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Asian Council To Focus On Logistics Cost Management

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Our Bureau BUSINESS STANDARD
Last Updated : Jan 28 2013 | 2:19 AM IST

The development of national highways and port connectivity would lead to a sharp rise in the volume of cargo transported.

The biggest beneficiaries would be transporters and producers of high-volume, low-value cargoes like commodities where the cost of logistics would be a high percentage of cost of goods.

Under normal circumstances, the logistics costs of branded goods was a much lower percentage of the value of the cargo.

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Improved highways and port connectivity would also expose Indian businesses to unbridled competition as imported goods and manufactured products from other locations within the country would flow seamlessly into markets as there will be dramatic improvements in efficiency in existing bottlenecks, like poor roads and choked, fade away.

In such a scenario, companies which have invested in a proper system of logistics management would enjoy a clear advantage over the competition.

According to the Asian Council of Logistics Management (ACLM), however, both exporters and domestic businesses have continued to ignore the need for a world-class system of logistics and supply chain management.

Allied to the US-based global Council of Logistics Management (CLM), ACLM was in a position to source global skills and practices in logistics management.

The body was also in a position to support research projects and collate existing information to suggest best possible solutions for businesses.

On the manpower front, ACLM has already launched a one-year certificate course in the subject and plans to get into distance learning and ongoing education projects in the near future.

An organisation with 144 members and close links with the armed forces, ACLM has executed advisory work for sectors like cement, hospitals and ambulance services.

ACLM sources said specialised training was needed to achieve efficiencies in procurement and transportation of goods from vendor in the pre-manufacturing stage, as also for cost competitive solutions for warehousing and distribution of goods to the point of sale in the post-manufacturing stage.

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First Published: Sep 09 2003 | 12:00 AM IST

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