REQUIREMENTS OF MODERN PORTS AND WAREHOUSES IN

2030 IN INDIA

Par/ by :

Arun Balaji VINAYAGA MOORTHI,

MURUGASATASARAM Sanmuga Piriyan,
PRABHAAKARAN Harish

Mastère Spécialisé® / Master of Science

Nom de votre Programme / Supply Chain Management and Purchasing

Tuteur / Supervisor:

SALOUHOU, Mahamouda

"J'atteste que ce travail est personnel, qu'il cite systématiquement toutes les sources utilisées entre guillemets et
qu'il ne comporte pas de plagiat".
"I certify that this work is personal and exempt from plagiarism, and that all quotations from sources used are
enclosed in quotations marks".

Signature

Arun Balaji VINAYAGA MOORTHI,

MURUGASATASARAM Sanmuga Piriyan,
PRABHAAKARAN Harish
Skema Business School MSc Supply Chain Management and Purchasing

ABSTRACT

The current dissertation focuses on requirements of modern port and warehouses in India in
2030. Existing Port models in the country are designed from the 1990s and largely outdated.
Administrative and Internal management issues have contributed to misalignment with the
industrial prowess. The potential for developing port land has also been left untapped.
Literatures indicate that warehousing operations and port performances depend on complexity
and characteristics of the operations associated. In this regard, the study conducted involves
reviewing theoretical and conceptual framework, and literature study on previous studies.
Results from the surveys and interview were assessed to determine Critical success factors,
structure and requirements of modern port and warehouse in India. The productivity and
performance of the warehouses and ports can be effectively enhanced by various measures such
as skills development, policy initiatives, adoption of IT and increased investment.

Keywords : Requirements, Performance, Critical success factors

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TABLE OF CONTENTS

S. NO. CHAPTERS PAGE NO.

ABSTRACT i
LIST OF TABLES iv
LIST OF FIGURES v
EXECUTIVE SUMMARY vi
1. INTRODUCTION 8
1.1 Problem Statement 9
1.2 Objective 10
1.3 Research Questionnaire 10
1.4 Hypothesis 10
2. LITERATURE REVIEW 11
2.1 Warehousing system 11
2.2 Port Performance 14
3. RESEARCH METHODOLOGY 17
3.1 Area of Study 17
3.2 Sampling Frame work 18
3.3 Data Validity and Reliability 19
3.4 Statistical tools 20
4. DATA ANALYSIS & INTERPRETATION 22
4.1 Descriptive statistics 22
4.2 Anova 26
4.3 Correlation 30
4.4 Multiple regression analysis 31
4.5 Structural Equation Model 34
5. SUMMARY OF FINDINGS, SUGGESTIONS AND 37
CONCLUSION
5.1 Summary 37
5.2 Key Findings of the Study 37
5.3 Suggestion for successful warehouse management practice 39

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5.4 Suggestion for Modern port Service 40

5.5 Conclusion 40
5.6 Limitations 40
6. REFERENCES 42
7. APPENDIX- QUESTIONNAIRE 45

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LIST OF TABLES

S.NO TITLE PAGE NO.

3.1 Total respondents in India 19

3.2 Data validity & reliability 19

4.1 Work location 22

4.2 Respondent Designation 23

4.3 Organization experience 23

4.4 Job Experience 24

4.5 Employment sector 25

4.6 Respondents critical success factor 26

4.7 Research variables analyzed on the designation of the respondents 27

4.8 Analysis of Location of Work with Study variables 27

4.9 Analysis of the organization experience and study variables 28

4.10 Analysis of job experience and study variables 29

4.11 Correlation 30

4.12 Multiple regression analysis 32

4.13 Structural Equation model 34

4.14 Path coefficient 35

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LIST OF FIGURES

S.NO. TITLE PAGE NO.

3.1 India’s developing logistics network 18

4.1 Work location 22

4.2 Respondent designation 23

4.3 Organization experience 24

4.4 Job experience 25

4.5 Employment sector 25

4.6 Critical success factor 26

4.7 Structural Equation Model 35

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EXECUTIVE SUMMARY

In this report we propose digitalization and modernization to improve the operational

efficiency, consumer satisfaction and to make a workflow much easier. Digitalization can make
port operations and cargo management processes effective and standardized. Warehouse
accounts for 5% logistics industry in India. Operational efficiency can be increased and
achieved by automating the warehouse process. The key factors of logistics in India are the
developing web-based business part, retail, transport division improvement and government
changes to help solid development. Between 2019 -2025 strategic business sectors in India
extended to develop by 10.5 % of compound annual growth rate. Port capacity is expected to
increment by 5 to 6 % in CAGR by 2022, adding 275 to 325 metric tons. Increasing production
and trade leads to better future for Indian cargo. The primary zones where Indian logistics
straggle is in absence of appropriate subsidizing foundations, taking care of frameworks and
high manual cycle intercession.

The fundamental target of this report is to comprehends the structure of list stockroom
and ports in India to distinguish the Critical Success Factor (CSF) of activities in the
distribution centre or port area and furthermore to recognize the prerequisites of top notch
distribution centre and port / stockroom foundation offices accessible in India from creators ,
operational directors and end- clients point of view.

The examination approach tends to the different advances taken to determine the
difficult explanation. The current examination exploratory and illustrative. An audit was
conducted to do an intensive examination on optional writing, to investigate stockroom
proficiency in norms in list distribution centre stock piling and contrast them and customer
distribution centre examination. Furthermore, definite investigations were embraced utilizing
an arrangement of study. A survey is the information assortment technique utilized. Cross
sectional meeting approach was additionally finished with the gathering of members including
field specialists, consultant from distribution centre, ranking directors in various ventures
straight forwardly occupied with warehousing tasks. Random sampling is the most recent
investigation study. A standardized poll technique was utilized to accumulate essential
information’s and catch the assessment of stakeholders about critical success factor
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characterized through a poll survey. The topographical zones recorded were 4 areas. Hence just
250 study tests were respected, and 11 surveys were precluded that were omitted or not returned
polls, 261 polls were given. Information are dissected and classified utilizing SPSS version 21
packages. Warehouse represent an essential part of the flexible chain that is the key for both
cost reserve fund and customer loyalty. The examination is planned for making sense of how
stock room makers, directors, and shoppers in Indian circumstance benefit from worldwide
distribution centre office. The key discoveries of exploration or likewise recorded in the
examination. The results from warehouse and port business professionals, academicians were
mainly recorded in this poll study. The discovery that the seriousness of distribution centre/port
administrators can be viably upgraded by different estimates, for example, aptitudes
improvement, strategy activities, and government measures, and its appropriation and
expanded interest in that area.

The report closes by noticing that advancements in business elements and the
appearance of worldwide 3PLs and 4PLs (outsider/fourth-party coordination’s suppliers)
finished in a change including coordination’s, flexibly chain and distribution centre offices in
India.

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CHAPTER 1 : INTRODUCTION

Advances in digital technology, change in preference of consumer because of e-

commerce, government reforms and change in service resource strategies should lead to change
in logistics ecosystem in India. Enhancing digitalization increases efficiency and effectiveness
in cargo maintenance and ship process. Warehouse automation can help achieve operational
efficiency in dealing with cost pressures in supply-chain industry. Its Expanded investment in
infrastructure, last-mile network and rationalizing Indian logistics environment. India's GDP
could hit 3.02 trillion by 2020, which is about 4% of global GDP. The key drivers of logistic
sector in India are E-commerce, government reforms and growing retail sector. (Markets, R. A.
(2020, April 1)). Fewer entry barriers and fewer committed capital by online inventory sites
have made logistics sector compelling over a property-based business model. Production has
the capacity to contribute 25 - 30% to GDP by the year 2025 in India, which will lead to the
development of the warehouse sector in India.

The logistic markets in India projected to grow by 10.5% CAGR between in 2019 and
2025. It has given infrastructure status, which has facilitated investment returns and become a
major growth driver for the logistics sector. E-Commerce is a crucial segment that is predictable
and to support the development of the logistic sectors during the projection period. Increasing
production and exchange leads to a better future for Indian freight. Port capacity has expected
to increase by 5% to 6% in CAGR by 2022, adding 275 to 325 metric tons of capacity. Indian
railways plan to raise freight traffic in 2017 from 1.1 billion to 3.3 billion tonnes by 2030. Freight
traffic at India's airports could cross 17 million tons by FY40. Several important places of
Indian air cargo market lags behind its global peers are lack of infrastructure funding,
automated equipment handling and highly manual sorting systems intervention.

Warehousing accounts for just 15 to 35% of overall logistics costs, but its value in term
of the position it plays in the seamless running of supply chain networks is important. In the
series - India Logistics and Warehousing report 2014, was a comprehensive manual
highlighting complexities in the warehousing market, including demand factors, policy and
regulations, business models, and supporting infrastructure and evolving trends.

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It launched a study report on the major warehouse markets of Mumbai and Pune in
order to explore the Indian warehouse market. The next two editions describe the dynamics of
India's first eight warehouse markets and the potential returns that warehouse investments can
receive in these markets. They also explored emerging warehouse trends and the growing
logistics and warehouse needs of several sectors under the GST regime. To give the reader a
deeper insight in the size and development of the warehouse industry in India, we extend the
business scope.

According to Indian Ports Industry report, about 95% of India 's foreign exchange
volume is managed in ports in India. Increasing trade and private port infrastructure
involvement is intended to finance port infrastructure operations in India. There are 12 major
ports in India and Six new large ports will be created in the country under the National
Perspective Plan (NPP) for Sagarmala. Ministry of shipping states that the biggest ports by
FY18 finished at 1,452 million tonnes. By 2020 a goal of 3,130 MT of port capabilities is set
by the Maritime Agenda 2010-20. In FY18, main ports managed 679.36 million tonnes, which
indicated that in FY08-18, the CAGR was 2.73%. Traffic increased 3.77% in fiscal year
2018(until December 2018), it may reach to 518.64 million tons in FY 19.

1.1 Problem Statement

Throughout the complete logistics supply chain, warehousing forms a key component. It
accounts for 5% logistics sector in India (with the addition of material distribution costs of
another 30%) R., M. (2020). Warehousing in India has progressively evolved from a standard
"go down" to a mere 4-wall shed with different suboptimum size, insufficient lighting and
ventilation. There is no racking network, bad sanitation and a shortage of inventory
management or established solutions such as the warehouse management method, Stock and
handling points for the stock, storage , distribution and delivery of raw material, intermediate
and finished products at the point of use and selling. Because key end user progressively
outsources their storage facilities, warehouse players understand that they need to be in the
logistics chain of their customers versus becoming a landlord that rents inventory.

Two areas of research have been established to empirically check the validity of the study:

(i) Throughout the context of the stakeholder, important success factors are evaluated.
(ii) The choice of End users to select their organization's warehouse / ports.

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1.2 Objectives

• To define study understands the structure of world class warehouse and ports in India.
• To identify the ‘Critical Success Factors’(CSF) of projects in the warehouse/Port sector
• To identify the requirements of world class warehouse and port/warehouse
infrastructure facilities available in India from designers, operational managers and
end-user’s perspective.

1.3 Research Questions

1. Do the critical success factor improve the productivity of warehouses / port?

2. Do the critical success factor assess the performance of port / warehouse?

1.4 Hypothesis

H01: There is no significant difference between study variables and designation of respondents

H02: There is no significant difference between the locations of work with Study variables.

H03: There is no significant difference between organization Experience and study variables

H04: There is no significant difference between Job Experience and study variables.

H5: There is positive significant relationship among critical success factors.

H6: There is significant influence among Requirements of modern ports and Critical success
factors.
H7: The hypothesized model has a good fit

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CHAPTER 2: LITERATURE REVIEW

Literature review allows to get to know if chosen research issue and can also provide
guidance on choosing an acceptable study solution. The study gaps in the current literature are
often useful. It permits to clarify the problem and methods of work. Another advantage in the
recent literature review is that the results and observations are readily equivalent in situations
where scientific issues are identical. It allows to assess whether or not conclusions are plausible.
There can be two types of literature reviewed: (i) the theoretical and conceptual framework (ii)
empirical literature on previous studies close to the one. The main benefits of this study would
be the understanding of the data available for analysis, which permits to classify the research
question more effectively. The literature review also helps formulate the research problems and
therefore permits to decide on the right approach. From the conclusion of the previous studies
are linked to the own results, consideration must be measured to determine whether the goals
and procedures are identical.

2.1 Warehousing Systems

Faber, Nynke, De Koster, Rene B. M. (2002) states that the usage of warehouse
management information systems is widely discussed in literature. In terms of warehouse
complexity, the quantity and heterogeneous complexion of the products handled, the extent of
their overlapping, the quantity and form of technology and characteristics of the processes
associated are indicated among other aspects. Increasing complexity, warehouse management
technologies may be included in the control of warehousing resources and warehouse
operations tracked. Customized applications also serve warehouses of multiple automated
order lines and stock keeping systems. Regular processes at the stock point, forklift locations
and storage units (SKUs) could not be updated in real time using the bar code or manual
warehouse control systems.

Agreeing to McGinnis (2007) RFID systems are implemented to promote data

gathering and distribution in a warehouse. Tests are conducted for both active and passive
RFID equipment's usability. RFID expense covers the cost of the tag scanner, communications
cost and other maintenance expenses. RFID will boost the retail performance automated cycle,
such that inventory cost can be reduced by more effective replenishment. RFID technology

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will help reconstruction of business processes; increase the accuracy of data; gather data in real
time; synchronize and exchange information amongst supply chain participants.

Wamba, T.R. Coltman, and K. Michael (2008) In fact, the introduction of RFID will
contribute to additional advantages, such as reducing the damages incurred by shop lifts and
through use of time of sale applications.

Poon (2009) Stated it is considered necessary, in order to maximize efficiency and

reduce the warehouse running costs, to distribute the warehouse resource efficiently and
effectively. Improvement of the efficiency, reduction of the labor costs where the workforce
engaged is smaller than the job expended on the factories, and enhanced ability to support the
consumer through reducing cyclical periods would be important when introducing a
Warehouse Management Program. WMS contributes to additional building space and including
inventory reductions. An improvement in receipt process accuracy and efficiency may
contribute to the reduction of appropriate security stocks. However for the total inventory point,
the effect of this decrease would not be noticeable.

Strack and Pochet (2010) are studying an integrated the structure for inventory and
warehouse on preparation model. Inventory and storage issues are addressed met a pyramidal
strategy that reduces from top to bottom the versatility of decisions. Consequently, first
strategic decisions which define difficult and operational condition limits are taken into account.
The author stated that, in warehouse the size and designs was fixed. Such considerations must
be made as refill strategies must be established and the mechanics of the different warehouse
areas optimized. The aim of the study was to reform this traditional decision method for
developing inventory models to determine the importance of combining operational
management and distribution decisions. The authors commented on a statistical model that
established two approaches that provide various degrees of warehouse integration and
inventory decision taking. The authors have also shown that, taking account of warehouse
space limitations in the design assessments, the overall expense of the inventory and warehouse
operation may be significantly decreased. In fact, more sophisticated management approaches
for inventory and warehouse decisions will contribute to further inventory and warehouse
savings.

Lakmal and WADN Wickramarachchi’s (2011) Study paper aimed at empirically

evaluating the relationship of factors influencing effectiveness / efficiency and warehouse
overall output. In relation to Quick Move Consumer Goods (FMCG) industry, three factors
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have been studied that influence the effectiveness and efficiency of Sri Lankan warehouse
operations. Simplicity and sophistication of warehouse management systems (WMS), slotting
techniques and warehouse structure designing. Findings indicate the predicted substantial
association between warehouse effectiveness / efficiency variables and overall warehouse
process output. Three considerations analyzed confirmed the findings that the output of each
warehouse operation has a positive effect, more study results revealed other issues related to
the operation’s effectiveness. Many of the warehouses may not know or cannot effectively
enforce the value of best practices to improve efficiency. This investigation has also provided
the local warehouse industry several recommended activities.

Ramaa.et.al (2012) Research paper to measure manual warehouse efficiency by

creating a WMS System and cost-benefit analysis and to increase profitability. The research
argues that the efficiency of the whole supply chain is affected by warehousing with the rise in
structured retailing, players have to develop their processes continuously. Retailers will aim to
reduce their prices constantly and the Innovation must be incorporated into existing systems as
an activated enhanced technology. The procedures will therefore be structured such that
improvements are implemented.

Jan Karasek (2013) the author stated that the description of warehouse optimization
challenges is given in the study report. There are a variety of groups with issues. The first aspect
is the basic technological framework of the warehouse. Secondly, the traditional operating and
organizational structure of the warehouse industry is defined, and this research focuses on.
Thirdly, warehouse processes management and control structures are described briefly, and
traditional warehouse processes are defined based on the technological and operational
framework. The crucial purpose of this paper is to demonstrate the state-of-the-art optimization
for the three priority classes in logistics warehouses and delivery centers listed above.

Knight Frank (2014) the study report provides a detailed review of the Pune and
Mumbai warehouse markets. The study says Indian firms have long underestimated the level
of the logistics market, which remains its least invested sectors in the world. While markets
will lead to significant disruption of the entire supply chain network, inefficiencies in their
management. The history of this sector was not quite optimistic in India, which resulted in
considerable losses during the shipping, delivery and warehousing of products.

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2.2 Port Performance

Alaa Baqer Albesher and Dr. Soliman Almohawis, (2007) Focuses on different methods
of PPP–Focuses on the fact that (BOT) is increasingly used by global public authorities as a
mechanism to support a variety of public projects because of their inherent value. The need to
emphasize project feasibility-to consider all threats and to prepare for solutions as well.

Riham Shendy Zachary Kaplan Peter Mousley (2011) A research that explores
innovative methods of solving the shortage of African infrastructure. Africa's requirements in
terms of its economy is around 31 billion USD p.a.-One strategy for fixing this shortage of
resources is to draw foreign investment by PPPs.

Solomon Olusola Babatunde Akintayo Opawole & Olusegun Emmanuel Akinsiku,

(2012) the key purpose of an analysis in Nigeria. The Important factors according to the
literature-the conclusion mention that the transport sector dominated largest, accompanied by
the power facility and water network, and is also reported. The objective target of the research
is to expand such ventures to include the PPP model. In comparison, the top ranking transport
business, accompanied by power plants and water supply, reported that public entities are
allocated; the essential criteria for PPP are square help for the city, viability and the multi profit
existence.

Maritime Transport and Business Solutions (2012) the research analyses the factors of
the PPP of Port by considering the private industry preferences, the controlled public body and
the best mechanism to form contract award. The study stresses "fair discussion" as the way to
prevent disagreements and to make the concession agreements transparent.

Robert Osei Kyei & Albert P.C.Chan (2015) the paper discussed over two decades of
critical successful literature and aims to assess the academic potential through PPP in its CSF
context. The crucial success factors for a relationship separating private and public sectors are
commonly debated and, as such, the paper summarizes the empirical studies of CSFs. In
tandem with evidence from leading scientific publications from 1990 to 2013, variables
affecting the adoption of PPP have been analyzed Findings indicate that greater focus is being
given to CSF studies in PPP.

Rajiv Kumar, Secretary General FICCI (2017), This study indicates that while PPP
model has helped to a level the government speed up the development of infrastructure,

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stumbling blocks are needed for the smooth running of the project. In addition, the regulatory
systems in the various sectors, particularly electricity, have not managed to push the requisite
sector policy platform to make regulatory authorities in various sectors more effective,
accountable and autonomous, a specific theory is required to regulate infrastructure.

Tran, T. M. T., et.al (2020) Studied that the difficult challenging issue facing shipping
corporations in the coming years is Efficient Maritime Management (SSM). Although previous
work concentrated primarily on the motivations and role of SSM, there is again a lack of realistic
work about how SSM should be applied. This research therefore fills the void with a logically
guided method that defines and grades the SSM CSFs. The CSFs are focused on the strategic
goals of five organization’s theories: stakeholder philosophy, resource-oriented philosophy of
beliefs, connection theory, theory of distribution of creativity and flexibility (fit) theory. The
research suggests the favorable circumstances of stakeholders, management intra-society,
inter-company cooperation, adoption of emerging technologies and the strategic alignment as
SSM CSFs. In fact, 20 requirements to operationalize the CSFs have been established and 36
ship owning companies in Vietnam had been sent with a questionnaire for the study. The
findings indicate the CSFs of SSM are (1) focusing on stakeholders, (2) in-house management,
(3) modern technical adoption, (4) collaboration of inter-firm and (5) strategic alignment
(including) a rising order of priority. In addition, findings of the analysis reveal that the most
relevant sub-criteria of SSM are primarily financial, tangible and equipment- related and in
addition, SSM applications may also be enhanced in shipping companies by meeting the
stakeholders 'concerns and harmonizing SSM operations with shipping companies' strategy.

Suthiwartnarueput, K et.al (2020), the key fortunate factors in port development (WPD)
were investigated and Comparative fuzzy preferences relations (CFPR) are used for six ports,
namely Busan, Montréal, Inner Harbor, Kaohsiung, Bangkok, Incheon and Liverpool, along
with preferred rating enrichment assessment approaches (PROMETHEE). The latter findings
stated the efficiency of WPD in the cases analyzed while the former attracts the key success
factors (KSFs) of the port selected. This article utilizes the same system of tests in questionnaire
type in Lee et al.(2016) for a clear contrast with the test results of previous studies. This article
offers empirical evidence to previous research of WPD studies not only for an overview into
how KSFs are extended of WPD in duration but also adds to the literature in WPD and port
city interactions.

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Karunarathna, N et.al (2020), The warehouses enabled by Industry technology 4.0 can
be listed as the 'intelligent warehousing' concept that will enable companies to adapt to dynamic
business environment changes. Although the idea of intelligent warehouses has been popular
across the globe, it is again in infancy. While There also a strong demand for research in this sector
in order to identify possibilities for development adoption. This author describes to calibrate
the model to evaluate the availability of the third-party warehouses for Industry 4.0. This model
was built by the combination of technical sophistication and crucial success factors for
increased warehouse efficiency. This approach was confirmed by an observational analysis of
four leading 3PL firms. The findings of this study offer logistics Services Company’s useful
knowledge to enhance their capacity to fulfil the potential competitive requirements.

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CHAPTER 3: RESEARCH METHODOLOGY

The methodology for research addresses the various steps taken to resolve the problem
statement. Investigations are a method in which efforts are taken to address the issue effectively
or to explain a situation more explicitly. The present research is exploratory and descriptive.

Stage I: The first step of this review was to conduct a thorough analysis on science
secondary literature. To explore warehouse efficiency standards in world-class warehouse
storage and compare them with traditional exploratory warehouse research, the exploratory
analysis of this particular study aimed to identify the parameters for modern warehouse
requirements for different category of industries. The study for this experiment was also the
basis for the preparation of the next step questionnaire.

Stage II: In the second point, detailed studies were undertaken using a system of survey.
The nature of the study requires a method of survey. The research focuses on efficient and
effective warehouse management activities in India. A questionnaire is the data collection
method used, in the second stage of the study, cross-sectional interview approach is used. The
interview with the group of participants including field experts, advisors from warehouses,
senior managers in different industries directly engaged in warehousing operations was
extensively carried out and The self-exploratory case studies (experience investigation) and
quantitative approaches helped him conduct a pilot analysis because he is directly involved
with the present industry.

3.1 Area of the Study

India is 3.3 million cubical kilometers long and has 7,517 km of coastline. However,
owing to specific spatial, social and economic disparities the entire land mass is not conducive
to finding a warehouse. The warehouse's "proximity" is also incredibly significant. According
to the Jones Lang LaSalle Meghraj–CII warehousing report (Nov 2010) (group of Indian
Organizations), The closeness to the supply-demand centers and efficiency infrastructure were
the main considerations in deciding a venue, as were the availability of workers, professional
jobs, accessibility to ports and warehouse costs. In India, a large quantity of hubs are located
in Mumbai, Chennai , Bangalore, Hyderabad, Delhi and NCR to conduct warehouse study.

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Figure 3.1 : India’s Developing Logistics Network

3.2 Sampling Framework

Random sampling is the basis for the latest analysis study. These 12 major ports /
warehouses in India are listed for the purposes of the analysis concerned. A standardized
questionnaire method was used to gather primary data and capture the opinions of stakeholders
about critical success factor defined through a literature review.

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Table 3.1 :Total Respondents in India

LOCATION TOTAL RESPONDENTS
1 South India 76
2 East India 67
3 West India 74
4 North India 44
Total 261

The geographical areas listed were 4. Therefore only 250 survey samples were regarded
and 11 questionnaires were omitted that were uncompleted or not returned questionnaires. 261
questionnaires were issued.

Data Source

The analysis data contains primary data as well as secondary data. Primary data were
gathered from a well-structured survey and collected by customers during their fast food
restaurants. They have been issued an application to fill up the questionnaires on-site. The study
requires secondary evidence from papers, academic research papers, historical records and
website posts.

3.3 Data Validity and Reliability Results

An indicator can be characterized by the reliability of its overall efficiency, i.e. the
consistency and potential for repeated quantification of the same results. The test- retest
correlation of the particular variable is the most excellent feature of reliability under scrutiny.
The test-retest correlation is also given following table for most of the single-point
measurements. The test-retest correlation is also given following table for most of the single-
point measurements

Table 3.2 : Data Validity and Reliability

S. No. Factors Items Croan bach alpha
1 Economic Factors 4 0.893
2 Financial factors 3 0.927
3 Social & Political factors 7 0.823
4 Legal & Procedural factors 3 0.862

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5 Technical & Structural factors 4 0.923

6 Overall Score for Sample Adequacy (Kaiser- 0.898
Meyer-Olkin Measure of Sampling Adequacy)
7 Overall Score for Data Reliability (Cronbach’s 0.896
Alpha)
Source: Primary data computed

Cronbach's alpha is the most broadly applied indicator for the internal reliable of
constructs. Cronbach's alpha has a generally agreed value of 0.70, But in exploratory study,
this growing decrease to 0.60 (Hair et al . 2006; pp.137). For this study, the reliability factor
for the whole system is 0.797 and accepted. Also, Table 1.1 demonstrates how reliable these
constructs are. The values of both constructs, which is appropriate, vary from 0.794-0.629 is
accepted. Furthermore, the sample adequacy of KMO was calculated to be.799. The reliability
of the construct is therefore satisfactory in this study. Cronbach's alpha results in a strong
association between the variables measured, the validity of an analysis is how variations in the
values represent differences in the characteristic measured. Predictive value is an indicator of
the usefulness of a predictor. The correlation between results and actual behavior determines
the evidence of predictive validity. The validity of a construct is how much will be measured
by a measuring instrument.

The primary data were collected via a questionnaire survey to fulfil the objectives and
research questions. Various magazines, thesis, internet sources, and journals have obtained the
secondary data needed for the analysis. Data are analyzed and tabulated using the SPSS version
21 package.

3.4 Statistical Tools

The relevant statistical pathways have been implemented, according to the complexity of
the data analysis and interpretations needed. The following methods were used in the study:
frequency distribution, two-way ANOVA, Rank analysis, Structural Equation Modelling
(SEM), multiple regression and correlation.

• Researcher have been helped by the frequency distribution of the changeable to test and
compute their distribution value.

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• Measuring demographic variables have been applied by Two-way ANOVA tests, which
have considerable influence on the decision of the end-users for Critical success factor
• The linear direction and strength between the key positive variables have been analyzed
by multiple regression analyses
• The relationship between critical successful factor was evaluated by correlation
analysis.
• The structural equation model (SEM) aims to show the conceptual fitness of the model.

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CHAPTER 4: DATA ANALYSIS AND

INTERPRETATION
This part includes data analyses and research findings discussion. Descriptive statistics,
Chi-square, ANOVA, correlation tests and Regression were used to analyze data. Economic,
financial, social and political, legal and procedure factors, technical and structural factors
specially developed for the warehouse containers and for port management were independent
variables. The trusted variables used in this study are warehouse and modern port requirements
in India

4.1 Descriptive Statistics

Table 4.1 : Work location

Location of Work Frequency Percent
North India 82 32.3
South India 52 20.7
East India 104 42.3
West India 12 4.7
Total 250 100.0

Figure 4.1 : Work Location

Location of Work
4.7

32.3
42.3

20.7

North India South India East India West India

The highest amount of the four groups given is the East India respondents, which
comprises 42.3% of the sample, The North India category of respondents followed by 32.3%.
And the smallest 4.7% of respondents in South India participated.

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Skema Business School MSc Supply Chain Management and Purchasing

Respondents Designation

Table-4.2 Respondents Designation

Designation Frequency Percent
Executive 82 32.5
Top
64 25.5
Management
Middle
104 42
Management
Total 250 100

Table-4.2 Respondents Designation

DESIGNATION

42

45
40
32.5 25.5 Executive
35
30 Top Management

25 Middle Management
20
Middle Management
15
10 Top Management
5
Executive
0
1

Table 4.2 indicates that most of the survey respondents in India worked for middle management
(42 percent). The Executive (32.5%), Top Management (25.5) respondents were observed.

Organization Experience

Table-4.3 Organization Experience

How old is your
Frequency Percent
Organization?
Less than 1 year 53 21.3
1 to 3 years 47 18.7
4 to 6 years 53 21.1

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Skema Business School MSc Supply Chain Management and Purchasing

7 to 10 years 77 29.9
Above 10 years 20 9.0
Total 250 100.0

Figure-4.3 Organization Experience

ORGANIZATION
35
29.9
30

25
21.3 21.1
20 18.7

15

10 9

0
L E S S T H AN 1 1 T O 3 Y E AR S 4TO6YEARS7TO10YEARS ABOVE10
YEAR YEARS

Most (29.9 percent) of the survey respondents had 7-10 years of organizations experience.
The respondents who work with an established company less than a year usually for 4-6
years. The least numbers of participants is from the business with over 10 years of port
management and warehouse experience.

Table-4.4 Job Experience

Year of
Frequency Percent
Experience
Less than 1 year 70 28.1
1 to 3 years 75 30.2
4 to 6 years 61 24.1
7 to 10 years 17 6.7
Above 10 years 27 10.9
Total 250 100.0

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Skema Business School MSc Supply Chain Management and Purchasing

Figure-4.4 Job Experience

YEARS OF EXPERIENCE

28.1 30.2
30.0
25.0 24.1
20.0
15.0
10.0
5.0 10.9
6.7
0.0
LESSTHAN
1 TO 3
1 Y E AR 4 TO 6
YEARS
YEARS 7TO10
YEARS ABOVE10
YEARS

Based on job experience, the majority of respondents had a job history of fewer than 1 to 3
years, while 28.1% of those have less than 1 year of background. 24.1 of those respondents
are 4-6 years experienced and 6.7 % 7-10 years of experience and 10.9 per cent of those
respondents have greater than 10 years ' experience.
Table-4.5 Employment Sector
Sector of
Frequency Percent
Employment
Warehouse 154 62
Port 96 38

Figure-4.5 Employment Sector

Employment Sector

38.0

62.0

Warehouse Port

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Skema Business School MSc Supply Chain Management and Purchasing

Employment sector of the respondent; majority of respondents work in the warehouse sector
(62%) and 38% work in different ports across India

Critical Success Factor Ranking

Table:4.6 Respondents Critical Success Factor

Rank1 Rank2 Rank3 Rank4 Rank5 Total Scores
ECONOMIC 132 43 27 25 23 250
FINANCIAL 122 32 35 30 31 250
LEGAL &
PROCEDURAL 117 56 42 14 21 250
SOCIAL & POLITICAL 106 68 38 23 15 250
TECHNICAL &
STRUCTURAL 178 48 12 4 8 250

Figure 4.6 : Critical Success factor

Critical Success factors Ranking

200 179

150 131120118
107
100 68
44 34 55 48 42 37
50 27 35 30 23 31 21 15 8
11 25 14 23 4
0
Rank1 Rank2 Rank3 Rank4 Rank5

ECONOMIC FINANCIAL
LEGAL & PROCEDURAL SOCIAL & POLITICAL
TECHNICAL & STRUCTURAL

The above table indicates that structural and technological factors among respondents
followed by economic and financial factors are considered as main factors

4.2 Anova

Table: 4.7 Research variables analysed on the designation of the respondents:

H01: There is no significant difference between study variables and designation of respondents

H1: There is no much difference between study variables and designation of respondents
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 Skema Business School MSc Supply Chain Management and Purchasing

ANOVA
Sum of Mean
Squares df Square F Sig.
Economic factors Between Groups 112.435 2 55.721 1.667 .180
Within Groups 13562.331 247 33.401
Financial Factors Between Groups 378.821 2 188.911 3.747 .023
Within Groups 20636.935 247 50.703
Social and Political Between Groups 120.737 2 60.367 2.176 .114
factors Within Groups 11341.081 247 27.730
Legal and Procedural Between Groups 548.464 2 274.732 2.544 .080
factors Within Groups 44144.030 248 107.933
Technical and Between Groups 466.341 2 232.671 2.080 .127
Structural Factors Within Groups 45957.153 248 112.361

P is more than 0.05 and therefore is accepted for null hypothesis. Hence, there is no difference
between critical success factors like (Financial, Social, Economic, Legal and Procedural,
Political, structural and Technical) employee designation in work on port management and
warehousing companies.

Table: 4.8 Analysis of Location of Work with Study variables

H02: There is no significant difference between the locations of work with Study variables.

H2: There is significant difference between the locations of work with Study variables.

ANOVA
Sum of Mean
Squares df Square F Sig.
Economic factors Between
143.787 3 47.597 1.424 .234
Groups
Within Groups 13628.987 246 33.406
Financial Factors Between
334.660 3 110.886 2.196 .027
Groups
Within Groups 20781.103 246 50.933

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Skema Business School MSc Supply Chain Management and Purchasing

Social and Political Between

203.242 3 67.747 2.454 .062
factors Groups
Within Groups 11258.571 246 27.596
Legal and Between
718.826 3 238.941 2.225 .084
Procedural factors Groups
Within Groups 43973.667 246 106.780
Technical and Between
830.844 3 276.281 2.480 .060
Structural Factors Groups
Within Groups 45590.650 246 111.743

P is more than 0.05 and therefore is accepted for null hypothesis. Hence, there is no significant
difference between critical success factors like (Financial, Social, Economic, Legal and
Procedural, Political, structural and Technical) and job location of the employee work in port
management and warehousing companies.

Table: 4.9 Analysis of the organization Experience and study variables

H03: There is no significant difference between organization Experience and study variables

H3: There is significant difference between organization Experience and study variables

ANOVA
Sum of Mean
Squares df Square F Sig.
Economic factors Between
63.057 2 31.528 .940 .390
Groups
Within Groups 13708.718 247 33.521
Financial Factors Between
121.058 2 60.531 1.178 .308
Groups
Within Groups 20985.704 247 51.333
Social and Political Between
9.362 2 4.681 .166 .847
factors Groups
Within Groups 11452.451 247 28.003

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Skema Business School MSc Supply Chain Management and Purchasing

Legal and Between

65.194 2 32.596 .298 .741
Procedural factors Groups
Within Groups 44628.300 247 109.117
Technical and Between
100.278 2 50.138 .442 .642
Structural Factors Groups
Within Groups 46322.216 247 113.258

P is more than 0.05 and therefore is accepted for null hypothesis. Hence, there is no significant
difference between critical success factors like (Financial, Social, Economic, Legal and
Procedural, Political, structural and Technical) and organization experience

Table: 4.10 Analysis of Job Experience and study variables

H04: There is no significant difference between Job Experience and study variables.

H4: There is significant difference between Job Experience and study variables.

ANOVA
Sum of Mean
Squares df Square F Sig.
Economic factors Between
247.346 4 62.087 1.867 .114
Groups
Within Groups 13523.431 245 33.231
Financial Factors Between
108.045 4 27.261 .527 .714
Groups
Within Groups 21006.717 245 51.615
Social and Political Between
127.393 4 31.847 1.143 .335
factors Groups
Within Groups 11325.421 245 27.850
Legal and Between
324.240 4 81.061 .743 .562
Procedural factors Groups
Within Groups 44360.253 245 108.017
Technical and Between
895.281 4 224.071 2.002 .092
Structural Factors Groups

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Skema Business School MSc Supply Chain Management and Purchasing

Within Groups 45526.213 245 112.861

P is more than 0.05 and therefore is accepted for null hypothesis. Hence, there is no significant
difference between critical success factors like (Financial, Social, Economic, Legal and
Procedural, Political, structural and Technical) and job experience

4.3 Correlation

H05: There is no positive significant relationship among critical success factors.

H5: There is positive significant relationship among critical success factors.

Table: 4.11 Correlations

Correlations
Technical
Social and Legal and
Economic Financial and
Political Procedural
factors Factors Structural
factors factors
Factors
Economic
1
factors
Financial
.676** 1
Factors
Social and
Political .925** .696** 1
factors
Legal and
Procedural .602** .721** .769** 1
factors
Technical
and
.896** .671** .934** .707** 1
Structural
Factors
**. Correlation is significant at the 0.01 level (2-tailed).
The correlation among economic and financial factors is 0.676, which indicates a
positive relationship of 67.6% to a significant level. The correlation among economic and
social &Political factors is 0.925, which indicates a positive relationship of 92.5% to a
significant level. The correlation among Financial Factors social &Political factors is 0.696,

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Skema Business School MSc Supply Chain Management and Purchasing

which indicates a positive relationship of 69.6% to a significant level. The correlation among
Legal & Procedural and Economic factors is 0.602, which indicates a positive relationship of
60.2% to a significant level. The correlation among Legal & Procedural and Financial Factors
is 0.721, which indicates a positive relationship of 72.1% to a significant level. The
correlation among Legal & Procedural and social &Political factors is 0.769, which indicates
a positive relationship of 76.9% to a significant level. The correlation among Technical &
Structural and Economic factors is 0.896, which indicates a positive relationship of 89.6% to
a significant level. The correlation among Technical & Structural and Financial factors is
0.671, which indicates a positive relationship of 67.1% to a significant level. The correlation
among Technical & Structural and social &Political factors is 0.934, which indicates a
positive relationship of 93.4% to a significant level. The correlation among Technical &
Structural and Legal & Procedural factors is 0.707, which indicates a positive relationship of
70.7% to a significant level. Hence, the strong relationship contribution between Technical
& Structural and social & political factors. So the null hypothesis (H O5 ) is rejected at 1%
level.

4.4 Multiple Regression Analysis

H06: There is no significant influence among Requirements of modern ports and Critical success
factors.

H6: There is significant influence among Requirements of modern ports and Critical success
factors.

Regression is the statistical relationship among two or more variables. In simple

regression the two variables were used. One Independent variable is the reason for another
behaviour (independent) variable action. When more than two independent variables occur, the
relationship study is defined as multiple associations, and this association is defined as the
multiple regression.

Regression analysis involves determining the worth of the dependent variable based on
an independent variable by deriving a mathematical model. The relation between Y variable
and another set of variables is therefore to be examined by X 1, X2, X3 ............................ Xn.

The linear quation Y=b1X1+b2X2+b3X3........................bnXn+b0

The known dependent variable is Y.X1,X2……Xn and which the predictions should be
b1,b2….bn are coefficient variables.

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Skema Business School MSc Supply Chain Management and Purchasing

Dependent variable : Requirements (Y)

Independent variables 1. Economic Factors (X1)
2. Financial Factors (X2)
3. Technical & Structural Factors and
Political factors (X3)
4. Legal & Procedural factors (X4)
5. Technical & Structural Factors (X5)

Multiple R value : 0.828

R Square value : 0.686
F value : 211.371
P value : <0.001**

Table:4.12 Multiple Regression Analysis

Variables Unstandardized SE of B Standardized t value P value
co-efficient co-efficient
Constant 7.788 0.938 - 8.301 <0.001**

X1 0.118 0.041 0.088 2.901 0.003

X2 0.115 0.054 0.066 2.212 0.033

X3 0.121 0.048 0.114 2.498 0.012

X4 0.228 0.051 0.142 4.501 <0.001**

X5 0.417 0.102 0.205 4.083 <0.001**

X6 0.687 0.101 0.352 6.805 <0.001**

The value of multiple regression is 0.828, the relationship among measured value of
the modern port / warehouse systems and the predicted values is calculated. While the
prediction values are a linear mixture of Economic Factor (X 1), Financial Factor (X2),
Technical & Structural Factor and Political factor (X 3), Legal & Procedural factor (X4),
Technical & Structural Factor (X5), the 0.829coefficient value. There are strong and positive
relations between the requirements and the five independent variables. The R-square
coefficient of determination calculates the fitness of the estimated sample regression plane

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Skema Business School MSc Supply Chain Management and Purchasing

(SRP) as regards the proportion of dependent variable variables described by the regression
equation provided. The R square is 0.687, which implies that the approximate SRP is clarified
by around 68.7 percent of the variance in the requirement of the warehouse system/ modern
port. Which the independent variables, Economic Factor (X 1), Financial Factor (X2),
Technical & Structural Factor and Political factor (X3), Legal & Procedural factor (X4),
Technical & Structural Factor (X5), and 1% of R square value.

Y = 7.788 + 0.118X1 + 0.115X2 + 0.121X3+ 0.228X4 + 0.417X5+ 0.687X6

In this respect, the X1 coefficient is 0.118, a partial effect of economic factor on the
requirements of warehouse systems/ Modern port. The positive implies the effect of
requirements of warehouse system/modern port may increase by 0.118 for each unit increase
in the products, and the significant coefficient value is 1%. The factor of X2 is 0.115 and is a
partial effect on the requirements of warehouse system and modern port through the Financial
Factors. . The positive implies the effect of requirements of warehouse system/modern port
may increase by 0.115 for each unit financial factor and coefficient value is 1% is not
significant. The X3 coefficient is 0.121, which partly affects the requirements of warehouse
system/ modern port by technical, structural and political considerations, keeping the other
variables stable. The positive implies the effect of requirements of warehouse system/modern
port may increase by 0.121 for each unit increased in technical, structural and political factors
and coefficient value is 1% is not significant. The X4 coefficient is 0.228, which partly affects
the requirements of warehouse system/ modern port by legal & procedural factor, keeping the
other variables stable. The positive impact estimated suggests that the decision-making method
score will grow by 0.228 for each unit raise in legal and procedural considerations, which the
coefficient value is significant with 1%. The X5 coefficient is 0.417, which partly affects the
requirements of warehouse system/ modern port by Technical, structural factors, keeping the
other variables stable. The positive impact estimated suggests that the decision-making method
score will grow by 0.417 for each unit increase in Technical, structural factors, which the
coefficient value is significant with 1%. X2 coefficient is 0.687, which is the partially effect the
warehouse system/ modern port of economic factors. The positive implies the effect of
requirements of warehouse system/modern port may increase by 0.687 for each unit increased
in economic factor and coefficient value is 1% significant.

The most significant factor to meet modern port and warehouse system requirements is
economic (0.352) based upon the standardized coefficient, followed by Technical & Structural

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Skema Business School MSc Supply Chain Management and Purchasing

Factor (0.205), Legal & Procedural factor (0.142), Technical & Structural Factor and Political
factor (0.114), and Financial Factor (0.066).

4.5 Structural Equation Model (Sem)

Structural Equation Model is a multivariate method that concurrently estimates

interdependence relations. This makes for a good interpretation of the pectoral paradigm of the
research conceptual structure. The proposed model may be statistically checked to see how
consistent with the information, the model helps to create a relationship among the factors if
they good in fit is sufficient.

The SEM model is made up of two parts, the calculating model and the structural model.
The relation of observed variables and latent variables is defined in this model. The factors in
the measuring instrument are classified as latent and observable factors. The process of creation
they are expected to represent is defined operationally. Exogenous latent factor are associated
with specific variables, which alter the latent factors of the model.

Endogenous latent variables mean dependent variables and thus are influenced by the
exogenous variables in the process explicitly or implicitly.

In the study, the structural equation model incorporates the 5 measured variables of
critical success factor and requirements. Null hypotheses are framed to test the model fit.

H07: The hypothesized model has not a good fit.

H7: The hypothesized model has a good fit

Table: 4.13 Structural Equational Model

Indices Value Suggested value

X2/df 4.1436 <5.00 (Hair et al., 1998)

NFI 0.951 > 0.80 (Hu and Bentler, 1999)

GFI 0.870 > 0.80 (Hair et al. 2006)

CFI 0.952 > 0.80 (Hu and Bentler, 1999)

AGFI 0.856 > 0.80 (Daire et al., 2008)

RMSEA 0.066 < 0.08 ( Hair et al. 2006)

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Skema Business School MSc Supply Chain Management and Purchasing

The estimated value of Chi-Square / DF from the above is 4.1436, which is less than
5,00, that is absolutely appropriate. In this scenario, the goodness fit index (GFI) value (0.870
and goodness fit index adjusted (AGFI) value 0.856 is more than 0.8 which is good in fit. The
results show that the root mean square approximation error (RMSEA) values are 0.066, lower
than 0.08, which means that the structural model is completely consistent.

Figure-4.7 Structural Equation Model

Table:4.14 Path Co efficient

Estimate S.E. C.R. P
DEP <--- Economic Factor .000 .125 .000 0.00
DEP <--- Financial Factor .334 .396 .842 .008
DEP <--- Social and political factors .166 .360 .463 .001
DEP <--- Legal and Procedural factors .000 .350 .000 0.00
DEP <--- Technical structural factors .166 .152 1.091 .004

To establish that structural relations are in consistence with the theoretical expectations
of the conceptual model, path estimates. The predicted relationships of constructs were
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Skema Business School MSc Supply Chain Management and Purchasing

interpreted in order to understand the concept of regression weights and standardized regression
weights. The statistical importance of path calculations was defined using both t- values and p-
values to define statistical significance of 5%, 1% and 0.1% (Kao et al., 2008). For p-values
under 0.05, 0.2 or 0.001 statistical significance of the path estimates that suggest important path
relations between latent constructs was considered to exist (Hair et al., 2010). The direction
and magnitude of the path measurements were also taken into consideration. An understanding
of the t and p-values of the 5 path relations in the above table are statistically significant and
thus confirmed.

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Skema Business School MSc Supply Chain Management and Purchasing

CHAPTER 5: SUMMARY OF FINDINGS,

SUGGESTIONS AND CONCLUSION

The purpose of this chapter is to provide detailed description of problem statement. The
aim of the. investigation analysis and the methods used, the findings, the recommendations and
conclusions are provided.

5.1 Summary

Warehouses are integral to both cost savings and customer satisfaction in a supply
chain. Today's warehouses and centres of convergence with several supplying sites are
designed to provide local dealers with cross docking facilities, customer-specific processing
centres and final packing and bundling assembly facilities. The total average annual
warehousing needs of India are projected to rise by 9% to 1,439 million sq.ft in 2019. 919
million sq (Square Feet) in 2014. The research is aimed at figuring out how warehouse
manufacturers, managers and consumers in the Indian situation profit from the global
warehouse facility. The following objectives are framed to conduct this study effectively based
on the theoretical and conceptual discussion: Defining study recognizes the layout of the Indian
world class warehouse, studying the need to strengthen world-class specialist warehouse
infrastructure. to define the quality of warehouse infrastructural development of the highest
standard market in India from the viewpoint of planners, management team and end users, and
to illustrate the existence of steps for effective and efficient warehouse management.

The present research is exploratory and descriptive. The very first move was to undertake a
detailed secondary search literature investigation into research questions. In the second level,
a descriptive research using a survey approach was conducted. The latest work is focused on
the random sampling technique in multi stage. In the first step of the study, cluster-based simple
random methods have been implemented for recognition of warehouses throughout India.
During the second phase of the study, a convenient sample technique for the compilation of
primary data from the collections is followed i.e. End users, operators and warehouse designers.

5.2 Key Findings of the Study

• The largest proportion of respondents from eastern India in the four categories
presented is 42.3 percent including its sample, The North India category of respondents

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Skema Business School MSc Supply Chain Management and Purchasing

followed by 32.3%.
• It has been noticed that many respondents worked in middle management (42%) around
India. The Executive (32.5%) and Top Leadership (25.5) interviewees also observed.
• The findings indicate that the majority (30.8%) among research participants have 7-10
years of experience in organizations, the members who work in under 1 and 4-6 years
of established company are observed. The lowest number of respondents are from the
business with more than 10 years of warehousing and port operations experience.
• Depending on the study's experience, the majority of participants had fewer than 1 to 3
years of experience, led by 28.1% of participants who have very little under 1 year of
knowledge. 24.1 of participants with 4 to 6 years’ experience, 6.7% of those who have
7 to 10 years, 10.9% of those who have more than 10 years’ experience.
• The findings of the study reveal the employment category of the respondents; most
respondents are in the warehouse sector is (62.2%) and 38% work in many ports in
India.
• Data analysis has also shown that technical and functional factors among respondents
followed by economic factors and financial factors are considered as important factors.
• It has been established that the empirical findings of the ANOVA study did not impact
the decision of end-users on critical factors in choosing warehouse and port services.
• Port stakeholders have noticed that economic factors and financial factors are critical
in ensuring the performance of projects in ports. The field has played an significant role
in predictability of production and economically stable.
• The economic factor became the most significant element in the exclusion of the
requirements of a new port and warehouse network based on standard coefficient of
multiple regression. The legal and administrative considerations are accompanied by
technological and structural factors.
• Legal and regulatory considerations listed third, but were mostly perceived to be only
financially significant, nearly all of them believed that the legal and proceedings cluster
control was a primary CSF of significance. The majority of direct interviews with many
professionals in the sector have shown that one important aspect is that of a grievance
body as a litigation entity that has ate in time and resources.
• The port stakeholder listed systemic and technological factors at the bidding level,
although considered necessary.

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Skema Business School MSc Supply Chain Management and Purchasing

5.3 Suggestions for Successful Warehouse management Practices

The analysis results and recommendations from warehouse and port analysts, business
professionals and academicians include the following important guidelines for the completion
of the thesis work:

(i) Aim for Efficient Warehouse Deign:

Warehouse planners will note that the overall proportion of the structured warehouse area in
India is much less than 8%. In order to increase efficiency and versatility of the warehouse
space, the warehouse designers are recommended during layout design. Because, 236
warehouse expense is between 15% and 35% of the overall cost of logistics, based on
commodity and market.

(ii) Land Area Strategic Procurement :

The designers of the warehouse are advised to buy land in a strategic position that is
conveniently linked or well linked to road, air and rail networks. In addition, that will reduce
logistics market providers' and end-users' running costs.

(iii) Adoption of Green Warehousing Practices :

The designers of warehouse indicated that the design of the warehouse is essential for the
preparation of an ambient warehouse. The potential returns on the environment and
development, as water, energy and material savings, should be determined in the framework.

Effective Usage of ICT :

While warehouse is an integral part of supply chain, warehouses typically are separately
organized. Warehouse companies also struggle to align knowledge and recognition with other
supply chain stakeholders. Such deterioration of upstream or downstream warehouse from both
ends contributes to uncertainty of capacity and machinery usage. It often impacts the planned
value-added expensive products of warehouse service providers. The successful usage and
implementation of new information and communication technologies will solve this issue.

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Skema Business School MSc Supply Chain Management and Purchasing

5.4 Suggestions for Modern Port Services

• Financial support for the PPP model must be clear, such that private investors will
access strong energy. Those ports with hinterland where future industrial development
is seen will concentrate on the construction of technology-assisted Logistics Parks,
storage facilities and equipment for PPP projects
• FDI will be attracted to fostering accountability and constructive policy help in a broad
way by the port authorities.
• There must be an independent process for dispute settlement for PPPs, which will
operate without bureaucratic machinery intervention. Independent assessments and
awards will provide successful solutions to the unavoidable number of problems which
occur after the concession has been given between the public and private entities.
• The inclusion of renegotiation clauses, because the majority in the port industry think
that 'full results forecasting' in PPP projects that last more than 20 years cannot be
achieved.

5.5 Conclusion

The report concludes by noting that developments in business dynamics and the arrival
of global 3PLs and 4PLs (third-party / fourth-party logistics providers) culminated in a
transformation including logistics, supply chain and warehouse facilities in India. Logistics is
a technique that includes end-to- end value-added approaches, which increase the efficiency of
the supply chain, by actually integrating the transportation and storages. Warehouses are
increasingly used to fulfil several important functions in addition to merely storing goods and
this has rendered warehousing players important for them to resolve their obstacles and how
competitiveness is strengthened and maintained. The competitiveness of warehouse / port
operators can be effectively enhanced by various measures such as skills development, policy
initiatives, and government measures, and the adoption of IT and increased investment in that
sector.

5.6 Limitations

This detailed, empiric study has been proven to confine the study to warehouses / port
cities in the study area selected in India to a certain operational limitation. The research focused
solely on the aspects of operational in warehouse / port operations in India. The research relies

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Skema Business School MSc Supply Chain Management and Purchasing

on the experience of warehouse managers, warehouse operators and the warehouse / port end
users how to run and make effective warehouse facilities of international quality. This research,
however, fails to illustrate the features and characteristics of warehouse activities, management
of human capital, behaviour to improve organizational performance, etc. and the future
research can be followed by the above-mentioned view.

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Report.html

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QUESTIONNAIRE

1. Name of the Company: (optional):

2. At which location do you work?
i. North India ii. East India iii. South India iv. West India

3. What is your designation / Position at work:

i. Executive ii. Middle Management iii. Top Management

4. How old is your Organization? (In Years)

i. Less than 1 year ii.1 to 3 years iii. 4 to 6 years iv. 7 to 10 years v. Above 10 years

5. Your experience in the department (Supply Chain, Logistics & Warehousing)? (In Years)
i. Less than 1 year ii.1 to 3 years iii. 4 to 6 years iv. 7 to 10 years v. Above 10 years
6. Which Sector are you working?

i. Warehouse ii. Port

Please tick () the most appropriate option after assessing each statement SA- Strongly Agree,
A-Agree, NN- Neither Agree nor Disagree, D- Disagree, SD Strongly Disagree.

1. ECONOMIC FACTORS:

SA A NN D SD
A stable economy boosts private
investment.
It gets enough bidders irrespective of
economic climate.
Available market research to forecast
demand encourages private investors
projects are dependent on the investment
climate of the nation.

2. FINANCIAL FACTORS:

SA A NN D SD
Availability of
financial institutions
to fund PPP projects
is crucial for project
completion

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A realistic cost
benefit analysis is
necessary for
judging the financial
viability of the
project
Government should
encourage VGF
(viability gap
funding) in projects.

3. SOCIAL & POLITICAL FACTORS:

SA A NN D SD
Acceptance levels of
the local community
towards the project
determines its
success
The need of the
project for the
society enhances
speedy completion of
the project
service.
Projects that have a
concrete impact on
environment can
take longer to
complete
Those projects
which impact
livelihood and
resource utilization
can take longer for
implementation
Projects that take
adequate steps to
ensure user safety is
more successful.
Political instability
can lead to

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Skema Business School MSc Supply Chain Management and Purchasing

withdrawal of
potential investors
FDI in projects is
dependent on the
political climate.

4. LEGAL & PROCEDURAL FACTORS:

SA A NN D SD
Presence of clear
enactments
favoring to
increases private
participation
Inadequate
legislation can
lead to legal
hassles and
abandoned
projects.
Standardization
of contract
increases investor
interests.
5. TECHNICAL& STRUCTURAL FACTORS:

SA A NN D SD
Technical feasibility
is a vital criterion to
be considered before
seeking bidders
Technical
competence of the
bidders to be
thoroughly examined
before awarding
contracts.
Technology and
innovation by the
private player can
attribute to its
success.
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Appropriate risk
assessment is a must
before a project
proposal is made.

6. Please rank the Factors according to significance as per your opinion by assigning ranks to
each Factor 1,2,3, 4, 5 in the space assigned. (For e.g. if you think Socio-political factor is the
most vital, assign Rank 1 to it)

1. ECONOMIC FACTORS: RANK

2. FINANCIAL FACTORS: RANK
3. SOCIAL & POLITICAL FACTORS: RANK
4. LEGAL & PROCEDURAL FACTORS: RANK
5. TECHNICAL& STRUCTURAL FACTORS: RANK

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