LOGISTICS PARKS IN INDIA

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LOGISTICS PARKS IN INDIA

• Perspective from New Economy

Balaji Reddipalli
Vice President Supply Chain and Commercial
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Characteristics of New Economy
1. Physicality
2. Low unit Volume
3. Very Wide Range
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Key Characteristics
Characteristic Offline retail Online retail
Physicality Assuring physical presence, touch and feel. Tightly coupled engagement and fulfilment Virtual experience in ordering, physical experience on delivery. Decoupled engagement and fulfilment
Aggregation of Inventory Inventory at multiple points Service levels and stockouts are a challenge Sigma is a friend, rather than an enemy
Costs Real estate and Inventory Central warehouse with Distribution Centres
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Fulfilment models
Characteristic Traditional Model Logistics Park
Core strength Basic Warehousing Delayed differentiation
Servicing Model All elements need to be coordinated Single Door
Infrastructure Basic Fairly Advanced
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Challenges for e-commerce retail

• Customers to be serviced, anywhere in the country
• Need to maintain service to smaller towns
• How do you ensure a great Customer Experience
• Dependency on logistics partners for last mile
  delivery
• Manage Reverse Logistics for high
  involvement/high value purchases

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What does one expect from Logistics Parks?

• Delayed Differentiation for Imports
• E.g. ebay Global easybuy, 20north
• Infrastructure to manage last-mile delivery and
  Customer Experience
• Tech-enabled?
• Provide economies of scale for Shipments
• Maximise cost/benefit
• Scalable models