Rail and collaboration
On the subject of collaboration, SIAM is now working together to reduce the empty legs during road hauling vehicles. The next meeting is on Friday, September 11th. For both the rail and collaboration issues Mr MM Singh and the SIAM Logistics Council should be noted for their progressive work.
LSPs in India
Multi-national providers and suppliers need to enter the market more forcefully. The carmakers have said they would prefer to work with joint ventures between global and local partners.
However, global LSPs have not been so willing to commit to India. I asked some of these companies why they have been slow to do so, and several have already told me they don’t expect infrastructure to improve in their lifetimes (and they are not that old, I might add).
“Certainly, a great many organisations are engaged in attempting to get the projects going, but they tend to be more local rather than nationwide, and we see no long term plan to integrate the various projects,” he said, adding that Schneider will hold back entering the market more fully until there is a sustainable governing body that can implement a national plan involving both rail and roads.
A source from another global LSP agreed that India’s poor infrastructure means his company operates in a localised environment with little, if any, ability to improve upon the internal costs of moving goods within country. He believes that most global players will focus on port-to-port movements, “and leave the intra-country logistics alone.”
He also added his distaste over the “Indian way” of logistics, describing corruption as “rampant”. I would be very keen to hear the responses from other LSPs and carmakers.
A close shave for LSPs in India
Mr Bafna, President of Bafna Motors and Kishor Transport, believes that if you treat drivers with more respect, they will reciprocate it.
Bafna told Automotive Logistics that these measures have kept turnover low, but more importantly have led to better service for his customers. It’s an example the industry should learn from.
These are my personal views on some of the many things I picked up from my most recent trip. If you have comments you would like to add, if you agree, disagree or just have different viewpoint, I would be very pleased to hear from you.
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