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Supply Chain of merchandising companies need to pretty dynamic- e.g

Sportobeyrmer had long lead times with the supplies- so lagged behind in

fashion and products/ but merchandising company needs fast supply side as

well as fast information sharing.

o Risky items to be produced in Hongkong- as high efficiency and more

costo Less risky in China- as less cost

Logistics is the hottest career out there. It links every functional area in a

corporation and its success.

Analyzing logistics industry from a financial perspective throws out a

strategic perspective as to why the industry is not matured enough for hot

M&A transactions.

Both inbound and outbound logistics to be strengthen- currently mainly outbound logistics

in India is considered because of customer focused strategy. Inbound should be strengthen

to save the raw material and optimize the system.

Focus should be on catching up with the manufacturing sectors support for the strong

logistics.

Pilferage and theft from trucks/ trains should be reduced and wherever possible, focus on

waterways to avoid that at all

Opportunity for logistics companies lies in earning foreign exchange for the country and

cross the national frontiers and provide consultancies in neighboring countries like

Bangladesh, Nepal or African countries and nearby Middle East countries to start with.

Use of small ships/ Barges as improper port infrastructure may cause problem for incomingships (for both international and national transport through ocean.

Focus on Multimodal than Intermodal (e.g. CONCOR)

If you want to play on the economy of scale production, you must execute the same on the

Supply chain/ logistics part as well.

India has nearly 16,000 km of inland waterways of which about 5,000 km

are navigable by large barges. In practice only 2000 km are utilised and

managed by IWAI which was established in 1986.

Prime Minister Manmohan Singh has taken steps to fast-track the

development and use of inland waterways by involving public and private

sectors.

The National Thermal Power Corporation (NTPC) has agreed to use the

inland waterways to transport three million metric tonnes of coal for Barh

power project in Bihar.

India ranks 46th in WB logistics index

This change in the tax structure is going to have a huge impact in the currently

supply chain of India. It is currently in sub-optimal and has been structured in such a

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fashion to avoid taxes. The supply chain tax structure of India can be broadly

classified in the following categories.

Central Government Taxes in India: Customs Duties, Excise Duties, Gift Tax, IncomeTax, Wealth Tax, Service Tax

State Government Taxes in India: Road Tax, Luxury Tax, Entertainment Tax, StampDuty, Value Added Tax