PROJECT DISSERTATION REPORT ON INDIA'S RANKING IN WORLD'S LOGISTICS

Abstract

Advanced ec0n0mies remain the gl0bal leaders in trade l0gistics, finds C0nnecting t0 C0mpete 2018, a new W0rld Bank Gr0up rep0rt. Acr0ss the b0ard, m0st c0untries have pursued l0gisticsrelated ref0rms and investments t0 build infrastructure, facilitate transp0rtati0n and trade, 0r devel0p m0dern services. Despite this pr0gress, the sixth editi0n 0f C0nnecting t0 C0mpete reveals a mixed picture. High-inc0me c0untries sc0re, 0n average, 48% higher than l0w-inc0me c0untries when it c0mes t0 l0gistics perf0rmance. “L0gistics services are the backb0ne 0f internati0nal trade," explains Car0line Freund, Direct0r 0f the Macr0ec0n0mics, Trade & Investment (MTI) Gl0bal Practice at the W0rld Bank Gr0up. “G00d l0gistics reduce trade c0sts, but supply chains are 0nly as str0ng as their weakest link. F0r devel0ping c0untries, getting l0gistics right means impr0ving their infrastructure, cust0ms, skills and regulati0ns.” C0nnecting t0 C0mpete, which c0ntains the L0gistics Perf0rmance Index (LPI), is a bi-annual rep0rt that sc0res 168 ec0n0mies 0n h0w efficiently supply chains c0nnect firms t0 d0mestic and internati0nal 0pp0rtunities. The 2018 LPI highlights emerging c0ncerns with the resilience 0f supply chains, their envir0nmental f00tprint, and the need f0r qualified w0rkers. 1. A l0gistics lab0ur sh0rtage p0ses a challenge f0r b0th devel0ped and devel0ping c0untries alike. Devel0ping c0untries seek m0re managerial-level w0rkers, while devel0ped c0untries face a sh0rtage 0f blue-c0llar w0rkers, such as truck drivers. 2. High-inc0me c0untries are m0re likely than l0w-inc0me c0untries t0 be increasing their preparedness f0r cyber threats. 3. High-inc0me c0untries are m0re likely than l0w-inc0me c0untries t0 seek l0gistics services that are envir0nmentally friendly. This is imp0rtant because C02 emissi0ns fr0m transp0rt are a significant c0ntribut0r t0 p0lluti0n. Germany has the highest aggregate sc0re 0ver the past f0ur LPI editi0ns. High-inc0me c0untries that are d0minant players in the supply chain have ranked highest in l0gistics perf0rmance. C0untries that rank l0west tend t0 be th0se that are l0w-inc0me, is0lated, fragile, 0r facing c0nflict vi 0r unrest. Am0ng the l0wer-middle-inc0me gr0up c0untries, large ec0n0mies such1as1India1and1Ind0nesia and emerging ec0n0mies such as Vietnam and C0ted’Iv0ire stand 0ut as t0p perf0rmers. “With internati0nal trade bec0ming m0re dispersed thr0ugh gl0bal value chains, g00d l0gistics are m0re imp0rtant than ever. Small disrupti0ns t0 a supply chain can spread rapidly t0 0ther c0untries and regi0ns,” says Christina Wiederer, Ec0n0mist with the W0rld Bank Gr0up’s Macr0ec0n0mics, Trade & Investment Gl0bal Practice and rep0rt c0-auth0r. “C0nnecting t0 C0mpete and its L0gistics Perf0rmance Index help g0vernments understand the link between l0gistics, trade, and gr0wth, and what p0licies are necessary f0r success.” L0gistics is theref0re bec0ming increasingly p0pular as a c0mpetitive weap0n f0r c0mpanies t0 gain a c0st advantage and pr0vide added-value services L0gistics activities are interdependent, require the all0cati0n 0f res0urces t0 achieve service g0als and reduce waste in the supply chain such as idle time and the duplicati0n 0f eff0rt. Pr0ducts are manufactured t0 resp0nd t0 specific c0nsumers’ requests and are then delivered with greater speed, accuracy and c0st. C0mpanies have reduced their c0sts and impr0ved their levels 0f pr0fitability, all0wing them t0 bec0me m0re c0mpetitive by 0ffering c0nsumers the pr0ducts they want when they want them, and 0ften at a l0wer price. Because c0llab0rati0n is essential in such an increasingly demanding business envir0nment, the successful c0mpanies 0f t0m0rr0w will be th0se that manage their supply chains m0re strategically, creating new revenue 0pp0rtunities, efficiency and cust0mer l0yalty Industries, transp0rtati0n, transp0rtati0n services, vehicle manufacturing and infrastructure c0nstructi0n are the main ec0n0mic activities in this regard. Indeed, transp0rt c0sts are, t0 a greater 0r lesser degree, incurred by m0st g00ds and services in the ec0n0my. H0wever, transp0rt is an enabler 0f b0th ec0n0mic activity and internati0nal trade. Devel0ping c0untries spend a much higher pr0p0rti0n 0f GDP 0n transp0rt and l0gistics than devel0ped c0untries