A STUDY OF TRENDS IN SUPPLY CHAIN MANAGEMENT AND LOGISTICS

Abstract

Transportation is a major contributor to the economy contributing to nearly 2.6% of India’s GDP. It exerts a major influence on the customer’s satisfaction with the company thereby acting as one of the major competitive forces in business. Transport is an essential activity in the logistics function, supporting the economic utilities of place and time. Representing a substantial cost for a business, the cost of transportation can sometimes determine whether a customer transaction results in a profit or a loss for the business.

Efficient transport systems provide economic and social opportunities and benefits resulting in positive multipliers effects on the economy such as better accessibility to markets, employment and additional investments.[1]

Supply Chain Management involves a series of key activities and processes that must be completed in an efficient and timely manner in order to deliver products to the consumer in a cost-effective manner. Optimized logistics performance means that all the activities related to forward and reverse flow and storage of goods are working closely together so that the customer of the logistics service is satisfied with the service, yet the cost the company incurs is minimized.

As the Indian economy grows into a mature economy, the country's logistics supply chain that transports its economic produce, remains utterly unorganised.

For a land rich in rivers and a long coastline, waterways remain majorly underutilized accounting for 0.5% of the total freight movement in India.

New smart logistics concepts and models in the supply chain function like Contract Logistics, Elastic Logistics, Lean models and the Driver Relay Model are among the few which use the Internet of things to provide excellent delivery times to Indian industry. These technologies have the potential to remove the Indian road transportation out of a jam.

[1] Definitive Guide to Transportation, The: Principles, Strategies, and Decisions for the Effective Flow of Goods and Services By CSCMP, Thomas J. Goldsby, Deepak Iyengar, ShashankRao