LOGISTICS

OUTSOURCING GROUP NO 9
Logistics is that part of the
supply chain process that
plans, implements, and
controls the efficient, effective
forward and reverse flow and
storage of goods, services and
related information between
the point of origin and the
point of consumption in order
to meet customers’
requirements
• Third-party Logistics is the use of an
outside company to perform all or part
of the firm’s materials management and product
distribution function.

• 3PL provider is an external provider who manages,

controls, and delivers logistics activities on behalf of a
shipper

• 3pl is also referred as contract

Logistics.
 How 3pl originated

• Globalization
• Manufacturing revolution
• Reengineering
• Technological growth

Some of the successful companies that

emerged during this periods:-

•DHL
• Exel
•Schenker
• UPS
• Panalpina
• C.H. Robinson
 Types of 3pl

• Transportation Based
• Warehouse/ Distribution Based
• Forwarder Based
• Financial Based
• Informational Based
 Why use 3pl

• Save time and cost

• Expansion
• Narrow Focus on Core activities
• Effectively reach their customers
• Increased sales and market share:
• Flexibility in operations
 Limitations of 3pl

• Loss of control
• Coordination efforts
• Information sharing
• Discontinuity of services of 3PL
provider
Selection of 3 pl
 3pl services

• Inbound and Outbound Logistics

• Reverse Logistics
• Cross Docking
• Bar coding
• RFID Tags
• Electronic Data Interchange (EDI)
 Types of 3pl providers

• Standard 3PL provider

• Service developer
• The customer adapter
• The customer developer
Case Study
 Gati profile

• Gati pioneered the concept of Retail Express Cargo and

Express Distribution in India
• 19 years working tenure
• Gati has the largest fleet of over 2100 vehicles on road, with a
nation wide network unmatched in the industry
• Gati has connected businesses across the border
• Providing seamless multi modal network across road, air, rail
and sea, & hold position in the Express Distribution Segment
 Important Awards

• First Logistics Company in India to be Awarded ISO -9001

certification ISO 9001-2000 in 1998.
• Frost and Sullivan Award for the Best Domestic Logistics
Company in 2003.
• 2. Award for the Best HR Practices” in Service Industry by
Amity International Business School in 2005 & 2007.
• 3. Consumer Super Brand award in Logistics Category by
Super brands, UK in 2006.
 4pl

• The Fourth-Party Logistics service provider (4PL) or

Lead Logistic Provider (LLP) is a Business Process
Outsourcing (BPO) provider.

• 4PL is the evolution of supply chain outsourcing.

• 4PL is an integrator that assembles and manages the

resources, capabilities, and technology of its own
organization with those of complementary service
providers to deliver a comprehensive supply chain
solution.

• 4PLs manage and direct the activities of multiple

3PLs, serving as an
integrator
 The services provided by a 4PL provider are

• Freight Negotiations with 3PLs

• Freight Contract Management
• Transport Billing
• Continuous Improvement Programs
• Management of Service Providers
• IT Solutions
• Risk Management and Insurance
• Cash-flow Management
 Conclusion

• Logistics is one of the area of the supply chain i.e.

growing at a tremendous case as the Internet and E-
Commerce is drastically changing the range, delivery
time and the speed of information as well as ordering
and payment process

• The Indian 3PL market is set to grow tremendously in

the next 5-7 years

• For now, surely 3PL is the way forward for Indian

Logistics Market