Professional Documents
Culture Documents
By UK Mahapatra
Director Supply Chain & Operations
Pavers England Limited
Trade Regulations
Poor infrastructure
Trained Manpower
Lack of Training Institutions
Information and communication technology
Poor warehousing and Storage
There are long delays at inter-state checkpoints.
Approx 60% of Indias freight moves by road.
Truck delays average Four-Eight hours at inter-state
checkpoints this contains 60 to 65%of average Transit
Time.
High variability and unpredictability in delivery results in:
Higher logistics costs.
Increase in stock levels.
SLOB and Loss of sales.
As a result logistics costs in India is higher by two-to three times
global benchmarks, according to the World Bank.
The planned GST system seeks to replace multiple taxes
and tariffs for a single tax at the point of sale.
GST will unleash a new era of developing logistics
infrastructure and take investments to the next level.
The regulatory reforms proposed in the GST presents an
opportunity to re-engineer logistics and transportation
networks.
Current inefficient and longer supply chains with
warehouses in almost every state will now change based
on delivery and cost efficiency.
GST, when implemented, will free the decisions on
warehousing and distribution from tax considerations.
This will result in more efficient cross-state
transportation with improvement in transit time.
Reformation of paperwork for road transporters
Cost efficiency to optimum use of assets
PAVERS ENGLAND CORPORATE
How will this get better under proposed GST?
This will lead to changes in
Logistics Network Redefinition.
Infrastructure Upliftment:
Increase Warehouse sizes, leading to a consolidation of the currently widely
spread warehouses across states.
LSPs and their end-users both would need to re-engineer their supply chains,
focusing on optimal locations for warehouses and logistics centers .
GST will score over the existing regime
in the transportation and logistics
industry:
Emergence of the organized service providers since
taxes will no longer be added costs for the
businesses.
Logistic service providers in unorganized sectors will
be expected to improve their service levels.
PAVERS ENGLAND CORPORATE
THANK YOU