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"Logistics means having the right thing, at the right place, at the right time.

" Logistics is the process of planning, implementing, and controlling the efficient, effective flow and storage of goods, services, and related information from point of origin to point of consumption for the purpose of conforming to customer requirements. Logistics cost in India is fairly high at around 14% of GDP, as against 9%-10% in most developed nations. On a 1.6 trillion GDP; this represents absolute value of in-efficiency and therefore logistics market potential of over US$65 billion. Even with the poor Road infrastructure & disorganized trucking network in the country, road currently accounts for approximately 65% of the total Indian freight transport, and sea having only about 13% market share. Some issues effecting logistics costs: Fuel prices remain high and ports continue to experience delays, resulting in higher transportation fees. Increasingly complex international trade laws and security measurements threaten to lengthen delivery times and increase warehousing costs. India burns nearly US$2.5 billion worth of fuel on account of trucks standing idle on state check-posts.

Questions:What is the role of transportation in logistics sector? Is the cost having greater impact on service sector like logistics? Are we loosing opportunity & potential because of high cost? Significance

The main objective of doing the research is to find out all the factors which affect the logistics cost, and give appropriate solution for such problem. Participation of more private players in reducing logistics cost and Government support in developing the infrastructure.


So far no researchers has taken role of Road & Marine transportation cost in logistics. So this research will help to identify the various factor which are contributing towards high logistics cost. It will improve cost efficiency in sector like logistics and supply chain management & also help to improve the quality of service.

Objective :

Examine the transportation factor responsible for high logistics cost. Examine the impact of high logistics cost. Identify the specific action require to take against high cost.

This research presents a broad review on contribution of road & marine transportation in logistics cost. This topic is fast gaining momentum in the logistics sector and is thus highly relevant from a practical point of view. Moreover, high logistics cost is also interesting from a theoretical perspective because it can be approached by various disciplines, offering a forum for economists, operations researchers, and psychologists, among others. In addition to a discussion of various high cost factor and closely related literature, the drivers, impediments, and facilitators are reviewed and supported by an extensive bibliography.

This research consist of both Primary and Secondary Sources for Data Collection. The following are the sources of Data Collection for our Research:PRIMARY SOURCES It is the most trust worthy source for conducting any research excluding the time and money. In this source we have conducted an Interview.In this researcher has proposed to contact Terminal Managers and operation managers of various container terminals & ports through telephone for asking the strategies which they are adopting to reduce the cost of logistics. It is decided to have a personal interview with the logistics experts and workers. SECONDARY SOURCES The following are the Secondary Sources for Data Collection Online Sources Various Online Sources will be used for gathering information and data across the globe. Published Sources Collection of the latest Annual Report to estimate the Logistics cost incurred by the various companies in India. The secondary data will be also gathered through various sources like Books, Magazines and Journals.

The analysis of variations is one of the Data Analysis that will be use to point out bottlenecks in the logistical chain, particularly in the marine transport item and also in the port-related item. Furthermore, the analysis will going to suggest that the overall logistical chain as a whole could be improved. After the analysis actions will need to be taken to eliminate these bottlenecks and make the logistics chain more reliable in the view of Marine Transportation and the overall logistical chain as a whole could be improved and logistics cost can come down upto certain level.