The Hindu Business Line : Logistics effectiveness meet begins in Mumbai

THE recent developments and the emerging changes in the Indian logistics and supply chain services market were discussed at length on the first day of the two-day national conference on Logistics Effectiveness that got underway in Mumbai on Thursday.

The two-day event will discuss various issues related to logistics, including infrastructure for logistics effectiveness, supply chain innovations in backward linkages, technology initiatives, synchronising the supply chain, financing investment in logistics infrastructure and policy framework for sustainable logistics effectiveness. The event is being organised by the Confederation of Indian Industry (CII).

The tone for the discussion was set by Mr Cedric Foo, Deputy President of Singapore-based NOL Group, who pointed out that India's transport costs amounted to an average of 11 per cent of the landed cost compared to 6 per cent globally. The transit time for shipping goods to the US from India is as much as six-12 weeks, while it is just three-four weeks from China to the US. He underscored the need for a seamless supply chain and higher visibility for goods in transit.

Mr Ravi Budhiraja, Chairman, Jawaharlal Nehru Port Trust, said today's milieu was one of intense competition and development of a sound infrastructure required the active role of road, rail and shipping sectors. He pointed out that India's logistics spend was 13 per cent against 7-8 per cent in developed countries. The logistics infrastructure should involve the integrated development of the road, rail and shipping sectors and the creation of a trade distribution centre.

Mr S. Hajara, Chairman and Managing Director, Shipping Corporation of India Ltd, reiterated that the transport sector was a critical part of supply chain management. The high landed cost of freight was leading to a loss in exports, while economic growth was also impeded as the landed cost of imports was also high. He felt more FDI was needed for port infrastructure.

Mr Cyrus J. Guzder, Chairman, CII National Council on Transportation and Logistics and Chairman and Managing Director of AFL Ltd, said that logistics services needed to be extended widely across the country and there have to be innovations and solutions across the supply chain.

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Logistics effectiveness meet begins in Mumbai