Cargo India Mid Sized Indian Logistics Supply Chain Company Pan India Presence 320 Destina Q30828278

Cargo India is a mid-sized Indian Logistics and Supply Chaincompany with its pan India presence in over 320 destinations, 1.2million square feet of warehousing space, 1500 trucks and more than500 routes linked to 24 super-hubs and hubs. The companies in Cargobusiness follow two basic models for transportation of goods tovarious destinations across the country. The first model in whichthe truck will move only between two predetermined locations, isknown as Transportation model using Hub and Spoke. In this modeltrucks can move to and fro only between two hubs. It will not carryforward again from that particular hub to another hub. Based on theschedule, specified number of trucks start from source hub tovarious destination hubs irrespective of the truck load, i.e. atruck will be sent to the destination hub as per schedule even ifit is empty (though occasions of sending an empty or even halffilled trucks are very rare, considering the huge demand). Each hubhas its specified number of trucks contracted from the localproviders. Consider movement between Indore and Mumbai. It takesone day to deliver goods to Mumbai from Indore. Daily 2 trucksstart from Indore at 10 pm towards Mumbai and from Mumbai towardsIndore. Trucks sent from Indore will not go to any other locationfrom Mumbai, but will return in the next day’s delivery. This modelhas advantages of faster delivery and higher quality of service butit is slightly costly and utilization of containers is also low.Another type of model is the Transshipment model using Hub andSpoke. In this case no preplanning is done and scheduling is doneaccording to requirements. There is no such restriction on themovement of trucks and a particular container loads and unloads atvarious hubs in the route. There would be no definite time ofreturning of a particular container to its point of origin. Heretrucks have to be dynamically contracted as per need. The advantageof this model is low cost and hence less charge to customer butquality of service and speed of delivery suffer. The chances ofdamages and pilferages are very high due to frequent movement andmore hands getting involved. Cargo India management was looking foranswers to following question, 1. Should Cargo India adoptTransshipment model? Why / Why not