4.4 Logistics System
An efficient logistics system can improve the efficiency of a supply chain, while a bad logistics
system will make its situation worse. Rice supply chain in India is facing a major challenge of on
time inventory availability and high logistics cost. To cope between the logistics costs and on
time delivery is a big challenge. Either inventory delays from its delivery time or it causes higher
delivery cost than which the rice processing unit has estimated to pay. The rice processing
company is required to minimise its both inbound logistics expenses and the outbound logistics
expenses while reducing the transportation delays. The solution of the problem lies in the
efficiency of transportation system and reducing the number of intermediaries. The company
should design its transportation very efficiently in case of their transportation system. On the
other hand in case of the third party logistics also there must be the proper collaboration between
the logistics service provider and the company hiring the services.