‘Supply chain mgmt sector must be regarded as industry’

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Chennai, Nov 17 : which will ensure a better supply chain management”.

With a 10% more cost, the national quadrilateral highways can be made into smart ones, incorporating technology into it, thereby ensuring uninterrupted logistics service from one place to other place. By incorporating technology into the highways services such as toll collection, right loading, documentation among a host of other services can be made easy to ensure speedy logistic services, Seshasayee said.

Sumeet Nadkar, Head, Logistics SBU, Kale Consultants, said the logistics industry is on the “run-way” and about to take-off and the time is right for us to realise the importance that can remove internal process efficiencies and help collaboration in the supply chain. He said the size of the Indian auto logistics industry was Rs 3,400 crore in 2006-07. In The logistics cost for the automobile industry is around 2% to 3% of sales, whereas in the case of auto components industry, it is about 3% to 4% of sales. The reverse logistics is estimated at 0.5% to 1% for both auto and auto components industry. Nadkar said that developing efficient supply chain is mandatory for sustaining growth of organisations. Efficient supply chain means providing goods and information wherever needed and whenever need in most efficient manner.

The supply chain, which has various elements such as shipper, forwarder, carrier, airports, hubs, ports and customs, is as efficient as the weakest link in it.