LOGISTICS

Presented by :´ Maandeep Sethi ´ Pawandeep Dhingra ´ Jasmeet Chadha ´ Siddharth Seghal

LOGISTICS INDUSTRY-AN OVERVIEW
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Globally, the logistics industry is valued at US$ 3.5 trillion. The U.S., which contributes to over 25% of the global industry value, spends close to 9% of its GDP on logistic services. The Indian Logistics Industry is presently estimated at US$ 90 billion. The industry has generated employment for 45 million people in the country in comparison with the IT and ITeS sector which employs approximately 4.3million people. It is forecast to grow at a Compound Annual Growth Rate (CAGR) of approximately 8% over the next three to five years.

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2. . Land Transport.It has been the popularly used method & used especially in the shipments of heavy articles like machinery& vehicles.DIFFERENT MEDIUMS OF LOGISTICS SERVICE IN INDIA There are four mediums of logistics service in India. 1. Air freight.This is the most modern & the safest mode to ensure a fast delivery of goods.

4. Railways ² This is the oldest method of shipments and transport. Shipments and transportation of goods is done on an international basis through this way. This is the most effectively used in the domestic services but it is the widely used mode of logistic in India. . highly sensitive and volatile articles like uranium . Waterways.an essential part of this industry is one of the oldest methods.CONTD 3. This mode is usually very effective in shipments of oil.

India·s containerization has over 70 % of totel export cargo and 40% import cargo.OVERVIEW OF INDIAN LOGISTIC MARKET ´ ´ ´ ´ ´ The size of Indian logistic market is estimated to US$ 3.7 days in 2002-03 to 2. investing in highway projects etc.5 trillion in 2005 . auto ancillary & engineering goods have contributed a lot . The waiting time at major ports in India is reduced from 3. . Indian Government is making great efforts in improving the trade by privatizing ports . India·s domestic market of textiles.5 days in 2009-10.

THIRD PARTY LOGISTICS Third-party Logistics is simply the use of an outside company to perform all or part of the firm·s materials management and product distribution function .

The no 3PL providers grow to 400 in 2005 The Indian 3PL service providers can be divided into three tiers like national 3PL companies. .THIRD PARTY LOGISTIC PROVIDERS IN INDIA ´ ´ ´ ´ The 3PL industry was pioneered by global logistic majorsIndian subsidiaries of multinational companies in the automobile . Honda. Regional 3PL companies and Remote 3PL companies. electronics and FMCG sector were the main users of specialist service providers in the past. Expansion of manufacturing facilities by multinational automobile makers like Suzuki. Toyota and Ford indicates huge potential for 3PL providers.

Consumer habits Infrastructure conditions across country Logistic operation in each state require a state specific model that facilitates effective storage and transportation of goods mostly sold in that state . ´ ´ ´ . making it difficult to adopt a uniform logistics model .CHALLENGES FACED BY 3PL IN INDIA ´ Huge diversity in geographic locations.

Due to globalization. transport volume has increased in recent years but logistics infrastructure has been unable to keep up with this pace. ‡ ‡ ‡ . Rail infrastructure needs to be expanded and the connections to the harbors and airports should be improved.CONTD ‡ Geographical challenges Unequal distribution of the population which is creating major problem for the service providers.

CHARACTERISTICS OF 3PL ´ Perform outsourced logistics activities Process management / Multiple activities More customized services Mutually beneficial and risk-sharing relationship Long-term commitments (1~ 3 years) ´ ´ ´ ´ .

service and flexibility Industry-specific application ² ´build-to-orderµ systems and e-merchants DISADVANTAGES ‡ Loss of control Impact on in-house workforce ‡ .WHY IS IT NEEDED? ADVANTAGES ´ ´ ´ ´ Cost reduction Focus on core competency Improved efficiency.

manufacturers do not require warehouses and depots across all states to avoid double taxation. Investments in the infrastructure sector thus leading to increased efficiency and productivity of the transport system. VAT Implementation ² With VAT implementation and gradual phase out of CST. Increased outsourcing.Due to which manufacturing companies are witnessing increasing requirements for logistic services. ´ ´ ´ .KEY DRIVERS OF GROWTH ´ Economic growth has been driving logistics demand.

GLOBAL PLAYER EXAMPLE FEDEX .

end-to-end solution designed to optimize the management of critical inventory and service parts distribution and returns process.OVERVIEW ´ ´ FedEx Critical Inventory Logistics is a comprehensive. It incorporates a hub-based central stocking location (CSL) and a European wide network of forwarding stocking locations (FSLs) integrated through extensive information capabilities .

serial number. or by item level detail Complete end-to-end inventory and transportation visibility including realtime proof-of-delivery. and recovery from the FedEx Command and Control Centre Central Stocking Locations are accessible 24 hours a day. 7 days a week Synchronized delivery reliability from 2-day to 4-hour delivery. lot number. next flight out and local courier Proactive event notification. plus Tracking and Tracing by order number. 2-hour service in some areas In house customs specialists Dedicated Customer Service Team . monitoring. part number.FEATURES ´ ´ ´ ´ ´ ´ ´ Inventory Management with automated replenishment.

BENIFITS ´ ´ ´ ´ ´ ´ Enhance customer service (shipments and returns are managed to meet individual distribution requirements) Improve inventory management (consistent on-time delivery reduces need for safety stock) Optimize transportation costs (choosing the optimal overall transportation solution can reduce costs) Reallocate resources (refocuses time and money on core competencies) Control cost by ordering what you need when you need it. and have it delivered in time to meet your required level of service Mitigate your investments and inventory and infrastructure .

you·ll have a truly robust capability for planning and aligning inventories. Also there is gain end-to-end visibility and be able to respond more rapidly to customer orders. resources and processes with absolutely minimal risk and loss ³ which will put you well on your way to post-sale success. With the FedEx GDC and FedEx Critical Inventory Logistics. It increases inventory velocity.OTHER BENIFITS ´ ´ ´ Consolidating inventory at the FedEx GDC enables cost savings. turning assets into profits. .

WHY IS IT NEEDED? ADVANTAGES ´ ´ ´ ´ Cost reduction Focus on core competency Improved efficiency. service and flexibility Industry-specific application ² ´build-to-orderµ systems and e-merchants DISADVANTAGES ‡ Loss of control Impact on in-house workforce ‡ .

. It·s the only leading multi-modal logistics company with single window integrated logistics services for all the elements of the supply chain management in India. multinational automobile industry and has been pioneer in transportation. With innovative and cost saving methods It has taken seat for generating maximum air cargo in India It has been dealing with corporate.INDIAN COMPANY OM LOGISTIC LTD ´ ´ ´ ´ Flagship company of Om Group has been instrumental in providing innovative and value added solutions for Indian Corporate and Multinationals. warehousing and logistics support to the sector.

´ There are million sq/ft.INFRASTRUCTURE They cater wide distributed in Indian market through its 450 plus satellite locations withOnline connectivity. of warehousing area across the country and a state of the art infrastructure to service their customers ´ . ´ It has over 1000 delivery locations spread across the country and 4000 dedicated vehicles.

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