Importance of Logistic Parks in Supply Chain Management

Supply chain management is the most critical part of any organization. In today’s time of competition, success of any company largely depends on how well they manage their supply chain. But do you know that it’s not just the companies that benefit from it. Supply chain management plays a very important role in the society as well. Whether it is a medical emergency, a natural disaster relief operation or any other emergency, supply chain management (SCM) plays a crucial role in improving the quality of life. When any unexpected disaster occurs, supply chain experts get into action and plan out new ways and strategies to transport essential products among the general public. An example of how SCM had helped general public in the time of emergency was during Hurricane Katrina which took place in the year 2005 in Los Angeles. The massive flood in New Orleans left millions of residents without food and water. Supply chain experts came into action and started their rescue efforts. Within the first week, they delivered around 2 million meal and seven million litre water to the residents. This is how effective supply chain management helps society in the time of emergency.

To make sure that companies give their best during the time of emergency, it is important that they have a highly developed infrastructure. They should strategically plan their warehouse and company location, and choose a place which is well connected to the interstate highways, railway stations, ports and airports. This will ensure smooth transport of products and services and that too at low cost during the time of emergency. Consumers as well as other businesses will be able to get access to goods quickly and this will help to effectively deal with the crisis situation. If we talk about supply chain management in India, there are a number of companies which are known for their excellent services. Most of these companies have strategically planned their warehouse spaces and have chosen logistic parks for the setup of warehouses. In India, there are logistic parks located in business-friendly environment, have accessibility to the nearby areas, low tax rate and excellent infrastructure. These parks are preferred by most of the companies who wish to earn a good reputation and growth in the future.

Modern logistics parks set up in India offers a number of benefits to the companies. The first and the most important benefit is the cost savings, which is very necessary in the present economy of scale and growth. These parks significantly reduce the processing and transit time and ensure optimal use of all modes of transport. They also provide easy access to value added logistics services and reduce the inventory damage. Some of the key features of these parks are integrated systems which are accessible by multiple modes of transport, container terminals, bulk/break- bulk cargo terminals, spacious warehouses, banking and insurance facilities, cold chain centre and an office space. They are approximately 100 acres in size and offer facilities for manufacturing, packaging, mechanized handling, parking, sorting, grading, and inter-modal transfers.

Identifying an appropriate location of the logistic park is very important for any company. It is important to consider the value added services offered by the park and how will it help the company in improving the supply chain. World class logistic parks with excellent facilities, infrastructure and close connectivity to the nearby areas are available in in most of the metro cities of India. There are industrial real estate developers who have set up parks in cities like Delhi/NCR, Mumbai, Chennai, Bangalore and Pune. These parks are a perfect location for all third party logistic providers, retailers and consumer good companies. So, choose any of these parks for your warehouse and office space, and see how it improves supply chain management of the company.