Logistics forms the system that ensures the delivery of the product in the entire
supply pipeline. This includes transportation, packaging, storage and handling methods,
and information flow. The impact of logistics in the ability of a company to satisfy
its customers cannot be overstated. All other efforts at modernization within a
company would not bear fruit until the logistics system is carefully designed to
facilitate the smooth and efficient flow of goods in the system.
The industrial policies in India have prompted manufacturers to build plants in
remote, backward areas due to inexpensive land and tax benefits. This poses some
serious logistical problems. Apart from a poor road and transportation network,
the existing communications system in India leaves a lot to be desired by any international
standard. It is in this context that logistics has to be considered in India.