Journal of Applied Business, Economics and Strategic Management ISSN: 3139-1664 (Online)

Authors: Frackson C Viyano, Bindhu Ann Thomas

Abstract: Logistics is used more broadly to refer to the process of coordinating and moving resources, people, materials, inventory, and equipment from one location to storage at the desired destination. The term logistics originated in the military, referring to the movement of equipment and supplies to troops in the field. Logistics play a huge role in the smooth operations of a business. Inbound logistics refers to the transport, storage and delivery of goods coming into a business. Outbound logistics refers to the same for goods going out of a business. Today the most important problem faced in the cement industry is difficulty in inbound and outbound transportation. The distribution of cement from manufacturing to the ender user is a costly affair, mainly its transportation. The selling and distribution costs accounts are more than its revenue. Using more railway routes than roads, shrinking lead distance (distance between the manufacturing facility and market) and opting for sea routes wherever possible were some of the ways by which cost can come down. Inward logistics include coal and limestone transportation, while outward logistics is mostly the final product of cement. Some companies also incur the outbound logistics cost of transporting clinker to their grinding plants. For plants that are closer to the collieries, the inbound transportation costs are less.

Keywords: - Logistics, Inbound and outbound transportation, problems in cement industry.