1. HOW E-COMMERCE PLATFORM CA N HELP
TO BOOST LOGISTICS S ECTOR IN INDIA
In these report know about the information on
logistics sector.
Also includes the data how affect of e-commerce
on logistics sector and help to boost or increase
the growth of them.
Logistics sector in india large but not managerial
so how to improve via e-commerce.
Abstract
Indian logistics market is expected to grow at a CAGR of 12.17% by 2020 driven by the
growth in the manufacturing, retail, FMCG and e-commerce sectors.
India spends around 14.4% of its GDP on logistics and transportation as compared to less
than 8% spent by the other developing countries.

2. Page 2 e-commerce boost logistics sector
Introduction
The Indian economy has been growing. Whether it is the physical infrastructure of road,
ports, water, power etc. or the digital infrastructure of broadband networks,
telecommunication etc. or the service infrastructure of logistics – all are being stretched
to perform beyond their capabilities
Broadly speaking, the Indian logistics sector, as elsewhere, comprises the entire inbound
and outbound segments of the manufacturing and service supply chains. Of late, the
logistics infrastructure has received lot of attention both from business and industry as
well as policy makers.
Scope of Logistics Market in India 2015 - 2020:
- This report provides a detailed view of Indian logistics market with current available
capacity and options.
- This report identifies the need for focusing on logistics sector in India.
- This report provides detailed information on growth forecasts for 3PL and 4PL logistics
market in India up to 2020.
- This report provides detailed information on industry wise (automobile, technology,
retailing, consumer products, food and grocery, healthcare and industrial goods) growth
forecasts for logistics market in India up to 2020.
‘Make in India’
‘Digital India’
‘Start-up India’
‘Skill India’

3. Page 3e-commerce boost logistics sector
Elements of Logistics Cost in India
Table 1 gives a breakup of the logistics cost across different sectors of the
Indian industry and the changes therein over the last five years. It shows how
the logistics spend is increasing, sometimes dramatically, across various
industrial sectors
COST OF LOGISTICS
France 5.5 cents/km
Japan 3.7 cents/km
Canada 2.0 cents/km
India 7.0 cents/km
0 5 10 15 20 25 30 35 40 45
Transportation
Warehouse&Packaging
Inventory
Order & Administrative
Transportation
Warehouse&Packag
ing
Inventory
Order &
Administrative
Contribution 40 26 24 10
Contribution
Table no.1
A World Bank Study conducted recently says that
the Indian logistics cost is one of the highest in the
world. This study shows that as far as developing
countries are concerned, these costs are 6 % to 8
% of the total value of goods. In China the cost is
estimated at 10 % of total value of goods. By
comparison, the cost of logistics in India is 14 % of
the total value of goods. The freight costs for rail
and road are quite high, for example:

4. Page 4 e-commerce boost logistics sector
E-commerce is growing rapidly in all global religion but the e-commerce landscape is
hugely variable with sharp divergencies between devloped and developing economies.
This landscape is changing quickly due to rapid online growth is devloping
economies,particulery in china and india.
Different e-commerce logistics model have been developed for different types of
product and vary by market maturity. Cross-border e-commerce will expand
significantly as barriers to entry diminish and as e-commerce swiftly grows, particularly
in devloping markets.
As e-commerce logistics models develop,they will drive huge changes in
physical distribution networks,comparable in many respact to previous changes
generated by the rise of global sourcing,or the earlier ‘centralization’ of
deliveries to retail store via reatailer-controlled distribution centers,this will
give rise to now class of logistics and distribution properties including mega e-
fulfuillment centers,parcel hubs and delivery centers,local ‘urban logistics’
depots for rapid order fulfillment and return processing centers.

5. Page 5e-commerce boost logistics sector
Overview of Indian Logistics Industires
The contribution from the movement of goods including freight transportation and
storage is about 90 per cent. Aggregate freight traffic is estimated at about 2-2.3 trillion
tonne kilometres. Road dominates the mode of freight transport mix and constitutes
about 60 per cent of the total freight traffic. Rail and coastal shipping account for about
32 per cent and 7 per cent, respectively, while the share of inland waterways
transportation and air is less than 1 per cent each.
Major e-retail market trends that require efficient logistics
63%
34%
2% 1%
Freight of Transport
Road
Rail
Water
Air
The Indian logistics industry was valued at an
estimated US$ 130 billion in 2012-13. It has
grown at a CAGR of over 16 per cent over the
last five years. The industry comprises the
following main segments:
Freight and passenger transportation via road,
rail, air and water Warehousing and cold-
storage
Cash on delivery
Typical Indian customer wants to
inspect the product before paying
Brings in confidence in e-
commerce
Insurance cover
Products stored in the warehouse
are insured Demands higher and
safer specification of warehouses
Return/exchange
Consumers expect an easy
return/exchange process Demands
strong reverse logistics process
Free delivery
To compete with retailers, free and
quick delivery is a must Need for
optimised logistics cost

6. Page 6 e-commerce boost logistics sector
Growth of Indian Logistics Sector via E-commerce
Globalisation via e-commerce:
With the growing integration of India’s economy with the world, the country’s total
trade has grown at a CAGR of about 20 per cent from US$ 57 billion in 1997-98 to US$
862 billion in 2012-13. The initiative to construct a trilateral highway connecting India,
Myanmar and Thailand represents an important step in the establishment of
connectivity between India and Southeast Asian countries. The highway is expected to
be operational in the year 2015-16 and is likely to boost trade ties of India with other
countries.
The increase in international trade has effected corresponding growth in cross-border
freight traffic, thereby, adding to demand for logistics services.
Government initiatives: The Government of India has initiated several policy
measures and programmes to attract investments in developing the logistics
infrastructure of the country. Some of the key reforms undertaken by the Government
of India include the following:
 FDI regulations: The government allows 100 per cent FDI under the
automatic route for all logistics services, except air cargo and courier services.
For air transport services including air cargo services, the limit was increased
from 49 per cent to 74 per cent in 2008. Also, FDI of up to 100 per cent is
permitted for courier services, subject to Foreign Investment Promotion Board
(FIPB) approval.
India’s interest and curiosity in the e-commerce
retail logistics is on a rise. The e-commerce retail
market is among India’s fastest-growing markets
and is expected to grow at a CAGR of 52 per cent
to touch USD36.7 billion by 2020. E-commerce
retail companies continuously work to introduce
innovative business models and technology-
driven approaches.
Logistics Industry in India: India’s logistics and
warehousing industry’s revenue is expected to
grow at a CAGR of 10.7% during 2015-
2019. India ranks 53rd across 115 countries with
an efficient record of logistics system score of
3.08 out of 5, showing a lot of poise to grow in
the coming five years.

7. Page 7e-commerce boost logistics sector
 Greater investments in development of logistics
infrastructure: The government has significantly increased the investment
allocated for the development of logistics infrastructure including ports,
airports, national highways, logistics parks, freight stations and corridors.
 Private sector partnerships: Several measures have been undertaken
by the Government of India to encourage private sector participation in the
logistics industry across all modes. These measures include increasing targeted
contributions of private players in the investments set aside for the
development of logistics infrastructure, tax exemptions and duty free imports.
Apart from speeding up capacity creation, this is also aimed towards
incorporating latest technologies and better
E-COMMERCE helps in Outsourcing of logistics
The logistics industry stands to benefit from the increasing trend of outsourcing the
logistics and warehousing function to third party service providers. This function was
traditionally performed by the organisations themselves. However, corporate entities
recognise the benefits associated in engaging a third-party logistics provider for
integration of information flow, material handling, production, packaging, inventory,
transportation, warehousing and often security. This allows corporate entities to
concentrate on their core business and also avail of significant discounts through
outsourcing.

8. Page 8 e-commerce boost logistics sector
THE DEVELOPMENT OF B2C E-COMMERCE NEEDS LOGISTICS TO
SUPPORT
The relationship between logistics and e-commerce is very close. Logistics is very
significant part in developing e-commerce, the impact of e-commerce on logistics must
be enormous. Logistics in the future development of e-commerce are inextricably
linked. They think this relationship are the contradictions of the logistics itself to
develop e-commerce‟s development, and e-commerce is precisely to provide a means
to resolve this contradiction; in turn, e-commerce contradiction solution also need
logistics to provide the resources for, a new economic model requires new logistics
model.

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Vision
Mission
Value
Report by
Conclusion
Now we can back to our plan, and discuss how we fulfilled
it. The purpose of the thesis is to explore the relationship
between e-commerce and logistics in B2C (business to
consumer) companies. To fulfill our purpose we used
aims to achieve the purpose better.
In order to fulfill the three aims, pertinent literature is
described. Relevant literature is reviewed on the theory
to have an insight of ideas in e-commerce, business-to-
customer (B2C) e-commerce, logistics, and third-party-
logistics (3PL). Besides, for a clear structure of our thesis,
we break down two research questions respectively into
some sub-questions, and then relevant data are collected,
and analysis methods are performed by based on
different questions.
Reference by
The Financial Express (News Paper)
India Brand Equity Foundation (article)
Researchandmarket.com
Indian Logistics (JLL report)
Franchiseindia.com