Edition 49
The Possibilities and Trends of Logistics Business in India
by Rajib Dey, Content Writer, Global Associates

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In India the logistics sector is mainly operated by small and regional companies. At present the logistics industry in India is growing at a rapid rate due to the rising demand for logistics services and growth in disposable incomes and superior industrialization endeavors over the country.

The logistics is mainly involved with transportation of goods. In India the logistics sector is segregated in four major sectors like Air Transportation, Sea Transportation, Rail Transportation and Road Transportation.

Road transport in India includes a huge share of cargo movement for elasticity, frequency and point-to-point delivery. Road transport is considered to be the largest section in the logistics sectors and it consists 73% of the freight movement in 2008-2009.

To cope up with the huge advancement in Industrial segments, the concept of logistics has been broaden with supplementary services that may range from 3PL, cold chains, warehousing etc. Some significant premeditated development areas within the Indian logistics sector are - Air cargo logistics, Cold chain / cold storage, ICD / CFS, Third-party logistics (3PL), Road transport service, Shipping, Warehousing, Logistic parks, Relocation, Courier.

India is an economically developed country and there are lots of development scopes for various industries. The sector comes up with more openings for revenue enhancements and so the sector will be flourished rapidly in India in near future. Industrial developments in logistics may also result in improving the country’s GDP and increase the numbers of customers for logistics industry.

India has been positioned 39th place amid 150 countries regarding logistics performance with its future potential as per global logistics report 2007 prepared by the World Bank.
In between 2020 the Indian logistics industry will experience a steady annual growth of around 8-9 percent and gain potential revenue of about $190-200 billion backed by some leading industries similar to engineering, pharmaceuticals, automotive, food processing and others.

The Logistics industry in India is making some advancement in its system and it is observed some committed performer deals with greater part of a company’s logistics operations. These players are called as 3PL players who take care of logistics value chain. At an elementary level they will look after the integrated transportation, distribution and warehousing services that can be tailored to meet up the requirements of a company. Now-a-days the 3PL players are also involving with tracking, packing and In order to manage increasing logistics costs and urgency to concentrate on core competencies, the various companies are searching for such 3PL player. The involvement of 3PL in the overall logistics market is going to be 3.5-4% by 2013-2014.

Another concept is also gaining popularity in Indian logistics sector which is known as 4PL (4th party logistics). 4PL refers to a supplier of outsourced supply chain coordination and management service that usually does not possess or control the fundamental logistical assets and resources. 4PL can be defined as an integrator that build ups the sources, capabilities and equipment of its personal business and other businesses to plan, construct, and maneuver all-inclusive supply chain solutions. A 4PL works for management of the whole procedure. In a broader range a 4PL manages the financial, operational, IT and customer services for the client for services.

Besides all these online logistics in India is also becoming popular in India. Some companies like Suain Logistics have launched their online portal (www.loadjunction.com) which is very useful for Indian logistics companies. Logistics companies can get the live information of unlimited trucking companies and their vehicles details to haul their freight. Besides they get the availability of various types of specialized vehicles like trailers, containers, van, reefer, flatbed, 10 wheelers lorry for haul bulk amount of loads. The logistics companies can post their available loads online and if any load is matched with a trucker they can directly negotiate through online. This types of online portals which are also known as load boards provide credit scoring systems to verify the genuineness/authenticity of the load providers and carriers/vehicle owners. The logistics companies can also get real-time rates on different routes on PAN India basis.
Rajib Dey is the content writer of Global Associates, a leading firm that provides design and sustainability analysis services for a long period. I write article, blog on sustainable design & global warming issues.

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