Aegis: Charutar Vidya Mandal (Estd.

: 1945)

Logistics And Supply Chain Management- I (L&SCM)

REPORT
Submitted as a part of partial requirement towards the Course
titled
Logistics And Supply Chain Management- I

offered during
Semester – VI
BACHELOR OF BUSINESS ADMINISTRATION (BBA)
(Hons.) Programme
of
Constituent College

S. G. M. ENGLISH MEDIUM COLLEGE OF COMMERCE AND

MANAGEMENT
FACULTY OF COMMERCE, MANAGEMENT AND
LAW THE CVM UNIVERSITY

Prepared and Submitted by

Harsh Borisagar
(Id No.:………….. | University Exam ID. No...................)
Semester III, BBA Programme (Hons.)
S. G. M. ENGLISH MEDIUM COLLEGE OF COMMERCE AND MANAGEMENT
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 Vallabh Vidyanagar - 388120

February 2024

SARDAR GUNJ MERCANTILE CO-OPERATIVE BANK LTD. ENGLISH

MEDIUM COLLEGE OF COMMERCE AND MANAGEMENT
NEW VALLABH
VIDHYANAGAR ACADEMIC
YEAR: 2023-24

PRACTICAL PROJECT REPORT

OF
APM TERMINALS

SUBMITTED BY:
HARSH
BORISAGAR THIRD
YEAR
BACHELOR OF BUSINESS ADMINISTRATION
(HONS) IN
LOGISTIC AND SUPPLY CHAIN
MANAGEMENT SEMESTER- VI
ROLL NO: 23
SUBMITTED TO

VALLABH VIDYANAGAR

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 PREFACE
Every study is incomplete without having a well concrete exposure, of the research.
Management studies are not exception that scopes, of the project at this level are very wide
ranging. Student
of management are successfully processed and refined through the mean of final report so that they
may have a complete exposure to present scenario. This final report has been taken as a part of
M.B.A. Degree Course. The purpose of the study is to use and apply our academic knowledge
gained during the curriculum in getting valuable insight of corporate culture with all its attendants
completes. I have done a lot of hard work despite of all my sincere efforts. This is possibility that
there may be some areas which may remain uncovered in study. I once again think to all those
who help one directly or indirectly in preparing my research.

HARSH BORISAGAR

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 ACKNOWLEDEGEMENT
I would like to express my gratitude and appreciation to all those who gave me the
possibility to complete this report. Special thanks are due to my supervisor whose help,
stimulating suggestions and encouragement helped me in all time of fabrication process and in
writing this report. I also sincerely thanks for the time spent proofreading and correcting my
many mistakes.

I would also like to acknowledge with much appreciation the crucial role of the staff
in Organization, who gave me a permission to take the required information regarding the
organization for my project.
Many thanks go to the lecturer and supervisors who have given their full effort in guiding
the team in achieving the goal as well as their encouragement to maintain our progress in
track. My profound thanks go to all classmates, especially to my friends for spending their
time in helping and giving support whenever I need it in fabricating my project.

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 FACULTY OF COMMERCE, MANAGEMENT AND
LAW

S. G. M. ENGLISH MEDIUM COLLEGE OF COMMERCE AND MANAGEMENT

VALLABH VIDYANAGAR

CERTIFICATE

This is to certify that Mr./Ms. Harsh Borisagar of BBA (Hons) (Semester - VI),
Enrollment No: 12103020801023, Exam Seat No: 5302007 has completed his /
her Logistics and Supply Chain Management Project for the term ending in
November 2023 as per University Curriculum. The Organizational Attachment
Program Project Report is to be submitted to The CVM University, Vallabh
Vidyanagar for the Final Evaluation and Viva-Voce Examination.

Date:

Sign of Project Guide Sign of Principal

Sign of External Examiner

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 TABLE OF CONTENT
SR NO. Title Page
No.

1 CONCEPT AND HISTORY OF SUPPLY CHAIN 7

MANAGEMENT

2 CONCEPT AND HISTORY OF SCM IN BHARAT 13

3 STRUCTURE OF COMPANY 15

4 PROFILE OF COMPANY 17

5 DRIVERS OF SCM OF THE COMPANY 22

6 COMPONENTS OF LOGISTICS 25
MANAGEMENT OF THE
COMPANY
7 ELEMENTS OF STRATEGIC SOURCEING 28

8 IMPORTANCE OF LOGISTICS MANAGEMENT 31

FOR THE COMPANY

9 LOGISTICAL COMPITITIVE ADVANTAGES OF 34

THE COMPANY

10 SCM AND BUSINESS STRATEGY 35

11 SWOT ANALYSIS 37

12 SELF-LEARNING 38

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 1. Concept and History of Logistics Management

In any type of organization, the activities pertaining to the production and delivery of products
and services assume importance. Their design, acquisition, storage, movement, distribution,
maintenance, and several related aspects must be taken care of and managed. This, being the
first Unit of the Course on Logistics Management, we shall be introducing the concept of
logistics, discuss its principles and forms. We shall be familiarizing you with certain terms and
concepts that are important in the overall framework of the Course on logistics management.
In this course the terms ‘company’, ‘enterprise’ and ‘firm’ are used interchangeably.

The term logistics is derived from the Greek term l´ogos, which denotes ‘order’, and
from the French word loger, that implies art of war pertaining to movement and supply of
armies; being the branch of military science concerned with the movement, supply and
maintenance of troops. The origin of logistics is of a strictly military nature and this discipline
gained significance because of the importance of the study of the methodologies employed to
guarantee the appropriate supply of pro TY visions, ammunition and fuel to the troops and, in
general, to ensure the army the facility of moving and fighting in the most difficult conditions.
In its all-inclusive sense, logistics covered those aspects of military operations that deal with:
a) Design, development, acquisition, storage, movement, distribution, maintenance,
evacuation, and disposition of materials;
b) movement, evacuation, and hospitalization of personnel;
c) acquisition or construction, maintenance, operation, and disposition of facilities;
d) acquisition or furnishing of services.
The following factors could be considered to impact the development of logistics:
a) Advances in computer technology
b) Quantitative techniques
c) Development of the systems approach
d) Total cost analysis
e) Recognition of important role of logistics

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 TYPES OF LOGISTICS
There are different types of logistics and we shall be discussing a few now.
I. Business Logistics: It is the part of the supply chain process that plans,
implements, and controls the efficient flow and storage of goods and services from
the point of origin to point of use or consumption. The business logistics plans, help
in implementation, and control the efficient, effective flow and storage of goods,
services, and related information. This is designed to meet customer requirements.
II. Event Logistics: This relates to the network of activities, facilities and personnel
required to organize, schedule and deploy the resources for any event to take place.
Event logistics uses a network of activities, facilities, and personnel to organize,
schedule, and plan for organizing an event. It involves the deployment of
resources, as well as the necessary post-event steps such as clean-up, disposal and
so on.
III. Service Logistics: It encompasses the acquisition, scheduling, and management
of the facilities, assets, personnel, and material to support and sustain a service
operation or business.
IV. Key Logistics Terms: Many logistics terms have special meanings as
described below.
V. Users, Clients and Customers: These are the people who receive supplies. The
terms are used inter-changeably. User is a term familiar to those who collect
information about “new” or continuing products. Client is a term often
associated with receiver of the product or service. However, the people served
are to be considered as customers like in any commercial business.
VI. Central Distribution Centre: It implies a warehouse that is the sole stocking
point for the distribution system that it serves. Grocery manufacturers commonly
have central (or national) distribution centers, stocked by various manufacturing
points and serving various retailer distribution warehouses.
VII. Service Delivery Points: It connotes any facility where customers (users)
receive supplies. Service delivery points (SDPs) are generally organizations or a
facility being supplied with products. They are called SDPs, because all these
locations directly serve the customers.
VIII. Inventory: A term used to describe all the goods and materials held by an

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 organization for future sale or use.
IX. Pipeline: The entire chain of storage facilities and transportation links, through
which supplies move from the manufacturer to the consumer, including port
facilities, central warehouse, regional warehouses, district warehouses, all
distribution points, and transport vehicles. In a logistics setting, the logistics
system is often called a pipeline. This term was coined because a logistics system
is in many ways like the pipeline that brings water into homes: a) The logistics
system, like a water pipeline has tanks—that is, warehouses— for storing water—
that is, products—until they are needed. b) Transportation links, like pipes, are
also part of a pipeline. Unlike a water pipeline, which is usually continuous, a
health logistics pipeline requires transportation to move supplies periodically from
one warehouse to another.
HISTORY OF LOGISTIC MANNAGEMENT

Probably the first application of logistics was for military purposes. Like China and
Egypt, various ancient civilizations needed an efficient way to expand their influence
through trading and warfare. They needed adequate methods to transportgoods to
distant parts of the known world. However, they were also looking for solutions to
deliver weaponry and provision supplies to their conquering armies.

The First Signs of Logistics Advancements

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One of the first signs of modern logistics that rely on systematic distribution can be seen in
ancient Greeks and Romans. Alexander the Great used logistics to provide support for his
impressive and long campaigns. Romans developed the first modern roads to help them connect
and distribute goods for their legions to distant parts of the empire. Hannibal manages to enter
Italy through the area, impassable by armies, thanks to clever allocation and supply of resources.
Many other empires, including Persian invaders, used calculated logistics to make it possible to
move large troops across the lands.

Considering the scale of armies and the period over which warfare lasted, this is impressive. Not
only were they dealing with transportation, but they were also resupplying at local areas and
successfully creating depots along marching routes to help them in their campaigns. Quite often,
civilian services, like engineers and technicians, were required to provide support to their
troops. This allowed units to march fast and reach the outer limits outside their empires’
borders.

The Middle Ages and Distribution

By the time the Middle Ages arrived, there were many routes established for the transportation of
goods and armies. Countries had storage systems that were often scarce but sufficient, allowing
them to store supplies from the local countryside.

In general, their castles and fortresses had a dual role:

 to protect the regional resources and population;

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  to ensure the storage and distribution of goods between regions.

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Each military division ready for deployment was carefully organized and had a set of animals and
baggage carts. By the end of the Middle Ages, military logistics further improved. To increase
mobility and sustainability, rolling magazines and storage depots were introduced.

The Industrial Age and Logistics

With the development of internal combustion engines, logistics significantly changed. The
industrial age brought us steam engines that powered railroads and ships. Meanwhile, the
technological advancement in transportation and communication during the 19th century
expanded the use of logistics in everyday life. Now, large trading companies could transport their
goods much faster and reduce their operational costs. By the beginning of the 20th century,
central and Western Europe and eastern parts of the United States had the most advanced railroad
systems.

Unfortunately, the two large World Wars took advantage of the industrial revolution, further
expanding the use of motor vehicles, communications, and naval and air means of transportation
and warfare. Eventually, this revolutionized air transportation as we know it today. On the
bright side, once wars were over, the entire industry shifted from combat to business. This gave
us the foundation for today’s large-scale distribution and production planning.

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The Advance of Information Technology

The development of computer systems is another technological advance that revolutionized

logistics. The ability to store and track a huge amount of data provided new systems with a
considerable advantage. Thanks to IT, we can now better plan, manage, and optimize every
aspect of logistics, regardless of the scale of businesses. Furthermore, the Internet provides
businesses with additional means to use various digital channels to understand demands better
and increase productivity. This will eventually, if not already, lead to the complete automation of
a large percentage of tasks included in supply chain management.
In the future, we can expect that further technological advancements will additionally support the
flow of commercial and non-commercial goods. This will allow us to use drones, clean energy, and
different online services. Not only to enhance business operations but as a means to improve our
daily actions. The history of logistics has taught us that the way of development from warfare to
business operations was long. However, since the advancement period is shortening as time passes,
completely new market opportunities may arise soon.

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 2. Concept and history of Supply chain management in Bharat
supply chain management is the management of the flow of goods and services and includes all
processes that transform raw materials into final products. It involves the active streamlining of a
business's supply-side activities to maximize customer value and gain a competitive advantage in
the marketplace.

How Supply Chain Management (SCM) Works

Supply chain management (SCM) represents an effort by suppliers to develop and implement
supply chains that are as efficient and economical as possible. Supply chains cover everything
from production to product development to the information systems needed to direct these
undertakings.

Typically, SCM attempts to centrally control or link the production, shipment, and distribution of
a product. By managing the supply chain, companies can cut excess costs and deliver products to
the consumer faster. This is done by keeping tighter control of internal inventories, internal
production, distribution, sales, and the inventories of company vendors.

SCM is based on the idea that nearly every product that comes to market results from the efforts
of various organizations that make up a supply chain. Although supply chains have existed for
ages, most companies have only recently paid attention to them as a value-add to their operations.

Types of Supply Chain Models

Supply chain management does not look the same for all companies. Each business has its
own goals, constraints, and strengths that shape what its SCM process looks like. In general,
there are often six different primary models a company can adopt to guide its supply chain
management processes.

 Continuous Flow Model: One of the more traditional supply chain methods, this model is
often best for mature industries. The continuous flow model relies on a manufacturer
producing the same good over and over and expecting customer demand will little
variation.
 Agile Model: This model is best for companies with unpredictable demand or customer-
order products. This model prioritizes flexibility, as a company may have a specific need
at any given moment and must be prepared to pivot accordingly.

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  Fast Model: This model emphasizes the quick turnover of a product with a short
life cycle. Using a fast chain model, a company strives to capitalize on a trend,
quickly produce goods, and ensure the product is fully sold before the trend ends.
 Flexible Model: The flexible model works best for companies impacted by seasonality.
Some companies may have much higher demand requirements during peak season and low
volume requirements in others. A flexible model of supply chain management makes sure
production can easily be ramped up or wound down.
 Efficient Model: For companies competing in industries with very tight profit margins, a
company may strive to get an advantage by making their supply chain management
process the most efficient. This includes utilizing equipment and machinery in the most
ideal ways in addition to managing inventory and processing orders most efficiently.
 Custom Model: If any model above doesn't suit a company's needs, it can always turn
towards a custom model. This is often the case for highly specialized industries with high
technical requirements such as an automobile manufacturer.

History of supply chain management in Bharat

The logistics industry in India has a long and rich history, dating back to ancient times. The first
recorded use of logistics in India was in the military campaigns of Alexander the Great, who used
elephants to transport supplies and troops across the country. In the centuries that followed,
logistics became an integral part of Indian society, with many different types of businesses and
organizations using it to move goods and services around the country.

Today, the logistics industry in India is booming, thanks to the country’s rapidly growing
economy. This growth is being driven by a number of factors, including the increasing demand
for e-commerce and online shopping, the expansion of the retail sector, and the government’s
infrastructure development initiatives.

With its vast population and large geographical size, India presents a unique challenge for
logistics companies. But as the country’s economy continues to grow, so too will the demand for
efficient and reliable logistics services.

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 3. Structure of Company

The company named APM Terminals has many organizational Structures such as:-

Part 1: Logistics Organization Structure - General Type

This template here shows a basic type of logistics organization chart. Each of the managers at
the management level leads some assistants, interns, senior staff, etc.

Part 2: Logistics Organization Structure - Startups

This org chart template shows the structure of a small logistics firm. The promotion team
works with business clients, while the order service team deals with normal orders from
customers.

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Part 3: Logistics Department Structure

Logistics enterprises can have many organization structures, but the most typical logistics
organizational structure should consist of a logistics manager, a customs supervisor, a
merchandiser supervisor, a materials manager, a purchasing manager, a warehouse manager,
a distribution manager, a shipping specialist, and some warehouse stock staff.

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 4. Profile of the company

As an APM Terminals facility, Port Pipavav leverages the expertise, resources, and network
of one of the largest container terminal operators.

THE COMPANY

Port Pipavav is managed and operated by APM Terminals, The Port and Terminals company of
the maritime giant, the A.P. Mollar-Maersk group. APM terminals is one of the largest
containers operating terminals in the world and offers the global shipping community as
integrated global terminal network of 63 ports and 132 inland facilities in 60 countries. With
the presence in every major market, APM Terminals serves all major trade providing our
customer with the most advanced terminals technology, equipment, and operations in the
industry. Port Pipavav, a successful Public-Private enterprise, is emerging as an important
gateway port on the West Coast of India for containers, Bulk and Liquid Cargo. Located just
152 Nautical miles from Nhava in Mumbai or 10hrs. Steaming time, port Pipavav provides
excellent access to the main shipping lines as well as to cargo belt in the north western Regin
of India.

ACHIEVEMENTS OF PIPAVAV PORT

YEAR ACHIEVEMENTS
1998 Established Pipavav por tLtd.
2000 Pipavav Port Rail Corporation formed.
2005 APM Terminals invested majority stake.
2005-2009 Port Development.
2006 Pioneers Double Stack Train Within India.
2007 Environment friendly Coal Yard Build.

2009 Marketingteamset-upinCustomerlocationvolumesincreasedby60%

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 2010 SuccessfulIPO,listed in Indian stock exchange volume increased by
45%becomes profitable first time in his history.
2011 Port expansion rapid increase in rail frequency.

PORT INFORMATION
APM Terminals Pipavav is in Gujarat, just 152 nautical miles (10 hours steaming time) from
Nhava Sheva in Mumbai. It has access immediate access to key markets in northwest India and the
largest sea food export belt in India via road and rail, including direct electrified access to the
Western Dedicated Freight Corridor. Port Pipavav is a successful public-private enterprise,
managed and operated by APM Terminals (Shareholding 43.01%). Positioned opposite two
islands, which act as a natural breakwater, the port is safe in all weather conditions, even during
the monsoon season, with wave heights less than 0.5m most of the time. During peak tidal
conditions, water currents are between 2.5 to 3 knots. The channel length at the port is 4,550m.
Due to favourable oceanographic conditions, the port offers day and night navigation to all vessels
except LPG vessels (daytime only).
Authorized Economic

Operator APM Terminals Pipavav has Authorized Economic Operator (AEO) Status from the
World Customs Organization. As such, it can offer higher levels of efficiency and faster export
import services. AEO Certification means that the Terminals' customers will experience fewer
physical inspections of imported/exported goods, faster release of shipments, preferential treatment
by Customs Authorities and deferred payment of duties.
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 Facilities & Services
APM Terminals Pipavav currently has a capacity to handle up to 1.35 million TEUs of
containers, 4 - 5 million tons of dry bulk cargo, 2 million tons of liquid cargo and about 250,000
cars per year. Additional marine side and land side areas available at port for future development.
Reefer Container
Port Pipavav is located right in the heart of the seafood belt in South Gujarat. Gujarat is the
largest exporter of seafood in India. With increased demand from SE Asia, the state has rapidly
improved its export facilities. Port Pipavav supports this growth with a dedicated reefer area and
over 500 reefer plugs. The port has access to a rich reefer hinterland of approximately 40,000
TEUs annually and is the leader both in volume and value of seafood exports.
Container

APM Terminals Pipavav has a capacity to handle 1.35mil TEU. The port is well equipped with
modern and efficient container handling equipment and operates using a technically advanced
terminal operating system - Navis N4, e-Form 13, Vessel Traffic Management System
(VTMS), EDI connectivity, APIs, customs clearance for Direct Port Delivery [DPD], reefer
container inspection chamber and more.

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 Container Scanning

The Port is equipped with a drive-through X-Ray Based Container Scanner and a Radiation Portal
Monitor for the scanning of containers selected by the Customs Risk Management Centre. The
EIR for containers selected for scanning are clearly marked 'Selected for Scanning' in red. The
scanner, which has the capacity to scan around 100 containers per hour without the driver leaving
the vehicle, reduces the time taken for the container scanning process. At the same time, it helps
prevent smuggling and detects wrongly declared goods.
Container Freight Stations

There are three fully functional Container Freight Stations (CFS) located between 2 and 8
kilometres from the container berths at the port - Logix Park, Contras Logistics and CWC. As a
result, containers can typically be moved from the CFS to the vessel in the shortest transit time; a
clear time and cost savings advantage for both cargo owners and shipping lines. The port has
adequate storage facilities within the port boundaries and has sufficient land available outside the
port for future development. Seamless multimodal connectivity to hinterland and Inland Container
Depots (ICDs) ensures quick and smooth transfer of cargo. The port is in proximity to the
proposed Dedicated Freight Corridor [DFC] and the Delhi – Mumbai Industrial Corridor. The
CFSs at Port Pipavav currently handle a wide range of cargo generated from Saurashtra central,

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northern

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Gujarat, Rajasthan, and other parts of northwest India. These include cotton, wood pulp, sesame
seeds, cattle feeds, agricultural products, ceramic tiles, soda ash, auto parts, spices, capital
goods, scrap, water paper, and electronics.
Bulk Cargo

APM Terminals has a capacity to handle 4 MMT of bulk cargos. The port handles a variety of
bulk and break-bulk cargo such as coal, cement, clinker, fertilisers, steel, iron ore, Agri-products,
salt, and soda ash. The port also handles specialised project cargo. The port is well equipped with
modern infrastructure like mechanized bagging units and wagon loading systems to handle
fertilizer rakes in motion weigh bridge, Neem coating plant at berth for neem coating of urea cargo
which is mandatory in India. APM Terminals Pipavav is one of the first ports to have an
environment friendly coal yard. The port has adequate storage facilities.
Liquid Cargo

APM Terminals Pipavav has a capacity to handle 2 MMT of Liquid cargoes per annum. The
port has a dedicated liquid bulk jetty and is equipped to handle petroleum products, chemicals,
vegetable oils, bitumen and LPG cargo etc. The port has dedicated berth alongside draft of 12m,
railway sidings for liquid cargos, pipeline connection to railway sidings from the tankages

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 5. Drives of SCM of the Company

1. PRODUCTION
This driver can be made very responsive by building factories that have a lot of excess capacity
and use flexible manufacturing techniques to produce a wide range of items. To be even more
responsive, a company could do their production in many smaller plants that are close to major
groups of customers so delivery times would be shorter. If efficiency is desirable, then a company
can build factories with very little excess capacity and have those factories optimized for
producing a limited range of items. Further efficiency can also be gained by centralizing
production in large central plants to get better economies of scale, even though delivery times
might be longer.
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2. INVENTORY
Responsiveness can be had by stocking high levels of inventory for a wide range of products.
Additional responsiveness can be gained by stocking products at many locations so as to have
the inventory close to customers and available to them immediately. Efficiency in inventory
management would call for reducing inventory levels of all items and especially of items that do
not sell as frequently. Also, economies of scale and cost savings can be gotten by stocking
inventory in only a few central locations such as regional distribution centers (DCs).

3. LOCATION
A location decision that emphasizes responsiveness would be one where a company
establishes many locations that are close to its customer base. For example, fast-food chains use
location to be very responsive to their customers by opening up lots of stores in high volume
markets. Efficiency can be achieved by operating from only a few locations and centralizing
activities in common locations. An example of this is the way e-commerce retailers serve large
geographical markets from only a few central locations that perform a wide range of activities.

4. TRANSPORTATION
Responsiveness can be achieved by a transportation mode that is fast and flexible such as trucks
and airplanes. Many companies that sell products through catalogs or on the Internet are able to
provide high levels of responsiveness by using transportation to deliver their products often
within 48 hours or less. FedEx and UPS are two companies that can provide very responsive
transportation services. And now Amazon is expanding and operating its own transportation
services in high volume markets to be more responsive to customer desires. Efficiency can be
emphasized by transporting products in larger batches and doing it less often. The use of
transportation modes such as ship, railroad, and pipelines can be very efficient. Transportation can
also be made more efficient if it is originated out of a central hub facility or distribution center
(DC) instead of from many separate branch locations.

5. INFORMATION
The power of this driver grows stronger every year as the technology for collecting and sharing
information becomes more wide spread, easier to use, and less expensive. Information, much
like money, is a very useful commodity because it can be applied directly to enhance the

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performance

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of the other four supply chain drivers. High levels of responsiveness can be achieved when
companies collect and share accurate and timely data generated by the operations of the other four
drivers. An example of this is the supply chains that serve the electronics market; they are some
of the most responsive in the world. Companies in these supply chains, the manufacturers,
distributors, and the big retailers all collect and share data about customer demand, production
schedules, and inventory levels. This enables companies in these supply chains to respond quickly
to situations and new market demands in the high-change and unpredictable world of electronic
devices (smartphones, sensors, home entertainment and video game equipment, etc.).

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 6. Components of Logistic management of a company

There are several essential components of logistics management to run the supply chain
efficiently and scale up your organization. Optimizing the operations is important for the cost-
controlled running of logistics processes. Therefore, it has become imperative for business owners
to analyze the major components of logistics as it magnifies the processes and ensures client
satisfaction.

Here are the 6 major components of logistics management

1. Demand Planning
Determining all the aspects of logistics is important to maintain a balance between demand and
supply. The flow of goods is not interrupted by logistics management as it ensures that operations
are well-planned. Therefore, facilitating the management logistics process allows organizations
to evaluate and forecast the demand for goods and services in SCM.

Proper planning is a major component of the supply chain that can eliminate the insufficient or
improper supply of goods. It involves activities like warehousing, material handling, and
storage for managing the logistics functions effectively. Similarly, goal is to analyze historical
data, statistical forecasting, and overall product lifecycle for staying in front of market shifts.

2. Storage and Material Handling

In the contemporary world, the demand in the market is volatile so it is essential that there should
be surplus goods to fulfill the sudden requirements of the customers. The goods or materials
should be stored and preserved correctly. Warehouse management systems (WMS) are extremely
important to ensure that goods are easy to store, move, and transport.

WMS optimizes the storage capacities, and equipment, and lowers the distribution and
transportation costs which is beneficial for the smooth running of supply chain operations. Also,
the goods which are not handled properly can get flawed which can cause redundant financial
loss to the business. Therefore, it is considered to be an essential component of logistics

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management.

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3. Inventory Management
Inventory levels are checked regularly by the companies to monitor the flow of goods in and out
of a warehouse. It evaluates and identifies how much stock to order at what time and where it
should be stored. Therefore, maintaining an efficient inventory level is majorly crucial to fulfilling
customer requirements. Therefore, with proper inventory management, companies can ensure that
they do not have too much or too little stock on hand. It even predicts the consumer demand which
leads to efficient order planning and organizing.

Automated inventory control and management control the operations within the supply to
make processes easy and convenient. Also, inventory management systems play a crucial role
in optimizing stock levels. Strategic planning and real-time monitoring of inventory are one of
the most important components of logistics.

4. Fleet Management
Managing and monitoring commercial vehicles is an essential component of logistics as it
involves activities like asset utilization, improving maintenance planning of fleets, and managing
costs.
Nowadays, companies are investing in fleet management software for improving the efficiency
of the fleets and drivers.

It provides real-time updates and insights to fleet owners by using technological advancement
solutions. Also, it is an effective way of improving the safety conditions of drivers and
vehicles. Therefore, the fleet management system tends to provide all the information
associated with the fleets through predictive analytics and accurate reporting.

5. Transportation Management
It is the most important component of logistics management as it plans and supports the
distribution of goods to their final destination. It can be delivered via freight trains, road vehicles,
shipping, and so on. Optimizing the transportation ensures that the goods or items have reached
the end-user on time.

It even manages the reverse flow of goods so investing in a transport management system can be

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beneficial for the organization’s growth. It yields several benefits such as cost reduction,
reduced

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carbon footprints, timely deliveries, and so on. Some organizations also prefer consolidation as it
is a process of combining multiple smaller shipments in one. Therefore, this can enhance customer
services as they can receive the products on time or even before time.

6. Information and Control

Implementing new age technologies is considered to be the future of the logistics industry.
Software and processes provide data-driven insights that help companies to manage supply chains
more efficiently. It tends to forecast demands, and transportation times, and allow companies to
make better cost-effective decisions. Maintaining the flow of information is necessary to get
useful insights and manage the demand more accurately. However, businesses are embracing
advanced technologies like Artificial Intelligence, the Internet of Things, Big Data, and Block
chain to achieve transparency in the entire supply chain. Therefore, getting the right information
and controlover the logistics operations plays a pivotal role in executing each one of these
components of logistics management.

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 7. Elements of strategic sourcing

Organizations are supposed to select the directions in which it will move towards. Strategic
management has three major elements, which include strategic analysis, strategic choice, and
strategy implementation.

1. Strategy Analysis

Strategy analysis is usually concerned with understanding the organizations strategic position. This
is an element that is concerned with the changes that are going on in the environment and how the
changes are going to affect the activities of the organization. Other factors that are considered in
this element are the strength of the resources in the organization, in the context of the changes. It
also focuses on what the associated groups in the organization aspire to and how the changes affect
the present position and the future position of the organization. Strategic analysis usually aims at
creating a view of the factors that can have an impact on the future and present performance of the
organization. When strategic management is performed in the right manner, it helps in selecting the
correct strategy.

There are certain factors that should be considered during strategic analysis. The first factor
includes the business environment. It is hard for organizations to exist without interacting with a
complex, political, commercial, economic, social, cultural, and technological environment. The
environmental changes are sometimes complex for certain organizations than others. Therefore,

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when organizations are faced with the environmental changes, they should have a clear
understanding of the impacts so that to be able to formulate a strategic plan. The central
importance of strategic analysis is to understand the environmental effects to the organization. It is
necessary to consider the environmental effects on the business and also the present and expected
changes in the environment.

The second factor is the organization resources, which are internal influences. When thinking
about the strategic capability of the organization, it is necessary to consider the weaknesses and
strengths. The weakness and strengths of organizations can be identified by considering the
organization resource areas like its management, physical plant, products, and its financial
structure. This aims at forming an observation of the internal influences and restriction on the
strategic choice.

The final factor is the prospects of the different stakeholders in that the development of the
organizations depends a lot on the expectations of the stakeholders. The assumption and beliefs of
the stakeholders greatly constitute them culture of the organization. A lot of influence in decision
making concerning the strategy is normally influenced by the organizations stakeholders and
degree of the stakeholders impact on the strategy depend on the respective power of every group of
stakeholders. The beliefs and assumptions of the stakeholders are usually influenced by the
resource and environmental implications. The influence that tends to prevail normally depends on
the group that has the greatest power. It is extremely necessary to understand this as it helps in
recognizing why the organization is following a particular strategy.

Consideration of the resources, expectations, environment, and objectives in the political and
cultural framework of the organization provide the foundation for strategic analysis in the
organization. In order to be able to understand the strategic position that the organization is in, it is
essential to examine the extent of the implication and direction of the current strategy and the
objectives the organization is following if they are in line with and can manage with the strategic
analysis implications.

2. Strategic Choice

Strategic analysis usually creates a foundation for strategic choice. After strategic analysis has
been done, it is now ready to make a strategic choice. Strategic choice is normally defined

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as the

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practice of selecting the best possible course of action, and it is usually based on the evaluation of
the available strategic options. Strategic choice has three parts that include the generation of
strategic options, evaluation of the options, and selection of the strategy. During strategic choice,
there may be many strategic options; therefore, it is necessary to ensure that the selected option is
the best.

The second part of strategic choice is the evaluation of the strategic options. Examination of the
strategic option can be done in the strategic analysis so that to assess their relative merits. When
the organization is deciding on any of the options, it might decide to ask several questions. The
first questions that might be considered is the option built upon strengths, one that will take
advantage of opportunities, and overcome weaknesses while it is minimizing threats that the
business is faced with. By focusing on the following factors, it is referred to as searching for the
suitability of the strategy. There are several questions that the organizations may consider when it
is evaluating the strategic options.

The third part is the selection of the strategy which is the process of selection the options that the
organization is going to pursue. Sometimes the selected choice is usually a matter of the
management judgment. It is extremely essential to understand that, in the selection process, it
cannot always be viewed as a purely logical, objective act. During strategic choice, the selected
strategy is normally strongly influenced by the managers values and other groups with an interest
in the organization. This at one point reflects the power structure of the organization.

3. Strategy Implementation

This is the third major element of strategic management that is concerned with strategy translation
into action. This is the stage where the strategy is translated to action. The implementation of the
strategy requires proper deployment of the organization resources, effective change management,
careful handling of the possible changes in the structure of the organization, and also careful
planning. There are several parts that are involved in strategy implementation. The first part is in
planning and allocation of resources. During implementation, it is involved with resource planning
that includes the logistic of implementation. The second part is organization design and structure.
During strategy implementation, there are certain changes in organization structure that should be
done. It is also likely for the need to arise for adapting the system used in managing the
organization. The third part is the management of the strategic change.
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When a strategy is being implemented, it also requires that the strategic change to be managed.
Action from the managers is required in the way the change process will be managed and the
mechanism that they are going to use. The mechanisms that the managers use are concerned with
the redesign of the organization, changing daily routines and organization cultural aspects, and the
political barriers to change.

To conclude. the three elements of strategic management are interconnected in that in order for a
strategic choice to be selected, there must be an analysis of options so that to determine the strategy
that is going to be effective and efficient for the organization. Strategic implementation normally
depends on strategic choice. The implementation of a strategy is normally done after different
strategies have been considered so that a conclusion is arrived at on the choice that the organization
will implement. This is a choice that will accomplish the expected goal.

8. Importance of Logistics management for the company

The purpose of logistics management is to manage several processes in the supply chain
and provide the highest degree of accuracy to meet the customer demands. It creates visibility with
real-time data to optimize the delivery process and avoid disruptions. Some of the importances of
Logistics are: -

1. Boost Business Profitability

It has the ability to improve the operational excellence which is necessary to grow and expand your
business. Managing logistics is extremely crucial as it helps the organisations to gain deep insights
of the supply chain. This also increases the order fulfilment rate and enables strong business
outcomes. Providing value to customers by implementing the latest technological innovations can
improve the productivity and profitability of the operations.

2. Improve Customer Experience

Track different aspects of the supply chain are the essence of the logistics process. It allows
companies to communicate effectively with the customers and provide fast and quality service
to them. Hence, smooth logistics operations create enormous value to the customers, which in
turns

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build the brand reputation. Providing better customer services is a key to success for businesses.
3. Reduce Operational Cost

Logistics management leads to transparency and visibility in the operations. This tends to improve
overall efficiency of the business as it provides route optimization to enhance on-time delivery
and reduce the fuel cost. It is an important element to keep your expenses lower by analysing and
monitoring the real-time data. Also, an effective logistics management leads to supply chain
transparency which is necessary for businesses to optimise asset utilisation.
4. Ensure Seamless Delivery

Professionally organised logistics tends to deliver the right products at the right time. In the
modern world, delivery processes are continuously evolving as fast and safe shipping adds value
to the customer experience. Logistics management focuses on delivering the products to the
customers on time or ahead of schedule. Therefore, the on-time delivery is the primary focus of
the well-organised SCM strategies.
5. Success of Supply Chain

Logistics management deals with numerous aspects of supply chain such as production,
automating functions, material handling, and distribution and so on. Monitoring these networking
within the supply chain is a major component for the efficient functioning of the business
operations. Moreover, a successful supply chain management helps you boost your business
value. Additionally, organisations can gain a clear advantage over the competition.

6. Improve Warehouse Management

When you optimize the logistics activities, it allows you to control and monitor your warehouse
operations. Centralising the complex task by developing warehouse inventory plans is always
advisable for the businesses to operate effectively. Warehouse management activities involve
storage and material handling of goods. It is a core pillar in the transportation industry that starts
from auditing and tracking to distributing the goods to its final destination.

7. Enhance Visibility
Managing your logistics is important for business growth as it plays a major role in improving
connectivity, interoperability, and visibility of the operations. You can analyse every stage of
your supply chain in real-time. Gaining essential information enables businesses to control cost
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and

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figure out efficiencies. Therefore, transparency across the supply chain tends to reduce failures and
help you in meeting the customer demands. Ensuring synchronised supply chains is a vital process
to benefit both the companies and customers.

8. Intelligent Route Planning

Executing delivery and logistics operations with intelligent route planning software can lead to
great customer service and minimal expenses. Optimization of routes with the most efficient GPS
tracking company in Jaipur is considered to be an important aspect of logistics management as
implementing route planning software reduces the manual dependencies and amplifies timely
delivery. In addition, it also increases safety of drivers, products and vehicles. Importance of
logistics management to handle the transportation is enormous for business growth.

9. Risk Management
Preparing a risk management plan enables business owners to clearly understand the disruptions
in an effective way. Assessing your supply chain activities to evaluate the impact of operations
can guide the business to predict the supply and demand beforehand. Logistics management can
develop an effective approach of risk management to minimise the impact of business threats.
Streamlining the logistics planning processes is important for creating value for customers.

10. Scalability
Managing and monitoring the distribution network is necessary to meet the industry’s growing
demands. The software has the ability to create the business more scalable by quickly responding
to disruptions. Therefore, embracing cutting-edge software’s focuses on demand-driven logistics
expansion and scalability. Optimizing the logistics planning activities and identifying the
emerging trends can also enhance the accuracy of the operations.

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 9. Logistical Competitive advantages of the company

Given that the movement of goods is what drives cash flow, it stands to reason that managing
that movement—logistics management—is a core business concern. Indeed, logistics
management impacts a company’s bottom line for better or worse. It’s best not to leave that
impact to chance.

The following are six major benefits of effective logistics management.

1. Visibility:
Logistics management affords greater visibility into the supply chain. This enables
businesses to better control costs, tease out efficiencies, spot supply chain
problems, conducts demand planning and gain insights into opportunities.

2. Reduced overhead:
Logistics management enables companies to reduce overhead in areas from
cutting shipping costs to shrinking how much warehouse space they need by
proactively controlling inventory levels.

3. Improved customer experience:

An excellent customer experience (CX) is the driving factor behind repeat sales. By
delivering orders accurately and quickly, you improve the customer experience which
in turn increase brand loyalty and future sales.

4. Preventing loss:
Logistics management helps prevent loss in several ways. One is by a true inventory
accounting, so your company knows exactly how much stock it has on hand at any given
time. Companies can also track movement and current location so stock won’t be
misplaced or diverted without notice. In addition, by ensuring optimal storage and transport
conditions, such as temperature and moisture management, solid logistics prevents spoilage
and damage.

5. Support expansion:

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 Demand forecasting supports expansion by realistically calculating inventory needs
and ordering, transporting and stocking accordingly. Further, logistics management
best practices help companies scale to fulfil more customer orders on time.

6. Competitive edge:
Delivering orders correctly and on time is a foundational element in the customer
experience—and good CX is key to repeat orders as well as solid brand reputation and net
promoter scores, which in turn help a company acquire new buyers. Logistics
management helps a company consistently deliver, or over deliver, on promises and
sharpen its competitive edge.

10. SCM and Business strategy

A supply chain strategy is like a roadmap that helps companies get their products to customers
with as little friction as possible. This plan ensures that every phase of the supply chain is
optimized, including the sourcing of materials, manufacturing, delivery, and logistics.

1. Place buffers along the supply chain

Strategically placing buffers can help organizations absorb the impact of unexpected delays.
There are three types of buffers you can implement along the supply chain:

 Inventory: Keep safety stock or buffer stock to protect against delays or demand
surges (this is the most common buffer since inventory can be easily tracked and
controlled in real-time with inventory management software).
 Time Buffer: Materials arrive before demand to protect an upstream or downstream process
or delivery point.
 Capacity Buffer: Leverage underutilized space like warehouses or production facilities.

2. Diversify your manufacturing and sourcing network

As supply chain disruptions have intensified over the past decade, procurement directors are
realizing relying on a single source to get products is risky. For example, in 2011, natural disasters
in Thailand and Japan prevented nearly-finished cars from being shipped overseas.

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Diversifying your network (also called multisourcing) starts with categorizing partners based on
two criteria: current cost and financial impact if that partner can’t follow through in the event of
unforeseen circumstances. Then, you can forge relationships with additional suppliers or a
supplier that has capabilities in multiple locations.

3. Invest in demand forecasting

Demand forecasting is the process of using data—not gut feelings—to gauge the demand for
materials ahead of time, so you don’t come up short when it matters most. Accurate demand
forecasting improves lead times, cuts costs, and improves customer satisfaction.

Think of it like your weather app: if there’s a chance of rain, you know to pack an umbrella and
dry clothes. Is it more stuff to carry? Sure, but you’d be upset if you ignored the forecast and
got soaked.

There are numerous methods to predict demand, like surveying customers, monitoring
social media, reviewing historical data and trends, or soliciting advice from a consultant.

4. Standardize your processes

The more consistent you keep your supply chain operations, the more dependable it will be. This
is especially true for organizations whose suppliers and manufacturers are scattered across the
world.

Templates for platforms, products, and plants enable seamless production and adherence to
compliance regulations. For example, companies in the automotive industry use common
vehicle platforms to harmonize their supply chain strategy.

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 11. SWOT Analysis

SWOT, which stands for Strengths, Weaknesses, Opportunities and Threats, is an analytical
framework that identifies the internal and external factors that are favorable and unfavorable for
a company.
STRENGTH WEAKNESS

 Multi-cargo handling capabilities,  Draft constraints,

 Location captive cargo of the two  lock gate constraints,
oil refineries,  outdated equipment,
 sound financial position  high cargo-handling costs,
 Vast land estate and the port’s proximity  rail/road evacuation problems,
to a vibrant mega-city.  Ageing workforce delay in
project implementation.

OPPORTUNITIES THREATS

 Better productivity at competing ports,  In order to supplement the existing

 containerization of cargo, projects in pipeline and fresh
 fluctuating nature of break-bulk cargo, opportunities (such as vehicle

 The extreme price sensitivity of exports), it would be necessary to

conventional cargo. create: ƒ Additional backup facilities
such as CFS, Multi-level car parks,
Empty Yards and Dispaches.
 Ample scope was identified for a lot of
other value-added opportunities like
Cruise Terminal, Convention Centres,
Marina Development of the Western
waterfront.

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 12. Self- Learning

The self-learning supply chain marks the next major frontier of supply chain innovation. It's a
futuristic vision of a world in which supply chain systems, infused with artificial intelligence
(AI), can analyze existing supply chain strategies and data to learn what factors lead to supply
chain failures. These AI-driven systems then use this knowledge to predict future supply chain
problems and proactively prescribe or autonomously execute resolutions. While there is still a
way to go before the self-learning supply chain is a reality, recent advancements in AI suggest it
is no longer "blue-sky thinking."

The self-learning supply chain of the future marries the benefits of AI with the digital
technologies that many companies have already started incorporating into their supply chain
disciplines. This digital supply chain transformation is being fueled by several technology
advancements: physical "things" incorporating computer technology; readily available big data
such as social media, news, events, and weather (SNEW); and computer systems and software
becoming more intelligent.
These digital technologies are transforming the very nature of the supply chain—which was once
built for volume and scale—into an agile, digitally connected framework that leverages a single set
of physical assets to support multiple virtual supply chains. These virtual supply chains,
sometimes defined as supply chain grids, replace the traditional fixed linear supply chains of the
past by providing new flow options that enable accelerated order fulfillment based on near real-
time awareness of assets and inventory.

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 13. References

1.Annual Report of the company.

2.Monthly Magazine of the Company.
3.www.wekipidia.com
4.www.apmterminals.com

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