jump to navigation

Indian tea now takes the rail route and Cheng Lie Navigation plans to launch China-India services August 15, 2007

Posted by Ramnath Rangaswamy in Business, Emerging Markets, Indian Economy, Logistics.

untitled3.jpg The (i) opening of a direct shipping lane from China to India and (ii) exporting tea to Pakistan by rail rather than by sea are good supply chain initiatives. They will reduce the supply chain time and hence reduce the supply chain costs.
Shorter supply chain times imply lower inventories, faster reponse to demand, and a shorter sale-to-cash ratio, all of which will improve the bottomline and topline of businesses.

This is another example of how good infrastructure can be a business driver. This also shows that supply chain is a strategic function- not just a transactional function of loading trucks, warehousing stocks- and can impact the business positively.

As the rupee appreciates and exports get costlier, these supply chain initiatives which reduce costs, are needed to keep exports competitive. The government need not handover sops in the form of tax breaks. What it needs to do is concentrate on improving infrastructure, reducing bottlenecks at customs and ease cross-border trade procedures.

For the complete story click on the links below;

Cheng Lie Navigation plans to launch China-India services

Indian tea now takes the rail route



No comments yet — be the first.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: