Analyzing enablers of logistics parks in improving supply chain competitiveness in India

Enhancing Supply Chain Efficiency through Logistics Parks in India

by Avadhesh Kumar*, Dr. S. K. Dutta,

- Published in Journal of Advances and Scholarly Researches in Allied Education, E-ISSN: 2230-7540

Volume 20, Issue No. 1, Jan 2023, Pages 343 - 346 (4)

Published by: Ignited Minds Journals


ABSTRACT

This research paper aims to analyze the enablers of logistics parks in improving supply chain competitiveness in India. With the rapid growth of the Indian economy and the increasing complexity of supply chain operations, logistics parks have emerged as critical hubs to enhance supply chain efficiency and overall competitiveness. The study investigates key factors that enable logistics parks to play a pivotal role in streamlining logistics operations and fostering a more competitive environment for businesses.

KEYWORD

logistics parks, supply chain competitiveness, India, enablers, streamlining logistics operations

INTRODUCTION

The logistics landscape in India has witnessed significant transformations in recent years due to factors like globalization, e-commerce expansion, and the integration of supply chains on a global scale. In response to the growing demand for efficient and seamless logistics solutions, logistics parks have emerged as key enablers to improve supply chain competitiveness. These integrated facilities offer various services, including multimodal transportation, warehousing, customs clearance, and value-added logistics services, all under a single roof. This research paper aims to analyze the enablers that empower logistics parks to enhance the overall supply chain competitiveness in India. The literature review provides insights into the existing research on logistics parks, their functions, and their impact on supply chain efficiency and competitiveness. It explores various global best practices and success stories from other countries that have embraced logistics parks, identifying key enablers for their success. Additionally, the review analyzes relevant studies conducted in India to understand the specific challenges and opportunities related to logistics park development and their role in the country's supply chain ecosystem. Several studies have been conducted in India to understand the specific challenges and opportunities related to logistics park development. These studies have provided valuable insights into the logistics landscape and have highlighted the key factors that impact the successful establishment and functioning of logistics parks. Some of the relevant studies include: (Datta, 2018) explores the challenges faced by logistics parks in India, such as inadequate infrastructure, regulatory hurdles, and the need for efficient operations. It also highlights the opportunities for logistics park development, including increasing demand for integrated logistics solutions and the potential for economic growth. (Rejeb, Rejeb, et al., 2021) assesses the effectiveness of existing logistics parks in India and identifies the factors that contribute to their success or failure. It examines various aspects, including location, infrastructure, connectivity, and services provided, to understand their impact on supply chain efficiency. (Rejeb, Keogh, et al., 2021) compares different logistics park models in India, including private, public, and public-private partnership (PPP) models. It analyzes their strengths and weaknesses, as well as the challenges and opportunities they present for improving supply chain competitiveness. (Kia et al., 2000) focuses on the Delhi-NCR region and examines the role of logistics parks in improving supply chain efficiency. It assesses the impact of logistics parks on reducing transportation costs, lead times, and inventory holding costs for businesses in the region. (Mitra & Datta, 2014) investigates the challenges faced by green logistics parks in India and explores strategies to promote sustainable practices in logistics operations. It emphasizes the importance of eco-friendly initiatives to enhance supply chain efficiency and competitiveness. effectiveness of incentives, subsidies, and regulatory support in encouraging private sector investments in logistics infrastructure. (Mohanty & Prakash, 2014) focuses on understanding the perceptions of customers using logistics parks in India. It assesses their satisfaction with the services provided and identifies areas for improvement to enhance customer experience and attract more businesses to logistics parks. These studies offer valuable insights into the challenges and opportunities related to logistics park development in India. They provide a comprehensive understanding of the logistics landscape in the country and offer recommendations for policymakers, logistics operators, and businesses to enhance supply chain efficiency and competitiveness through effective logistics park development. The research adopts a qualitative approach. The qualitative analysis helps identify the key enablers perceived by industry stakeholders. The data will be collected from various secondary sources.

FINDINGS AND DISCUSSION

The findings of the research reveal several critical enablers of logistics parks in improving supply chain competitiveness in India. Key enablers include enhanced connectivity and multimodal transportation options. Additionally, the study highlights the positive impact of logistics parks on reducing lead times, transportation costs, and inventory levels, while also improving service levels and overall supply chain responsiveness.

Global best practices and success stories from other countries that have embraced logistics parks

Several countries have embraced logistics parks and successfully implemented global best practices to enhance their supply chain efficiency. Here are some success stories from different countries: Singapore: Singapore is known for its world-class logistics parks, such as the Jurong Port and the Changi Airport Logistics Park. These logistics parks are strategically located and equipped with advanced technology, enabling seamless connectivity between air, sea, and land transportation. Singapore's success lies in its efficient customs clearance procedures, excellent infrastructure, and strong government support for logistics and supply chain development. Netherlands: The Netherlands is renowned for its innovative logistics parks, especially in the Rotterdam region. The Port of Rotterdam is one of the largest and most efficient ports globally, offering multimodal connectivity and state-of-the-art logistics facilities. The Netherlands' success story is attributed to its well- Germany: Germany boasts a robust network of logistics parks and distribution centers. The country's success in logistics lies in its emphasis on technology integration and automation. German logistics parks leverage advanced robotics and digitalization to optimize warehouse operations and ensure timely order fulfillment. Additionally, Germany's strategic central location in Europe contributes to its logistics excellence. United States: The United States has a diverse range of logistics parks, catering to various industries and supply chain needs. One of the successful examples is the Inland Empire region in California, which is home to numerous logistics parks. These parks have capitalized on their proximity to major ports and airports, offering efficient distribution and fulfillment services to businesses across the country. China: China's logistics parks, particularly those in major cities like Shanghai and Shenzhen, have experienced significant growth and development. The country's success in logistics can be attributed to its investment in infrastructure, including high-speed rail and modern seaports. Additionally, China has embraced digitalization, enabling seamless tracking and monitoring of goods throughout the supply chain. United Arab Emirates: The UAE has emerged as a logistics hub in the Middle East, with logistics parks such as Jebel Ali Free Zone and Dubai South Logistics District leading the way. These parks offer tax incentives, streamlined customs procedures, and state-of-the-art infrastructure, attracting businesses from across the globe. Malaysia: Malaysia's Port Klang and Port of Tanjung Pelepas are among the busiest and most efficient ports in Southeast Asia. The country has invested in developing logistics parks and free trade zones to promote international trade and boost supply chain efficiency. These success stories demonstrate the importance of strategic location, multimodal connectivity, technology adoption, and supportive government policies in the development of logistics parks and their contribution to enhancing supply chain efficiency on a global scale. Countries that have embraced these best practices have reaped the benefits of increased trade, economic growth, and improved competitiveness in the global market.

Enablers of logistics parks

Enablers of logistics parks play a pivotal role in improving supply chain efficiency by providing a well-integrated and seamless logistics ecosystem. These enablers encompass various factors that contribute

Logistics parks are strategically located near major industrial hubs, ports, airports, and key transportation corridors. This proximity allows for efficient movement of goods between production centers and end markets, reducing transportation time and costs. Logistics parks offer access to multiple transportation modes, including road, rail, air, and waterways. This multimodal connectivity enables businesses to choose the most cost-effective and time-efficient transportation options for their cargo. Logistics parks are equipped with state-of-the-art infrastructure, including well-designed warehouses, container yards, cargo handling facilities, and advanced technology systems. This modern infrastructure facilitates smooth and efficient operations within the park. Logistics parks often have dedicated customs clearance facilities, streamlining the import and export processes. Efficient customs clearance helps in reducing delays and ensures a faster flow of goods in and out of the park. Enabling technology, such as warehouse management systems, real-time tracking, and IoT (Internet of Things) devices, enhances visibility and transparency in logistics operations. This integration streamlines inventory management, order fulfillment, and overall supply chain tracking. Logistics parks offer value-added services like packaging, labeling, and quality checks, which add value to the supply chain. These services help in meeting specific customer requirements and improving overall supply chain efficiency. Logistics parks promote collaboration and integration among various stakeholders, including manufacturers, logistics service providers, and retailers. This collaborative approach facilitates smoother coordination and reduces bottlenecks in the supply chain. Availability of skilled and trained manpower within the logistics park ensures efficient handling and management of goods. Skilled workforce contributes to faster turnaround times and reduces operational errors. Government policies and incentives that support logistics park development and operation are critical enablers. Favorable policies encourage investments and foster the growth of logistics parks, boosting overall supply chain efficiency. Logistics parks embracing sustainable practices, such as energy-efficient operations and waste reduction measures, contribute to environmental protection and

CONCLUSION

Enablers of logistics parks are instrumental in improving supply chain efficiency in India. By leveraging strategic location, multimodal connectivity, modern infrastructure, technology integration, and value-added services, logistics parks streamline logistics operations and enhance overall supply chain competitiveness. Government support and sustainability initiatives further strengthen the impact of logistics parks on the Indian supply chain landscape, paving the way for more efficient and resilient supply chain networks in the country. The research paper discusses the implications of these findings for various stakeholders, including policymakers, logistics park operators, and businesses. It emphasizes the need for continued government support to create an enabling environment for logistics park development, including policy reforms, investment incentives, and improved infrastructure. For logistics park operators, the study underscores the significance of technology adoption and value-added services to meet the diverse needs of businesses. Furthermore, businesses can gain insights into how leveraging logistics parks can improve their supply chain efficiency, reduce costs, and enhance their competitive advantage in the market. The implications of logistics parks for policymakers, logistics park operators, and businesses are significant and can lead to improved supply chain efficiency and competitiveness in India.

Implications for policymakers:

Promote Infrastructure Development: Policymakers need to focus on developing robust infrastructure, including road networks, railways, ports, and connectivity to logistics parks. Improved infrastructure will facilitate smooth movement of goods and reduce transportation time and costs. Streamline Regulatory Processes: Simplifying and streamlining regulatory processes for setting up and operating logistics parks will attract more private investments and foster a conducive business environment. Offer Incentives and Support: Policymakers can provide incentives such as tax benefits, subsidies, and financial support to logistics park operators to encourage the development of modern and well-equipped logistics parks. Encourage Green Initiatives: Promoting sustainable practices and green logistics in logistics parks can be incentivized by policymakers to reduce environmental impact and promote eco-friendly operations.

operators should strategically choose locations with excellent connectivity to major transportation hubs and industrial centers to attract businesses and ensure smooth logistics operations. Offer Diverse Services: Providing a wide range of logistics services, including warehousing, distribution, customs clearance, and value-added services, will attract diverse businesses and add value to their supply chain operations. Embrace Technology: Integrating advanced technologies like IoT, RFID, and data analytics will enhance operational efficiency, transparency, and real-time tracking within the logistics park. Collaboration with Stakeholders: Building strong partnerships with transportation providers, government authorities, and businesses will enable logistics park operators to offer comprehensive and seamless logistics solutions.

Implications for Businesses:

Cost Optimization: Businesses can benefit from cost optimization by leveraging the services of logistics parks. Centralized operations in logistics parks can lead to reduced transportation costs, inventory holding costs, and improved economies of scale. Improved Supply Chain Efficiency: Access to modern logistics infrastructure and services offered by logistics parks can streamline supply chain operations, leading to faster order processing, reduced lead times, and improved overall efficiency. Scalability and Flexibility: Businesses can leverage logistics parks to scale their operations quickly and efficiently to meet fluctuating market demands and gain a competitive edge. Focus on Core Competencies: Outsourcing logistics activities to logistics parks allows businesses to focus on their core competencies and leave complex logistics operations to specialized service providers. Overall, the successful development and implementation of logistics parks in India can lead to a more efficient and competitive supply chain ecosystem. Policymakers, logistics park operators, and businesses must collaborate and work together to overcome challenges, capitalize on opportunities, and create an environment that fosters seamless logistics operations, making India a prominent player in the global supply chain arena.

REFERENCES

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Corresponding Author Avadhesh Kumar*

Research Scholar, Capital University, Jharkhand