Logistics imbalance in India: An industry perspective

Abstract

The Indian Supply Chain and Logistics industry is a $125 billion industry which contributes a significant percentage to India’s GDP. Despite such huge spending on the logistics, the logistics in India is very inefficient. Not only are the costs much higher when compared to other countries around the world, the service levels are also very poor. It is estimated that road transportation is around to 61%+ of the Indian Domestic Industry and is the most widely used modes of transporting goods by the industries. The road transport in India is also inefficient due to multiple reasons such as infrastructure, large number of unorganized players, underutilization etc. In this project we would be focusing on the Indian Road transport. We intend to study the logistics map of India for a specific set of companies and then find the logistics imbalance in terms of under utilization of the trucks. We intend to study the methods by which the utilization of the trucks can be increased, as a result of which the cost can be reduced. We intend to study the logistics at the firm level and industry levels and suggest methods to reduce the cost of logistics and achieve better service levels.