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Chapter 01

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0% found this document useful (0 votes)
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Chapter 01

Uploaded by

possess1289
Copyright
© © All Rights Reserved
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 66

A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

CHAPTER-01

INTRODUCTION

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Introduction

The first completely IT-enabled, end-to-end supply chain and logistics firm in India is Future
Supply Chain (FSC), which can handle modern warehousing, express logistics, cold chain
logistics, and e-commerce logistics.
Food & Beverages, Lifestyle, Consumer Electronics & High Tech, Automotive &
Engineering, Home & Furniture, Healthcare, General Merchandise, and E-Commerce are
among the industries that FSC serves corporate clients in. Every category has a unique supply
chain with unique needs that call for tailored solutions.
By introducing cutting-edge and modern supply chain management techniques in India via the
adoption of worldwide best practices that have been indigenized and best fitted for Indian
conditions, FSC has been a pioneer and leader in modernizing logistics and supply chains in
India.
Modern warehouses and transportation hubs, as well as GST-ready logistics parks, have all
seen significant investment.

Origin of the concept Logistics Management

When it comes to transporting supplies and products, the ancient Greeks and Romans were
familiar with the idea of logistics, especially in wartime settings. However, the Prussian
general Carl von Clausewitz did not use the term "logistics" until the 18th century to describe
the duties involved in the upkeep, transportation, and provisioning of troops.

Author William Müller released The Elements of the Science of War in 1811. In "Logistics,"
he exposed the methods our ancestors used to move and stockpile food and weaponry during
hostilities.

What Logistics is all about?


The process of organizing, carrying out, and managing the effective transportation and storage
of products, services, and information from the place of origin to the end user is known as
logistics. It includes a broad variety of tasks, including as distribution, order fulfillment,
inventory management, transportation, and warehousing.

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Key Components of Logistics:

Transportation: is the transportation of goods via road, rail, air, and sea, among other means.
Delivery time, cost, and dependability are all impacted by the mode of transportation used.
The goal of warehousing is to effectively store products until they are needed. This entails
controlling inventories, allocating space, and guaranteeing that goods will be accessible when
needed.
Inventory management makes ensuring that there is never an overstocking or understocking of
a product in order to fulfill demand. Inventory level optimization frequently involves the
application of Just-In-Time (JIT) techniques.

Order fulfillment is the procedure for obtaining, handling, and sending out orders from clients.
This include precisely selecting, packaging, and timely delivery of goods.

Business outlook
A number of significant developments and elements influencing the logistics sector are
contributing to the industry's improving business outlook:

1. Growth of E-commerce
The boom in internet shopping has greatly raised demand for logistical services. Businesses
are making investments in more effective delivery methods in order to satisfy customer
demands for expedited shipment. Innovations in last-mile delivery, such as self-driving cars
and drones, are gaining popularity.

2. Developments in Technology
Logistics are being revolutionized by technological innovation. Route optimization, demand
forecasting, and inventory management are improved by the combination of artificial
intelligence, machine learning, and big data analytics. Robotics and conveyor systems are two
forms of automation that are increasing productivity and cutting labor expenses in
warehouses.

Logistics in India:

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With a market value of USD $354 billion, the logistics industry in India accounts for
18.4% of the nation's GDP. The industry is predicted to reach $450 billion by 2026–2027 as
a result of government programs including "Make in India," "Sagarmala," and "Gati
Shakthi," as well as favorable changes to regulatory regulations, growing e-commerce, and
relaxing of FDI restrictions. India is ranked 38 in 2023–2024 in the World Bank's Logistics
Performance Ranking (2016). The unorganized sector (such as small warehouse operators,
customs brokers, freight forwarders, owners of fewer than five trucks, and those associated
with transport companies or brokers) accounts for nearly 99% of the USD 150 billion
logistics cost. Slightly more than 1%, or about USD 1.5 billion, is contributed by the
organized sector.

Definition and Importance:


The planning, carrying out, and overseeing of the movement and storage of commodities
over at least one international border is known as international logistics. For companies
trying to penetrate international markets, this procedure is essential. Ensuring that items are
transported effectively and in conformity with numerous rules may result in decreased costs,
improved delivery times, and increased customer satisfaction through effective international
logistics.

Importance

Logistics management is an essential function in business and economics. It deals with


planning, implementing and controlling effective and efficient management of the movement
and storage of goods, services, and information from their origin to the point of consumption.
The main significance of logistics management can be gauged in various ways such as through
operational efficiency, consumer satisfaction, cost management, competitive edge, and
sustainability of the business. Below are the most important elements of the significance of
logistics management:

1. Improved Operational Performance


With effective logistics management, the correct product is delivered to the appropriate place
at the appropriate time. Optimizing routes on transportation, using minimum inventory levels,
and synchronizing activities in a supply chain help eliminate delay situations and reduce the
risk of bottlenecks. The activity becomes fluid with shorter lead times, and productivity
increases for the enterprise as a whole.

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2. Cost Reduction and Control


Effective logistics management plays an essential role in controlling and reducing operational
costs. Optimizing the transportation methods, negotiating better rates with suppliers and
carriers, minimizing excess inventory are key elements that bring major reductions in logistics
cost on business sides. The efficient management of warehouse and inventories also reduces
the costs of storing in warehouses while obsolescence or spoilage loss is reduced.

3. Inching Towards Improved Customer Satisfaction


Due to the timely and accurate delivery of products, customer satisfaction can be maintained at
high levels. In logistics management, customers' orders are fulfilled within accurate and timely
details, thereby improving the overall experience in customer relations. Reliable logistics
make the customers feel confident and loyal enough to evoke repeat business and word of
mouth referrals.

4. Competitive Advantage
It has been asserted that in the current highly competitive market, superior logistics
management can be a full-fledged competitive differentiator. Those who can do this faster and
more reliably at a lower cost than their competition will be well ahead of the pack. Efficient
logistics give businesses the chance to quickly seize opportunities when the market suddenly
changes, better fulfill customers' needs, and take advantage of newly emerging opportunities.

5. Supply Chain Integration and Coordination


Logistically, the supply chain backbone is the backbone of any logistics management system.
It ensures that there are no complications in whatever coordination is conducted from suppliers
to manufacturers, from the distributor to the retailer. It does this by ensuring that each part of
the supply chain is well integrated into each other so that the whole will experience minimal
redundancy and overall improvement.

6. Risk Management and Resilience


Proper logistics management anticipates modes of probable risk occurring in supply chains in
terms of delay, disruption, or supplier failures and finds ways to deal with them. This is a
proactive way of strengthening the robustness of the supply chain in order for businesses to
continue operating despite the unexpected shocks that may naturally arise, such as natural

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disasters, geopolitical tensions, or economic events.

7. Global Expansion and Market Reach


Logistics management is crucial for any business that seeks to operate globally; thus, it
becomes a vital success element in dealing with the intricacies of international trade in
customs regulations, shipping, and border crossing transportation. This rules out mishaps in
market entry, thereby helping companies to find their way to reach a broader customer base
and leverage the potential of globalization.

8. Sustainability and Environmental Footprint


Today, logistics management gives significant importance to sustainability and focuses on
realizing as small an environmental footprint as possible for supply chain activities. This
includes transporting goods with optimized routes to consume the least amount of fuel, using
biodegradable or environment-friendly packaging materials, and using energy efficiency in
warehousing. Sustainable logistics benefits not only the environment but also the reputation of
a company or its adherence to regulatory standards.

9. Data-Driven Decision Making


Advanced logistics management uses data analytics and technology to extract performance
insights from the supply chain. It analyzes data relative to the inventory levels; transportation
costs, delivery times; and customer feedback to make better decisions, predict trends, and even
improve logistics operations constantly.

10. Enabling Business Growth and Scalability


While a company is growing, logistics needs increase complexity. Scalable logistics
management systems enable the handling of increased volumes, diversification of product
offerings, and entry into new markets without any loss in efficiency or service quality. This is
the essence of sustained long-term growth and adaptation to changes in business
environments.

Key Components:

Transportation: Involves selecting appropriate modes of transport (air, sea, rail, road) based on

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cost, speed, and nature of goods. Multimodal transport is often utilized to optimize efficiency.

Customs Clearance: Managing the complexities of customs regulations and documentation is


crucial. This includes preparing import/export documents, understanding tariffs, and ensuring
compliance with local laws.

Warehousing: Strategic placement of warehouses can facilitate quicker distribution and reduce
costs. Warehouses may also serve as consolidation points for shipments.

Risk Management: Identifying and mitigating risks such as damage during transit, theft, or
changes in regulations is vital for maintaining the integrity for the supply chain management.

Objectives of Logistics:

Logistics plays a vital role in the efficient functioning of supply chains, and its objectives are
crucial for businesses aiming to enhance their operational effectiveness and customer
satisfaction. Here are the key objectives of logistics:

Key Objectives of Logistics :

1) Cost Efficiency: Reducing the expenses of inventory management, warehousing, and


transportation is one of the main objectives of logistics. To increase total profitability, this
entails streamlining shipments, cutting waste, and optimizing routes.

2) Timely Delivery: Keeping clients satisfied requires making sure that things arrive on
schedule. The goal of logistics is to efficiently manage lead times and expedite delivery
through process optimization.

3) Inventory Management: Keeping the right amount of inventory on hand to satisfy demand
without going overboard or paying excessive holding costs is the cornerstone of good logistics
management. This entails precisely estimating demand and putting just-in-time inventory
management techniques into action.

4) Customer Satisfaction: By making sure that goods are delivered in good shape and in

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accordance with customer requirements, logistics aims to improve the customer experience.
This calls for precise tracking and communication.

The logistics notions

Logistics encompasses various concepts and notions that are integral part of the management
and the of the goods, services, and information. Understanding these logistics notions is
essential for businesses aiming to optimize their supply chain operations. Below are some key
logistics concepts:

Key Logistics Notions:

1) Logistics Management: This refers to the comprehensive process of planning,


implementing, and controlling the flow of goods and services from point of origin to point of
consumption. It includes activities such as transportation, warehousing, inventory
management, and order fulfillment. The primary goal is to ensure that products are delivered
efficiently and effectively to meet customer demands.
2) Supply Chain Management (SCM): Logistics is a crucial component of SCM, which
encompasses the entire network of interconnected businesses involved in providing products
and services to end customers. SCM focuses on optimizing the flow of materials, information,
and finances throughout the supply chain, from raw material sourcing to final delivery.

3) Inbound and Outbound Logistics:


Inbound Logistics involves the receipt and storage of raw materials or components from
suppliers. It focuses on managing supplier relationships and ensuring timely delivery of inputs.
Outbound Logistics pertains to the distribution of finished products to customers. This
includes order processing, transportation, and delivery.

4) Reverse Logistics: This concept deals with the process of returning goods from customers
back to manufacturers or distributors for reuse, recycling, or disposal. Reverse logistics is

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becoming increasingly important due to sustainability concerns and customer return policies.

5) Integrated Logistics: This approach emphasizes the coordination and optimization of all
logistics functions across the supply chain. Integrated logistics seeks to enhance efficiency by
aligning transportation, warehousing, inventory management, and information systems into a
cohesive strategy.

6) Transportation Management: A critical aspect of logistics that involves planning and


executing the shipment of goods via various modes (road, rail, air, sea). Effective
transportation management aims to minimize costs while maximizing service levels.

7) Warehousing and Inventory Management: These concepts involve storing goods efficiently
until they are needed for distribution. Proper inventory management ensures that stock levels
are maintained at optimal levels to meet demand without incurring excessive holding costs.
8) Demand Planning: This process involves forecasting customer demand to ensure that
adequate inventory levels are maintained. Effective demand planning helps prevent stockouts
or overstock situations.

Logistics framework components

The logistics framework comprises several essential components that work together to ensure
the efficient movement and management of goods, services, and information across the supply
chain. Understanding these components is crucial for optimizing logistics operations and
enhancing overall business performance.

Key Components of the Logistics Framework

1) Strategic Planning: Involves long-term decision-making regarding logistics networks,


transportation modes, and distribution channels. It sets the direction for logistics operations
in alignment with business goals.

2)Tactical Planning: Focuses on medium-term decisions such as inventory levels, warehouse


locations, and transportation routes. This planning aims to optimize resources to meet
customer demands efficiently.

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3) Operational Planning:
Deals with short-term tasks like daily shipment schedules and order processing, ensuring that
day-to-day operations align with tactical and strategic plans.

4) Transportation Management:
This component oversees the movement of goods from origin to destination. It includes
selecting transportation modes (e.g., road, rail, air), scheduling shipments, and managing
carrier relationships. Effective transportation management is crucial for minimizing costs and
ensuring timely deliveries.

5) Inventory Management:
Involves controlling stock levels to meet customer requirements without overstocking or
incurring excessive holding costs. This includes forecasting demand, managing reorder
processes, and ensuring the needs of customer.

6) Warehousing:
Focuses on the storing of goods within a facility. Efficient warehouse management practices
ensure that products are organized for easy retrieval and timely dispatch. This includes
optimizing layout, inventory tracking, and implementing automation where possible.

7) Order Fulfillment:
Encompasses all activities related to receiving customer orders, picking and packing
products, and dispatching shipments for delivery. Effective order fulfillment processes are
difficult for maintaining customer satisfaction.

8) Logistics Information Systems (LIS):


These systems support logistics operations by providing real-time data on inventory ,
shipment status, and other key metrics. LIS includes various tools such as Transportation
Management Systems (TMS) and Warehouse Management Systems (WMS) that facilitate
decision-making and enhance operational efficiency.

9) Customer Relationship Management (CRM):


In logistics, CRM systems help manage interactions with customers, ensuring that their needs

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are met throughout the supply chain process. This includes handling inquiries, tracking
orders, and addressing issues promptly.

10) Reverse Logistics:


This component deals with the return of goods from customers back to manufacturers or
distributors for reuse or recycling. Effective reverse logistics strategies are increasingly
important due to sustainability concerns and customer return policies.

The going with centers are the structure parts of Logistics:

Rail System

The railroad is basically a long hauler and direct mover of crude materials (coal, timber,
chemicals) and of low esteemed made things and likes to move shipment sizes of no not
as much as a full carload. Really, railroads have dealt with the greatest number of ton-
miles territory. On account of the early establishment of an entire rail compose partner
every single urban group and towns, railroads instructed intercity load tonnage until
after World War II.

Water Transport:

Water is the most settled strategy for transportation. The primary cruising ships were
supplanted by steamboats in the mid-1800s and by diesel control in the 1920s. A
capability is generally made between significant water and safe inland water transport.
The basic good position of water transportation is the capacity to move incredibly
expansive shipments. Water transport uses two sorts of boats.

Basic inland water load joins mining and crucial mass things, for instance, chemicals,
bond, and picked plant things. Work restrictions on stacking and discharging at docks
make operational issues and tend to diminish the potential extent of available action.

Pipelines:

Pipeline to date, pipeline transportation offers an extremely constrained scope of


administrations and abilities. The most financially plausible items to move by pipeline
are unrefined petroleum and refined oil based commodities. Item development by
pipeline is moderate, just around 3 or 4 miles for every hour. This gradualness is
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tempered by the way that items move 24 hours per day and 7 days seven days. Cost of
administration, normal travel time (speed), and travel time fluctuation (reliability) can
fill in as the reason for modular decision. An undeniable drawback is that pipelines are
not adaptable and are constrained as for items that can be transported: just items as gas,
fluid, or slurry can be dealt with.

Air Transport:

Air benefit steadfastness can be appraised as great under typical working conditions,
and air transport has an unmistakable preferred standpoint regarding misfortune and
harm. An across the nation shipment by means of air requires just a couple of hours
stood out to days from different methods of transportation. One restrictive part of air
transport is the high cost.

Vehicle Routing
Light of the fact that transportation costs regularly run high. Logistics costs, enhancing
productivity through greatest usage of transportation gear and work force is a
noteworthy concern. There is a comparable issue where there are different starting point
and goal focuses. Furthermore, there is the issue of steering when inception and goal
focuses are the same.

Logistics Strategy

Making fast, informed decision can spare an organization up to 40% on logistics costs,
so a standout amongst other practices in logistics management is to execute a tweaked
logistics system. Since the supply network is always showing signs of change, so are
logistics forms. A think procedure will give an organization a chance to anticipate
benefit interruptions and know how and when to react to them to guarantee benefit
levels remain at crest execution. Investigate all aspects of the association's Logistics
administration and characterize how it should function and how it adds to general
inventory network administration objectives. Indeed, even after a system is connected,

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keep on evaluating its prosperity and inquire as to whether there are different openings.
A static logistics methodology will make genuine mischief client benefit and all that
really matters. It's unfavourable to not benchmark achievement or course for
development. The best way to do this is to make inquiries about your Logistics forms,
assess successes and wasteful aspects, and modify your logistics management
methodology to fit your organization's evolving needs.

Clasification of Logistics:

1) Inbound Logistics:

Receiving and storing components and raw materials required for production is known as
inbound logistics. It entails controlling the flow of products from vendors to the
manufacturing or storage facilities of the business. This covers tasks like sourcing,
buying, shipping, and storing.

When a business determines the components or raw materials it needs for production, the
inbound logistics process gets started. This might entail negotiating costs, delivery dates,
and other conditions of the purchase agreement with suppliers.

After locating the resources, the business has to set up transportation from the supplier to
its manufacturing or storage facilities. Coordinating with freight carriers, customs brokers,
and other logistics companies may be necessary to guarantee that the items are delivered
promptly and in excellent condition.

Outbound Logistics
1. Handling Customer Orders
 Getting Orders: You receive orders from customers, either online, over the phone, or
through other ways.
 Checking Details: You make sure the order is correct, the customer can pay, and the
products are in stock.
 Packing the Order: You pick the items from storage and package them securely to
avoid damage during delivery.

2. Storing Products
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 Keeping Stock: You store the finished products in a warehouse or storage area until
they are ready to be shipped.
 Managing Inventory: You track how many products are available, making sure you
don’t run out or have too much.

3. Transporting Goods
 Choosing Transport: You decide the best way to ship the products (by truck, plane,
ship, etc.) based on cost, speed, and reliability.
 Scheduling Shipments: You set up the timing for when products will leave the
warehouse and be delivered.
 Planning Routes: You figure out the best routes for delivery to make sure products
arrive quickly and efficiently.

4. Getting Products to Distribution Points


 Distribution Centers: You may use centers closer to customers to store and move
products, reducing delivery times.
 Delivery Network: You work with a network of carriers, suppliers, or retailers to get
products from your warehouse to customers.

5. Shipping to Customers
 Loading Trucks: You carefully load products onto trucks (or other vehicles) in a way
that makes the most use of space and prevents damage.
 Tracking Deliveries: You give customers tracking information so they can see where
their orders are and when they’ll arrive.
 Delivery Confirmation: Once the product arrives, you make sure the customer gets it
and confirms receipt.

6. Customer Support
 Handling Returns: If a customer wants to return a product or exchange it, you make
the process as smooth as possible.
 Keeping Customers Informed: You communicate with customers about their delivery
status, any delays, and help with any problems.
 After-Sale Service: If customers have any issues after delivery, you help resolve them

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to make sure they’re satisfied.


7. Paperwork and Legal Stuff


 Documents: You handle all the shipping documents, like delivery receipts and
customs forms (for international orders).
 Following Rules: You make sure all shipments meet government rules, safety
standards, and environmental regulations.

The Challenge Faced by Organizations

In this day and age, ability is going up against new measurements. The capacity to
contend is controlled by the level of receptiveness to clients and crucial concerns taking
care of. Markets are snappy ordering and customization of every logistics exercises are
fundamental for every client, and has turned into the basic factor in logistics
administration.

Future supply chain faces part of high points and low points in every activity and
enhances task on every circumstance while managing every client. Future supply chain
prevailing change strategies utilized are:

Logistics is additionally
fundamental to:
• Governments

• The military

• Welfare offices

1. Logistics Administration and Conceptions

Following is the supervision in SCM

Supply chain process and Operational logistics consultancy are the main part of logistics
administration. Unwavering quality and adaptability is the explanation behind corporate

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accomplishment of the whole value chain (supply network) coordinated and proficient
SCM which impressively relies upon the prime significance.

Reverse Logistics

It is well arranged, recreated turn around logistics technique will diminish capacity and
appropriation costs, enhance disrepute, make more economical business rehearses, and
fulfil client orders. A normal retailer's turn around Logistics costs for buyer
merchandise are equivalent to 8.1% of aggregate deals. In a few ventures, for example,
book distributing, catalogue retailing and welcome cards, more than 20% of all items
sold are in the long run come back to the seller. Reverse logistics is essential for client
benefit. 69% of clients consider awesome customer service as speedy determination of
issues. For instance, customers who arrange garments online commonly arrange a few
unique sizes and shades of a similar thing. At that point, they'll send back the items that
don't fit or aren't the correct shading.

Transportation Management Systems (TMS)

TMS innovation is completely important for any logistics activity. This product
will quantify and report itemized dispatching records for inbound and outbound cargo,
screen merchant and transporter execution, streamline steering and mode decision, and
above all, help give you end-to-end visibility of cargo movement. Also, a TMS can
decrease general transportation costs by 30%. This has to be executed and utilized
appropriately, a TMS is significant to your Logistics goals.

Risk Vs. Reward: Proper Implementation Is Key

Executing a TMS is troublesome. These frameworks are costly, confused with


abused effectively. To get the product's full value, it must be executed legitimately. This
is hazardous, however essential, and the outcomes are various. It takes genuine work to
execute a TMS. You require full organization support, and some of the time even a huge
culture change inside the association to begin viably utilizing the product.The following
are the ways to utilize your TMS for to begin seeing reserve funds immediately.

• Increment Utilization of Favoured Transporters

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• Lower Cost Mode Determinations

• Better Steering

These territories are the place most TMS programs exceed expectations, and truly,
they are the most secure target regions amid execution. Actualize a TMS with the
highlights most applicable to your business needs, do the fundamental work in advance
amid execution and setup, and you ought to have no issue seeing return for capital
invested and increased the value of logistics administration.
Visibility into Logistics Procedures

Visibility into logistics process is hands-down the most imperative advantage of


a TMS. Visibility enables associations to distinguish openings and difficulties, so they
can adjust their logistics administration and settle on better choices. Having visibility is
the premise of advancement. It's what enables you to plan, screen and actualize any
progressions inside your Logistics activities.

Adding Value Vs. Cutting Costs

It is anticipated that by 2020, client experience will be more essential than value, item
or brand decision as a differentiator in acquiring choices. The client encounter is top-of-
mind, 80% of organizations intend to build customer benefit spending. There's a
justifiable reason purpose behind this, as clients approach more item alternatives and
shopping decisions than any time in recent memory.

Customer Administration

A business will guarantee a beneficial future by making affinity with clients. Client
benefit encounters via web-based networking media, adding much more significance to
the level of administration you give to your clients. The possibility that cutting expenses
is more vital than including esteem is not any more a maintainable business hone.
Slicing costs regularly prompts poor execution. The best approach to add esteem is to
quit fooling around about actualizing Logistics administration best practices and make a
far reaching outlook of giving predominant administration.
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One of the least demanding approaches to increase the value of business tasks is to
collaborate with a 3PL. Shippers pick up various advantages from 3PLs who can produce
and break down huge information to discover openings that drive achievement and
enhance the client encounter.

Customer-Driven Collaboration

Basically enrolling the assistance of a 3PL and its technology isn't sufficient. The term
'Support to Grave' administration is a precise portrayal of how you should see joint
effort. A 3PL ought to coordinate with all aspects of your business from beginning to
end to guarantee all procedures are enhanced for the most ideal outcomes. For
instance, let the 3PLstart giving the new managements, dispatch another item or open
another circulation focus. The 3PL will guarantee transportation amid the execution or
dispatch is fruitful, doesn't strain Logistics procedures and keeps on offering some
incentive to the client.

Authoritative Adaptability:

You can rapidly and precisely react to changes in the market driven by client orders. You
can likewise grow new logistics procedures and administrations that are required to meet
and surpass these new client orders.
Process durations: The time it takes you to take care of client places and related
exercises is as quick as believable without giving up quality. This includes inbound,
outbound and turn around logistics administration.
Key performance indicators (KPIs): Your KPIs are produced from past TMS
information. They are applicable, convenient and precise types of estimation for
delivery execution and consumer loyalty.
Brand Proximity: At present we hold the position in the market.We are known for
decent specialist organization by your clients and the market all in all.

Conclusion

Client benefit is significantly impacted by transportation and logistics management.


In case you're not sufficiently giving an incentive to your client with the goal that they
can pass it on to their client, you aren't completing an adequate activity. A 3PL will
enable you to get on track. Finding the best logistics management practices will enable
you to pick up an upper hand through better client encounters. Upgrade your

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transportation management procedures to acknowledge where you can enhance business


activities. Collaborate with a 3PL to guarantee consistent enhancement we have
provided the best service to the clients around.

Chapter 2
REVIEW OF LITERATURE AND RESEARCH DESIGN

Abstracts

It is an important component of supply chain management, focusing on the efficient


movement and storage of goods, services, and related information from the point of origin
to the point of consumption. This industry encompasses various products delivered in a
timely and meeting customer demands while optimizing operational

efficiency.

Logistics administration system


A Logistics Administration System (LAS) is an integrated framework designed to
manage and optimize the various functions involved in the logistics and supply chain
processes. This system encompasses everything from planning and executing
transportation to managing inventory and coordinating with suppliers and customers.
Below is a detailed exploration of its components, functionalities, benefits, and
challenges.

Get Assistance from a 3PL:


A 3PL is a logistics service provider that manages for businesses. This includes
warehousing, transportation, inventory management, and the order fulfillment. By
outsourcing these tasks to a 3PL, companies can focus on their core business while
benefiting from the expertise and resources of the provider.
Inventory Management: 3PLs provide facilities to store goods, manage stock levels, and
organize inventory efficiently.

Order Fulfillment: They handle picking, packing, and shipping products directly to
customers, ensuring timely delivery.
Transportation Services:
Freight Management: 3PLs coordinate the movement of goods between suppliers and

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customers, optimizing shipping routes and costs

Freight Forwarding: Some 3PLs offer international shipping services, including customs
clearance and compliance

Value-Added Services:
Returns Processing: They manage product returns efficiently to enhance customer
satisfaction.

Kitting and Assembly: Some providers offer services like assembling products or
packaging them in specific ways for marketing purposes

Literature Reviews:

1. Definition and Evolution of SCM


Supply chain management refers to the planning, implementation, and control of supply
chain operations. The concept has evolved from traditional logistics and procurement
functions to a more integrated approach emphasizing collaboration and strategic
alignment among all stakeholders, including suppliers, manufacturers, and customers
(Mentzer et al., 2001).
2. Key Components of SCM

SCM encompasses various components, including:

Procurement: The sourcing and purchasing of goods and services.


Production: Transforming raw materials into finished products.
Distribution: The delivery of products to consumers.
Inventory Management: Balancing stock levels to meet demand without excess.
Research highlights the importance of each component and their interdependencies
(Simchi-Levi et al., 2014).

3. SCM Strategies
Different strategies have emerged to optimize supply chains:
Lean Management: Focuses on minimizing waste and maximizing efficiency (Womack
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& Jones, 2003).


Agile Supply Chains: Emphasizes flexibility and responsiveness to market changes
(Naylor et al., 1999).
Sustainable Supply Chains: Integrates environmental considerations into SCM practices,
addressing issues like resource depletion and carbon footprint (Seuring & Müller, 2008)

3. Technology in SCM

Advancements in technology have significantly transformed SCM:


Information Technology (IT): Tools such as ERP (Enterprise Resource Planning) and
SCM software enhance visibility and coordination across the supply chain (Gunasekaran
et al., 2001).

Big Data and Analytics: The use of big data analytics aids in forecasting demand,
managing risks, and improving decision-making processes (Chae, 2019).
Blockchain Technology: Promises enhanced transparency and security in supply chain
transactions (Kamble et al., 2019).

Global SCM: With the rise of globalization, supply chains have become more complex,
spanning multiple countries and involving various stakeholders. Literature by Mentzer et
al. (2001) highlights the challenges of managing global supply chains, such as
coordination, logistics, and risk management across borders.

Outsourcing and Offshoring: Researchers like Quinn and Hilmer (1994) discuss the trend
of outsourcing non-core activities to third-party providers. This strategy helps companies
reduce costs and focus on core competencies, but also introduces risks related to quality
control, delivery, and dependency on external partners.

Information Technology (IT): The role of IT in SCM has been extensively studied.
Research by Gunasekaran and Ngai (2004) outlines how Enterprise Resource Planning
(ERP) systems, Electronic Data Interchange (EDI), and cloud computing have
revolutionized SCM by providing real-time data, improving coordination, and enhancing
decision-making.

Automation and AI: Recent studies, such as those by Ivanov et al. (2020), show that

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automation, Artificial Intelligence (AI), and machine learning have begun to transform
supply chains. These technologies optimize route planning, demand forecasting, and
inventory management while reducing human error.

5. Globalization and SCM


Globalization has expanded supply chains, increasing complexity and risk. Researchers
emphasize the need for effective risk management strategies to mitigate disruptions
caused by geopolitical issues, natural disasters, and pandemics (Christopher & Peck,
2004). The COVID-19 pandemic highlighted vulnerabilities in global supply chains,
leading to increased interest in resilience (Ivanov, 2020).

6. Performance Measurement
Evaluating SCM performance is critical for continuous improvement. Common metrics
include cost, quality, delivery time, and flexibility. The Balanced Scorecard approach is
frequently cited for aligning supply chain objectives with overall business goals (Kaplan
& Norton, 1992).

7. Collaborative Approaches
It is crucial for success. Research indicates that trust and communication significantly
enhance collaboration and lead to improved performance (Dyer & Singh, 1998).

8. Future Trends
Emerging trends in SCM include the increasing adoption of artificial intelligence and
machine learning, the focus on circular supply chains, and the integration of social
responsibility into supply chain practices (Bai & Sarkis,

Statement of the problem:

In an increasingly complex and dynamic global market, Future Supply Chain Solutions
Company faces several critical to optimize supply chain efficiency, enhance customer
satisfaction, and maintain competitive advantage. These challenges include:

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Inefficient Supply Chain Processes: Current processes are often fragmented and lack
integration, leading to delays, increased operational costs, and suboptimal resource
utilization. The absence of streamlined workflows hampers responsiveness to market
changes and customer demands.

Limited Visibility and Transparency: The company struggles with inadequate, making it
difficult to monitor inventory levels, track shipments, and respond to disruptions in real-
time. This lack of transparency can result in stockouts, excess inventory, and increased lead
times.

Data Management Challenges: The increasing volume of information including suppliers,


logistics, and customer interactions, poses significant challenges in data collection, analysis,
and utilization. Inefficient data management leads to poor decision-making and missed
opportunities for optimization.

Sustainability and Compliance Pressures: Growing consumer awareness and regulatory


requirements around sustainability are pushing the company to adopt more eco-friendly
practices. However, the current supply chain setup may not support sustainable sourcing,
waste reduction, or compliance with environmental regulations.

Adoption of Advanced Technologies: While technologies such as AI, machine learning,


and blockchain hold the potential to revolutionize supply chain operations, the company
faces challenges in implementing these technologies effectively. There will be a for strategic
investments and a skilled workforce to leverage these innovations.

Objectives of Study:
The objectives of this study aim to identify and address the key challenges faced by
Future Supply Chain Solutions Company while exploring opportunities for optimization
and innovation. The specific objectives are as follows:

1) Evaluate Current Supply Chain Processes:


Analyze the existing supply chain workflows to identify inefficiencies, bottlenecks, and
areas for improvement, focusing on streamlining operations.

2) Enhance Supply Chain Visibility:


Develop strategies to improve real-time visibility across the supply chain, enabling better
tracking of inventory levels, shipments, and order statuses.

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3) Optimize Data Management Practices:


Assess current data management systems better data collection, analysis, and utilization to
support informed decision-making.
4) Implement Risk Management Strategies:
Identify potential risks within the supply chain and develop a comprehensive risk
management framework to mitigate disruptions and ensure operational continuity.
5) Integrate Sustainability Practices:
Explore sustainable sourcing and waste reduction initiatives to align the supply chain with
environmental standards and meet regulatory compliance.

6)Adopt Advanced Technologies:


Investigate the feasibility of implementing technologies such as AI, machine learning, and
blockchain to enhance supply chain efficiency and innovation.

Scope of the Study

The study is selected to establish the effectiveness and feasibility process of logistics
management in the organization, it helps the company to learn the process involved and
taken necessary changes if needed. It provides effective information to fill the gaps in
the logistics management to have a better and the smooth flow on the logistics,
therefore is great scope in this field as it can help the organization.

1. To understand the efficiency of logistics administration frame work


2. To analyze the all all types of logistics problems of the organization
3. To examine the process of logistics
4. To understand the importance of the organization how it delivers products and
services to its customers
5.To analyze the speed and reliability in the distribution of producuts

Objective of research

The main objective of this research is to findout the how the Future supply chain
company is performing in the market and also findout the market competitiors for the
company.This research will bring the best output of information this will help the
company in gaining the market edgein this domain.

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Research Design

In this research project descriptive Analysis is used for project.

Means of Data Pool

Primary Information: It is the first hand information which is collected from the
organisation database and with the respondents from the people via Questionnaire
process.

Secondary Information: For the secondary data the information is collected from the
articles,internet,journals and magazines.

Questionnaire Technique
It is prepared with google forms and it is shared with the internal and external people and we
got the total of 75 respondends and the total questions was around 16 which is and with the
public respondends.

Statistical tool
The main statistical tool was used is the pie diagram where the respondends information
is presented with the help of the pie diagram.

Limitations of the study


Data Collection Methods:
The methods used to gather data, such as surveys or interviews, may not capture all
relevant variables. For instance, if a survey fails to include critical questions about
supply chain disruptions, the results may provide an incomplete picture of logistics
challenges

Access to Data:
Researchers may encounter difficulties in accessing proprietary data from logistics
companies, which can restrict the depth of analysis and lead to incomplete conclusions

Empirical Limitations
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Time Constraints:
Research in logistics often requires extensive data collection over extended periods.
Limited time can result in rushed studies that do not adequately explore all relevant
factors affecting logistics operations

Resource Limitations:
Insufficient funding or resources can hinder the ability to conduct comprehensive
studies, limiting the scope of research and the methodologies that can be employed .

Analytical Limitations
Bias and Subjectivity:
Researchers may unconsciously introduce bias by favoring certain data interpretations.
This can compromise the objectivity of the research findings

Statistical Limitations:
Inadequate statistical power due to inconclusive results, making it difficult to conclude
conclusions about relationships within logistics data.

Theoretical Limitations

Lack of Prior Research:


In emerging areas of logistics, there may be limited existing literature to build upon,
making it challenging to frame new findings within a broader theoretical context .
Narrow Focus:
Some studies may concentrate too narrowly on specific aspects of logistics (e.g., last-
mile delivery), potentially overlooking other critical components such as warehousing or
inventory management that could influence overall supply chain performance.

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CHAPTER-3
COMPANY PROFILE

ORGANIZATION PROFILE

It is an India-based organized third-party chain logistics service provider. The Company


offers automated and information technology (IT)-enabled warehousing, distribution and
other logistics solutions to a range of customers. Its service offerings include warehousing
structure, pan-India distribution network, hub-and-spoke transportation model and
automated technology systems. It offers Contract Logistics: warehousing, distribution and
other value-added services; Express Logistics : point-to-point, less-than truck-load, time-
definite transportation services; and Temperature-Controlled Logistics : cold-chain
warehousing, transportation solutions and long-haul distribution of perishable products. It
serves sectors, including retail, fashion and apparel, automotive and engineering, food and
beverage, fast-moving consumer goods (FMCG), e-commerce, healthcare, electronics and
technology, home and furniture and automatic teller machine (ATM).

Advantages of SCM:

1) Cost Reduction: SCM optimizes processes, reducing operational costs by improving


resource allocation and minimizing waste. Efficient logistics and inventory management can
lead to significant savings.

2) Improved Efficiency: By streamlining processes and enhancing coordination among


various stakeholders, SCM helps organizations operate more smoothly. This leads to faster
production cycles and quicker response times to market demands.

3) Enhanced Quality Control: Effective SCM enables better Logistics, from sourcing to

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delivery. This ensures that the best quality is maintained and which helps the higher
customer satisfaction.

4) Increased Flexibility: A well-structured supply chain which can lead in demand or


market conditions. This flexibility allows businesses to respond promptly to customer
needs and mitigate risks.

1) Better Customer Service: With improved logistics and inventory management, companies
can ensure timely delivery of products, enhancing customer satisfaction and loyalty.
Accurate forecasting and inventory levels help meet customer expectations.

2) Stronger Supplier Relationships: Effective SCM fosters collaboration and communication


with suppliers. This strengthens partnerships, leading to more reliable supply sources and
potentially better pricing.

3) Data-Driven Decision Making: SCM systems often include the best market preferences,
and operational performance. This data-driven approach supports informed decision-making.

4) Sustainability Initiatives: SCM can promote environmentally friendly practices by


enhancing the sustainability and sourcing materials responsibly. This not only benefits the
environment but also enhances the company’s reputation.

Back Ground
It is originally originally named Future Logistic Solutions Limited, was set up on
March 8, 2006, in Mumbai, Maharashtra. The company changed its name to Future
Supply Chain Solutions Limited on October 23, 2009. FSC is one of India's first fully
integrated supply chain and logistics companies that uses advanced IT systems to
manage its operations. It offers services such as modern warehousing, fast delivery
(express logistics), and cold chain logistics (for temperature-sensitive goods).

FSC works with a variety of industries, including:

E-Commerce
Each industry has specific supply chain needs, and FSC customizes its solutions to

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meet those requirements. The company has played a leading role in transforming the
logistics and supply chain sector in India by using the latest technologies and best
practices.

FSC was promoted by Future Enterprises Limited, which is owned by Kishore


Biyani, a well-known businessman in India. Kishore Biyani has also promoted other
major companies which includes the following:
Future Retail Limited
Future Consumer Limited
Future Lifestyle Fashions Limited
Initially, FSC's main focus was to provide logistics and supply chain solutions to the
companies owned by its promoter, but over time, it has expanded its customer base to
include businesses across various sectors.

In short, FSC is a key player in India's logistics industry, offering a wide range of services
that help businesses manage their supply chains more effectively and efficiently.

Key Competencies

Future Supply Chain Solutions Ltd focuses on several core competencies essential for
effective supply chain management. These competencies are critical for navigating the
complexities of modern supply chains and include:

Core Competencies

1) Data Analytics and Technology Integration:


Leveraging data analytics to enhance supply visibility and transparency is vital. This
involves utilizing digital platforms and IoT sensors to collect and interpret data, enabling
informed decision-making and operational efficiency.

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2) Agility and Resilience:


Developing agile it quickly adapt to market changes is crucial. This includes
implementing strategies to enhance resilience against disruptions, ensuring continuity in
operations.

3) Sustainability Practices:
Future Supply Chain Solutions emphasizes sustainable practices with consumer demands
for environmentally friendly operations. This can lead to the good sustainability in the
supply chain.

4) Collaboration and Communication:


Effective communication across various departments and stakeholders it is good for the
entire supply chain management. This competency includes conflict management and
negotiation skills to foster collaboration.
5) Capacity Planning and Demand Management:
Understanding customer demand and planning capacity accordingly helps in optimizing
inventory levels and ensuring timely fulfillment of orders.

6) Logistics and Distribution Management:


Mastery of logistics, warehousing, and distribution processes is necessary for managing
the physical flow of goods efficiently, including reverse logistics for returns.

Nature of Business

It is an Indian supply chain and logistics company that provides integrated and IT-
enabled services. It specializes in modern warehousing, express logistics, cold chain
logistics, and e-commerce logistics. FSC caters to various sectors, including food and
beverages, FMCG, automotive, healthcare, and consumer electronics, offering
customized solutions tailored to each industry's specific needs. The company has
pioneered the modernization of logistics in India by implementing cutting-edge supply
chain management practices. Significant investments have been made in developing
state-of-the-art logistics parks and warehouses across the country. FSC utilizes
advanced technology to enhance operational efficiency and visibility throughout its
supply chain processes. The firm operates a pan-India distribution network supported
by a hub-and-spoke transportation model. It also focuses on sustainability, ensuring

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environmentally friendly practices within its operations. Over the years, FSC in
logistics and supply chain management. Ultimately, Future Supply Chain Solutions Ltd
aims to deliver comprehensive solutions that optimize the supply chain for the
customers.

SUPPLY CHAIN

Figure 1 Supply Chain

It is the best Indian supply chain company, FSC‟s centre competence lies in its
Integrated technology-enabled Distribution Centres' fulfilment services. We accomplice
with our customers and co-create innovative supply chain answers to efficiently reduce
their Time-to-Market and Cost-to-Market.

Key Competencies

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Established abilities to observe customers‟ supply chain processes and Re-


engineer,Build and Implement the services based on the customer preference.

Facilities are no longer warehouses however big, modern generation-enabled


Distribution Centres (DCs).768These DCs are Multi-person/ Shared consumer/ Single
person.

LOGISTICS

It is an microcap company in the logistics industry. It offers end-to-end supply chain


solutions to its clients, including warehousing, transportation, and distribution services.
The company has been facing challenges in the current market conditions, leading to a
decrease in its stock price.

Key Competencies

1. Capacity Planning

Assuring that needed resources should be the essential for the success of the Logistics . In
other words, capacity planning focuses on determining the appropriate production levels the
company can complete.

This also includes capacity planning with suppliers at all manufacturing cells and also critical
machine/equipment; this also includes overall Equipment Effectiveness (OEE) and Sales
Inventory & Operations Planning (SIOP).

2. Demand Management

Demand management is the process of determining what customers will purchase and when,
in other words predicting demand. Good demand management uses qualitative and
quantitative methods to use customer data to reduce uncertainty, and predict short-term
incoming demand for use as input into the Sales, Inventory, & Operations Planning (SIOP)
process.

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Figure 1.1 Logistics

FSC Cold Chain presents incorporated IT enabled offerings with accurate control and
control of temperature and upkeep of excellent of product.
Proven know-how in answers layout, network design and course making plans.

Employed Best-in-class Infra, Technology, Automation and Processes.

Storage vicinity ranging from - 30 to + 25 degrees Celsius.

Pan India number one and secondary movement through owned GPS enabled reefer
motors.

E-Commerce Logistics

FSC gives IT enabled and give up-to-end supply chain services to companies having
online presence.

Key Competencies:

Shared / Single User IT-enabled fulfilment centres throughout India.

World class integrated technology enabled for the visibility.

Pick-up capabilities throughout India.

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It providing the ultimate mile logistics across 12000 pin codes in India.

Accurate stock management from receipt to shipping across save, move and fulfilment.

Reverse Logistics.

Vision and Mission

Vision:It aims to be the best preferred logistics partner globally, recognized for its
commitment to excellence, innovation, and sustainability in supply chain management. The
company envisions a future where efficient supply chain solutions drive business success and
enhance customer experiences.

Mission: The mission is to provide comprehensive and bestin the that enhance customer
satisfaction. By leveraging advanced technology and fostering strong partnerships, FSCSL
strives to deliver seamless, efficient, and sustainable logistics services, meeting the evolving
needs of businesses across various industries.

Workflow Model

A workflow model is a structured representation of the sequence of tasks, decisions, and


processes within an organization. It serves as a roadmap that guides teams through their
operations, promoting efficiency and clarity. The following is the workflow model:

Characteristics of a Workflow Model


1) Sequential Task Flow:
Tasks are organized in a linear sequence, ensuring each step is completed before moving to
the next, which enhances clarity and accountability.

2) Parallel Task Execution:


Allows multiple tasks to be performed simultaneously when they are independent, speeding
up the overall process.

3) Dynamic Flexibility:
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The model can adapt based on conditions or events, enabling adjustments to workflows as
business needs change.

4) Visual Representation:
Utilizes visual tools (like BPMN) for easy understanding and communication among
stakeholders, simplifying complex processes.

5) Task Assignment and Monitoring:


Facilitates delegation of tasks with real-time tracking capabilities, ensuring accountability
and timely completion.

PROCESS OF WORK AT FUTURE SUPPLY CHAIN SOLUTIONS LTD

Figure 1.3 inbound process

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Figure 1.5 RTV process

Services given by the FSC

Future Supply Chain Solutions Ltd (FSC) offers a comprehensive range of products and
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services designed to meet the diverse needs of various industries. Here are the key
offerings:

Products and Services

1) Contract Logistics:

Provides warehousing, distribution, and value-added services tailored to specific client


requirements, enhancing operational efficiency.

2) Express Logistics:

Offers time-definite transportation services, including point-to-point and less-than-


truckload (LTL) solutions, ensuring timely deliveries across India.

3) Temperature-Controlled Logistics:

Specializes in cold-chain logistics for perishable goods, including temperature-controlled


warehousing and transportation solutions.

4) E-Commerce Logistics:

Supports e-commerce businesses with tailored logistics solutions, facilitating efficient


order fulfillment and distribution.

5) Modern Warehousing:

Operates state-of-the-art warehouses are doing the best for inventory management and
order processing, ensuring high efficiency.

6) Automated Warehouse Management Systems:

Utilizes automated systems to optimize warehouse operations, enhancing productivity and


accuracy in inventory handling.

7) Supply Chain Consulting:

Provides expert advisory services to help clients to increase the process, reduce costs, and
improve overall performance.

8) Integrated Technology Solutions:

Incorporates IT-enabled solutions for real-time visibility and management of supply chain
operations, enhancing decision-making capabilities.

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9) Value-Added Services:

Includes packaging, labeling, kitting, and assembly services that add value to the logistics
process.

10) Pan-India Distribution Network:

Leverages a robust distribution network with a hub-and-spoke model to ensure


comprehensive coverage and efficient delivery across the country.

Future growth and potentialities:-

1. Digital Transformation
The process like AI, machine learning, IoT, and blockchain is revolutionizing supply
chain operations. These technologies enhance visibility, efficiency, and decision-making
capabilities across the supply chain.

2.Increased Agility and Resilience


Future supply chains will need to be more agile to respond to market changes.
Companies are focusing on building resilience to withstand challenges such as fluctuating
demand and supply shortages.

3. Sustainability Initiatives
There is a growing emphasis on sustainable practices within supply chains.
Organizations are increasingly integrating environmental, social, and governance (ESG)
criteria into their operations, which will drive innovation and compliance in the logistics
sector.

4. Hyper-Connectivity
The future will see greater interconnectivity among supply chain stakeholders through
digital platforms. This connectivity allows for real-time data sharing, improving
collaboration and operational efficiency.

5. Automated Processes
Automation will play a crucial role in streamlining operations, reducing manual errors,
and increasing productivity. The use of robotics and automated systems will become
standard in warehousing and logistics processes.

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6. Data-Driven Decision Making


Leveraging big data which will enable organizations to gain make the best insights,
management, and enhance customer service. Companies that effectively utilize data will
have a competitive edge.

7. Customization and Personalization


As customer expectations evolve, supply chains will need to adapt by offering more
personalized services. This includes developing micro supply chains tailored to specific
customer needs.

8. Collaborative Ecosystems
Businesses will increasingly form partnerships with third-party logistics providers and
technology firms to enhance capabilities and share resources, leading to more flexible and
efficient supply chain solutions.

9. Investment in Talent Development


As the landscape changes, companies will need to invest in reskilling their workforce to
adapt to new technologies and processes. This includes fostering skills in data analytics,
automation, and sustainability practices.

10. Focus on Customer Experienc


- Future supply chains will prioritize delivering superior customer experiences by ensuring
timely deliveries, transparency in operations, and responsiveness to customer feedbackS.

SWOT ANALYSIS

It is one of the most effective tools to assess the industry situationand identify the
direction of improvement for government or enterprises, it discusses four major factors –
Strengths, Weaknesses, as well as Opportunities, Threats, which make the suggestions
and measures of development correspond with the reality of industry , maximize the use
of the internal strengths and external opportunities, and minimum the disadvantage of the
enterprises and the government and the impact of environmental threats.

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COMPANY STRENGTHS

Strengths

1. Operational Efficiency: Advanced technologies like automation and real-time


tracking improve speed and reduce errors.
2. Scalability: Logistics companies can easily scale operations to meet fluctuating
demand.
3. Diverse Service Offerings: Ability to provide a wide range of services, including
warehousing, transportation, and value-added services.
4. Global Network: Established relationship that helps the suppliers and the customers
facilitate smoother operations across borders.

Weaknesses

1. High Operational Costs: Rising fuel prices and labor costs can significantly impact
profit margins.
2. Dependency on External Factors: Vulnerability to disruptions caused by natural
disasters, political instability, or economic downturns.
3. Complex Regulations: Navigating varying regulations across regions can complicate
operations and increase compliance costs.
4. Limited Technology Adoption: Some companies may lag in adopting new
technologies, resulting in inefficiencies.

Opportunities

1. E-commerce Growth: The surge in online shopping creates increased demand for
logistics services, especially last-mile delivery.
2. Sustainability Trends: Growing consumer preference for eco-friendly practices
opens avenues for green logistics initiatives.
3. Emerging Markets: Expansion into developing regions can lead to new customer
bases and revenue streams.
4. Technological Advancements: Innovations such as AI, IoT, and blockchain can
enhance transparency and efficiency in logistics operations.

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Threats

1. Intense Competition: The logistics sector is highly competitive, with numerous


players vying for market share.
2. Economic Instability: Fluctuations in the economy can affect consumer demand and
investment in logistics.
3. Cybersecurity Risks: Increased reliance on technology makes logistics companies
vulnerable to cyberattacks.
4. Supply Chain Disruptions: Events like pandemics, geopolitical tensions, or trade
wars can severely impact supply chains and logistics operations.

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Chapter 04

Data Analysis and Interpretation

1) Which are the following cities that future supply chain company provides
service?
A) Mumbai

B) Bengaluru

C) Kolkata

D) Chennai

D) Delhi

Table 01
Sl. No. Particulars Output
1 Mumbai 27
2 Bengaluru 19
3 Kolkata 12
4 Chennai 11
5 Delhi 6

Fig. 01

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Interpretation:
The data indicates that Mumbai is the primary market for the future supply chain company,
with 36% of respondents identifying it as a key region. Chennai follows with 16%,
highlighting its significance due to its industrial and tech presence. Bengaluru, at 14.7%, also
shows strong potential as a tech hub. Meanwhile, both Delhi and Kolkata have lower interest
at 8%, suggesting they may be secondary markets that require targeted strategies.

2) Will FSC provides the express shipments?

A)Yes

B) No

C) Sometimes

Table 02
Sl. No. Particulars Output
1 Yes 31

2 No 26

3 Sometimes 17

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Fig. 02

Interpretation:

The data reveals that a significant portion of respondents, 35.1%, confirmed that they
provide express shipments, indicating a strong capacity for fast delivery services.
Meanwhile, 23% answered "No," suggesting some companies may not prioritize or offer
this option at all. Additionally, the remaining responses likely reflect a mix of
"Sometimes," indicating that express shipments might be offered selectively based on
certain conditions.

This variability highlights the importance of understanding customer needs and


preferences when it comes to shipping options.

3) Do the company use the bar code for identification on the products?

A)Yes

B) No

C) Sometimes

Table 03
Sl. No. Particulars Output
1 Yes 38
2 No 19

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3 Sometimes 18

Fig. 03

Interpretation:

The responses indicate a varied approach to barcode identification among the participants,
with a slight majority (50.7%) utilizing barcodes consistently. A significant portion
(25.3%) employs barcodes only sometimes, suggesting a mixed strategy that may depend
on specific circumstances or product types. Meanwhile, the 24% who do not use barcodes
at all might face challenges in inventory management or tracking, highlighting a potential
area for improvement.

4) Will there are seasonal influences over the order pattern?

A) Yes

B) No

C) Sometimes

Table 04
Sl. No. Particulars Output

45
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

1 Yes 32

2 No 25

3 Sometimes 18

Fig. 04

Interpretation:
The data suggests that opinions on seasonal influences in order patterns are varied, with
the largest portion (42.7%) indicating that they sometimes notice these effects. A
significant minority (33.3%) believe there are no seasonal influences at all, while 24%
affirm that such influences are definitely present.

5) Will you think that the growth of new concepts of logistics leading
to increase in cost?
A) Agree
B) Disagre

Table 05
Sl. Particulars Output

No.
1 Agree 41

2 Disagree 34

46
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Fig. 05

Interpretation:

Total 45.3% agreeing that the new logistics concepts is may lead to increased costs, while
a slight majority (54.7%) disagree. This suggests a divide in perception about whether
innovations in logistics are beneficial or burdensome financially. The disagreement may stem
from differing views on how advancements can improve efficiency and reduce costs over
time, despite initial investments.

6) Is there any interlink between the marketing logistics and logistics management system?

A) Agree

B) Disagree

Table 06
Sl. No. Particulars Output
1 Yes 46

47
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

2 No 28

Fig. 06

Interpretation:

A significant majority of respondents (62.2%) agree that marketing logistics are inter
linked is to logistics management system. This suggests that many believe effective
logistics can enhance marketing efforts by improving efficiency and customer satisfaction.
Conversely, the 37.8% who disagree may view marketing logistics as a distinct function,
potentially indicating differing understandings of how logistics influences overall
marketing strategies.

7) Will you review the logistics regularly at your company?

A) Daily

B) Weekly

Table 07

48
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Sl. No. Particulars Output

1 Daily 43

2 Weekly 29

Fig. 07

Interpretation:
A substantial majority of respondents (59.7%) report that logistics is reviewed critically on a
daily basis, indicating a strong commitment to ongoing assessment and improvement within
their companies. The remaining 40.3% conduct reviews weekly, suggesting that while
regular evaluation is valued, there are varying levels of frequency in oversight. This
emphasis on daily review may reflect an understanding of the fast-paced nature of logistics
and the need for agility in responding to operational challenges.

8) Which is logistics service will your company offers the best? Choose the below
options

A) Express transport
B) Overland transport
C) Inventory
49
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

D) Other Value adding services if any

Table 08:

Sl. No. Particulars Outpu


t
1 Express transport 32
2 Overland transport 19
3 Inventory 15
4 Other Value adding services if any 9

Fig 08:

Interpretation:

The data shows that express transport is the standout logistics service offered by companies,
with 42.7% selecting it as their strongest area. Overland transport follows at 25.3%,
indicating a significant focus on this service as well, while inventory management and other
value-adding services receive lesser emphasis at 20% and 12%, respectively. This
distribution suggests that companies may prioritize speed and efficiency in logistics, aligning
with customer demands for quicker delivery times.

09) From the scale of 1 - 5 exactly how essential is logistics‟ will serve the best quality for

50
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

future Logistics company?

A) Least important

B) Less important

C) Indifferent

D) Important

E) Most important

Table 09:

Sl. No. Particulars Ratings


1 Least Important 2
2 Less important 3
3 Indifferent 5
4 Important 26
5 Most Important 39

Fig. 09

51
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Interpretation:

A significant majority of respondents (52%) consider the quality of logistics to be "most


important" for the future of supply chain companies, indicating a strong belief in its
critical role. Additionally, 34.7% deem it "important," reflecting a consensus on the
necessity of high-quality logistics in achieving supply chain success. With only a small
percentage rating logistics as "least important," "less important," or "indifferent," this
data underscores a clear recognition of logistics quality as a fundamental driver for
competitive advantage in the supply chain sector.

10) What are the effects can 3PL will have on your logistics plan?

A) Major improvement in efficiency

B) Saving Time

C) Cost Saving

D) Comparative Edge

E) Not advantageous

Table 10

Sl. No. Particulars Effects of 3 PL

1 Major improvement in efficiency 19

2 Saving Time 29
3 Cost saving 7
4 Comparative edge 15
5 Not advantage 5

52
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Fig. 10

Interpretation:
The responses indicate that a substantial portion of respondents sees 3PL (Third
Party Logistics) as beneficial, with 39.2% citing "saving time" as a key effect,
followed closely by 25.7% who believe it leads to a "major improvement in
efficiency." Additionally, 20.3% highlight the potential for a "comparative
edge,"
suggesting that many view 3PL as a strategic advantage in the competitive
landscape. However, a small minority (5.4%) find it "not advantageous,"
pointing to some skepticism about the overall value of third-party logistics in
their logistics plans.

11) Which ratings that you provide for Customer Relationship Management at Future
supply chain?
a) Very Good
b) Good
c) Fair
d) Poor
e) Bad
Table 11
Sl. No. Particulars Ratings

1 Very good 32

2 Good 27
3 Fair 10
4 Poor 4
53
5 Bad 2
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Fig 11:

Interpretation:

The 42.7% of respondents rating it as "good" and 36% as "very good," indicating a strong overall
performance in managing customer relationships. A smaller portion, 13.3%, rated it as "fair," while
only 5.3% and 2.7% rated it as "poor" or "bad," respectively, suggesting that most customers view the
CRM efforts favorably. However, the presence of any negative ratings highlights potential areas for
improvement, underscoring the importance of ongoing efforts to enhance customer engagement and
satisfaction.

12) How you will rate system at Future supply chain Ltd?

54
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Very Good Good Fair Poor Bad


5 4 3 2 1

A) Very Good

B) Good

C) Fair

D) Poor

E) Bad

Table 12
Sl. No Particulars Ratings

1 Very Good 14

2 Good 23

3 Fair 20

4 Poor 11

5 Bad 7

Fig. 12

55
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Interpretation:

It gives a mixed but overall moderate perception. With 23 respondents rating it as


"good" and 14 as "very good," there is a solid base of positive feedback, making up
49% of the total responses. However, the presence of 20 ratings for "fair," along with
18 combined ratings for "poor" and "bad," indicates that view the system as needing

improvement, highlighting an opportunity to enhance its logistics management


practices.

13) Will the company provide the ccustomer satisfaction given by the organization?

A) Always

B) Sometimes

C) Not at all given

Table 13

56
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Sl. No. Particulars Ratings


1 Always 36
2 Sometimes 20
3 Not at all given 18

Fig. 13

Interpretation:

The 36 respondents (the majority) stating that it is considered "always." An additional 20


respondents "sometimes," suggesting a mixed approach in some instances. However, 18
highlighting a significant minority that feels neglected, which points to the need for the
organization to ensure consistent focus on customer satisfaction across all operations to
enhance overall service quality.

14) Do the company gives is for customer complaints given by the organization?

A) Always

B) Sometimes

C) Not at all given

57
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Table 14
Sl. No. Particulars Ratings
1 Always 36
2 Sometimes 20
3 Not at all given 18

Fig. 14

Interpretation:

From the above analysis 36 respondents agreed that complaints are taken seriously and
the 20 respondents g i v e n only sometimes its taken seriously, 1 8 respondents a r e
s a i d t h a t t h e y concerned towards consumer complaints.

15) Do future supply chain have appropriate system of


treatment towards customer complaints?

A) Agree
b) Disagree

58
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Table 15
Sl. No. Particulars Ratings
1 Agree 73
2 Disagree 4

Fig 15

Interpretation:

The data indicates a strong consensus that an appropriate system for addressing customer
complaints, with 94.8% of respondents agreeing with this statement. That the organization is
perceived positively in its ability to handle customer issues effectively. In contrast, only
5.2% disagree, which highlights minimal concern regarding complaint management,
reinforcing the notion that the company prioritizes customer care and responsiveness in its
operations.

59
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Chapter 05

Findings, Conclusions and Recommendations

Findings

Technological Integration: It must embrace advanced technologies such as AI, machine


learning, and automation to enhance visibility and efficiency within their operations. This
integration is crucial for real-time data management and decision-making, allowing for
better forecasting and inventory optimization.
Focus on Resilience and Agility : Companies should develop strategies that allow them to
respond swiftly to changes in demand and supply while maintaining operational continuity.

Sustainability Initiatives: There is a significant emphasis on sustainability within supply


chains. Future Supply Chain Solutions should align their practices with environmental,
social, and governance (ESG) standards to meet consumer expectations and regulatory
requirements.

Collaborative Ecosystems: Building a collaborative network with suppliers, partners, and


customers is essential. This collaboration fosters innovation and efficiency by creating a
seamless flow of information and resources across the supply chain.

Data-Driven Decision Making: Risk management, and scenario planning is critical.


Companies should invest in technologies that provide real-time insights into their supply
chain operations

Conclusions

It stands at a pivotal moment where embracing digital transformation and innovative


technologies will be key to navigating the complexities of modern supply chains. The
focus on resilience, agility, and sustainability will not only help mitigate risks but also
provide a competitive advantage in an increasingly volatile market.The integration of
collaborative ecosystems will enhance overall performance by fostering partnerships
that align with mutual goals. As businesses face mounting pressures regarding
sustainability, integrating these considerations into their strategies is essential for long-
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

term viability.

Recommendations :

 Invest in Advanced Technologies: Prioritize the adoption of AI, machine learning,


and automation tools to improve operational efficiency and visibility within the
supply chain.

 Embrace Sustainability: Integrate sustainable practices into the supply chain


strategy by assessing environmental impacts and aligning operations with ESG
goals.

 Foster Collaborative Relationships: Build strategic partnerships with suppliers and


other stakeholders to create a more integrated supply chain ecosystem.

 Leverage Data Analytics: Invest in data analytics capabilities to enhance


forecasting accuracy and enable proactive decision-making based on real-time
insights.

 Continuous Improvement: Establish a culture of continuous feedback and


improvement by regularly assessing supply chain performance metrics and
adjusting strategies accordingly.

 By implementing these recommendations can position itself as a leader in the


evolving landscape of supply chain management, ensuring resilience, efficiency,
and sustainability in its operations.
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Bibliography

1) Mentzer, John T., William DeWitt, James S. Keebler, Soonhong Min, Nancy W. Nix,
Carlo D. Smith, and Zach G. Zacharia. "Defining supply chain management." Journal of
Business logistics 22, no. 2 (2001): 1-25.

2) Simchi-Levi, David. "OM forum—OM research: From problem-driven to data-driven


research." Manufacturing & Service Operations Management 16, no. 1 (2014): 2-10.

3) Jones, Daniel T., and James P. Womack. "The evolution of lean thinking and
practice." The Routledge companion to lean management 8 (2003):
4) Seuring, Stefan, and Martin Müller. "From a literature review to a conceptual framework
for sustainable supply chain management." Journal of cleaner production 16.15 (2008):
1699-1710.
5) Gunasekaran, Angappa, Chaitali Patel, and Ercan Tirtiroglu. "Performance measures and
metrics in a supply chain environment." International journal of operations &
production Management 21.1/2 (2001): 71-87.
6) Ivanov, Dmitry. "Predicting the impacts of epidemic outbreaks on global supply chains:
A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2)
case." Transportation Research Part E: Logistics and Transportation Review 136 (2020):
101922.
7) Ivanov, Dmitry. "Predicting the impacts of epidemic outbreaks on global supply chains:
A simulation-based analysis on the coronavirus outbreak (COVID-19/SARS-CoV-2)
case." Transportation Research Part E: Logistics and Transportation Review 136 (2020):
101922.
8) Kaplan, Robert S. "Conceptual foundations of the balanced scorecard." Handbooks of
management accounting research 3 (2009): 1253-1269.
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

Annexure

1) Which are the following cities that future supply chain company provides service?
A) Mumbai

B) Bengaluru

C) Kolkata

D) Chennai

E) Delhi

2) Will FSC provides the express shipments?

A)Yes

D) No

E) Sometimes

3)Do the company use the bar code for identification on the products?

A)Yes

B) No

C) Sometimes

4) Will there are seasonal influences over the order pattern?

D) Yes

E) No

F) Sometimes

5) Will you think that the growth of new concepts of logistics leading to
increase in cost?
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

A) Agree

B) Disagre

6) Is there any interlink between the marketing logistics and logistics management system?

A) Agree

B) Disagree

7) Will you review the logistics regularly at your company?

A) Daily

B) Weekly

8) Which is logistics service will your company offers the best? Choose the below options

A) Express transport

B) Overland transport

C) Inventory

D) Other Value adding services if any

9) From the scale of 1 - 5 exactly how essential is logistics‟ will serve the best quality for
future Logistics company?
A) Least important

B) Less important

C) Indifferent

D) Important

E) Most important

10) What are the effects can 3PL will have on your logistics plan?

A) Major improvement in efficiency

B) Saving Time

C) Cost Saving

D) Comparative Edge
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

E) Not advantageous

11) Which ratings that you provide for Customer Relationship Management at Future supply
chain?
A) Very Good

B) Good

C) Fair

D) Poor

12) How you will rate system at Future supply chain Ltd?

A) Very Good

B) Good

C) Fair

D) Poor

13) Will the company provide the ccustomer satisfaction given by the organization?

A) Always

B) Sometimes

B) Not at all given

14) Do the company gives is for customer complaints given by the organization?

A) Always

B) Sometimes

C) Not at all given

15) Do future supply chain have appropriate system of treatment towards


customer complaints?

A) Agree
B) Disagree
A STUDY ON LOGISTIC MANAGEMENT AND ITS EFFECTS AT FUTURE SUPPLY CHAIN PVT LTD

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