—Deepak Baid, Director, Siddhi Vinayak Logistic Ltd
Every business establishment is aimed at providing quality, timely and effective products or services to their customers as a means of retaining them and opening more customer doors. Business logistics is very important in business for it actually leads to the ultimate consummation of the sales contract. Logistical support enables the actual movement, delivery and transportation of goods or services from a seller to a buyer.
By initiating the “Make in India” campaign we are basically inviting foreign manufacturers to produce in India. However it can succeed only if logistic is made affordable. If we want to produce for the market, there needs to be a way to distribute it in an affordable manner which can be managed by producer. To export, there should be adequate capacity and deep draughts at ports to ensure faster turnaround of vessels. Vessel turnaround time at ports should be in line with global practices. It can’t be four days, but a day-and-a-half, maximum.
Today, the increased dependence on road logistics is increasing the burden on the local manufacturer. Besides, the high cost of road logistics highly demoralizes the local manufacturer doing business. The only way to solve the situation is by developing other means of transport like seaways and railways that can reduce the dependency on the road transport and avoid the higher cost involved in it.
The logistics department is one of major departments in multinational firms. Logistics on a global stage is very crucial in globalization. Very many businesses are involved in multinational trade, hence the necessity of well laid out coordination of the shipment of goods has increased. Efficient logistical systems throughout the world economies are the basis for trade.
Logistical support has gained importance in international marketing as a result of technological advancements in information and communication technology. The Internet has allowed for the ease of shipping handling and most companies are restructuring their operations globally. Advancements in communication and information industry enable logistical managers to update sales and plan inventory faster and more frequently.
Establishing a logistics plan is essential. Pointing out the steps required and the personnel who will be assigning responsibilities to those who will be performing the specific tasks is also essential. An efficient plan is necessary for the planning or controlling of activities of an organization. It has to be clearly defined in order to avoid vagueness or confusion that could interfere with the accomplishment of the desired goals.
While drafting such a plan, it is important to keep in mind all the possible present and the future scenarios. A logistics manger needs to have the capability to carefully plan, analyze and implement forecasts to a considerate extent on behalf of a firm. The plan he or she drafts should be organized such that every employee knows their duties, responsibilities and roles. Coordination and understanding between all the departments will enable the realization of the goals of such a plan.
Logistical planning too is an important part of business nowadays. How quickly and reliably goods are delivered to customers can mean the difference between retaining your customers and losing them. A great deal of business logistics comes under the heading of marketing and specifically, distribution. The planning phase is the most important followed by good implementation of a logistical plan. It is not only the speed of delivery that matters, but also the product quality and customer service.
A buyer is always concerned with the actual delivery of goods or services as per the agreed sales contract. He or she is not interested with the promises of a seller about its capability to supply the same; it is assumed. Delivery of goods or services to a buyer according to the sales agreement is important so as to avoid legal tussles that may arise as a result of delays or failed contracts. Timely deliveries and honoring contracts is essential in maintaining your clients and obtaining repeated orders.
Effective logistical systems contribute significantly to the achievements of the firm and its marketing objectives. It is very essential in creating place and time utilities in the products in order to maximize customer satisfaction. A quick and timely delivery in minimum time and cost relieves the customer of excess inventories and subsequently brings down the cost of carrying inventory, transportation and material handling. This improves customer service and reduces costs.
In a gist, Make in India campaign is not a far dream if the solution to the obstacles are answered or combatted judiciously by efficiently developing other means of transport, Introducing policies pertaining to the reduction of the cost of logistics and by introducing GST (Goods and Service Tax) which will reduce the other tax and will over all reduce the logistic cost involved.