LOGISTICS INDUSTRY

PORTER’S FIVE FORCES MODEL AND

PESTEL FRAMEWORK

By,
Gokul Karwa
 Introduction to The Indian Logistics
Industry
Purpose :- To enable an effective transportation or timely movement of goods
from one place for another (for industrial as well as private purposes)

Mediums of Logistics :- 1) Land Transport

2) Air Freight
3) Railways
4) Water transport

Key Players In the Industry :- DHL , TNT , GATI , FIRST FLIGHT ,

BLUE DART , ASHOK LEYLAND .
 PESTEL ANALYSIS
(ANALYSIS OF POLITICAL,ECONOMIC,SOCIAL,TECHNOLOGICAL,ENVIRONMENTAL
AND LEGAL FACTORS)

Political Factors

 In Order to liberalize the railway service, the government opened its doors of
container business to private parties.

 Government has removed the differential state level taxes.

 Government has introduced private sector participation, especially in the port

sector.

 National Highway Projects.

 ECONOMIC FACTORS

 End of indirect tax regime after implementation of GST , other tax reforms
like VAT.

 Change in Government policies regarding transportation.

 Fluctuation in Fuel prices.

 The core drivers are the growth in GDP and Trade.

 High Maintenance and Advertisement.

 SOCIAL FACTORS

 Creditor Collection Period.

 Standards put in place to act as a tool for intervention for

stakeholders and businesses.

 Countries may use innovations such as eco-labelling as a part of the

regulatory and governance structure.
 TECHNOLOGICAL FACTORS

 Inventory management and barcode systems .

 Warehouse Management Systems .

 Transportation and management systems.

 Radio Frequency identification.

 Web Enabled Communications .

 Environmental and Legal Factors

 Changing government policies on taxation and regulation of service providers

play an important role in this process.
 Coordination across various government agencies requires approval from
multiple ministries and is a roadblock for multi modal transport in India.
 Whether it is the physical infrastructure of road, ports, water, power etc or
the service infrastructure of logistics – all are being stretched to perform
beyond their capabilities.
 At the firm level, the logistics focus will have to move towards reducing cycle
times in order to prevent the exhaustion of resources.
THANK YOU !