The changing dynamics of distribution logistics
V Kalyana Rama, CMD, CONCOR and Manish Puri, MD, APL India Linx, discuss the cascading effect DPD will have on the supply chain.
V Kalyana Rama, CMD, CONCOR and Manish Puri, Managing Director, APL India Linx, discuss in detail the cascading effect Direct Port Delivery will have on the supply chain and exports, especially when the share of DPD is going up at major ports. The discussion also touched upon infrastructure capacity and whether regulations are a boon or bane for the sector
When V Kalyana Rama, CMD, CONCOR and Manish Puri, Managing Director, APL India Linx share the dais, the discussion is bound to be interesting and this is what happened at the Maritime CEO Conclave as an enthralled audience witnessed a very engaging discussion presented by the dignitaries that touched several hot topics such as Direct Port Delivery, infrastructure capacity and regulations.
Manish Puri: The concept of Direct Port Delivery is actually breaking the supply chain, so are there any negative impacts that we should be looking at?
Kalyana Rama: DPD is a concept wherein we are trying to reinvent the cycle. When the ports started functioning there were no CFS and ICD as clearances were done in the port. The idea behind DPD as I understand is a just-in-time concept brought in to reduce the logistics cost. Maybe stopping unnecessary detention of cargo is one of the aims in DPD but the main aspect we have to see is the infrastructure availability.
As we are creating facilities and many facilities that are nominated as CFS or ICDS which function as processing centres for handling containers do not have adequate infrastructure. As a result the entire supply chain is getting affected. But if we are able to create facilities with proper warehousing and other essential infrastructure, then whether the cargo is cleared at the port or the hinterland the supply chain will continue to flow through these facilities only. I don’t think the manufacturing or processing units will try to have their own infrastructure for doing the logistics. “Logistics has matured a lot in India, but we still have a long way to go to consider our 3PL logistics actually efficient.”
“If we look at the current scenario in India there are no 3PL industrial goods as it is mostly covered in cou-