fashionista mad) etc.

Transportation
The kind of transportation employed by an organization is a strategic decision (it
usually accounts for around 1/3rd of the total logistics cost) based on the required
level of risk exposure, customer service profiles, geographic area covered etc.
Truck shipments take more time for delivery compared to air transport (customers
with relaxed turnaround times); is cheaper but necessitates maintenance of higher
inventory levels.

o Transportation serves the purpose of not just product movement, but storage as
well (not very intuitive). Time spent for delivery means saved time for
warehousing, and many times the cost to offload and reload shipments can be
greater than the cost of letting the goods stay in the transportation vehicles itself.

o Two basic thumb rules apply for transportation decisions: truck load (TL)
shipments are better than less-than-truckload (LTL) shipments as storage space is a
perishable commodity (just like a commercial airline does not want to fly with
empty seats), and the cost per kilometre decreases as the distance increases (two
500 km shipments is usually more expensive than a single 1000 km shipment).

o The factors which determine the economies of transportation decisions include

but are not limited to: distance between the starting and destination points, and

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density (higher density products take less space — space constraints outweigh
weight constraints by a huge margin), stow ability (spherical packaging will lead to
more empty spaces compared to cubical) and volume of the goods. Different
modes of transport serve different strategic ends (rail, road, air, water etc).

o FlipKart has eKart for its logistical operations and warehousing, whereas
smaller e-commerce players generally outsource their operations to specialized
logistics players such BlueDart, DHL and now Delhivery.

Packaging
The end goals differ: can either be done for end consumers or for logistical
considerations. The packaging will then depend on the end goal; form factor plays
the lead role when packaging goods for the end consumers, while function plays
the lead role in packaging for logistical operations.

Warehousing
It is the back-end building for storing goods. Based on the needs of the
organization, it can be in-house or outsourced.

o Primary functions of a warehouse are product movement and storage. Activities

such as offloading of the goods coming from the suppliers, the intermediate
packaging (if required), and shipping to other destinations (retailers or end
consumers) are handled in the warehouse. Similarly, they can also serve as a
storage house for handing peak consumer demand to avoid stock out of items, and
acts as a buffer between the starting point (usually manufacturing plant) and ending
point (think about a typical retail outlet).

o Different distribution strategies can be adopted by an organization based on its

needs and infrastructure in place, namely:

 Cross-Docking: Relies on minimal processing at the warehouse level and facilitate

seamless connection between “incoming” and “outgoing” goods through technologies
such as bar code scanners; becoming increasingly important due to established structured
communication between retailers and manufacturers; best for high velocity goods with
predictable demand patterns.
 Milk Runs: The delivery guy is out to deliver items from a single supplier to multiple
retailers or to pick up items from multiple suppliers for a single retailer (An Indian
Doodhwala can literally teach a thing or two about this, hence the naming we think).
 Direct Shipping: A supplier directly ships to a particular retailer without any
intermediaries. Mostly happens with big-name stores with huge good volumes, and very
frequent replenishments. Big savings on time.
 Hub and Spoke Model: Hub serves as the central node for nearby places, and the
spokes depend on the hub for their needs (think of a metropolitan and various tier-2 city
in its proximity).
 Pooled Distribution: Region is the most important factor driving this strategy. Delivers
to every destination point in a geographical area, smart for handling peak time loads and
LTL shipments. Plus one for the planet as a bonus!

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Human : Arteries :: Logistics : Information

Traditional paper-based information systems are increasingly on their way out, and
electronic exchanges are making rapid inroads into the logistical process flow. The
initial investment in electronic systems is recouped quickly by cost savings due to
better operational efficiency and enhanced customer service. Advances in
electronic data interchange (EDI), artificial intelligence and wireless
communication is partly responsible for this intelligent shift.

 The principal information flow can be subdivided in two main streams: one for
planning (looking into the future) and the other for operational flows (in the past and
present). Plans are to be made for production, storage and movement of goods.
Manufacturing constraints (internal) and expected sales (external) are the key areas
focused upon. Operating flows refer to the information generated (or required) to serve
the orders to the customer.

 Enterprise Resource Planning (ERP) is a fancy term used by IT people for one-stop,
integrated packages to support multiple functions across an organization. It serves as a
central destination to capture data which aids in making optimal decisions, while also
serving as a repository to better understand the current business scenario and plan for any
future needs.

Green Supply Chain Management: Lean Practices

Green is the new way to go about things, and the myth that profits and environment
cannot go hand in hand is evaporating fast. Commitment to lean practices is a
promise to do away with inefficiencies in the system to reduce wastes and have a
minimal impact on the environment.

The emphasis on continuous product flows, standardization within the

organization/industries and a greater integration between producers and consumers
— all these have contributed to efficient supply chains with gradually decreasing
waste levels.

Information is often the key differentiator when it comes to successful supply chain
practices, and the organizations that share information with each other based on the
premise of trust and long-term business viability will often have decisive
competitive advantage over organizations that do not share critical information
upstream and downstream.

The best part is everybody winning — organizations, end consumers and Mother
Nature.

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What are the Transport and Logistics?
"Transport and Logistics refers to 2 types of activities, namely, traditional services
such as air/sea/land transportation, warehousing, customs clearance and value-
added services which including information technology and consulting"

What is International Logistics?

These are one of the most ambiguous groups of terms out there. They are used
interchangeably and often referred to international production and transportation
activities. However, the most concise definition is as below,
"International Logistics focuses on how to manage and control overseas activities
effectively as a single business unit. Therefore, companies should try to harness the
value of overseas product, services, marketing, R&D and turn them into
competitive advantage"

What is Third Party Logistics or 3PL?

The concept of 3PL appeared on the scene in the 1980s as the way to reduce costs
and improve services which can be defined as below,
"Third Party Logistics or 3PL refers to the outsourcing of activities, ranging from a
specific task, such as trucking or marine cargo transport to broader activities
serving the whole supply chain such as inventory management, order processing
and consulting."

In the past, many 3PL providers didn't have adequate expertise to operate in

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complex supply chain structure and process. The result was the inception of
another concept.

What is Fourth Party Logistics or 4PL?

The 4PL is the concept proposed by Accenture Ltd in 1996 and it was defined as
below,
"Fourth Party Logistics or 4PL refers to a party who works on behalf of the client
to do contract negotiations and management of performance of 3PL providers,
including the design of the whole supply chain network and control of day-to-day
operations"

You may wonder if a 4PL provider is really needed. According to the research by
Nezar Al-Mugren from the University of Wisconsin-Stout, the top 3 reasons why
customers would like to use 4PL providers are as below,

- Lack of technology to integrate supply chain processes

- The increase in operating complexities
- The sharp increase in global business operations

What is Information Sharing?

Another important attribute of supply chain management is the flow of material,
information, and finance (money). Even though there are 3 types of flow, the most
important one is information flow aka information sharing. Let's see the example of
this through the simplified version of the bullwhip effect as below,

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When demand data is not shared, each player in the same supply chain must make
some sort of speculation. According to the above graphic, the retailer has a demand
for 100 units, but each player tends to keep stock more and more at every step of
the way. This results in higher costs for everyone in the same supply chain.

When information is shared from retailer down to supplier, everyone doesn't have
to keep stock that much. The result is a lower cost for everyone.

What is Supply Chain Coordination?

Information sharing requires a certain degree of "coordination" (it's also referred to
as collaboration or integration in scholarly articles). Do you wonder when people
started working together as a network? In 1984, companies in the apparel business
worked together to reduce overall lead-time. In 1995, companies in the automotive
industry used Electronic Data Interchange to share information. So, working as a
"chain" is the real-world practice.

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What are Conflicting Objectives?
Working as a network requires the same objective, but this is often not the case
(even with someone in the same company). "Conflicting Objectives" is the term
used to describe the situation when each function wants something that won't go
well together. For example, purchasing people always place the orders to the
cheapest vendors (with a very long lead-time) but production people need material
more quickly.

To avoid conflicting objectives, you need to decide if you want to adopt a time-
based strategy, low-cost strategy or differentiation strategy. A clear direction is
needed so people can make the decisions accordingly.

What is the Cost/Service Trade-off?

The concept of Cost/Service Trade-off appeared as early as in 1985 but it seems
that people really don't get it.

When you want to improve service, the cost goes up. When you want to cut cost,
service suffers. It's like a "seesaw", the best way you can do is to try to balance
both sides.

Real world example is that a "new boss" ask you to cut costs by 10%, improve
service level by 15%, double inventory turns and so on. If you really understand
the cost/service trade-off concept, you will agree that you can't win them all. The
most appropriate way to handle this is to prioritize your KPIs.

What is Supply Chain Relationship?

To work as the same team, long-term relationship is a key. Otherwise, you're just a
separate company with a different strategy/agenda. So academia keeps preaching
about the importance of relationship building but is not for everyone.

Since there are too many suppliers to deal with, a portfolio matrix is often used to

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prioritize the relationship building. Focus your time and energy to create the long-
term relationship with suppliers of key products and items with limited sources of
supply because these are people who can make or break your supply chain.

Is Logistics the Same as Supply Chain Management?

The terms logistics and supply chain management are sometimes used
interchangeably. Some say there is no difference between the two terms, that
supply chain management is the “new” logistics.

To compound this, what is considered supply chain management in the United

States is more commonly known as logistics management in Europe, according to
the blog for PLS Logistics Services, a logistics management firm in Pennsylvania.

When the question was posed in an Inbound Logistics article, the answers varied
based on the functions of a supply chain (or logistics) professional handled. Some
thoughts from their readers:

 “There isn’t a difference today,” said Wayne

Johnson of American Gypsum.
 “Supply chain management incorporates the field of logistics and logistics is a number
of sub-processes within SCM,” said Michael Kirby of National Distribution Centres.
 “A ‘supply chain management’ company is generally a third-party operator managing
the total overall movement of product whether inbound or outbound,” said William
Behrens of Associated Transport Systems, Inc.

Purchasing, materials handling, logistics, transportation, inventory

control, and supply chain management have continued to evolve, causing many of
these functional areas to intersect with one another. This intersection has resulted
in blurred definitions for some of these terms such as logistics and supply chain
management.

While these two terms do have some similarities they are, in fact, different
concepts with different meanings. Supply chain management is an overarching
concept that links together multiple processes to achieve competitive advantage,
while logistics refers to the movement, storage, and flow of goods, services and
information within the overall supply chain.

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Why Logistics is So Important to Supply Chains

Any successful business leader will acknowledge the crucial importance of effectively
organized logistics. They understand that implementing seamless logistics is a key element in
keeping pace with customer demands and outperforming competitors.

Whatever the size of your business, you will want to grow and expand. That probably means
expanding on a regional, international or global level. Whatever your business location or
industry, logistics can help cut on the costs and time you spend to move products from one
point to another.
Supply chains are complex and sensitive as they depend on always-changing customer
demands. A supply chain cannot ensure high value if it is without effectively organized
transport. For this reason, logistics is one of the most crucial factors in the quality of
any supply chain.

If you look at effective transport done right, you might get the impression that it “seems
simple”. It actually requires a lot of special knowledge, skills and professional management to
get it look so “effortless. Don’t let the end result of good logistics fool you – it takes a lot of
specialized assistance to get it to flow so smoothly.

Effective transport improves a supply chain by decreasing (if not avoiding) waste of materials
and time. This helps supply chain professionals transport products and deliver them to the right
location, on time – which is a priority for any successful business.

Effectively coordinated logistics leads to positive business results

As businesses grow and expand (regionally, internationally or even globally), they become
more reliant on effectively organized supply chains which includes sophisticated logistics. This
element of supply chains is not something that “only matters in large-business development”.
It is just as crucial in terms of improving efficiency and profitability with smaller and medium-
sized business as well.

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Logistics plays an essential part in supply chain management. It is used to plan and coordinate
the movement of products timely, safely and effectively.
Customers now not only include your neighbour’s and local friends; they include people from
across the globe, as well. Regardless of the distance, each customer expects their products to
be delivered quickly and flawlessly. In order to do this, smart businesses hire experienced
professionals to align the pattern of movement of products in the most convenient and practical
way.
Logistics helps businesses create value

Providing value to customers does not only refer to quality or quantity. It also refers to
availability. As better logistics makes your products more available to an increasing group of
people, wise business leaders consider it a very important tool in creating value for customers.

Logistics creates and increases the value businesses offer by improving merchandise, and
ensuring the availability of products. In order to provide more value, businesses either work on
improving their own logistic activities or rely on professionals.

Logistics helps in reducing costs and improves efficiency

With global trade growing more popular, logistics has become the heart of supply chains.
Business leaders have realized they can reduce their costs by establishing partnerships with
other businesses which offer transportation and warehousing.

When businesses start using such services to outsource transport and warehousing,
they improve their overall business efficiency, sometimes dramatically. If they let these
partners take charge of shipping their goods to end customers, this results in a better reputation
and a stronger brand.
By working with highly professional and reliable logistics companies such as A&A, many
businesses have improved their efficiency by providing faster delivery of product. This leads to
an improved customer experience and higher working efficiency in general.

Logistics helps delivering your product at the right place timely

Logistics is firmly and clearly defined within a supply chain. However, due to differing
customer demands, it has to be constantly evolving in order to provide better results.

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Customers nowadays are more likely to impulse shop using a smartphone, and be equally as
impatient about receiving their order.

With professionally organized logistics, businesses are able to answer short-time requirements.
By choosing an experienced team of professionals, business entrepreneurs can ensure quick
and safe shipping, warehousing and delivery of their products to customers. They can
incorporate these services in a way that adds value to their offers, and ensure their products get
to the right place on time.

Logistics is the key to success with supply chains

Supply chains are unique networks between businesses that deal with the production,
shipment, warehousing and delivery of products. These networks are very important to
businesses as they largely affect sales and profits. However, without effective and well-
organized logistics, supply chains can’t help your business gain a clear advantage over the
competition.

While a good marketing strategy can “open many doors” and attract customers, a reliable
logistics service can help your business build and maintain a positive public image.
Meanwhile, poorly organized logistics can lead to losing customers and decreased sales.
Keep your customers satisfied, rely on experienced logistic professionals

Satisfied customers are the most precious asset for any business. They are the main drive for
the supply chains in each of the three phases: manufacturing, marketing and logistics. For this
reason, it is a priority for each business owner to clearly understand customer needs,
preferences and demands, and then work relentlessly to meet them.

When successful business leaders acknowledge the needs and requirements of their existing
and potential customers, they develop a strategy. Whether the business is small, middle-sized
or large, strategies rely on effective logistics.
At A&A, we clearly understand the importance of reliable, quick and timely transport of
products for businesses in various industries. Our logistics teams offer their experience and
expertise in all types of transportation. Regardless of the type and size of your products, we are
ready to assist you with air, ocean, ground and inter-modal freight forwarding.

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With over 25 years of working experience and a long list of satisfied customers, we are proud
to offer seamless logistics services to our customers. Our A&A professionals in Canada and
the USA work devotedly to provide tailor-made solutions for each customer separately. Our
facilities are well equipped, secured and located strategically to accommodate all kinds of
transportation, as well as product reception and delivery.

Why logistics is important in today’s economy

3PL, 3rd party logistics, 3rd party warehousing, economy, logistical

services, logistics, warehousing
Logistics plays a huge role within today’s economy. It is estimated that the UK Logistics &
Posts Sector is worth 55 billion to the economy and comprises 5% of the UK GDP. The
industry also employs 1.7m people.
Just imagine a world where nothing was delivered or transported between places. Not only is
logistics vitally important to the distribution industry, it has made distribution prompt and
efficient. In fact, according to the FTA (Freight Transport Association), in 2014, 139 billion
tonne km of goods were moved by HGV.In this very competitive market, it is extremely useful
that companies no longer have to wait for what they need.

Many companies rely on transport and logistics to keep their business strong.
Today, companies have good infrastructure and record keeping, which continues to improve
through advancements in technology. As time has progressed, so has the importance of
logistics, in fact this rise has brought factors such as warehousing and other facilities closer to
large towns and cities. Logistics is affecting businesses within towns and cities, bringing more
jobs into these locations.
Logistics is an important part of the supply chain.
It controls the effective forward and reverse flow of goods and services origin to recipient.
This means that logistics has an impact on the shipment of goods and how quickly they can get
to the consumer, again adding a competitive edge to other businesses.
The trend of third party logistics (3PL) is on the rise.
Globally, the logistics industry has seen an immense growth over the past decade, with 40% of
organisations now using 3PL and the industry being said to be worth $750 billion globally, and
$174 billion in Europe. This shows an increase in jobs for transporters, warehouse facility
owners, and brokers in freight-related jobs.

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Technology is making logistics more efficient.

A huge part of the economy that is benefiting from

an increase in logistics is technology. A good logistics company will integrate all of the supply
chain functions into a digital strategy. They will track orders, vehicles and pallets to gain
greater visibility and improve their methods.
This better visibility helps companies to optimise their flow of goods, reduce wait times and
manage their costs. Technology is an essential part of logistics and its use is benefiting today’s
economy.

World exports as a percentage of global GDP showed a continuous growth trend from
the mid-eighties of the last century, until 2008. Since then the growth stopped.

Another indicator for trade, global capital flows between countries, achieved its highest
point seven years ago. But times are changing. Growth will still be there, if you know
where to find it.

According to McKinsey, approximately 600 cities are likely to realise 65% of the global
GDP growth by the mid-twenties. By then, the growing cities are predicted to add up to
$30 trillion to the world economy. Incomes in developing economies never rose faster or
at a greater scale in history, and about a billion people are becoming part of consuming
classes in roughly ten years’ time.

Macro-economic changes and shifts in trade patterns have their impact on global supply
chains. They provide opportunities as well as challenges. Let’s have a closer look at
some developments in logistics that are directly or indirectly caused by changes in trade
patterns, in GDP growth or in customer behaviour.

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  Growth patterns: Growth in the logistics industry is no longer driven by exports from
Asia to North America and from Asia to Europe. It will come from elsewhere, and will
be more fragmented, more unpredictable and more volatile. Economic and population
growth will be increasingly centred in cities. Infrastructure is becoming a major
determinant for growth.
 Flexibility: Meeting consumer’s requirements at multiple locations with multiple
transport modes at different times requires a flexible supply chain that can adapt easily
to unexpected changes and circumstances.
 Globalisation: International, mature and emerging markets have become a part of the
overall business growth strategy for many companies. Going ‘international’ has
become the standard and logistic solution providers need to enable that trend.
 Near shoring: As labour costs in Asia and transportation costs rise, increasing amounts
of manufacturing are being brought closer to the end user.
 Multi-channel sourcing: End-consumers increasingly source via multiple channels,
ranging from brick & mortar shops to e-commerce. The logistics industry needs to
support multi-channel strategies of their customers.
 Information technology: The growing complexity and dynamism of supply chains
requires increasingly advanced Information Technology solutions.
 Continuity: To be able to secure speed to market and to reduce risk of delays,
alternative transport modes and routes are required to support the continuing trend of
outsourcing of logistics services.
 Sustainability: Customers increasingly prefer products that are made and sourced in
‘the right way’; minimising business’ social, economic and environmental impact on
society and enhancing positive effects.
 Compliance: Anti-bribery and corruption legislation is having an increasing impact on
supply chains, since multinational companies demand that no facilitation payments are
made during the export of their goods, yet still seek to source from low cost countries,
which are often also at the bottom of Transparency International’s global corruption
index.
 Partnerships: Manufacturers continuously search for supply chain innovations and
gains through partnerships with logistic service providers.
 End-to-end visibility: Complete visibility of the entire supply chain aspires to achieve
true demand-driven planning, allowing efficient response to changes in sourcing,
supply, capacity and demand.
 Complexity: Supply chains are becoming increasingly complex and dynamic with
sourcing locations being changed increasingly quickly and purchase orders becoming
smaller and more frequent.
 These developments will have their effect on day-to-day logistics, and companies
will need to prepare for ‘the new normal’ in supply chain management. With all
these changes, staying up-to-date on the latest trends in logistics is more
important than ever.

Top Future Trends in Supply Chain and Logistics

From the first assembly lines to today’s advanced robotic solutions, the supply chain process is
constantly evolving. The latest trends in supply chain and logistics focus on smart, tech-driven
management to reduce operating expenses and increase efficiency.

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The importance of trends in supply chain and logistics for modern-day businesses

Originated with the military as a way to supply troops with weapons and other goods needed
for combat, logistics later evolved into a business concept. This was mainly prompted by the
growing demands and complexity of the supply chain process, including transportation of large
quantities of goods to distant locations, in line with the globalization of trade.

The logistics and supply chain aspect is vital for any business in terms of supply of quality raw
materials, efficient manufacturing process, as well as tracking, transport and storage of the
finished goods. Companies implementing well-designed supply chain practices are able to
meet consumer needs in a more expeditious and timely manner.

This strengthens customer relationships and loyalty, translating into revenue boost and
acquisition of new customers through positive word of mouth.

Hence, let’s look into some key trends expected to affect the shape and development of supply
chain practices in the future.

Supply chain digitization

Digitization is the process of using the latest tech solutions together with other physical and
digital assets to redesign logistics practices. This way, they can adjust better to the fast-paced,
highly competitive, omni-channel business environment.

Digitization improves the speed, dynamics and resiliency of the supply chain operations,
leading to greater customer responsiveness and ultimately higher revenue. By embracing
digitalization, companies can experience real value, increased revenue and market valuation.

In order to reap the full benefits of digitalization, companies must fundamentally redesign their
supply chain strategy. It’s not enough to just embellish it with digital technology.

In the field of digitization, the Internet of Things (IoT) holds a prominent place as a highly
transformative technological solution in the logistics sphere. IoT refers to a system of
interrelated computing devices allowing transfer of data over networks without human input. It
helps companies monitor inventory, manage warehouse stock, optimize fleet routes, and
reduce dead mileage.

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Artificial Intelligence

Advanced AI solutions have numerous applications in the supply chain, especially the
warehousing segment. This includes use of gesture recognition solutions instead of keyboards
and mice in the procurement process. It also includes autonomous vehicles (self-driving cars),
designed to navigate without human input.

The concept of robotics and automation is also widely implemented in the supply chain. The
latest generations of robots are easier to program, more flexible and affordable. Their role is to
assist workers with repetitive and physically challenging tasks.

Stronger collaboration in the supply chain process

Solid procurement practices and stronger relationships with suppliers should be considered a
priority in the supply chain process.

For instance, the procurement department can utilize the business data on suppliers to enhance
supply chain decisions, such as supplier evaluation and recommendations of the best business
partners. Also, effective cooperation can help assess risks in the supply chain based on global
industrial and political trends as a way to prevent or mitigate danger of stock shortages.

Meanwhile, collaboration in the supply chain can streamline internal processes and reduce
overutilization of resources spent on administrative and other time-consuming tasks. As an
added bonus, it can help generate referrals from satisfied business partners and bring your
more business.

More focus on risk management and supply chain resiliency

There’s no doubt that companies must seriously consider supply chain risk management as a
way to prepare for undesirable events. The increasing outsourcing practices, off-shoring,
product versatility, supply chain security and substantial interdependence throughout the
supply chain further accentuate the importance of dealing with risks in the supply chain.

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Still, no matter how sound the plan is, it can’t prevent things from happening. This is where
supply chain resiliency comes into the picture. It’s a real measure of the ability of a company
to withstand disruptive events.

Steps to make the supply chain more flexible and resilient include visibility throughout the
supply chain so disruptions can be detected on time, close cooperation with suppliers and
distributors so alternative supply routes can be found, and a good incident response plan to
provide a course of action when disruption occurs.

Knowledge work will go global

Nearly half of the work in the modern supply chain is knowledge work. This type of work
includes complex analytics, planning and procurement processing.

As businesses go global, the knowledge work in the supply chain should go global as well.
This will allow companies headquartered in one country to perform logistics operations, have
procurement centers or do analytics in different parts of the world.

Circular supply chain

The term “linear supply chain” refers to the conventional concept where goods flow linearly
(from raw material to finished product). Modern logistics practices focus on the circular supply
chain concept, involving the use of previously used products as raw materials. The reuse of
products and materials is known as reverse logistics, and it is a novel, innovative approach. It
helps companies reduce administrative and transportation costs, achieve higher sustainability,
better customer service and loyalty, create value and conserve resources.
Used products can be kept in circulation through good cooperation between companies and
their suppliers and customers.

Wearable devices

Wearable technology refers to devices designed to be worn by people. Combined with cloud
technology, wearable devices help employees access and input data in real time. Through

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proper data collection and analysis, wearable technology allows companies to maintain control
of their inventories. They can also stay up-to-date with product demand.

Warehouse managers can use wearables for fast, accurate collection of inventory data, keeping
track of manufactured, stored and distributed products.

Wearables can also monitor vital signs so health problems (exhaustion, heart attacks) among
the warehouse workers can be prevented.

Use of SaaS in the supply chain

Use of the software-as-a-service model in supply chain technologies and logistics management
is gaining popularity, hand in hand with the rise of cloud computing. This is mostly due to the
safety and security of SaaS and the convenience of being able to use only the services you need
on pay-per-use basis. SaaS allows companies to avoid high fixed costs of continuous system
maintenance, upgrades and infrastructure-related costs.

Enhanced supply chain visibility

Proper analysis of supply chain data can significantly improve business forecasting and
decision making. It can also optimize the use of resources involved in inventory management,
storage and transport.

Supply chain visibility gives insight into what’s happening at each point of the supply chain.
It’s extremely important for the efficiency of the entire supply chain process, including
procurement, manufacturing, transport and delivery.

One of the benefits of improved chain visibility is real-time inventory management. It involves
use of mobile point-of-sale systems and sensors, and takes inventory management to a whole
new level.

For instance, instead of paying for purchased goods in a store, people can just take the desired
items, and get charged for the goods on their cards automatically. Furthermore, real-time
inventory management allows the goods to be replaced as they are consumed.

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Customer segmentation

To address customer needs in the best possible way, companies should segment them into
groups. These groups can be based on what triggers customer purchasing decisions, as opposed
to a broad generalization.

By implementing a more direct-to-consumer business model and adapting their supply chain
strategy to each customer and product, companies can significantly increase their revenue.

At A&A, we make it our business to follow the latest logistics and supply chain trends so we
can promptly adjust to the changing market circumstances. That way, we are always ready to
respond to our client needs, be it customs brokerage, freight forwarding or warehousing.
In fact, our customers are our most valuable assets and we’ve forged lots of strong
relationships over the years.


CSX is a leading supplier of rail-based freight transportation based out of
Jacksonville, Florida. As a railroad, the company operates around 21,000 route miles
of track. The company was formed in 1981 by combining the railroads of the former
Chessie System, Seaboard Coast Line Industries then the Seaboard System Railroad
in 1986. The brand is currently valued at $4bn.

 Deutsche Post is part of the Deutsche Post DHL Group and is Europe’s leading postal
service provider. Deutsche Post delivers mail and parcels in Germany and across the
world and provides dialogue marketing and press distribution services as well as
corporate communications solutions. Deutsche Post DHL Group employs

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 approximately 510,000 employees in over 220 countries and territories worldwide.
The brand value, according to Brand Finance, is $4.2bn.

 With a brand value of $4.4bn, CN is a Canadian-based transportation company that

offers integrated services covering rail, intermodal, trucking, freight forwarding,
warehousing and distribution. CN has approximately 24,000 railroaders and transports
more than $250bn worth of goods annually for an array of business sectors, ranging
from resource products to manufactured products to consumer goods, across a rail
network of approximately 20,000 route-miles spanning Canada and mid-America.

 Poste Italiane is an Italian postal service provider. Outside of its standard postal
services it also offers various integrated products such as postal savings,
communication, logistics and financial services throughout Italy. In 2011, the
business acquired UniCredit MedioCredito Centrale for €136mn ($166mn) and in
2016 the Italian government approved the sale of stakes of up to 40% in the company.
Its CEO and MD is Matteo Del Fante and its brand value stands at $4.8bn.

 The McLane Company is of the largest supply chain service leaders providing
grocery and foodservice supply chain solutions for convenience stores, drug stores
and more in the US. It has one of the largest private fleets in America and delivers
around 50,000 products to 110,000 locations and employs around 20,000 employees.
The President and CEO of McLane since 1995 is W. Grady Rosier and its brand value
is currently $4.8bn.

Union Pacific is a freight hauling railroad that operates 8,500 locomotives consisting
of 43 different models, operating over 32,100 route miles. Its system is the second
biggest in the US. The company started in back in 1862 when it was called the Union
Pacific Rail Road and its current CEO is Lance M. Fritz. The brand value of the
company is thought to be $7.8bn.

DHL is one of the most recognisable logistics brands across the globe, specialising in
international shipping, courier services, road and rail transportation, air and ocean
freight, international parcel and express mail services and contract logistics. Founded
in the US in 1969, the company had gone global by the late 70s and its current value
is thought to be in the region of $10.7bn.

The Japan Railways Group is more commonly known as the JR Group and consists
of seven for-profit companies that took over most of the assets and operations of the
government-owned Japanese National Railways in 1987. The JR Group has a total
route length of about 12,500 miles, of which about half is electrified. Current brand
value is thought to be $11.1bn.

FedEx Corporation is a US multinational courier delivery services company with its
headquarters in Memphis, Tennessee. FedEx offers a complete suite of online services
for shipment preparation, package tracking, shipment rates and tools for international
shippers and small businesses. The name FedEx is actually an abbreviation of the
name of the company's original air division, Federal Express. Brand value, according
to Brand Finance, is $18.1bn. The CEO is Frederick W. Smith.

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  United Parcel Service is an American multinational package delivery company and a
provider of supply chain management solutions. Services also include a cargo airline,
a freight-based trucking operation and retail-based packing and shipping centres. UPS
employs approximately 444,000 staff with approximately 240,000 drivers with
international package operations delivering to more than 220 countries. Its CEO is
David P. Abney and the brand value of the company is $22bn.

Supply Chain in India: On the Brink of a Revolution

Investment into India’s supply chain infrastructure is gaining momentum.

The introduction of the Goods and Services Tax (GST), liberalizing foreign direct
investment (FDI) rules, and increased government spending has helped spur growth in the
sector.India’s aspiration to become a global manufacturing powerhouse and the government
spotlight on ‘Make in India’ also compels nationwide supply chain reform, prompting several
federal and state-based schemes and investment incentives.

In this article, we discuss India’s supply chain ecosystem and emergence of new business
opportunities. We also highlight how both government entities and private ventures are seeking
to introduce critical efficiencies to transform the state of business as usual.

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India’s supply chain network – Growing regional integration, investor confidence

The supply chain industry has a cascading impact on almost all aspects of trade and retail. As
India opens its economy further, financing the improvement of this linkage sector is vital for
business growth.

A modernized and efficient supply chain improves the ease of doing business, scales down the
costs of manufacturing, and accelerates rural and urban consumption growth due to better
market access.

Until recently, infrastructural woes had a crippling effect on the supply chain network in India.
Suppliers, manufacturers, and retailers had to factor in delays in the movement of goods
between state borders due to complicated taxes and transport lines running over capacity,
increasing overall costs.

With the new reforms coming into play, a gradual resolution of these problems seems
imminent.

In the last three years, India’s supply chain sector has seen an influx of capital, both foreign
and domestic. Firms like Future Supply Solutions have raised almost US$2 billion (Rs 130
billion) in investments from domestic and foreign channels.

The French firm, FM Logistics, recently acquired Pune-based Spearhead Logistics, investing
over US$8 million (Rs 500 million) with further plans to invest US$46 million (Rs 3 billion) to
set up warehouses all over India.

The Delhi-Mumbai Industrial Corridor and Development Corporation (DMICDC) has awarded
companies over US$2.3 billion (Rs 150 billion) in contracts for the development of multimodal
logistics hubs in Maharashtra, Gujarat, and the National Capital Region (NCR). They are in the
process of granting another US$1.5 billion (Rs 102 billion) in contract packages for
construction of the same in the states of Uttar Pradesh and Haryana.

The proposed hubs in Maharashtra, Gujarat, and the NCR will provide end-to-end supply chain
services, such as small processing facilities (grading and packaging) and final delivery and
transport services.

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Plans to improve regional connectivity through road, rail, and inland waterways are already
ongoing. In fact, India’s 2018 budget saw the highest fiscal allocation for infrastructure spend,
at about US$95 billion (Rs 6 trillion).

Below we discuss critical components of India’s supply chain infrastructure as it benefits from
planned government spending, easier investment rules, and various tax and fiscal incentives.

Port connectivity in India

India’s ports handle 95 percent of the country’s trade by volume, playing a key role in
international supply chains.

India currently permits 100 percent FDI for the construction and maintenance of ports.

The government also allows a tax holiday for 10 years and up to 50 percent financial aid –
subject to a maximum of US$3.88 million (Rs 250 million) – for investing companies.

REL

The leading government initiative in this sector is the Sagarmala project, which will modernize
existing ports, and will develop new ones at Paradip Outer Harbor (Odhisha state),
Cuddalore/Sirkazhi (Tamil Nadustate), Belikeri (Karnataka state), Enayam (Tamil Nadu state),
and Vizhinjam (Kerala state).

Cumulatively, these ports will manage almost 100 percent more trade volume by 2025.

The Dubai owned DP World recently signed onto a US$3 billion (Rs 195 billion) joint
investment platform with India’s National Investment and Infrastructure Fund to construct
several sea as well as river ports, among other logistics projects.

Last mile cargo solutions

Challenges in India’s supply and distribution channels are further complicated by lacking roads
and railway infrastructure.

Railway stations are often unable to cope with the large volume of goods transported.
Merchandise at railway stations and factories are often left waiting for transport due to delayed
turn-around times.

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This sector is thus a key focus of government spending and infrastructure investments:

 National highways: The National Highway Authority of India has a bidding process
underway for companies to invest in highways across India. Dubai based investment
firms have already bid close to US$9 billion (Rs 585 billion) for nine highways. This
implies an increase in accountability for the upkeep of these roads – currently
extremely under-maintained – and will reduce road travel times.
 Freight corridors: The country’s freight corridors, covering 15 states all over India,
are set to be complete by December 2019. Currently, a train carrying cargo travels at
the rate of 25 kmph; on these railway lines, trains will be able to reach speeds
between 70 and 100 kmph, and will carry double the quantity of cargo.

The project specifications pertaining to quality and efficiency are at par with freight railway
lines in Russia, China, and the U.S.

Foreign and local companies are working contractually with the government to finish the first
phase of the Eastern Corridor by mid-2018. More freight corridors are planned, and offer good
opportunities for large contractual collaborations.

Warehouse development

India allows 100 percent FDI in the development and maintenance of warehousing and
storage facilities. Under the Free Trade Warehousing Zone (FTWZ) Scheme, there are
several designated zones in India reserved for warehouse development.

Panvel near Mumbai, Khurja near New Delhi, and Siri City in Chennai, are some of the
designated FTWZs. The connectivity of these zones with major railways, roads, airways, and
ports is well established.

Incentives such as duty free import of building materials and equipment for these zones are
attracting investors to this sector. Late last year, the 100 acre FTWZ in Nanguneri in the
southern state of Tamil Nadu began operations.

First movers to benefit from supply chain industry reforms

The time is right for first movers to benefit from the changing landscape of India’s supply
chain ecosystem.

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With greater participation from the private sector and increased government spending,
opportunities for foreign investors in the country’s supply chain are on the up. This includes
the steady transformation of India’s digital infrastructure as well, with federal campaigns
like Digital India working to promote the growth of technology startups and enterprises.

For SME’s, possibilities in third party logistics abound, whether in the transportation of goods,
new technology-based improvements to make operations lean, or in warehouse management.

Multinational firms in construction and related industries can also take advantage of
investment opportunities in India’s ports, roads, and warehouse development.

Foreign firms with little knowledge of the Indian landscape can benefit from partnerships with
established Indian firms in the sector to make it easier to do business in the country.

Koushan Das, Business Intelligence India, Dezan Shira & Associates says, “With the
introduction of GST, the logistics sector getting an infrastructure status, and an increase in
government spending, the supply chain sector provides significant opportunities for
collaboration and private sector investments. Investors and companies will now be able to avail
much-needed incentives and remodel their supply chain networks, leading to a more
consolidated supply chain ecosystem in the country.”

20 Most Promising Logistics & Supply Chain Management Companies in India

The rapid growth of the Indian economy has resulted in a significant rise in the volume of

tangible physical goods exchange across the globe. Logistics & Supply Chain Management in the

country like India carries a great importance in making the production meet the consumption.

Logistics costs account for around 6-10 percent of average retail prices in India as against the

global average of 4-5 percent. Therefore, there is an immense scope to improve margins by 3-5

percent by improving the efficiency of the supply chain and logistics processes. The growth path

also places a great demand on the sector to provide the solutions required for supporting future

growth in this area.

The SCM industry had been slow in technology adoption for a long time. But with the changing

times and requirements, the CIOs are now paying serious attention to use of RFID, vehicle

tracking technologies, warehouse management systems and so forth and are under pressure to

establish a strategic linking between IT and domain requirement needs. Progress in this sector is

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dependent on a certain level of standardization which can only be brought in by the right solution

providers in this field.

With an intention to address the crucial need of CIOs to find the ideal solutions and services

providers, CIOReview identifies “20 Most Promising Logistics & Supply Chain Management

Companies in India”. A distinguished panel of the industry’s topmost CEOs, CIOs and analysts

including CIOReview’s editorial board scrutinized the list of Logistics and SCM companies. The

list intends to help you chose the company that suits your specific requirement and help your

enterprises to realize greater efficiency and RoI.

ACG Infotech Ltd. Dr. A K Gupta, 1993

acgil.com CEO
New Delhi

Alfa Supply Chain Solutions Siddhartha Choudhury, 2006 A provider of

Pvt. Ltd. Managing Director location and t
alfasolutions.in mix of respon
Mumbai, Maharashtra

Aliment Software Venkateswaran PN, 1987

Technologies Pvt Ltd. Managing Director
alimentglobal.com
Bangalore, Karnataka

Alletec Dr. Ajay Mian, 2000

alletec.com CEO & Founder
Delhi

Black Soft Lucky Saxena, 2005

blackitsoft.com Chairman
Indore, Madhya Pradesh

Botree Software International Jayesh Pajwani, 1997

Pvt. Ltd. CEO
botree.co.in
Chennai, Tamilnadu

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B-Square Solutions Pvt. Ltd. P.K.D Nambiar, 2000 A provider of Inven
bsquare.in Managing Director
Delhi

Dreamorbit SanchitJain, 2010

dreamorbit.com Co-Founder & CEO
Bangalore, Karnataka

Enteg Infotech Pvt Ltd. Rajagopalan Babu, 2001

enteg.com CEO
Bangalore, Karnataka

FrontalRainTechnologies frontalrain.com Jayaram Srinivasan, 2010 A provider of

Bangalore, Karnataka Ravi Mandayam,
SreeramP,
Co-Founders

GoFrugal Technologies Kumar Vembu, 2004

gofrugal.com Founder & CEO
Chennai, Tamil Nadu

I Code Technologies Private Abu P, 2000 A provider of softwa

Limited CEO code finder, EXIM D
icodetech.com
Bangalore, Karnataka

Sumeet Nadkar, 2007

Kale Logistics Solutions Pvt.
CEO & MD
Ltd.

kalelogistics.in
Thane, Maharashtra

Marg CompusoftPvt. Ltd. Anup Singh, 1990 A provider of S

margcompusoft.com Managing Director The company e
Delhi technology, and
hospitality, and

Omniscient Computer Rajesh Pandey, 1985

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Consultants CEO
omniscient-computers.com
New Delhi

SIERRA ODC Pvt. Ltd. Giridhar JG, 1998

sierratec.com
Coimbotore, Tamil Nadu CEO

Snyxius Sagar Babber, CEO 2009

snyxius.com
Bangalore, Karnataka

Softlink Global Pvt. Ltd. Narendra K. Gupta, 2005

softlinkglobal.com Chairman &
Mumbai, Maharashtra Founder

Saurabh Goyal, 2006

ThinkLink Supply Chain
Founder & CEO
Services

thinklink-scs.com
Gurgaon, Haryana

Value Chain Solutions Kamaldeep Singh, 2006

valuechain.co.in Director
Ahemedabad, Gujarat

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 Company Profile
Providing dependable warehousing & logistics solutions for
industry leaders since 1989-Bhairav Distributors

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Who We Are?
28 years ago, Bhairav pioneered the concept of 4 Pl in with a tie up with Transportation
Giants Patel Roadways in 1988 and took a lead in integrated logistics services in Goa from
1989. Since then a number of multinationals as well as national companies have reposed their
trust in us by letting us to be their service providers for over two decades. With the boom of
the TV industry, our first partner in business was Kalyani Sharp India Pvt. Ltd.

Bhairav Distributors over time has built the business with expertise and a network to solve
the most complex logistic challenges. Onida TV by Merc Electronics was the 2nd company
and ever since we have added a host of consumer durable, non-durable, fast moving
consumer goods. Bhairav Distributors started operations exclusively as C&F operators to
major electronic companies, with a 400sq.ft. Hired go-down in Panaji catering to just two
companies. Today, it has over 60,000 sq. Ft. of own warehousing facility at Verna, Goa.

Our contract logistics services, offer clients a complete one stop solution. Order
managements, shipment management, warehouse and inventory management, sales order
management and reverse logistics. Outsourcing logistics requirements enables clients to
concentrate on core competencies. As a leading logistics service provider in Goa, Bhairav
Distributors offers cost control, visibility and responsiveness so that you see substantial
reduction in time spent on your administrative, operational and inventory activities turning
your logistics operations into a competitive advantage.

Our Values
Most of our associates have been with us for over 2 decades. Our vast and varied
experience in the freight C&F forwarding industry enables us to cater to the specific
requirements of our customers at all times. We always aimed to match our goal of
growth with that of our customers.
Integrity towards our work, our customers and our organisation is the foundation on
which our organisation is built. Respect for customer needs by maximum
responsiveness, respect and compassion for employees.
 Acknowledging the dignity of individuals by treating people with utmost care.
 By being fair and honest in all our dealing with principles/business partners.
 To reduce wastage and protect environment.
 Serving the society in the best possible way.

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Our Future
Our pride and strength is our people, it is only due to their dedicated and loyal service that we
have been able to keep customers satisfied. Through pragmatic deployment of funds mainly
from internal accruals, we expect to double our capacity and turnover by the year 2018
through expansion of warehouses and diversification into related businesses.

To become the most preferred logistics provider. We are in the process of expanding our
capacities to an additional 60,000sq.ft. By 2017.

Our Mission: To provide organizations the best value propositions instead of cost
propositions through innovative use of people and technology.

Our Vision: To be acknowledged as a major player providing world class logistics

solutions at Goa.

Our Core Competency: 100% inventory accuracy and just in time movement of
products to its destination across Goa at competitive rate.

WHY US
 Trimex flooring, Industrial ventilators and Dock levellers.
 With ample Loading/Unloading Bays, with a minimum height of 5.5 meters to 7.5
meters.
 Equipped with utility services for Drivers & Cleaners, Ample parking space for
Vehicles. WHY US

We continually invest in our own assets, reassuring of our dedication to providing

reliable, highly flexible, support for the future expansion and long-term growth of your
business. The quality, safety, sustainability and efficiency of our services are
guaranteed.

We bring the best to your customers as our distribution network is flexible, responsive
and efficient. We are equipped to solve logistical challenges because they help us
customise services to give you the best and most enduring solutions. Reach us now with
your logistical needs.

Our people are our biggest strength in giving optimum satisfaction to our clients. By
partnering with Bhairav Distributors you will experience the premiere logistics
services, dedicated and experienced team work for your every step of the way.

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 Basic Information
FOUNDED 1980
FOUNDER PRASHANT MAHATME
HEADQUARTERS VERNA GOA
AREA 60,000 SQFT
LOCATION VERNA INDUSTRIAL ESTATE VERNA
GOA

KEY PEOPLE PROPRIETOR-PRASHANT MAHATME

WEARHOUSE MANAGER-SUSHANT
VAIGENKAR

TYPE OF COMPANY LOGISTICS AND WAREHOUSING

SERVICES

NO OF EMPLOYEES 30
NO OF WAREHOUSES 10
OWNER PRASHANT MAHATME
WEBSITE WWW.BHAIRAVDISTRIBUTORS.COM

SERVICES INVENTORY AND WEARHOUSE

MANAGEMENT, WEARHOUSE SPACE,
RECKING SOLUTIONS, C&F
OPERATIONS AND DISTRIBUTION.
SERVICE CHARGE/WEARHOUSE 18RS PER SQFT
CHARGE
DEPARTMENT PURCHASE, SALES, FINANCE, CRISIS.
ACCOUNT SOFTWARE SAP
NO OF COMPANY OWNED 10
VEHICLES
OUTSOURCING BLUEDART, GATI LOGISTICS VERNA
GOA
COMPETITOR CMM LOGISTICS VERNA GOA

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Clients

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SERVICES

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 PRODUCT PORTFOLIO
Mitsubishi Electrical India Pvt Ltd
Air Conditioner

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8
General/Eltech
Air Conditioner

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Daikin
Compression conditioner

Air Purifier

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Exide
Battery’s

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IFB Industries Ltd
WashersAir conditioner

RefrigeratorVoltage stabilizer

Cooking HoodOven

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 Donga
Rubber Sleeve

BSNL (BAHARAT SANCHAR NIGAM LIMITED)

ELTECH

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3
BRIDGESTONE

EUREKA FORBES

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OUTSOURCING
GATI Logistics

Safe Express

DTDC

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 Organisation Structure-Bhairav Distributors
The working and activities in the company are managed by the
Wearhouse manager. He is the second head and has all the authority
in the company. Under him there are various managers who are
handle all the business activities of the assigned company/client.

EMPLOYEE 1
DONGA
MANAGER
EMPLOYEE 2

EMPLOYEE 1

BSNL MANAGER

EMPLOYEE 2

EMPLOYEE 1

IFB MANAGER

EMPLOYEE 2

EMPLOYEE 1
CEO&MANAGING WEARHOUSE
EXIDE MANAGER
DIRECTOR MANAGER
EMPLOYEE 2

EMPLOYEE 1
BRIDGESTONE
MANAGER
EMPLOYEE 2

EMPLOYEE 1
EUREKA FORBES
MANAGER
EMPLOYEE 2

EMPLOYEE 1

DAIKIN MANAGER

EMPLOYEE 2

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 Department’s

All the departments of each company are handled by a single manager

who takes care of all the working, order placement, goods receive
check-up, stock in the Wearhouse, billing etc

CLIENT
MANAGER

INVENTORY CRISIS CUSTOMER

PURCHASE SALES
MANAGEMENT MANAGEMENT SERVICE

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 Supply Chain Procedures
 Forecasting demand: Bhairav Distributors is a company which mainly focusses on giving
the best warehousing services in the state of Goa. The clients i.e. the company which uses the
services of Bhairav Distributors forecasts the demand and increase their number of stock kept
in the Wearhouse.

 Planning: Proper inventory planning is the main objective of the firm. As there are 10
companies who store their stock in the warehouse the company has allotted them specific
locations to maintain t the proper storage of inventory/stock

 Inventory: All the companies are given a specific location in the warehouse to keep their
goods, all the inventory is recorded in the SAP application on the time and date of arrival.
Then a code is given to it as to where the inventory should be kept. This makes it easy for the
company to find the goods when required for distribution.

 Warehouse: There are a total of 10 warehouse’s which are divided in an area of 60,000 sqft.
The warehouses are given spaces based on the amount of stock the company wants to keep.
Each warehouse can store goods up to 5000 units and more.

 Transportation and Logistics: Bhairav Distributors need lots of vehicles and logistics for
the regular distribution of goods. Hence it has 10 vehicles which are owned by the firm. The
rest of the vehicles are outsourced from Safe Express, Gati Logistics and Bluedart.

 Distribution: The goods that are kept in the warehouse’s are distributed to retailers and
exclusive stores in the state of Goa.

Conclusion
After a month of organisation-based research done in the
organisation, I would like to conclude my report by saying that
Logistics & Supply Chain are one of the most important aspects
required for the production distribution of goods. It’s because of
SCM (supply chain management) which includes Logistics as a
part of it we are going ahead and getting a revolutionary change
from offline shopping to online shopping done in India today.

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Annexures

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