Mr. Subeer Oberoi engaged the students in an insightful discussion on supply chain and logistics. The Indian logistics industry is large, out of which, warehouse and transport contribute to 90% of logistics. The major challenges faced in logistics are due to inadequate infrastructure, excess regulations, lack of trained manpower and poor warehousing.
Moving on, Mr. Oberoi spoke about the various elements of logistics i.e., transport, storage, and value added services; comprising of order management and reverse logistics which need to be maintained efficiently. The challenge in reverse logistics is to minimize the costs so that the customer doesn’t have to pay for return of delivery. He said that, as times are changing the product life cycle is getting shorter, which poses a challenge to the logistics.
“In business, timing is very important”, said Mr. Oberoi. He emphasised that change in constant and that every business needs to predict and adapt to changes, failing which, it will not survive in the future. By quoting the example of a logistics manufacturer in Japan and how they grew watermelons in the shape of a cuboid to manage space, which helped in reduction of logistics cost, he emphasised the importance of an environment friendly approach.
He shared his thoughts on GST (Goods and Service tax) bill which will unite India into a single market. He spoke about its impact on warehousing. Manufacturers have opened many small warehouses across various states to reduce the impact of taxes levied by each state. Now, with the introduction of GST, there will be movement of goods between the warehouses and the need for many small warehouses will reduce. Mr. Oberoi said that 60% of the domestic cargo is transported by road even though it is not efficient. Now, the emphasis is being laid on rail network and inland water ways. The speed of rail freight corridors presently is 24km/hour. With the introduction of dedicated rail freight corridors, the speed will increase to 70km/hour. He concluded by stating that, IT and GST will help logistics become more efficient.