Relationship With The Media And Tourism

Relationship With The Media And Tourism According to statistics, there are aspects which affect our way of thinking much more than mass media alone. The information and advice we are fed daily from various sources can often be ignored by us, but the mass media influences us all greatly, therefore, it is important for us to define mass media. The term mass media was first used in the 1920s to denote a section of the media aimed at targeting the lager audience using outlets such as nationwide radio networks and mass circulation of newspapers and magazines, though some forms of mass media such as books and manuscripts had already been used successfully for centuries. Mass media includes Internet media such as podcasts, blogs, message boards and video. We now have the kind of exposure that is compares in scale to that which was once restricted only to a certain band of mass media producers. Such audience communication has been considered by various commentators as forming a mass society with special characteristics, in particular, atomization or the lack of social connections this makes it especially open to the influence of modern mass media techniques such as advertising and propaganda. Public media as a term is used much less and is defined as media whose mission is to server or engage a public. Mass media can be used for several purposes, these include: a. Advocacy, in business and social matters. This can include advertising, marketing, propaganda, public relations, and political communication. b. Entertainment, traditionally in the performing of music, acting and sports and more recently during the late 20th century via video and computer games. c. Public service announcements. What makes mass media so attractive? The tourism industry harnesses the mass media which in turn holds a form of mystique to the public. This is because the designed communication appeals to a wider demographic. Advances made in mass media technology aides the marketing and promotion of tourism. If it gets people talking then this is a sign of a good mass marketing drive. If it succeeds then not only does it mean that the advertising drive has worked well, but also that the organisation in charge will benefit by the much valued and sought after word-of-mouth method of advertising. 2) Types of Media It can be possible to divide the types of Media into 3 categories: Print Media, Electronic Media and New-age Media. à ¢- º Print Media à ¢-„ a. Book A book is a collection of sheets of paper, parchment or other material with a piece of text written on them, bound together along one edge within covers. A book is also a literary work or a main division of such a work. b. Magazine A magazine is a periodical publication containing a variety of articles, generally financed by advertising and/or purchase by readers. Magazines are typically published weekly, biweekly, monthly, bimonthly or quarterly, with a date on the cover that is in advance of the date it is actually published. They are often printed in color on coated paper, and are bound with a soft cover. Magazines can be classified as: General interest magazines (e.g. Frontline, India Today, The Week, The Sunday Indian etc) Special interest magazines (womens, sports, business, scuba diving, etc) c. Newspaper A newspaper is a publication containing news and information and advertising, usually printed on low-cost paper called newsprint. It may be general or special interest, most often published daily or weekly. The first printed newspaper was published in 1605, and the form has thrived even in the face of competition from technologies such as radio and television. à ¢- º Electronic Media à ¢-„ a. Broadcast: radio television Television and radio programs are distributed through radio broadcasting over frequency bands that are highly regulated by the Federal Communications Commission. Such regulation includes determination of the width of the bands, range, licencing, types of receivers and transmitters used, and acceptable content. b. Film Film encompasses motion pictures as individual projects, as well as the field in general. The name comes from the photographic film (also called filmstock), historically the primary medium for recording and displaying motion pictures. Many other terms exist motion pictures (or just pictures and picture), the silver screen, photoplays, the cinema, picture shows, flicks and commonly movies. c. Internet The Internet (also known simply as the Net or less precisely as the Web) is a more interactive medium of mass media, and can be briefly described as a network of networks. Specifically, it is the worldwide, publicly accessible network of interconnected computer networks that transmit data by packet switching using the standard Internet Protocol (IP). It consists of millions of smaller domestic, academic, business, and governmental networks, which together carry various information and services, such as electronic mail, online chat, file transfer, and the interlinked Web pages and other documents of the World Wide Web. à ¢- º New-age Media à ¢-„ a. Blogs (Web Logs) Blogging has become a huge form of media. A blog is a website, usually maintained by an individual, with regular entries of commentary, descriptions of events, or other material such as graphics or video. Entries are commonly displayed in reverse chronological order. Many blogs provide commentary or news on a particular subject; others function as more personal online diaries. b. RSS feeds RSS is a format for syndicating news and the content of news-like sites, including major news sites like Wired, news-oriented community sites like Slashdot, and personal blogs. It is a family of Web feed formats used to publish frequently updated content such as blog entries, news headlines, and podcasts. c. Podcast A podcast is a series of digital-media files which are distributed over the Internet using syndication feeds for playback on portable media players and computers. The term podcast, like broadcast, can refer either to the series of content itself or to the method by which it is syndicated; the latter is also called podcasting. The host or author of a podcast is often called a podcaster. d. Mobile Mobile phones were introduced in Japan in 1979 but became a mass media only in 1998 when the first downloadable ringing tones were introduced in Finland. Soon most forms of media content were introduced on mobile phones, and today the total value of media consumed on mobile towers over that of internet content, and was worth over 31 billion dollars in 2007 (source Informa). 3) Role of the media in tourism The mass media plays a unique role in modern society. Its growth has accompanies an increase in the magnitude and the complexity of actions and engagements within society. With rapid social change, innovation in technology, an increase in personal income, standard of life and the decline of some traditional forms of control and authority. Although much debated, there is an association between the development of mass media and social change, even after years of study into the influence of the media. Many of the consequences whether beneficial or detrimental which are attributed to the mass media are almost without doubt due to other tendencies within society. Sociologists would rarely deny the significance of mass media and mass communications as a whole, as being a main feature in the construction and circulation of modern social understanding and imagery. The media play a crucial role in putting emerging destinations in Eastern Europe and Central Asia onto the global tourist map, helping to boost the local economies, according to the United Nations Tourism Organisation (UNTO) (http://www.un.org/apps/news/story.asp?NewsID=23983Cr=georgiaCr1=tourism). The vast majority of travel is decided upon by people who have never before travelled to that particular destination, and are therefore dependant on media reporting. Should a crisis occur, tourism can be seriously damaged. 4) Relationship with Media and Tourism It can not be ignored that the recent boom in tourism can be attributed to the media. Information is accessed using it and an education regarding the many interesting attractions to be found around the world. The internet is possibly the most popular source of information on destinations and the best way of reaching them. Through the Internet, information and various articles on a destination can be found which will give the traveller an advantage. They will also gain knowledge to determine which places best suit them and offer them the most. Using the internet is fairly easy and cheap to book. With online travel agencies, flights and trips can be booked simply by logging on to a particular website and making a choice from any of the tour packages the agency offers. 2. Effects of media on tourism The internet has for a long time been a key component and aide in the technology of travel. Surveys show that the trend is rising in numbers and indicate that travellers are doing their research and booking more and more of their travel online. Whist traditionally the realm of most major websites who were offering low airline fares with all the accompaniments are now in a position to offer even more. Social media now provides a completely new opportunity for interaction with its potential customers. It has become a global media platform which is at last, companies in all sectors are finding new way to: (http://38minutes.ning.com/profiles/blogs/can-social-media-make-an, Can Social Media make an impact on Travel and Tourism?) à ¢Ã¢â€š ¬Ã‚ ¢ provide a greatly improved customer service à ¢Ã¢â€š ¬Ã‚ ¢ respond to customer needs in the marketplace à ¢Ã¢â€š ¬Ã‚ ¢ extend their real-world brands beyond current geographic restrictions These same things can occur in the world of travel and tourism! 1) Economy The tourism industry generates substantial economic benefits to host countries and tourists home countries. Particularly in developing countries, one of the first motivations for a region to promote itself as a tourism destination is the improvement made to its economy. Along with other factors, this massive economic development can bring both positive and negative consequences. (www.geointeractive.co.uk//economic%20impact%20of%20tourism.ppt, Globalisation and Tourism: Impact of Tourism) à ¢- ºNegative impact à ¢-„ There are numerous hidden costs relating to tourism, these can have a negative effect on the economy of the host community. Wealthy countries are better placed to profit from tourism rather than the poorer ones. In addition, the countries last developed will have the most urgent need for income, employment created by it and a general rise in living standards. These countries are less likely to realise these benefits due to large scale transfer of tourism revenues leaving the host country also the exclusion of local businesses and their products. a. Leakage The direct income for an area is the amount of tourist revenue that remains locally after taxes, profits and salaries are paid outside the area and after imports, these subtracted amounts are called leakage. Generally, in most all-inclusive package tours, around 80% of a travellers expenditure will go to the airline, hotels and other international companies, as opposed to local businesses and workers. In addition to this, significant amount of income actually retained at destination level can leave again through leakage. In Thailand, a study of leakage in tourism showed that an estimated 70% of all money spent by tourists actually left Thailand. There are two main ways that leakage occurs: Import leakage: This mostly occurs when tourists demand certain standards of foods, equipment and other products that the host country cannot supply. On average the import-related leakage for most developing countries to-date is between 40% and 50% of gross tourism earnings for small economies and between 10% and 20% for most advanced and diversified economies. Export leakage: Often, found in poorer developing countries, these are the only destinations that possess the necessary capital needed to invest in the construction of tourism infrastructure and its facilities. An outcome of this is an export leakage which will arise when overseas investors who finance the resorts and hotels take their profits back to country of origin. b. Enclave Tourism Local businesses sometimes see their opportunity to earn income from tourists severely reduced by the creation of all-inclusive holiday packages. When a tourist spends their entire stay at the same resort or cruise ship, which cater for all their needs and where they make all their purchases, there is little or no opportunity for local people to profit from tourism. All-inclusive hotels generate the largest amount of revenue but their impact on the economy is less per dollar of revenue than other forms of accommodation. All-inclusives also import more and employ fewer people per dollar of revenue than other hotels. The cruise ship industry provides another example of economic enclave tourism. In 1999 non-river cruises carried around 8.7 million international passengers. On some ships guests were encouraged to spend most of their time and money on board, more notably in the Caribbean. Guest opportunities to make purchases in certain ports are closely managed and restricted. c. Infrastructure cost Tourism development can cost the local government and local taxpayers a great deal of money. Developers may insist the government improve airports, roads and other infrastructure, along with tax breaks and other financial advantages, which can turn out to very expensive. Though the improvement of a countrys infrastructure can be deemed to be a necessity, when public resources are spent in such a way, it is often at the exposure of critical areas such as health and education. d. Increase in prices A tourist demands for services and goods will often cause price increases that react negatively on local residents whose income may not rise proportionately. Tourism development and the related rise in the demand of real estate may increase considerably along with a dramatic rise in building costs and land values, making basic daily requirements more difficult to attain. e. Economic dependence of the local community on tourism For a healthy economy diversification is a necessity. However, if a country or region becomes increasingly dependant for its economic survival upon one industry, it can put severe strain upon itself and the people involved to perform well. Developing countries, especially those without the ability to explore other resources have welcome tourism as a way to boost their economy. In Gambia, for example, 30% of workers depend directly or indirectly on tourism. Many small island states struggling to develop, percentages can range from 83% in the Maldives to 21% in the Seychelles and 34% in Jamaica. To rely solely on tourism carries a risk to those tourist-dependant economies. Economic recession, the impact of natural disasters such as tropical storms and changing patterns in tourism can all have a devastating effect. f. Seasonal character of jobs Problems that seasonal workers face include: job and income insecurity guarantee of employment difficulties in getting training employment-related medical benefits recognition of their experience working conditions and unsatisfactory and working conditions. à ¢- º Positive impact à ¢-„ a. Foreign exchange earnings Tourism expenditure will help generate income to the host economy which will stimulate the necessary investment for financial growth in various economic sectors. Some countries may accelerate growth by insisting that visitors bring in a certain amount of foreign currency for each day of the duration of their stay. A significant indicator of the role of international tourism is its generation of foreign exchange earnings. In 83% of countries, tourism is one of the leading five export categories this accounts for the main source of foreign exchange earnings for at least 38% of countries. b. Contribution to government revenues Taxes generated by direct contributions on incomes from tourism employment and businesses and direct levies made on tourist e.g. departure tax. Indirect contributions arrive via tax and duties charged on services and goods supplied to tourists. The TWO assumes that tourism and travels direct and indirect, and personal tax contribution globally was more than US$800 billion in 1998 this figure is expected to double by the year 2010. c. Employment generation International tourism and its rapid expansion has significantly increased employment. Eg. Hotel accommodation alone has provided around 11.3 million jobs worldwide during 1995. Tourism is able to create jobs directly via hotels, restaurants, nightclubs, souvenir sales and taxis amongst others, and indirectly via the supply of goods and services required tourist-related outlets and businesses. Tourism supports up to 7% of the global workforce. d. Stimulation of infrastructure investment Tourism can stimulate local government to make much needed infrastructure improvements, better water and sewage systems, roads, electricity, public transport and telephone amenities can all benefit from such investments. This will all invigorate, encourage, and improve the lives of residents and the tourist combined. e. Contribution to local economies The environment relies heavily on the assets of tourism revenues are often used amongst other in the economic value of protected areas. Other revenues are not so easily quantified, as not all of tourists spends is formally logged. Revenue is earned from tourism via informal labour such as street render, guides and drivers. A positive side to informal employment is that monies are generally recycled within the local economy this has a good multiplying effect as it is spend repeatedly over and over again its community. The WTO has estimated that tourism will probably generate an indirect contribution that will be equal to 100% of the direct total of tourism expenditure. 2) Culture There are concerns that the development of tourism could lead to some destinations losing their cultural identity if they cater for the presumed requirements of their tourists, in particular, the international market. This is based on the observations of other destinations having compromised their sense of identity. The experience of tourism can be somewhat different to the things people see and do when in a home environment, this includes the real life experience and lifestyle of the places and the people they may see during their visit. (http://www.gawler.sa.gov.au/webdata/resources/files/5_Gawler_Impacts_Tourism.PDF, The Social Cultural Impacts of Tourism) à ¢- º Positive impact à ¢-„ Tourism is an opportunity for cultural exchange and more, creating an interaction within people of different lifestyles, aspirations and needs. Putting economic benefits aside, experiencing outside contact within various communities draws attention to the host community. People will always want to interact with other cultures and communities in the hope of learning of their traditions or possibly be confronted by new challenges and perspectives on life. It has been said that travel is a means to discover that things unknown or forgotten within ourselves. Tourism is obviously an experience driven industry the more you do it the more you want it. In addition local culture is a unique experience, along with the local personality, food and hospitality. The more one knows and learns about a destination, the more fulfilling the experience will be. Tourism is often used as a tool for raising awareness. The local branding of certain products and achievements can create regional identity, nationally and internationally. The needs and awareness of local issues can be raised by tourism. There is a global trend that aims towards investment in interpretation of natural and cultural resources. The attraction to natural and heritage icons often helps to fund numerous conservation project it also provides opportunities for the management of those sensitive and significant areas. A growing and important number of cultural celebrations have emerged which highlight many important events whilst paying homage to their ancestry. Cultural events can assert their identity which help and preserve local traditions for younger generations they also influence and inform visitors. In Australia main urban areas which tend to be multicultural and have developed their own very unique cultures. Many mostly regional areas are very much influenced by the food and the culture of their founders. Local food, crafts and personalities are always kept alive and kicking purely by tourism whilst raising funds for the greater community. Tourism can often boost the preservations and transmission of cultural and historical traditions. This will often help with conservation and the sustainable management of natural resources, the protection of local heritage, and a revival of indigenous cultures and arts and crafts. à ¢- ºNegative impact à ¢-„ Many impacts are socio-cultural and result in a lack of information, false impressions, poor communication and knowledge and misinformation. Negative perceptions and attitudes towards visitors and tourism in general can affect tourism and communities. Ill feelings towards tourism, delays/obstructions to tourism product development plus lack of council/authority support can prevent tourism from flourishing; perhaps these communities are not yet ready or even prepared for the onslaught of tourism. Problems with the economy or the environment can all too easily, rightly or wrongly, be blamed on tourism. Leaving the channels of communication open and with adequate consultation transparency and involvement at community level at all stages during the planning process can benefit communities in taking ownership of tourism. In some circumstances the word tourist has become a negative term; in fact, many travellers no longer consider themselves as tourists and prefer the term traveller. There is a clear change in attitude of both the traveller and communities to the concept of the visitor. This concept now gives strength to the fact that travellers are merely guests of the community and that their stay in that community is very much a privilege and not a right. 3. Media marketing in tourism industry 1) How Film and TV drama images promote the new destination Greater knowledge of a country can be gained from film and TV. The wildlife, fauna, culture and its people can result in the broadening of minds and general attitudes towards the country. An interest in the nation and its positive image can eventually lead to an actual visit to the country (Iwashita, 2006). Leisure activities such as watching films as well as traveling are ways to escape. Both provide temporary relief from the real world (Carl et al., 2007). Films can induce viewers to travel by the physical properties (scenery and landscape) and their associated theme, storylines, events and actors, shaping the audience feelings, emotion and attitudes towards places. Location and film experiences are enhanced in memories by associating them with the actors, events and setting (Iwashita 2006; Riley Van Doren, 1992). One of the effective strategies to induce film tourists is collaborative campaigns with the film industry (Grihault, 2003). England provides an excellent example of the way in which film and television has boosted the tourism industry. Approximately 28 million visitors visit Britain each year after viewing the country on the screen (Kim et al., 2008). VisitBritain has made various efforts to temp Indian film makers to use UK locations in Bollywood movies, even if locations are used as backdrops for other countries. Movie maps have also been widely used to promote film locations of the destination. Movie maps have been found to be successful as part of film tourism marketing campaigns (Hudson Ritchie, 2006b). They can be used to ease film tourist in identifying various locations where the film has taken place. A movie map has been produced by VisitBritain highlighting more than 200 filmed locations across the UK. These materials have quickly become Visit-Britain most successful printed product. Other marketing strategies have included guided film tours and walks. Such tours have relied heavily on film illustrations enabling the tourist to identify the landscapes and buildings that have been used in the making of the move. There should also be a website dedicated to film tourism that will provide film synopsis, links to film-related websites, the necessary relevant information about travel within the destination including tours, accommodation, food, shopping and the opportunity to learn about film destination, the language, history, religion, lifestyle and leisure. 2) How consumers make a decision on their destination Literature on tourism shows that the image of a destination will influence significantly the tourists choice of destination. Images of destinations play a significant role in influencing tourist decision-making process as the basis for tourists to make choice about where to visit (Gartner 1989; Echtner Ritchie 1991). The more favourable the image of the destination, the greater the likelihood of being selected as a destination choice (Chon 1990; Um 1993). Butler (1990) suggests that films can influence the travel preference of those who expose to the destination attributes and create a favourable destination image through their representation. To influence the choice of destinations, understanding of how decisions are made and which factors can influence them are regarded as the important pieces of information (Woodside Carr, 1988). There are plenty models explaining the tourist decision-making process which include important variables influencing tourist decisions. It has long been recognized that travel stimuli through marketing efforts and previous travel experience have played an important role in influencing destination choice. Non-touristic-directed stimuli such as films can also have strong influences on tourist decision-making (Iwashita, 2003). These stimuli have not yet been included in the tourist decision-making models as important variables. The power of film in portraying a positive destination image to induce tourist arrivals to a place is clearly shown in various research (e.g. Tooke Baker 1996; Iwashita 2006; Kim et al., 2008). Having reviewed the literature, it was found that film-induced tourism is relatively new in tourism research. Research on the impact of film on tourist decision-making is even lacking (Busby Klug 2001; Hudson Ritchie 2006b; Rewtrakunphaiboon 2008). 4. Media on tourism of countries 1) Impact of Film on Visitor Number Film-induced tourism has brought major economic benefits to local communities such as lasting tourist receipts. Film locations can be all-year, all-weather attractions which alleviates problems of seasonality in the tourism industry (Beeton, 2004). Riley et al. (1998) studied 12 films and found that the peak of the interest appear after the release of the film, approximately 50% increase in visitation at least five years later and the image is often retained for a long time. 2) How films and TV drama influence on tourism A further significant benefit of film tourism is the increase in cultural value to the location of the film. Numerous heritage sites have been used as film locations and in many cases have seen their popularity soar as a result, particularly after its release. Such sites acquire specific meaning through its film narration. Without film storylines, a castle or a stately home may not be indistinguishable form others (Busby Klug, 2001). Film locations worldwide now play a major role in deciding which country a tourist will visit. The American soap opera Sex and the City is one of the examples that have become such a big hit not only in the United States but around the world. Hundreds of shops, restaurants and bars that were featured in the film have become significant destinations and an added reason to visit New York. à ¢- º Specific Film and drama cases à ¢-„ a. The Piano, Lord of Ring, etc (New Zealand) New Zealand is one of the latest destinations to benefit from film-induced tourism. The movie, The Piano has provided many positive benefits form tourism within New Zealand. New Zealand was shown in its promotional posters which in turn aided and promoted international tourism advertising. The image of New Zealand has been enhanced further after being the backdrop to all three Lord of the Rings films. The New Zealand tourism website promotes itself as Home of Middle-earth. Amongst other popular films that were shot in New Zealand include The Last Samurai, Whale Rider and Perfect Strangers. Websites that link particular films to their film locations is a very effective promotional tool to induce tourists to the destination (Croy Walker, 2003). This promotion strategy has been used in New Zealand where Tourism New Zealand developed part of its website to specifically promote The Lord of the Rings and other film locations throughout the country. b. TV drama (South Korea) The Korean film named Stairway to Heaven, one of the popular television series in Asia, was shot in many clichà © places but the sentimental location is the merry-go-round at the Lotte World. After the release of the film, the merry-go-round at Lotte World has become the famous attraction among Asian tourists (Aran, 2007). Evidence shows that the emotional attachment that film-induced tourists have with the film is a recreation of the often stunning locations. In Winter Sonata, the evidence is shown and impression scene of two lovers holding hands whilst walking on a log. This famous log has now had to be destroyed and removed from the location due to an overwhelming number of visitors, some attempting to emulate the scene in the film. Film can enhance the destination image and increase the awareness of the host city. Previous research (Kim Richardson, 2003) suggests that those who are exposed to the film have more favourable destination image towards destinations featured through films than those who are not exposed to films. 5. Conclusion This report shows the relationship between the tourism and the media and its actual effect on tourism. It also gives an illuminating perception of film-induced tourism by revealing a lack of research in tourism and requesting further empirical studies into this aspect of tourism. It also shows the advantages to be had from film-induced tourism, opening up many locations to a wider audience and informing the tourism more than traditionally targeted tourism promotional campaigns. The marketing of film tourism has been used successfully in many of the leading film locations in United Kingdom, United States, Korea and New Zeal

The Twilight Saga 3: Eclipse EPILOGUE – CHOICE

JACOBBLACK â€Å"Jacob, do you think this is going to take too much longer?† Leah demanded. Impatient. Whiney. My teeth clenched together. Like anyone in the pack, Leah knew everything. She knew why I came here – to the very edge of the earth and sky and sea. To be alone. She knew that this was all I wanted. Just to be alone. But Leah was going to force her company on me, anyway. Besides being crazy annoyed, I did feel smug for a brief second. Because I didn't even have to think about controlling my temper. It was easy now, something I just did, natural. The red haze didn't wash over my eyes. The heat didn't shiver down my spine. My voice was calm when I answered. â€Å"Jump off a cliff, Leah.† I pointed to the one at my feet. â€Å"Really, kid.† She ignored me, throwing herself into a sprawl on the ground next to me. â€Å"You have no idea how hard this is for me.† â€Å"For you?† It took me a minute to believe she was serious. â€Å"You have to be the most self-absorbed person alive, Leah. I'd hate to shatter the dream world you livein – the one where the sun is orbiting the place where you stand – so I won't tell you how little I care what your problem is. Go. Away.† â€Å"Just look at this from my perspective for a minute, okay?† she continued as if I hadn't said anything. If she was trying to break my mood, it worked. I started laughing. The sound hurt in strange ways. â€Å"Stop snorting and pay attention,† she snapped. â€Å"If I pretend to listen, will you leave?† I asked, glancing over at the permanent scowl on her face. I wasn't sure if she had any other expressions anymore. I remembered back to when I used to think that Leah was pretty, maybe even beautiful. That was a long time ago. No one thought of her that way now. Except for Sam. He was never going to forgive himself. Like it was his fault that she'd turned into this bitter harpy. Her scowl heated up, as if she could guess what I was thinking. Probably could. â€Å"This is making me sick, Jacob. Can you imagine what this feels like to me? I don't even like Bella Swan. And you've got me grieving over this leech-lover like I'm in love with her, too. Can you see where that might be a little confusing? I dreamed about kissing her last night! What the hell am I supposed to do with that?† â€Å"Do I care?† â€Å"I can't stand being in your head anymore! Get over her already! She's going to marry that thing. He's going to try to change her into one of them! Time to move on, boy.† â€Å"Shut up,† I growled. It would be wrong to strike back. I knew that. I was biting my tongue. But she'd be sorry if she didn't walk away. Now. â€Å"He'll probably just kill her anyway,† Leah said. Sneering. â€Å"All the stories say that happens more often than not. Maybe a funeral will be better closure than a wedding. Ha.† This time I had to work. I closed my eyes and fought the hot taste in my mouth. I pushed and shoved against the slide of fire down my back, wrestling to keep my shape together while my body tried to shake apart. When I was in control again, I glowered at her. She was watching my hands as the tremors slowed. Smiling. Some joke. â€Å"If you're upset about gender confusion, Leah . . . ,† I said. Slow, emphasizing each word. â€Å"How do you think the rest of us like looking at Sam through your eyes? It's bad enough that Emily has to deal with your fixation. She doesn't need us guys panting after him, too.† Pissed as I was, I still felt guilty when I watched the spasm of pain shoot across her face. She scrambled to her feet – pausing only to spit in my direction – and ran for the trees, vibrating like a tuning fork. I laughed darkly. â€Å"You missed.† Sam was going to give me hell for that, but it was worth it. Leah wouldn't bug me anymore. And I'd do it again if I had the chance. Because her words were still there, scratching themselves into my brain, the pain of it so strong that I could hardly breathe. It didn't matter so much that Bella'd chosen someone else over me. That agony was nothing at all. That agony I could live with for the rest of my stupid, too long, stretched-out life. But it did matter that she was giving up everything – that she was letting her heart stop and her skin ice over and her mind twist into some crystallized predator's head. A monster. A stranger. I would have thought there was nothing worse than that, nothing more painful in the whole world. But, if he killed her . . . Again, I had to fight the rage. Maybe, if not for Leah, it would be good to let the heat change me into a creature who could deal with it better. A creature with instincts so much stronger than human emotions. An animal who couldn't feel pain in the same way. A different pain. Some variety, at least. But Leah was running now, and I didn't want to share her thoughts. I cussed her under my breath for taking away that escape, too. My hands were shaking in spite of me. What shook them? Anger? Agony? I wasn't sure what I was fightingnow. I had to believe that Bella would survive. But that required trust – a trust I didn't want to feel, a trust in that bloodsucker's ability to keep her alive. She would be different, and I wondered how that would affect me. Would it be the same as if she had died, to see her standing there like a stone? Like ice? When her scent burned in my nostrils and triggered the instinct to rip, to tear . . . How would that be? Could I want to kill her? Could I not want to kill one of them? I watched the swells roll toward the beach. They disappeared from sight under the edge of the cliff, but I heard them beat against the sand. I watched them until it was late, long after dark. Going home was probably a bad idea. But I was hungry, and I couldn't think of another plan. I made a face as I pulled my arm through the retarded sling and grabbed my crutches. If only Charlie hadn't seen me that day and spread the word of my â€Å"motorcycle accident.† Stupid props. I hated them. Going hungry started to look better when I walked in the house and got a look at my dad's face. He had something on his mind. It was easy to tell – he always overdid it. Acted all casual. He also talked too much. He was rambling about his day before I could get to the table. He never jabbered like this unless there was something that he didn't want to say. I ignored him as best I could, concentrating on the food. The faster I choked it down . . . â€Å". . . and Sue stopped by today.† My dad's voice was loud. Hard to ignore. As always. â€Å"Amazing woman. She's tougher than grizzlies, that one. I don't know how she deals with that daughter of hers, though. Now Sue, she would have made one hell of a wolf. Leah's more of a wolverine.† He chuckled at his own joke. He waited briefly for my response, but didn't seem to see my blank, bored-out-of-my-mind expression. Most days that bugged him. I wished he would shut up about Leah. I was trying not to think about her. â€Å"Seth's a lot easier. Of course, you were easier than your sisters, too, until . . . well, you have more to deal with than they did.† I sighed, long and deep, and stared out the window. Billy was quiet for a second too long. â€Å"We got a letter today.† I could tell that this was the subject he'd been avoiding. â€Å"A letter?† â€Å"A . . . wedding invitation.† Every muscle in my body locked into place. A feather of heat seemed to brush down my back. I held onto the table to keep my hands steady. Billy went on like he hadn't noticed. â€Å"There's a note inside that's addressed to you. I didn't read it.† He pulled a thick ivory envelope from where it was wedged between his leg and the side of his wheelchair. He laid it on the table between us. â€Å"You probably don't need to read it. Doesn't really matter what it says.† Stupid reverse psychology. I yanked the envelope off the table. It was some heavy, stiff paper. Expensive. Too fancy for Forks. The card inside was the same, too done- up and formal. Bella'd had nothing to do with this. There was no sign of her personal taste in the layers of see- through, petal-printed pages. I'd bet she didn't like it at all. I didn't read the words, not even to see the date. I didn't care. There was a piece of the thick ivory paper folded inhalf with my name handwritten in black ink on the back. I didn't recognize the handwriting, but it was as fancy as the rest of it. For half a second, I wondered if the bloodsucker was into gloating. I flipped it open. Jacob, I'm breaking the rules by sending you this. She was afraid of hurting you, and she didn't want to make you feel obligated in any way. But I know that, if things had gone the other way, I would have wanted the choice. I promise I will take care of her, Jacob. Thank you – for her – for everything. Edward â€Å"Jake, we only have the one table,† Billy said. He was staring at my left hand. My fingers were clamped down on the wood hard enough that it really was in danger. I loosened them one by one, concentrating on that action alone, and then clenched my hands together so I couldn't break anything. â€Å"Yeah, doesn't matter anyway,† Billy muttered. I got up from the table, shrugging out of my t-shirt as I stood. Hopefully Leah had gone home by now. â€Å"Not too late,† Billy mumbled as I punched the front door out of my way. I was running before I hit the trees, my clothes strewn out behind me like a trail of crumbs – as if I wanted to find my way back. It was almost too easy now to phase. I didn't have to think. My body already knew where I was going and, before I asked it to, it gave me what I wanted. I had four legs now, and I was flying. The trees blurred into a sea of black flowing around me. My muscles bunched and released in an effortless rhythm. I could run like this for days and I would not be tired. Maybe, this time, I wouldn't stop. But I wasn't alone. So sorry, Embry whispered in my head. I could see through his eyes. He was far away, to the north, but he had wheeled around and was racing to join me. I growled and pushed myself faster. Wait for us, Quil complained. He was closer, just starting out from the village. Leave me alone, I snarled. I could feel their worry in my head, try hard as I might to drown it in the sound of the wind and the forest. This was what I hated most – seeing myself through their eyes, worse now that their eyes were full of pity. They saw the hate, but they kept running after me. A new voice sounded in my head. Let him go. Sam's thought was soft, but still an order. Embry and Quil slowed to a walk. If only I could stop hearing, stop seeing what they saw. My head was so crowded, but the only way to be alone again was to be human, and I couldn't stand the pain. Phase back, Sam directed them. I'll pick you up, Embry. First one, then another awareness faded into silence. Only Sam was left. Thank you, I managed to think. Come home when you can. The words were faint, trailing off into blank emptiness as he left, too. And I was alone. So much better. Now I could hear the faint rustle of the matted leaves beneath my toenails, the whisper of an owl's wings above me, the ocean – far, far in the west – moaning against the beach. Hear this, and nothing more. Feel nothing but speed, nothing but the pull of muscle, sinew, and bone, working together in harmony as the miles disappeared behind me. If the silence in my head lasted, I would never go back. I wouldn't be the first one to choose this form over the other. Maybe, if I ran far enough away, I would never have to hear again. . . . I pushed my legs faster, letting Jacob Black disappear behind me.

The Human Rights Of Prisons - 1510 Words

â€Å"To deny people their human rights is to challenge their very humanity.† This quote from Nelson Mandela exhibits the problems that exist in prisons worldwide, as many prisoners and convicts encounter abusive and immoral conditions daily. More than 10 million people are imprisoned around the world, many for minor offenses. About 3.2 million potentially innocent men and women are awaiting a trial and are stuck in those poor conditions (Penal). Governments are unwilling to withdraw funds from their tight budgets to invest in safer conditions. Ergo, inmates are deprived of their natural human rights to be treated with humanity and to be free from cruel torture and degrading conditions. Venezuelan prisons are among the most violent prisons in†¦show more content†¦According to data from the Ministry of Justice’s Integrated System of Penitentiary Information, the country’s incarceration rate increased 45% between 2006 and 2013. The average prison population exceeds half a million people, which is 37% more than the prisons were built for. This magnitude of overcrowding causes poor sanitation which leads to the spread of diseases, which is a major problem, considering the access to medical help is insufficient. Inhumane torture is another prominent issue in most Brazilian prisons. From January to July of 2012, the National Human Rights Ombudsman’s Office received 5,431 complaints of torture and inhumane treatment. It is sad to see law enforcement agents abuse their power and harass the detainees. At least 84% of these incidents occur at police stations or prisons. These cases are rarely brought to justice. The country’s attempts to p enalize the officers are destroyed because the more people waiting for trial, the more people crowding the prisons. (World Brazil). Prisons in Africa are so horrifying that Amnesty International, a human rights protection program, listed Benin in its annual State of the World’s Human Rights report in 2008. The report highlights overcrowding, unjustified detention, and lack of trained staff and acceptable food throughout prisons in Benin (Prisons). Cotonou Central Prison is

Books for Boys Recommended by Librarians

If you are looking for books for boys, from young children to tweens and teens, youll be interested in these reading lists recommended by librarians. The books on these reading lists include childrens books and young adult (YA) books that will appeal to a wide range of ages and interests. Even boys who complain they can never find anything good to read and, as a result, are reluctant readers, should be able to find books they enjoy on some of these lists. 8 Reading Lists For Boys Young Adult Books with Guy AppealTeen librarian Jennifer Kendall recommends 10 books that have proven to be very popular with teen boys. Science fiction, fantasy, action, and adventure continue to be genres that teen boys particularly like.Great Books for BoysThis article and list of books recommended for boys come  from The National Childrens Book and Literacy Alliance. It includes a list of books recommended by The Horn Book in these categories: Picture Books, Middle-Grade Fiction, Young Adult Fiction, Non-fiction Middle School/High School and Poetry.Adventures in History for BoysThis brief reading list from the Central Rappahannock Regional Library in Virginia includes cover art and a brief summary for under a dozen books of historical fiction recommended for older boys.Especially for BoysThis annotated reading list of recommended books for boys is from the St. Charles Public Library in Illinois. It includes cover art and a brief summary of 160 books recommended for boys, from p reschool age through eighth grade. To narrow your search, you can search by grade range, which is very helpful. Recommended books include Richard Pecks A Season of Gifts and several by Sharon Creech.Good Books for GuysThe Multnomah County Library in Oregon provides five reading lists, divided by grade levels: Small Fries: Pre-K, Young Guys: 1-3, Middle Guys: 4-6, Large Fries: 7-8, Older Guys: 9-12. While not annotated, the lists include cover art. Among the series recommended for boys in grades 4-6 are Percy Jackson and the Olympians.Chapter Books for BoysThis annotated reading list from the Salt Lake City Public Library in Utah includes three dozen books. The list includes Dear Mr. Henshaw by Beverly Cleary and My Side of the Mountain by Jean Craighead George.Picture Books for BoysThe annotated reading list of 20 picture books includes  Where the Wild Things Are  by  Maurice Sendak. This is an annotated list from the Salt Lake City Public Library in Utah. Click on â€Å"chec k availability† to see the cover art. For General Information on Encouraging Reading Because the article covers a wide age range, all of the tips may not apply to your child. But some of the best tips include making sure your children see you reading on a regular basis, fully utilizing your public library, taking the time to help your child find books that match his interests and reading level and sharing books by reading them aloud and discussing them with your children.

Compare and Contrast Billy Budd versus Bartleby Essay

A Comparison/Contrast Analysis of Billy Budd and Bartleby Several comparisons and contrasts can be made concerning the two stories, Billy Budd and Bartleby, written by Herman Melville. The setting of the two stories reveals an interesting comparison and contrast between the British Navy on the open sea, and the famous Wall Street of New York. The comparison and contrast of characters, Billy Budd, Captain Vere, and Claggart in Billy Budd, and the `narrator and Bartleby in Bartleby, at times are very much alike, and also very different. The conflict, climax and resolution of the two Melville stories contain similarities and differences. These two stories, on the exterior, appear to be very different, and on the interior†¦show more content†¦The setting for Billy Budd is on a British naval ship, sailing on the sea during the late 1700s. This was a critical period for the British Navy. Great Britain was at that time an imperial presence all around the world. This included the Americas, Africa, Australia, India, and the Far East. All these territories had stretched British Naval forces beyond its capacity to govern and control such a huge empire. These complications eventually led to its decline. In contrast, the setting for Bartleby was New York Citys Wall Street. During the early to mid 1800s, Wall Street was the center of Americas financial and business life. The banking and credit institutions, insurance companies, and the growing stock exchange were all revolutionizing the American economy. The comparison and contrast of the characters will begin with who the main characters are. In the story of Bartleby, the main characters are the unnamed `narrator, who is the employer at the copying office; and Bartleby, the hired scrivener, or copyist. There are several minor characters in this story, and their symbolism is of some small significance to the story. In Billy Budd, the main characters are Billy Budd, the handsome sailor; Claggart, the master-at-arms; and Captain Vere, the commander of the ship. The

Anonymous Free Essays

string(80) " price competition amongst a large number of service providers in the industry\." INDIAN INSTITUTE OF MANAGEMENT AHMEDABAD INDIA Research and Publications The Logistics Sector in India: Overview and Challenges Pankaj Chandra Nimit Jain W. P. No. We will write a custom essay sample on Anonymous or any similar topic only for you Order Now 2007-03-07 March 2007 The main objective of the working paper series of the IIMA is to help faculty members, Research Staff and Doctoral Students to speedily share their research findings with professional colleagues, and to test out their research findings at the pre-publication stage INDIAN INSTITUTE OF MANAGEMENT AHMEDABAD-380 015 INDIA INDIAN INSTITUTE OF MANAGEMENT AHMEDABAD INDIA Research and Publications The Logistics Sector in India: Overview and Challenges Pankaj Chandra Nimit Jain Indian Institute of Management Ahmedabad Vastrapur, Ahmedabad 380015 chandra@iimahd. ernet. in, nimitj@iimahd. ernet. in Abstract The logistics industry in India is evolving rapidly and it is the interplay of infrastructure, technology and new types of service providers that will define whether the industry is able to help its customers reduce their logistics costs and provide effective services (which are also growing). Changing government policies on taxation and regulation of service providers are going to play an important role in this process. Coordination across various government agencies requires approval from multiple ministries and is a road block for multi modal transport in India. At the firm level, the logistics focus is moving towards reducing cycle times in order to add value to their customers. Consequently, better tools and strategies are being sought by firms in order to enhance their decision making. In this paper, we provide a perspective on these issues, outline some of the key challenges with the help of secondary information, and describe some interesting initiatives that some firms industries are taking to compete through excellence in managing their logistics. IIMA INDIA Research and Publications 1 Introduction The Indian economy has been growing at an average rate of more than 8 per cent over the last four years (Srinivas, 2006) putting enormous demands on its productive infrastructure. Whether it is the physical infrastructure of road, ports, water, power etc. or the digital infrastructure of broadband networks, telecommunication etc. or the service infrastructure of logistics – all are being stretched to perform beyond their capabilities. Interestingly, this is leading to an emergence of innovative practices to allow business and public service to operate at a higher growth rate in an environment where the support systems are getting augmented concurrently. In this paper, we present the status of the evolving logistics sector in India, innovations therein through interesting business models and the challenges that it faces in years to come. Broadly speaking, the Indian logistics sector, as elsewhere, comprises the entire inbound and outbound segments of the manufacturing and service supply chains. Of late, the logistics infrastructure has received lot of attention both from business and industry as well as policy makers. However, the role of managing this infrastructure (or the logistics management regimen) to effectively compete has been slightly under-emphasized. Inadequate logistics infrastructure has an effect of creating bottlenecks in the growth of an economy, the logistics management regimen has the capability of overcoming the disadvantages of the infrastructure in the short run while providing cutting edge competitiveness in the long term. It is here that exist several challenges as well as opportunities for the Indian economy. There are several models that seem to be emerging based on the critical needs of the Indian economy that can stand as viable models for other global economies as well. Chandra and Sastry (2004) have pointed towards two key areas that require attention in managing the logistics chains across the Indian business sectors – cost and reliable value add services. Logistics costs (i. e. inventory holding, transportation, warehousing, packaging, losses and related administration costs) have been estimated at 13-14 per cent of Indian GDP which is higher than the 8 per cent of USA’s and lower than the 21 per cent of China’s GDP (Sanyal, 2006a). Service reliability of the logistics industry in emerging markets, like India, has been referred to as slow and requiring high engagement time of the customers, thereby, incurring high indirect variable costs (Dobberstein et. al, W. P. No. 2007 -03-07 Page No. 3 IIMA INDIA Research and Publications 2005). However, the Indian logistics story is one with islands of excellence though there has been a general improvement on almost all parameters. It is this aspect that we explore further in this paper. The paper is organized as follows: the next section gives a brief introduction of some of the peculiarities of the Indian logistics sector. In section 3 we discuss the determinants of growth in this industry. In section 4 we provide some interesting initiatives that point towards a renewal of the sector. The challenges facing the sector are discussed in the last section. 2 Some Peculiarities of the Indian Supply Chains The Indian logistics sector has typically been driven by the objective of reducing transportation costs that were (and often continue to be) inordinately high due to regional concentration of manufacturing and geographically diversified distribution activities as well as inefficiencies in infrastructure and accompanying technology. Freight movement has slowly been shifting from rail to road with implications on quality of transfer, timeliness of delivery and consequently costs except for commodities which over long distances, predominantly, move through the extensive rail network. More on the infrastructure issues later. Figure 1 shows the relative value of transportation costs vis-a-vis other elements of the logistics costs in India. The transportation industry is fragmented and largely unorganized – a large number of independent players with regional or national permits that carry freight, often with small fleet size of one or two single-axle trucks. This segment carries a large percent of the national load and almost all of the regional load. This fragmented segment comprises owners and employees with inadequate skills, perspectives or abilities to organize or manage their operations effectively. Low cost has been traditionally achieved by employing low level of technology, low wages (due to lower education levels), poor maintenance of equipment, overloading of the truck beyond capacity, and price competition amongst a large number of service providers in the industry. You read "Anonymous" in category "Essay examples" Often, one finds transportation cartels that regulate supply of trucks and transport costs. However, the long run average cost of transport operations across the entire supply chain may not turn out to be low. W. P. No. 2007-03-07 Page No. 4 IIMA INDIA Research and Publications Figure 1: Elements of Logistics Cost in India Trans por tation 40 War e hous ing, Pack aging Los s e s 24 26 Inve ntor y Or de r Pr oce s s ing Adim ins trative 0 5 10 10 15 20 25 30 35 40 45 percent contribution Source: Sanyal (2006a) Table 1 gives a breakup of the logistics cost across different sectors of the Indian industry and the changes therein over the last five years. It shows how the logistics spend is increasing, sometimes dramatically, across various industrial sectors. Steel, harmaceuticals, food agro-business, and auto have also been the sectors that are growing most rapidly in the national economy – it is no surprise that their logistics costs have been increasing at a faster rate. A few observations are in order here. The low change in order processing administrative costs in the cement sector could possibly be due to the use of call centers by various producers for order processing and dispatch planning. Steel and pharmaceut ical sectors have seen maximum changes in component costs. The distribution practice of pushing goods down the channel might be responsible for high increase in the inventory and warehousing costs in the pharmaceutical industry. Investments in new cold chains and losses might be the causes of high change in the warehousing, packaging losses related costs. Warehousing, has also been typically dominated by small players with small capacities and poor deployment of handling, stacking and monitoring technologies. While it has had detrimental effect on almost all sectors, the food sector has been the one that has suffered the most due to low investment in cold chains and allied machinery. Erratic power outages have also meant low dependence on technology and a more manual operation. Another fact that has affected both the location as well cost of operating a W. P. No. 2007-03-07 Page No. 5 IIMA INDIA Research and Publications warehouse has been the â€Å"octroi tax1. † Firms have been locating warehouses outside city limits. Table 1: Distribution of Logistics Costs across Some Sectors (2000-2005) Logistics Cost Components (in US $ mn) Transport ation Inventory holding Warehousing, packaging loses Order processing administrative Total Logistics cost Sector Auto Cement Consumer Durables FMCG Food Garment Pharmaceutical Steel Source: IAEIS 2000-01 2005-06 Avg. Change 2000-01 2005-06 Avg. Change 2000-01 2005-06 Avg. Change 2000-01 2005-06 Avg. Change 2000-01 2005-06 Avg. Change 2000-01 2005-06 Avg. Change 2000-01 2005-06 Avg. Change 2000-01 2005-06 Avg. Change 285. 0 406. 5 20. 3 50. 6 55. 4 4. 8 331. 9 398. 9 11. 2 201. 5 280. 7 13. 2 398. 7 524. 5 21. 0 337. 3 454. 4 19. 5 174. 0 310. 0 22. 7 438. 3 693. 6 42. 5 171. 0 243. 9 12. 2 30. 4 33. 3 2. 9 199. 1 239. 3 6. 7 120. 9 168. 4 7. 9 239. 3 314. 7 12. 6 202. 4 272. 11. 7 104. 4 186. 0 13. 6 263. 0 416. 1 25. 5 185. 3 264. 3 13. 2 32. 9 36. 0 3. 1 215. 7 259. 3 7. 3 131. 0 182. 5 8. 6 259. 2 340. 9 13. 6 219. 2 295. 3 12. 7 113. 1 201. 5 14. 7 284. 9 450. 8 27. 7 71. 3 101. 6 5. 1 12. 7 13. 8 1. 2 83. 0 99. 7 2. 8 50. 4 70. 2 3. 3 99. 7 131. 1 5. 2 84. 3 113. 6 4. 9 43. 5 77. 5 5. 7 109. 6 173. 4 10. 6 712. 6 1016. 4 50. 6 126. 5 138. 5 12. 0 829. 6 997. 3 27. 9 503. 8 701. 8 33. 0 996 . 8 1311. 2 52. 4 843. 2 1135. 9 48. 8 434. 9 775. 0 56. 7 1095. 7 1734. 0 106. 4 They delay moving goods into retail network as late as possible. It has also led to the development of a unholy business-government nexus to avoid the tax and extract rents. Use of technology is quite limited – both IT and engineering equipments in order to increase productivity and service. An in-appropriate evaluation of the diverse benefits of technology has led to higher usage of manual labour across the logistics industry whether An entry tax on goods coming into a city. The tax is a major source of revenue for city municipal corporations. W. P. No. 2007-03-07 1 Page No. 6 IIMA INDIA Research and Publications it is in the distribution activities or within plants. Many firms try to compete through the factor advantage of low wages which have necessitated hiring low or no skill personnel thereby sacrificing productivity related gains in the long run. Understanding the linkage between inventory and transport planning is a key to reducing operational cost of distribution. Chandra and Sastry (2004) identify transport dispatch planning as an area of concern in a survey of manufacturing firms in India. Ninety eight per cent of sample firms in that survey have a contract with trucking companies for making dispatches and only 11 per cent own their own fleet of trucks. While 36 per cent of these firms use third party logistics (3PL) service providers for making dispatches, about 30 per cent use 3PL service providers for procuring their material from their suppliers. Somehow, transport planning has remained a unglamorous area within Operations despite the fact that about 10 per cent of the cost of sales comes through physical distribution (Sanjeevi, 2003). Transport planning (e. g. , optimal dispatch quantities frequency of dispatch, vehicle routing, loading pattern in the trucks etc. ) does not appear to have received the required attention. For example, in the same survey, only 21 per cent of sample firms report the use of some software for scheduling dispatches. It is worth understanding the structure of the Indian supply chains, in aggregate, to get a better appreciation of many of the issues raised earlier. In Figure 2 Chandra and Sastry (2004) present the structure of the supply chain of a sample of firms. It can be seen that about 4 per cent of firms have less than five suppliers, about 85 per cent of firms have less than five plants, about 14 per cent of firms have less than five regional distributors, and about 9 per cent of firms have less than five retailers. A similar statistics is obtained for other ranges of suppliers, plants, distributors, and retailers. What is worth noting is that 63 per cent of firms have more than 100 suppliers, about 39 per cent of firms have more than hundred distributors, and 77 per cent of firms have more than hundred retailers. In addition, about 17 per cent of firms claim to have more than 500 suppliers. The same for distributors and retailers is 22 and 54 per cent respectively. This is perhaps where difficulties in managing logistics in India lie – larger the number of suppliers or distributors, higher is the cost of coordination. W. P. No. 2007-03-07 Page No. 7 IIMA INDIA Research and Publications Figure 2 : Structure of the Supply Chain of Sample Firms 90 80 70 Percent of Firms 60 50 40 30 20 10 5000-10000 1000-2000 2000-5000 500-1000 100-500 50-100 10-15 15-25 25-50 0 5-10 0-5 more than 10000 Range Suppliers Plants Approved Retailers Regional Distributors Source: Chandra and Sastry (2004) When we look at the spatial distribution of both plants and suppliers, the above statement becomes even stronger. Of the sample firms that operate more han one plant, 48 per cent of these plants are located more than 100 kilometers away from each other, 33 per cent of these plants are located more than 500 kilometers away from each other and 18 per cent of these plants are located more than 1000 kilometers from each other. Similarly, on an average, only 4 per cent of suppliers are located within 5 kilometers of the manufacturing plant, about 13 per cent are located within 5-25 kilometers of the plant, 16 per cent are locat ed within 25-100 kilometers of the plant and about 67 per cent of suppliers have facilities that are more than 100 kilometers away from the plants. Location policies of the past may have forced some firms to locate plants away from each other. However, this may be coming to haunt today as the cost of coordination increases and the ability to provide quick response to customer requirements might reduce. This problem gets exacerbated with suppliers. Manufacturers have to either develop suppliers separately for each location (thereby increasing the number and affecting consistency in quality, price delivery times) else material has to travel longer distances if there is a common supplier to all plants. W. P. No. 2007-03-07 Page No. 8 IIMA INDIA Research and Publications The logistics challenge in such an environment is immense – build the infrastructure, manage the requirements of a changing structure of various sectoral supply chain, change industrial policies to facilitate efficient production and movement of goods and services, deploy effective managerial practices and technology to enhance the competitiveness through better management of logistics networks, and develop new models for new sectors especially in the service sectors as well as traditional areas like agri-business etc. It must be mentioned that the logistics industry in India is transforming itself very interestingly despite its peculiarities by developing innovative business models and by chipping away at the such structural and policy based rigidities. In a later section, we discuss some of these innovative initiatives that are leading the renewal of the logistics industry in India. 3 The Changing Logistics Infrastructure With rising consumer demand and the resulting growth in global trade, the role of infrastructure support in terms of rails, roads, ports warehouses hold the key to the success of the economy. In this section we provide a quick overview of the status of the logistics infrastructure in India and the current initiatives, both private and public, in that area. Goods are transported predominantly by road and rail in India. Whereas road transport is controlled by private players, rail transport is handled by the central government. With the second largest network in the world, road contributes to 65 per cent of the freight transport (Rastogi, 2006). Road is preferred because of its cost effectiveness and flexibility. Rail, on the other hand, is preferred because of containerization facility and ease in transporting ship-containers and wooden crates. Sea is another complementary mode of transport. Ninety five per cent of India’s foreign trade happens through sea (Deccan Herald, 2006). India has 12 major ports, six each on the West and East coasts and 185 minor ports. Table 2 maps the various modes on different performance indicators, clearly indicating the vitality and importance of road transport in Indian economy. There is also evidence of an, across the board, increase in freight traffic for all modes indicating an increased logistics activity. For instance, the per cent change in road, rail, air and sea cargo traffic has increased, between 2001 and 2005, from 5 to 14 per cent, 4 to 7. 5 per cent, 6 to 20 per cent and 3. 5 to 11 per cent respectively (CMIE Database, 2006). W. P. No. 2007-03-07 Page No. 9 IIMA INDIA Research and Publications Table 2: Comparison Chart for Various modes Rail 214760 10. 66 0. 11 Road 3487538* 5. 12* 3. 34 Sea 806 7. 9 12 Number (wagons, trucks, ships) Freight Capacity(mn ton) Route Length (mn km) /Number of major ports Freight Revenue (US $ bn) 7. 00 coal, steel, petroleum, primary metals 38. 64 automobile, electronic items, garments etc. 304 iron ore, coal, petroleum (and industrial and consumer products on the outbound export) Major Products Source: IAEIS, 2005-2006, Financial Express, 2006a *This figure is for 2002-03 1 US$ = Rs 44 In keeping with the increasing demand for road transportation, the National Highway Authority of Indian (NHAI) has been strengthening and widening national highwa ys in multiple phases. As part of the National Highways Development Project, the work on the development of golden quadrilateral (connecting Delhi, Mumbai, Chennai and Kolkata) and the North-South and East-West links were started in 1998. It will build 13000 km expressways that would connect the nation (Surabhi, 2006). NHAI is investing about $650mn towards the development of an Intelligent Transportation System (ITS) which will make transport services on the highways (like reducing congestion, advance signaling, medical assistance, accident management, etc. ) efficient and automating many processes like toll collection etc. (Sanjai, 2007). Because of the growing opportunity and potential for high revenue, the Ministry of Railways has been taking measures to expand the rail connectivity and recapture the market share of freight business. By focusing on improving wagon utilization, the Railways have managed to reduce the freight cost from 61 paise2 per net tonne km (ntkm) in 2001 to 56 paise per ntkm in 2005 (Rastogi, 2006). At present, goods train run on same 2 100 paise = 1 Rupee W. P. No. 2007-03-07 Page No. 10 IIMA INDIA Research and Publications railway tracks as passenger trains at an average speed of around 25 kmph (Gill, 2006). With the proposed dedicated west and east freight corridors, the goods trains are expected to run at 100kmph. The West and East rail corridor of 1469-km and 1232-km will be built with an investment of $2. 0 bn and $2. 40 bn respectively and will be equipped with the latest centralized traffic control systems (Acharya, 2006a). Indian Railways has also decided to collaborate with bulk users of freight transport to build the rail network in a Public Private Partnership (PPP) mode. The first project on this line comprises nine public and private sector companies that are building a 82-km ra il line between Haridarpur and Paradip at a cost of $ 120mn (Telegraph, 2006). Recently several steel companies have also shown interest in linking iron and coal mines in Orissa with a 98-km rail line (Business Standard, 2006). Multi-modal transport in India was a monopoly of the Container Corporation of India till 2005. With licenses being given to 13 new private players (Acharya, 2006b), rail trade should improve considerably. In order to encourage trade by small scale industries, Indian Railways has started a â€Å"road-railer†system where container vehicles are capable of running both on highways hauled by trucks and on rail (Guha and Sinha, 2006). In 199899, the Konkan Railway (one of the railway zones in South-Western India) pioneered the ‘roll-on, roll-off’ (‘RO-RO’) concept between Mumbai (Kolad) and Goa (Verna). Privately owned trucks are loaded with their goods which are driven on to a rake of flat cars and are carried (trucks and their cargo) to the destination. In 2005-06, the ports handled 456. 20 million tonnes of cargo traffic. This is expected to increase to 700 million tonnes by 2011-12. In keeping pace with the growing demand, the government plans to increase port capacities to around 1 billion tonnes per annum in the next six years (Raja, 2006). Under the National Maritime Development Programme (NMDP), the government is encouraging public-private partnership to build and maintain ports. This scheme will cover 276 port related projects at an investment of $12. 40 bn (Raja, 2006). With rising congestion levels at major ports and with high average turnaround time, the government has decided to develop minor ports in seven states to ease the traffic of major ports (Financial Express, 20006b). Tables 3 the operational performance of various ports in India – while there is an improvement in performance, the pace is slow. The estimated cost of this development is expected to be around $350 mn. Further, private sector is likely to invest $ 7. 67 billion over the next six years. W. P. No. 2007-03-07 Page No. 11 IIMA INDIA Research and Publications Table 3: Average Turnaround Time At Ports (in Days) Port Chennai Cochin Haldia Jawaharlal Nehru Kandla Kolkata Marmugao Mumbai New Mangalore Paradip Tuticorin Vishakhapatnam Average Source: IAEIS 2000-01 2001-02 2002-03 2003-04 2004-05 2005-06 CAGR 6. 40 5. 80 5. 30 3. 70 4. 60 3. 80 (9. 90) 3. 23 3. 10 2. 37 2. 19 2. 22 2. 33 (6. 32) 5. 21 3. 96 4. 01 3. 02 2. 87 3. 00 (10. 45) 1. 72 2. 48 2. 34 2. 28 2. 04 1. 84 1. 36 6. 15 4. 72 6. 55 5. 94 5. 06 4. 62 (5. 56) 6. 59 5. 50 4. 71 4. 47 4. 29 4. 7 (8. 75) 4. 30 4. 25 2. 04 3. 86 4. 47 4. 35 0. 23 5. 60 5. 20 5. 47 5. 06 4. 10 4. 21 (5. 55) 3. 80 2. 89 2. 73 1. 90 2. 35 2. 96 (4. 87) 3. 89 4. 16 3. 99 3. 37 3. 42 3. 41 (2. 60) 6. 39 4. 10 4. 11 3. 59 2. 59 2. 66 (16. 08) 4. 75 3. 71 3. 51 3. 72 3. 33 3. 20 (7. 60) 4. 84 4. 16 3. 93 3. 59 3. 45 3. 38 (6. 92) Currently, fifteen private sector projects are operational at various major ports and four more projects are u nder implementation (Raja, 2006). One of them aims to build the deepest port in the world at an investment of $ 1bn (Financial Express, 2006c). This project is handled by a three-firm Chinese consortium with a Mumbai-based partner, Zoom Developers. Interestingly, firms like Ambuja Cement have been using barges for transport of clinkers from their factories to crushing and packaging plants all over the coast, thereby, reducing transport costs considerably. It can be seen that there is a fury of activity in enhancing the infrastructure capacities in the country. 4 Determinants of Logistics Growth in India The Indian logistics business is valued at US$ 14bn and has been growing at a CAGR of 7-8 per cent. As mentioned earlier, the logistics cost represents 13-14 per cent of the country’s GDP. The market is fragmented with thousands of players offering partial services in logistics; it is estimated that there are about 400 firms capable of providing some level of integrated service (Mahalaksmi, 2006). The economy is expected to grow around ten per cent over the next ten years and sectors like chemicals, petrochemicals (especially distribution), pharmaceuticals, metals and metal processing, FMCG, textile, retail and automobile are projected to grow the fastest. New business models are emerging as new firms, both domestic and foreign, enter the market. As a result of the ensuing competition, linkages with global supply chains and domestic market growth W. P. No. 2007-03-07 Page No. 12 IIMA INDIA Research and Publications promise to change the face of logistics industry beyond recognition. In this section, we discuss how these are going to determine the growth of the sector. The scale of operations in manufacturing is changing and so are their markets and sourcing geographies. Growth in manufacturing in India has happened across clusters that are located in different parts of the country, e. g. , Ludhiana, NCR, Baddi and Dehradun in North, Rajkot, Jamnagar, Pune and Mumbai in West (along with Ankleshwar, Vapi, Aurangabad, and Kolhapur and most recently Kutch), and Coimbatore, Vishkahpatnam, Bangalore, Hosur, Chennai, Pudduchery and Sriperumbudur in the South. Assembly plants at these locations are being fed with raw materials and intermediate products from all over the country and abroad (as well as these locations). Moreover, distribution networks with emerging hubs in Indore and Nagpur (i. e. , Central India) supply all over the country and abroad. This is going to increase the nature and extent of movement of goods and services across the country. This has been accompanied by the expansion of domestic production capacity (e. g. , ORPAT in Morbi has added capacity to produce 40,000 units of quartz clocks and time pieces at a single location) as well as a big MNC entry into the Indian manufacturing scene (e. g. NOKIA’s new factory at Sriperumbudur produces 1 million mobile phones per month). As the volume of production grows, so will the extent of movement of goods either to the ports for export or to the rest of the country. Some of the large players to enter (or expand significantly) the Indian market recently have been Reliance Retail, Big Bazaar Hypermart, Pantaloon and RPG in Retail; Nokia, LG, Samsung, Motorola, Sony, Blue Star in Consumer Electronics; Bajaj, Hero Honda, Maruti, Hon da, Toyota, Audi, Volkswagen, Renault, Volvo in the Automotive sectors; Holcim in Cement; etc. It can be expected that their operations will drive the growth of logistics industry. The liberalizing Indian economy is experiencing entry of large domestic and global firms in new businesses as well as enlargement of distribution network of many regional Indian firms. The announcement of large retail projects by Reliance and Bharti (in collaboration with Wal-Mart) will bring new technology, add additional warehouse capacity and will require fast and reliable movement of goods across the country. Reliance is thinking of establishing large warehouses in Thailand to take advantage of low cost sourcing from South-East Asia once the Free Trade Agreement with Thailand (as well as ASEAN) gets finalized. Similarly, regional food grocery retail leaders like W. P. No. 2007-03-07 Page No. 13 IIMA INDIA Research and Publications Subhiksha who are present very extensively in the South Indian market are now entering the rest of the country with more than 600 new retail stores in 2007. Their logistics strategy and needs are transforming very significantly with this nationwide expansion. New retail chains are entering the non-metro towns and non-State capitals. It may be mentioned that the growth of the courier industry post-liberalization has helped change the parameters of service evaluation in the industry from cost alone to cost, time, and reliability. This sector has also seen a number alliances between regional and local players especially in the small package (less than 500 grams) market thereby creating networks of small players who are not only cost effective but also more flexible than the large national players. This segment of the industry has taken advantage of the large manpower and is gradually moving away from â€Å"Angadiyas† or manual inter-city couriers to a more organized network that shares transport infrastructure (and even consolidates sub-packages from various small couriers in a single large courier bag to be transported by air cargo or road transport rather than these sub-packages being carried by several manual couriers on the train; the courier firms are gaining on service and are sharing fixed costs). The entry of large third party logistics (3PL) carriers like Federal Express and DHL and the expansion of domestic networks of Indian firms like Gati and Shreyas Shipping is also transforming the nature of services and the business practices across the sector. Table 4 gives an idea of the investment plans announced by the various firms for the coming financial year and gives a sense of their increasing activity. Another trend driving growth in this sector has been the consolidation amongst the logistics player. Mergers Acquisitions amongst Indian and MNC logistics firms is starting to increase the reach of MNC 3PLs in the domestic Table 4: Investment Plans of Major 3PL Service Providers Firms DHL TNT Gati *Shreyas Shipping and Logistics Investment Details/ Plans (2007-08) (in US $ mn) 260 115 200 350 Source: Baxi (2006), Sanjai (2006a) W. P. No. 2007-03-07 Page No. 14 IIMA INDIA Research and Publications market while consolidating the business (e. g. , DHL acquired Blue Dart, TNT acquired Sppedage Express Cargo Service, Fedex bought over Pafex etc. ). Consolidation is expected to be beneficial to both the service providers as well as the consumers. Initially MNC 3PL firms were providing only custom clearance and freight forwarding facility to their international clients. With the logistics market growing we should see a shift in this trend. The complexity of managing the supply chain in the pre-consolidation era is illustrated through the following scenario at Nokia (Figure 3) . Logistics activity for Nokia’s India Hub was maintained by a large number of Figure 3: Typical Logistics Supply Chain of Nokia DHL, Panalpina Inbound logistics Nokia Hub in Sriperumbudur Gati, Blue Dart Domestic Outbound logistics UPS Warehouse in India Export Market International Outbound logistics DHL Source: Mishra et al. (2006 service providers. Coordination and handover was a problem at times. With DHL acquiring Blue Dart, it is now able to provide seamless end-to-end integrated supply chain solutions. Downstream distribution channels have also seen some consolidation. Manufacturing firms, particularly, in the FMCG sector have started to reduce the number of wholesalers (and at times, distributors) so as to increase the reach and consequently the returns to each wholesaler. This also induces them to invest in new productivity enhancing technology and effective managerial practices. Technology in the logistics chain is being upgraded bringing better visibility on customer off-takes (though an absence of cash registers and the accompanying regulatory discipline to avoid tax evasion stand in the way of automated data updation). Introduction of more efficient transport technology and mobile communication has the potential of changing the logistics practices in the industry. Increasing competition and the low penetration of IT also implies that the scope for change is immense and imminent. The agri-business sector’s supply chain, for example, has changed significantly with increasing investment in coldchains across the country. With this, fruits and vegetables are being transported long distances (often more than 1500 kms) and milk grid is able to pickup and deliver liquid W. P. No. 2007-03-07 Page No. 15 IIMA INDIA Research and Publications milk from and to remote areas more frequently. Here the role of cooperatives like AMUL has been exemplary both in increasing the size of the distribution network and also in reorganizing the supply network very efficiently along with enormous buildup of social capital – a pre-requisite for growth in emerging economies (Chandra and Tirupati, 2003). Low penetration of hand eld technologies for order processing and tracking, product tracking and material handling accessories, as well as IT for improved decision making can be seen as opportunities for growth. Mobile technologies also hold the potential for rapidly using information for real time decision making as well as for coordinating both the inbound and outbound logistics. Indian customers exhibit strong value and variety seeking behaviour hence developing capabilities in the process of product and service delivery will induce loyalty (i. e. , process loyalty ). Government policies have been another driver of change in the logistics industry. The trend towards a higher road cargo traffic as compared to rail is going to require better logistics control and coordination. The golden quadrilateral road project and the east west rail corridors are expected to change the reactiveness of Indian firms through shorter lead times as well as lower maintenance costs on the transport equipment. They also have the potential of reducing the procedural delays on highways by reducing the number of checks and related stoppages of vehicles. Its impact on perishable good will be most significant. Thirteen States and three UTs have already amended the State laws allowing private sector participation in direct purchases of farm produce from farmers (Ahya, 2006) which is making procurement more efficient and is bringing better technology as well as products in the rural production and distribution network (e. g. , see ITC echoupal in the next section). Banks have developed venture capital funds for logistics players. Small Industries Development Bank of India or SIDBI, for instance, has invested $ 2. mn in the Mumbai based firm Direct Logistics (Baxi, 2006). The unbundling of the logistics supply chain (both the physical pickup, storage and movement of goods as well as allied services like invoicing, order management, freight forwarding, customs clearance, octroi tax management etc. ) will lead to business opportunities and add value to the customers. An interesting example is that of Reliance Connect Service Centres that h ave been established on Indian highways by Reliance industry along with petrol stations. The Connect Centres provide a place for truckers to relax (sometimes with overnight stay facilities), send information (including data) to parent firms on their location, completed transactions etc. , receive material/instructions from the firm, remit money to parent firm, W. P. No. 2007-03-07 Page No. 16 IIMA INDIA Research and Publications etc. It has become a one-stop shop for truckers and their companies to keep in touch. Similarly, once VAT is introduced, it will simplify the process of goods servicing and will lead to rationalizing of many operational decisions. The implication of the emergence of a strong service industry on logistics performance is not well understood. Perhaps, a new business segment will emerge that is technology driven and will help coordinate activities across business channels. For example, there is a need to integrate the flow of information, goods and services between a medical physician, a diagnostics center, hospitals nursing homes, and retail medical outlets – all of which are un-coordinated independent entities at the moment. This could range from digital transmission of MRI scans from a diagnostics center to a computer to blood collection and delivery from physician’s various city centers to nursing homes/blood banks or directly to dispersed operation theatres. The role of a coordinating agency becomes, organizationally, valuable in such an environment. The need is to link physical logistics processes with communication technologies –building on the strengths of the IT and mobile communication industries. 5 The Renewal of the Sector: Some Innovative Experiences There have been several instances of firms undertaking innovative re-design of their logistics systems or deployment of interesting business models to enhance the effectiveness of their networks in order to deliver value to their customers. Sometimes it was done to overcome an inherent disadvantage that may exist in the supply chain. In this section, we present a few such experiences both at the firm level and at the industry level, through brief caselets highlighting their innovative contribution. They also represent the renewal process that is transforming the logistics sector and the distribution strategy of firms. GATI3 Established at a time (in 1989) when firms in India hardly outsourced their logistics requirements, Gati has transformed itself from a cargo movement company to become one of the leading end-to-end logistics and supply chain solutions provider in India. Continuous innovation and high end technological investments to improve service 3 Source: www. gati. com, Sharma and Thakur (2006), Prowess (2006), Reddy (2007) W. P. No. 2007-03-07 Page No. 17 IIMA INDIA Research and Publications quality, speed and efficiency can be ascribed as the reasons behind their success. It is staring to connect with mass retail market in several cities through 1500 Customer Convenient Centres. It is also the first Indian company to operate in the far-east market with its own subsidiary in Hong Kong. On the service front, there have been several firsts in India by Gati – a money back guarantee on cargo services, cash-on-delivery and a tollfree number for convenience of customers. Gati operates one of the largest road networks linking 594 districts out of a total of 602 districts in India at a turnover of $104mn in 2005-2006. It covers 3. 2 lakh4-km every day with a fleet size of 2000 trucks. Its automated shipment tracking ability has brought it closer to the customers – for example, the SMS based tracking system has allowed the customers to continuously get an update on the status of their consignment. Another feature also enables customers to get email based conformation of any delivery. Gati has also transformed the warehouse management practices in India with its modern system, WMS – a web based warehouse management system that provides both functionality and flexibility to customers in managing their warehouse operations. WMS enables Gati and its customers to track inventory status in real time. Along with its transportation related capabilities, this has allowed Gati to manage the entire outbound logistics (i. e. , warehousing, transport and dealer/retailer replenishment) of Blue Star for his home air-conditioning division. Order processing times and shipping errors have decreased and customer service levels have improved, as a consequence. Currently, Gati operates with 10 warehouses and plans to setup another 25 over the next three years at an investment of $100mn. It is designing these new warehouses with mechatronic systems that could lead to a paradigm shift in warehouse management in India. It has implemented CRM and ERP systems, using IT to full advantage delivering value to the customers. AMUL5 The Kaira District Milk Cooperative Union or better known as AMUL was established in 1946 in Anand in the western State of Gujarat with an aim to remove the intermediaries in the milk procurement and distribution process and thereby increase return to milk farmers. The milk farmers were mostly marginalized members of the society and most of 4 5 1 lakh = 100,000 www. amul. org; Chandra and Tirupati (2003) W. P. No. 2007-03-07 Page No. 18 IIMA INDIA Research and Publications hem barely poured a few litres of milk each day. They, however, depended on this for their livelihood and any money lost to the middleman or to uncertainty in the environment meant a threat to their existence. Thus was born AMUL (which means invaluable in Hindi)! The Story of AMUL is an extraordinary story of vision, effort and power of networks for the benefit of the poor. From being a net importer of milk i n 1947 when India became independent, India has now emerged as the largest milk producer in the world. This remarkable story has been scripted by a network of cooperatives called AMUL. The AMUL network is coordinated by the Gujarat Cooperative Milk Marketing Federation (or GCMMF) which markets milk and milk products that are produced by 12 Milk Unions (each having several factories) one of which is AMUL at Anand. The Unions are spread in twelve districts of Gujarat. Each Union collects milk from farmers through cooperative Village Societies. (This structure is now replicated in almost all the States of India. ) In 2005-2006, GCMMF had a sales turnover of $860mn through milk and milk products (its Unions or plants produce 15 categories of milk products with several products in each category). The 12 Unions collect about 6. 3million litres of milk every day from 2. 5 million farmers through 11,962 Village Societies. (with an annual collection of 2. 28 bn litres in 20052006). Each village society may have 100 to 1000 member farmers who pour milk twice a day. Twice daily, about 500 trucks collect milk from these Village Societies and bring them to either of the five chilling centers or the processing plants (or Unions). The Unions process the liquid milk – produce milk of various types for consumption, convert some to powder as inventory and use both powder and liquid milk for producing milk products. These products are distributed to consumers through a channel comprising 4000 stockists (or distributors) and 5,00,000 retailers. It is not difficult to imagine the complexity of coordinating such a network of perishable products with an explicit social objective, in addition to a commercial one. The network realized the need for a unique model to deliver value to customers and through that serve the key objective of setting up of the cooperative – making a producer out of a poor consumer and helping her get better returns. W. P. No. 2007-03-07 Page No. 19 IIMA INDIA Research and Publications Briefly, we will illustrate the unique mechanisms used by this network to coordinate the complex supply chain through the intervention of a number of third party service providers (distributors, retailers, logistics service providers and IT support groups). The network practices frequent delivery and works with low inventory levels in the chain, supported by extensive information network and IT kiosks at the milk pickup locations that provide a variety of services. Payment to farmers for RM procurement is instantaneous (well, almost! ) – during the same or in the next pouring shift by the Village Society staff. Milk is carried in cans by trucks (twice daily) or in chilling trucks, once in a day, to the plants. The routes of the trucks are well established and the arrival timetables at each Society well known and rarely is there any delay. This helps provide visibility to every member of the chain and improves the return on investment in the channel. The network operates with a zero stock out through improved availability of products and quick delivery. Disciplined planning to reduce variability at each stage helps in maintaining timeliness in the channel. GCMMF coordinates the production plan between the twelve Unions and ensures matching of geographic markets with supplies. TQM and Hoshin Kanri are the key tools used to plan and implement daily production and change programmes – these have facilitated a six-sigma performance throughout the network and has led to a doubling of sales revenue in the last ten years. Most interestingly, AMUL has the largest market share in every product category that it competes in – its competitors are both large MNCs and large small Indian firms. AMUL illustrates how good managerial practices can help bridge the gap between profits for the supplier and low cost, highy quality products for consumers – all through exceptional coordination of logistics operations across an extensive network. AMUL operates with one umbrella brand for products from all its member Unions – a testimony to strong quality and cost coordination across all Unions and Village Societies. In addition, its has been singularly responsible for pulling out several million of its members from poverty, ill health and illiteracy through its business model (called Anand Pattern) and social programmes. For details on this case study see Chandra and Tirupati (2003). W. P. No. 2007-03-07 Page No. 20 IIMA INDIA Research and Publications The DABBAWALLAHs of MUMBAI6 The â€Å"dabbawallah’s† or the ‘lunch box delivery people’ of Mumbai pickup and deliver lunch boxes from homes or restaurants and deliver it to the customer’s office – all within a specified time frame – and then deliver the empty box back to the place of pickup. It is an example of how processes can play an important role in coordinating logistics of an important service industry in India. The Nutan Mumbai Tiffin Box Charity Trust of Mumbai was established in 1891 to provide pick-up and delivery of lunch for Britishers working in Mumbai. Since then it has become the leading lunch delivery cooperative in the city. It picks-up and delivers 200,000 lunch boxes in a standard container every day and returns the same to the place of pickup. The firm has an annual turnover of about $12 mn and employs 5000 people for pickup and delivery – almost all of them are uneducated. However, there are less than 10 boxes mis-delivered or un-picked in a month! We discuss, briefly, the processes that help make this logistics network errorproof and deliver such an astonishing performance. The operations of the group has attracted global attention and won them many awards. They represent a growing group of service providers that exist as an element of the logistics network, provide niche service and generate value in return for the customer. The Trust which is organized as a cooperative is operationally organized in hierarchical teams – pick-up teams, consolidation teams, delivery teams (and then the reverse logistics for empty boxes with reversing of the functions for the teams). Typically, each dabba or the lunch box passes through more than four pair of hands and may be transported up to 60 km each way. Pickup is done between 7. 30am-9. 00am, delivery between 12. 00 and 1. 00pm and return between 2. 00-5. 00pm. These represent tight time-windows where a team of 20-25 members (and supervised by a team leader who also fills in as a pickup person in case of any absence) pick-up lunch boxes from homes – about 30 per pick-ups person. The boxes are carried in a specialized fixture on a bicycle to the nearest train station where the boxes are consolidated by destination. A consolidation team performs this task and carries the boxes (which may have been picked by members of different teams but need to travel to the same destination geography) into the train. Often tiffin or lunch boxes are un-loaded at intermediate train stations – re-consolidated with boxes coming from other locations (i. e, cross-docked) and carried on a third train to its 6 Lecture of Mr Megde, President of the Nutan Mumbai Tiffin Box Suppliers Charity Trust at IIM Ahmedabad, 2003; Chandra (2004) W. P. No. 2007-03-07 Page No. 21 IIMA INDIA Research and Publications estination station. At the destination station, the lunch boxes coming from various origins/cross-docking destinations, are once again segregated by the building where the delivery is made. Finally, a delivery team picks up their boxes, i. e. , boxes that they will deliver to specific owners in specific buildings, carry them on their bicycles and deliver them in the office of the owner of the box. Later in the aft ernoon, the same person picksup the empty box and pursues the reverse logistics and the box is ultimately delivered at its point of origin – either a home or a restaurant. With this as the complexity, what may be plausible reasons for such low errors? Contextually, the group members see their role as very important – they are responsible for delivering food to their customers – socially, it enhances their commitment to their task and establishes a critical customer-service provider link. Operationally, the handoff is done successfully through simplification or breaking down of tasks, codification and repetition. The designed process is simple and easy to understand for each operator. More important, each operator has a limited yet definite role. This role is one of pickup, consolidation transfer and delivery (and the similarly for reverse logistics). Each pickup operator does not pickup more than 25-30 boxes as that is the number of addresses etc. that he can remember accurately which helps in avoiding mistakes. The lunch box is enclosed in a standard container which carries a unique code for the destination station, the building where the box is to be delivered and the floor number in that building where the office of the customer is located. Each operator recognizes a limited set of codes that are relevant to him (and does not have to learn the entire coding scheme). And finally, repetition of the task (i. e. , same pickup location, same place for cross docking, same delivery location etc. ) helps in making the task foolproof. Of course, what helps is the linear geography of Mumbai, the punctuality of trains, relatively stable demand and strong inter-dependence between operators. It is an example of how manual logistics systems can be organized to effectively deliver value to the customer. ITC e-choupal7 The e-choupal project was launched by ITC (a large diversified company with strong FMCG presence) in 2000 in the central Indian State of Madhya Pradesh (MP) to reorganize the distribution of soyabean in rural markets. Today e-choupal reaches out to Source: www. echoupal. com, Talk by the eChoupal CEO S Sivakumar at IIMA, 2003, Mitra (2004), MBS CS (2006) W. P. No. 2007-03-07 7 Page No. 22 IIMA INDIA Research and Publications more than 3. 5 million farmers in 31,000 villages through 5,200 internet enabled kiosks and now covers a variety of agri-business products. The e-choupal was a unique venture which aimed to eliminate the middlemen from the agricultural commodity supply chain and reduce information asymmetry for the farmers. It is an extremely profitable rural distribution system with its unique design features. The e-choupal was started with an objective to re-organize the soybean trade which was operating in an inefficient manner. Farmers used to sell their produce through government mandated markets called â€Å"mandis. † Mandi trading was conducted by commission agents who bought and sold the produce. As the produce was sold through auction by these traders, farmers would find out the market price only upon arrival at a mandi. If the buyers had purchased enough for the day at this mandi then either the auction prices fell dramatically or the farmers had to wait for the next day’s auction. While all this may have been happening at one mandi, the farmers were unaware of the auction status at other mandis where there could have been shortages. The decision regarding the quality of the produce was also dependent on the trader. Similarly, distortions in price and quality effected agro-business trading firms like ITC who were, by government law, required to purchase from the mandi and through these traders and not directly from farmers. Under the e-choupal model, kiosks were setup in villages providing farmers information in local language on agricultural inputs, best practices in farming, market price realized at various mandi auctions, weather details etc. Nevertheless, it enabled ITC to purchase products directly from farmers (through a change in the law), enhancing quality of products and significant cost reduction (e. . , it saved $5. 40 per tonne on soyabean). The e-choupal now has just two service providers in its procurement chain – the sanchalak, a person between the kiosks and the farmers who inspects the produce and based on his assessment of the quality, the price of the commodity is decided (he gets 0. 5 per cent commission on the volume sold) and samyojak, a person who manages the ITC wa rehouses (he gets 1 per cent commission on transactions). Samyojaks also handle much of the logistics at the procurement hub like storage management and transportation from the hub to processing factories. ITC was able to overcome the hurdles posed by infrastructure inadequacy in villages. It uses solar energy to power the batteries of the computer kiosks and has shifted from W. P. No. 2007-03-07 Page No. 23 IIMA INDIA Research and Publications dialup connection to satellite based technology (VSAT). Farmers are now able to make informed decisions as they understand the market better leading to higher productivity. Various seed and fertilizer companies are now able to reach wider market with lesser transaction cost. The e-choupal has provided a market for more than 64 companies (to name a few, Monsanto and Nagarjuna Fertilizers). This innovative direct procurement channel is a win-win mechanism for all the involved parties. ITC is now building a rural retail infrastructure on the foundation of the e-choupal network thereby changing the rural distribution landscape. Transforming the Auto-Component Replacement Supply Chain With changing government policies and consumer preferences, the distribution supply chain of Indian companies has been effected significantly. This poses new challenges for various channel partners. We illustrate this transformation process through the lens of the auto component replacement market supply chain and discuss its implications. We surveyed 21 manufacturers and 22 channel members (distributors, wholesalers and retailers) spread equally in Northern and Western clusters of auto component Industry in India for this purpose. The auto component industry produced parts worth $6. 7 billion (2004-05) with 57 per cent of the demand coming from the replacement market (ACMA, 2005). Low entry barriers have led to a large number of players in the replacement market. There are about 400 firms in the organized sector and more than 5000 in the unorganized sector. Another feature of this sub-sector is the long duration of ownership of vehicles in India which leads to high requirement of parts. It is also found, anecdotally, that willingness to pay for parts decreases with the length of ownership. This has led to an intense segmentation of the parts market by price. Pre–1991, this industry was still in a nascent stage. It was characterized by few manufacturers and low demand. Consequently, the distribution network was flat (Figure 4a). Availability of spare parts was a key issue with long delivery lead-times and manufacturers sought large order sizes. This also led to the growth of un-branded parts or parts branded by regional producers (often supplied by small firms) in the replacement market. The product was sold chiefly on personal relationship with the buyer; quality, brand and price were not the selling propositions. Maruti Udyog Limited had created a W. P. No. 2007-03-07 Page No. 24 IIMA INDIA Research and Publications network of suppliers of quality parts for its vehicles. Hero Honda had done the same for its motorcycles. Post-1991, the liberalization of the automotive industry led to an entry of many foreign auto players. Because of the impending automobile industry boom and high margins for distributors, the demand for spare auto-parts was expected to grow. The distribution channel was modified with the entry of two more channel members, i. e. , wholesalers and semi-wholesalers (Figure 4b). The latter were smaller versions of the former and locally oriented. The period 1994-2007 saw a major transformation of the distribution structure (Figure 4c). OEMs started to operate in the replacement market through a parallel supply chain selling parts through their service stations. Additionally, the entry of large number of channel members caused semi-wholesalers to move out of the supply chain – they either moved up the chain to become wholesalers or moved down to become retailers. To strengthen the coordination of this extended supply chain and to buffer against the differential tax structure across states, companies started to operate with Carry and Forwarding Agents (CFA). Transportation related activities are carried out by all the members of the supply chain. Manufacturers use services of 3PL for transferring their stock to CFA and distributor locations. But thereafter, the transportation activity is solely managed by channel members themselves. An analysis of the available IT infrastructure and its usage pattern for all the channel members in our sample survey indicates that there is a high deviation in the usage of IT in the replacement market supply chain. Eighty seven per cent of the sampled firms use an ERP package – most of which is customized and developed locally. The main impediment in the use of a branded packages is the high cost of purchase and mplementation. These packages are used to generate sales report, order from suppliers, account for the financial transactions and track the level of inventory at plant and CFA. Manufacturers order the stock from suppliers mostly through emails. In order to track inventory in the channel, firms also made IT investments both at CFA and within the firm. Linking the CFA to the compan y website enabled firms to check stock status at the CFA and reduce the order processing and customer response times. Larger firms are also providing a similar setup to their distributors. Since the CFA is mostly owned W. P. No. 2007-03-07 Page No. 25 IIMA INDIA Research and Publications and managed by the firms, manufacturers are also able to check the inventory status, dispatching status and customer records. Distributors have invested primarily in computers for keeping track of the inventory and updating accounting details. On the other hand, rest of the channel partners (wholesalers and retailers) don’t even own computers. Parts are ordered primarily on the phone. Interestingly, most distributors were found to be following periodic review olicy while the rest of the channel members were following continuous review policy because of their low sales volume. Post 2007, with the implementation of a uniform tax structure across all states, there will be some changes in the way firms operate. The CFA will, perhaps, become redundant as most manufacturers will prefer to deal directly with distributors. The concept of an exclusive distributor is expected to vanish. I t is expected that with the increase in variety of components, distributors might become wholesalers and will stock multiple brands for the same product. Two parallel distribution channels are expected to be in operation – the OEM chain and the non-OEM chain (Figure 4d). OEM network will primarily handle the passenger car replacement parts and the non-OEM distribution network will sell parts for Light Commercial Vehicles, Heavy Commercial Vehicles, 2-wheelers and 3-wheelers as the car customer is becoming more brand conscious even while replacing parts which comes along with superior service. Further, we perceive that the more advanced automobiles, Free Trade Agreement with other Asian countries and VAT are going to change the way the replacement market operates. There will be a rationalization of this market in terms of number of firms competing thereby leading to an improvement in quality, delivery time and availability of parts. The size of the firms is expected to increase with an emergence of large national players (in addition to OEMs). This may reduce the number of producers exclusively focusing on the local markets. W. P. No. 2007-03-07 Page No. 26 IIMA INDIA Research and Publications Figure 4a Manufacturer Figure 4b Manufacturer Distributors Distributors Retailers Institutional Buyers SemiWholesalers Wholesalers Institutional Buyers Retailers Government Agencies Transport Companies Garage-station Government Agencies Transport Companies Garage-station Vehicle owners Vehicle owners Figure 4c Manufacturer Figure 4d Manufacturer Institutional buyers CFA OEMs Institutional buyers OEMs Wholesalers Distributors Authorized Service Stations Authorized Service Stations SemiWholesalers Retailers Wholesalers Vehicle Owners Vehicle Owners Retailers Government Agencies Transport Companies Garage-station Government Agencies Transport Companies Garage-station Vehicle owners Vehicle owners W. P. No. 2007-03-07 Page No. 27 IIMA INDIA Research and Publications Challenges Ahead Several challenges remain before the Indian logistics sector and its future success will depend on the ability of the industry to overcome these hurdles. Some of these impediments are at the firm level while others are at the policy level. At the policy level, the issues of infrastructure and integration of the nation’s logistics network remain the two most critical areas that require attention. The growth of infrastructure, since 1991, has been quite extensive (covering a wide geographical area) as well as strategic – linking the key industrial, consumption and transshipment centers. However, some imminent weaknesses need be addressed. Movement beyond the golden quadrilateral is required to bring goods from upcountry production sources to main shipment centers. The rate of growth of expressway has to increase. 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Just Like That by Michael Richards Essay Example For Students

Just Like That by Michael Richards Essay Just Like That is a short story written by Michael Richards. The story is about a father and a son who drives to a paddock with kangaroos. In the beginning of the story the father asks his son if he thinks he can do it and when the son doesnt answer the father says that if he cant do it now he never will. And of cause the son tells his father, Yes. I can do it. The thing the father is referring to is killing kangaroos. It may sound weird but in the story killing a kangaroo is like a test of manhood. The father has made his son believe that if he kills a kangaroo he will become a man. I believe the son is in his early teens. There is a time in your life where you have to grow up, find out who you are and slowly move away from your parents. When youre in your early teens you still believe that what your parents do is the right thing to do but not as much as you did when you were younger. I think the boy has got conflicting feelings because one way he wants to be a man but the other way he still can see that it isnt right to kill. But the son is still curios to find out whats going to happen. The father is a very hard man. Perhaps he doesnt have any feelings. Maybe he has had a tough childhood himself. Maybe he is angry because his son is very timid and maybe not as masculine as himself and that is why he pushes his son to kill to show off his masculinity. The bond between the father and the son isnt very strong. I dont think they talk very much about feelings and growing up and becoming a man. But I still think that the son is looking up to his father and in the beginning of the story he wants to be like him (a man). But when he has shot his first kangaroo he feels disappointed because it made no difference at all. Through the story the son continues to kill the kangaroos and on page 27 Michael Richards writes Something inside the boy died. It could be his innocence but also his idea of masculinity I think he realizes that he doesnt want to be like his father but at this point he cant stop killing. The father somehow opened up for something in the son that he hasnt realized before. Maybe he has got a hidden killer instinct. I could not help thinking where is the mother? In the end of the story the son bites his lip and somehow recovers and he realizes that he has done something very wrong and tears start to come to his eyes. He feels nothing, he feels ugly and disgusting because he has killed an animal and now I think he might kills his father because it was his fault.