logistics

1. LOGISTICS
Presented by :-
 Maandeep Sethi
 Pawandeep Dhingra
 Jasmeet Chadha
 Siddharth Seghal

2. LOGISTICS INDUSTRY-AN OVERVIEW
 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.

3. 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.
2. Land Transport- It has been the
popularly used method & used especially
in the shipments of heavy articles like
machinery& vehicles.

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

5. OVERVIEW OF INDIAN LOGISTIC MARKET
 The size of Indian logistic market is estimated to US$ 3.5
trillion in 2005 .
 India’s domestic market of textiles, auto ancillary &
engineering goods have contributed a lot .
 India’s containerization has over 70 % of totel export cargo
and 40% import cargo.
 Indian Government is making great efforts in improving the
trade by privatizing ports , investing in highway projects etc.
 The waiting time at major ports in India is reduced from 3.7
days in 2002-03 to 2.5 days in 2009-10.

6. 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

7. THIRD PARTY LOGISTIC PROVIDERS IN
INDIA
 The 3PL industry was pioneered by global logistic majors-
Indian subsidiaries of multinational companies in the
automobile , 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, Honda, Toyota and Ford
indicates huge potential for 3PL providers.
 The no 3PL providers grow to 400 in 2005
 The Indian 3PL service providers can be divided into three
tiers like national 3PL companies, Regional 3PL companies
and Remote 3PL companies.

8. CHALLENGES FACED BY 3PL IN INDIA
 Huge diversity in geographic locations.
 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 .

9. CONTD
• Geographical challenges
• Unequal distribution of the population which is creating major
problem for the service providers.
• 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.

10. 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)

11. WHY IS IT NEEDED?
ADVANTAGES
 Cost reduction
 Focus on core competency
 Improved efficiency, service and flexibility
 Industry-specific application
– “build-to-order” systems and e-merchants
DISADVANTAGES
• Loss of control
• Impact on in-house workforce

12. KEY DRIVERS OF GROWTH
 Economic growth has been driving logistics demand.
 Increased outsourcing- Due to which manufacturing companies are
witnessing increasing requirements for logistic services.
 VAT Implementation – With VAT implementation and gradual phase out
of CST,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.

13. GLOBAL PLAYER EXAMPLE
FEDEX

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

15. FEATURES
 Inventory Management with automated replenishment, plus
Tracking and Tracing by order number, part number, serial number,
lot number, or by item level detail
 Complete end-to-end inventory and transportation visibility
including real-time proof-of-delivery, next flight out and local
courier
 Proactive event notification, monitoring, 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, 2-
hour service in some areas
 In house customs specialists
 Dedicated Customer Service Team

16. 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

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

18. WHY IS IT NEEDED?
ADVANTAGES
 Cost reduction
 Focus on core competency
 Improved efficiency, service and flexibility
 Industry-specific application
– “build-to-order” systems and e-merchants
DISADVANTAGES
• Loss of control
• Impact on in-house workforce

19. 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.
 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.
 With innovative and cost saving methods It has taken
seat for generating maximum air cargo in India
 It has been dealing with corporate, multinational
automobile industry and has been pioneer in
transportation, warehousing and logistics support to the
sector.

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