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Warehousing means the safe preservation of products till they’re sent to the shoppers. Generally, there’s a time gap between the assembly and consumption of product. By bridging this gap, storage creates time utility. Some quantity of products is keep at each stage within the promoting method. Proper and adequate arrangements to retail the products in good condition area unit essential for fulfillment in promoting. Storage allows firms to hold on production of products in anticipation of demand in future. A warehouse could be a place used for the storage or accumulation of products. Warehouses alter the businessmen to hold on production throughout the year and to sell their product, whenever there’s adequate demand. Need for warehouse arises additionally as a result of some merchandise area unit made solely in a very explicit season however area unit demanded throughout the year. Equally bound product area unit made throughout the year however demanded solely throughout a specific season. Re-position facilitates production and distribution on an out sized scale logistics colleges in kerala.


1.Regular production: Raw materials ought to be kept to alter production to be carried on unceasingly. Sometimes, merchandise area unit keep in anticipation of an increase in costs. Warehouses alter makers to provide merchandise in anticipation of demand in future.

2. Time utility: A warehouse creates time utility by transportation the time gap between the assembly and consumption of products. It helps in creating offered the products whenever needed or demanded by the shoppers Some merchandise area unit made throughout the year however demanded solely throughout explicit seasons, e.g., wool, raincoat, umbrella, heater, etc. on the opposite hand, some product area unit demanded throughout the year however they’re made in bound region, e.g., wheat, rice, potatoes, etc. merchandise like rice, tobacco, liquor and sugar become a lot of valuable with the passage of your time.

3. Storage of surplus goods: Basically, a warehouse acts as a store of surplus merchandise that aren’t required in real time. Merchandise area unit usually made in anticipation of demand and wish to be preserved properly till they’re demanded by the shoppers. Merchandise that aren’t needed in real time are often keep in a very warehouse to satisfy the demand in future.

4. Cost stabilization : Warehousing helps to bring about a lot of changes in costs by storing merchandise once their offer exceeds demand and by cathartic them once the demand is quite immediate productions. Warehouses guarantee an everyday offer of products within the market. This matching of offer with demand helps to stabilise costs.

5. Products are insured: Warehouses offer for the safe custody of products. Biodegradable products are often preserved in cold storage. By keeping their merchandise in warehouses, businessmen will minimise the loss from harm, fire, theft etc. the products unbroken within the warehouse area unit usually insured. Just in case of loss or harm to the products, the owner of products will get full compensation from the insurance firm.

6. Packing : Goods must be processed enough so that it is acceptable for human use, e.g., coffee, tobacco, etc. a contemporary warehouse provides facilities for process, packing, blending, grading etc., of the products for the aim of sale. The possible consumers will examine the products unbroken in a very warehouse.

7. Financing: Warehouses offer a receipt to the owner of products for the products unbroken within the warehouse. The owner will borrow cash against the protection of products by creating associate degree endorsement on the warehouse receipt. In some countries, warehouse authorities advance cash against the products deposited within the warehouse.

Logistics Sector In India

Logistics Sector In India

Logistics is thought of to be a mutually essential industry for economic process because it is the management of the flow of merchandise from the place of their origin to the place of their consumption, so the trade conjointly involves the mixing of fabric handling, deposition, packaging, transportation, shipping security, inventory management, provide chain management, procural, and USCB. The worldwide supplying trade principally consists of a fancy vary of freight and freight connected transportation sectors, like shipping,deposition, courier, and road/rail/air freight.

Over succeeding few years the worldwide logistics market can see the expansion in demand far from ancient Western economies to the rising markets of China, India and alternative Asian countries. The logistics sector in India has at the moment become a region of priority.The massive volume of traffic has paved means for growth opportunities all told fields of supplying as well as transportation, deposition, forwarding, specific freight delivery, instrumentalityservices, shipping services etc.The expansion path shows thata rise in demand is being placed on the world to supply the solutions needed for supporting future growth. Strength of the logistics sector is probably going to be one in every of the key determinants of the pace of the longer term growth of the economy .The government policies have attracted a robust growth space for supplying within the future. Logistics is that the backbone of the economy, providing associate degree economical, value effective flow of products on that alternative business sectors depends. The supplying trade in India is evolving quickly and it’s the interaction of infrastructure, technology, and new kinds of service suppliers which will outline whether or not the trade is ready to assist its customers cut back their supplying prices and supply economical services. The supplying trade is additionally hampered by low rates of technology adoption and poor talent levels. On the technology front the trade currently looks to be paying serious attention with use of RFID, vehicle chase technologies, warehouse management system etc. Whereas acceptance is maybe isn’t a problem any longer, the wedding between IT and domain demand has to be resolved. Automation in processes remains solely in its infancy. Any progress relies on a definite level of standardization that is created harder by the fragmentation within the trade. This disadvantage has to be tackled at the earliest. Additionally to the technology connected problems the talent levels of within the supplying trade conjointly need to be upgraded desperately. As of currently courses specializing in supplying trade stay few and conjointly supplying trade remains not checked out because the trade of selection for young graduates thereby creating hiring of quality skilled force difficult.

The various challenges faced by the logistics sector cause high supplying prices incurred by the Indian economy.This is often despite the very fact that value of labour, one in every of the foremost vital contributors to supplying prices in developed countries, is considerably cheaper in India. With regards to prices of spends on supplying, India’s logistics sector accounts for thirteen of the gross domestic product of India.

Major parts of logistics prices usually embody transportation, deposition, inventory management and alternative worth additional services like packaging.What is worrying regarding supplying prices in India is that the distribution of prices across numerous heads. In India, the maximum amount as thirty first of the supplying prices is due to the ‘others’ class, that primarily includes numerous kinds of method. The logistics colleges in kerala prices as a proportion of total product value in India is within the vary of 4-5 times that in developed countries.This is often at a time once the standard of supplying services provided isn’t of the very best standards. Also, worryingly, these prices are showing a rising trend. Fuel value hike sharply will increase the price of freight transport.

Ship Speed

Speed optimization for fuel potency typically suggests that to control at a lowest ship speed that’s technically possible. This is often said as “slow steaming” that may be coated during a subsequent section. Terminologies used for ship speed is commonly confusing, so herein varied definitions are provided first:

Style speed: Technically a ship is meant for a selected operational speed (design M3 from Management to Operation Module three – Page thirty four speed). Generally, throughout ship style and selection of machinery, the engine and ship hull type and main dimensions are optimised for this operational condition. Engine and hull-propeller efficiencies commonly tend to cut back on the far side this technically-optimal style speed. The term design speed” has significance once relationship between ship-owner and ship-builder are considered. It is a part of the written agreement needs between the 2 parties; and is often assessed and confirmed throughout the initial speed trial (commissioning trial) of the ship.

Slow steaming: This term refers to running a ship at a significantly lower speed than its vogue speed. Typically slow steaming refers to ship speeds that area unit achieved once the foremost engine’s load could be a smaller quantity than 60 minutes MCR. This is often a form of in agreement definition between the majority of business. This implies that smaller levels of speed reductions achieved below voyage and port management (as delineate in Sections 5) do not represent the category of “slow steaming”. Despite the technically optimised hull-propeller-engine for a ship’s vogue speed, it’ll merely be in-contestible that as a result of the ship speed reduces, the hull resistance reduces further significantly than its corresponding impacts on varied propulsion efficiencies; therefore reducing the ship’s fuel consumption per tonne-mile carried. This important reduction in resistances makes the use of slow steaming such a fairly preposition for the reduction of a ship’s fuel consumption From this angle, generally the lower the ship speed, the lower area unit attending to be the ship fuel consumption. The minimum speed below that a ship may operate is settled by the engine’s capability to run at low a whole lot. For engine’s integrity, it’s infeasible altogether cases to chop back ship speed very significantly.

Ship economic speed: This term is usually used in shipping and in point of fact is usually a vicinity of the charter-party agreements. It generally suggests that a speed at that the ship transport as a full yields the only cash results below the given constraints of engine power, ocean conditions, port and waterways dues, and completely different commercial/financial wants of the charterer. In trade, typically the ship economic speed is perceived as a result of the most effective ship speed for energy efficiency. Below the slow steaming, extreme speed reduction is usually useful for fuel consumption reduction.

Service speed: Service speed refers to the everyday speed maintained by a ship below ancient load and weather. This is often unremarkably adore ship vogue speed as delineate above; however, it should take issue in cases where a ship’s vogue speed has been stricken by its operation history.

Most speed: This term defines the utmost speed of a ship that the ship-owner claims the ship abundant will do. It is un-remarkably the speed of the vessel below full engine MCR. As such, ship most speed is over the ship vogue speed that is un-remarkably like at ninetieth MCR (taking into thought relevant ocean margins). The origin of this term is from the link between charterer and ship owner and un-remarkably this term might appear in relevant contracts. The on prime of ship speeds would vary from one ship to the other and may be influenced by hull kind, engine vogue, age of the vessel, industrial and legal wants then on. As an example, with fashionable engines with electronically controlled mechanical system , a wider vary best operation, as a perform of load, is possible so giving tons of flexibility in terms of slow steaming additionally as a result of the choice of ship economic speed then on shipping courses in kerala

Factors Impacting the Logistics Industry

Factors Impacting the Logistics Industry

The logistics industry in India, is in its emerging stages where it is sure to face big challenges on its way ahead. The logistics sector in India is not very planned and there is a tough competition, in the big cities, where there are several unorganised small truck owners and service providers providing tough competition for small margins. Both within-the-industry and externally exists factors that the 3PL firms will have to be a part to promote the industry as well as individual businesses. The factors effecting the logistics sector are:

EXTERNAL FACTORS: Logistics is a dependent industry. The demand for logistics services varies a lot due to the changes in economic activity. There are several external factors effecting the industry.

POLICY FACTORS: The government of India is looking to stimulate and promote businesses; both domestic and international businesses have been called upon to expand their businesses. Last year From April to September almost $25 billion has already come in as foreign direct investment (FDI) into India which is 17% more than last year for the same period. – There is a new minimum wage law, which will be affecting the logistics industry. It will be against the law to pay workers at warehouses and truck drivers lesser than the minimum wage requirement. The tax reform that dissolved the state borders within India will definitely encourage the logistics industry. Ease of doing business is another factor. The Indian government is looking at various measures of increasing the business in India, thus further liberalisation of regulations with respect to construction permits, getting electricity and access to licenses and permits is also expected. A significant public investment within the logistics sector have been organised in the form of multi-modal logistics parks in 35 clusters around India at an investment of $61 billion. The government is also looking to improve the infrastructure in the country. In November 2017, the government announced a billion dollar project to construct highways across the country.

ECONOMIC FACTORS: According to the logistics industry, the share of logistics cost in GDP is set to come down by a minimum of 1–1.5% in the near future. This would lead to savings of an estimated $45 billion. Skilled labour in logistics is a major issue in India. Players in the logistics sector have not been capable of investing in manpower development due to the fragmented nature of the industry, and the government has also not focused sufficiently on the same. The Foreign investments in the logistics sector and other related sectors is increasing at a rapid speed. Many logistics companies have invested heavily in India and have plans to invest further. Many 3PL-using businesses also have plans to expand their business and build new operating units.

SOCIAL FACTORS: Land acquisition – Acquiring land is a major problem among the social issues related to environment, displacement of people and government bureaucracy. Providing jobs to locals residing there is a major reason. Displacing people from their agrarian occupations, most land acquirers have to promise employment to the local population. In the future, with automation, job losses would lead to further issue . Red Tapism is very common even in social circles, mainly in rural areas, where the Sarpanch presides over the decision making processes.

TECHNOLOGICAL FACTORS: Automation-driven technology for the logistics industry is emerging as a fully automated system. From the management of inventory in the warehouse through WMS to drone delivery, most processes in the logistics courses in kochi services can be done unmanned. • Data Analytics – With which data is being used for new identification

Growth of Logistics Industry

Rapid growth in industries like vehicles, prescribed drugs, fast-moving
consumer goods (FMCG) and retail has considerably accumulated the demand for movement of shopper and capital product across the country, from entry ports to producing or distribution locations or from manufacturers and distributors to shoppers and exit ports.
The volume of freight traffic is absolutely regarding the GDP of the country. Therefore, as the GDP increases the goods’ movement is anticipated to extend through all modes. from 2007-2012, the agriculture and producing GDP have accumulated from 263.6 billion to
290.7 billion at constant costs. The corresponding increase in freight traffic was from one trillion tonne kilometers (TTK) to two TTK.

Globalisation: With the growing integration of India’s economy , the country’s total trade has mature at a concerning twenty per cent from US$ fifty seven billion in 1997-98 to US$ 862 billion in 2012-13.The initiative to construct a trilateral main road connecting Asian country represents an important step within the institution of property between India and Southeast Asian countries. The highway is anticipated to be operational within the year 2015-16 and is probably going to spice up trade ties of India with other countries. The increase in international trade has established corresponding growth in cross-border freight traffic,

The Government of India has initiated many policy measures and programmers
to attract investments in developing the supplying infrastructure of the country.A number of the key reforms undertaken by the government of India focuses on several measures. The government permits hundred per cent FDI beneath the automated route for all supplying services, except airways and traveler services. For transportation services as well as airways services, the limit was enhanced from forty nine per cent to seventy four per cent in 2008. Also, FDI of up to hundred percent is allowable for traveler services, subject to Foreign Investment Promotion Board (FIPB )approval. The government has considerably increased the investment allotted for the event of supplying infrastructure as well as ports, airports, national highways,supplying parks, freight stations and corridors. Many measures are undertaken by the government of India to encourage personal sector participation within the supplying trade across all modes. These measures include increasing targeted contributions of personal players within the investments put aside for the development of supplying infrastructure, tax exemptions and duty free imports. Aside from rushing up capability creation, this is often conjointly aimed towards incorporating latest technologies and higher management practices. The projected introduction of the products and Services Tax (GST) is expected to considerably bring down the overall prices of the supplying trade.

At present, most firms have originated multiple tiny warehouses of 10,000 square foot across the country to save lots of taxes on inter-state movement. However with the implementation of GST, the necessity to own many tiny warehouse sis likely to be eased in favor of larger and consolidated warehouses at strategic locations. The logistics trade stands to learn from the increasing trend of outsourcing the provision and deposit perform to 3rd party service suppliers. This was historically performed by the organisations themselves. However, company entities recognise the advantages associated in partaking a third-party provision supplier for integration of knowledge flow, material handling, production, packaging, inventory, transportation, deposit and sometimes security. This enables corporate entities to think about their core business and conjointly avail of great discounts through outsourcing. logistics colleges in kerala

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