2. 2THIRD PARTY LOGISTICS – INDIA.PPT
SAMPLE
Executive Summary
Market
Drivers &
Challenges
Competition
Total market for Third Party Logistics (3PL) in India is valued at INR XX bn in 20- -; Estimated to
reach INR YY bn in 20- -
Third party logistics (3PL) market in India is at a nascent stage
Market comprises of two major segments:
– Asset-based 3PLs
– Non-asset based 3PLs
a% of companies are outsourcing services like supply chain management and warehousing
Drivers:
– Economic Growth
– High Cost of Logistics in India
– Phased Implementation of VAT
– Government Infrastructure Initiatives
– Growth in Auto Sector
– Growth in Retail Sector
Challenges:
– Infrastructure Congestion
– Lack of Trust and Awareness
Market comprises of public sector, private sector and foreign companies
Majority of 3PL Players are currently providing disintegrated services
Many 3PL players are investing to become end-to-end integrated players
Express cargo and courier companies like Compan1, Company 2 and Company 3 also offer 3PL
services
4. 4THIRD PARTY LOGISTICS – INDIA.PPT
3PL firm acts as a ‘third party’ facilitators between
manufacturers and the buyers
Source:
Logistics
• Logistics is a three-way relationship between a buyer, the supplier of goods and a logistics
service provider
Third Party
Logistics
First Party
Shipper or Supplier
• 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
Second Party
Buyer
Third Party
Firm acting as a
Middleman
Supplier Manufacturer
Third
Party Logistics
Provider
Third
Party Logistics
Provider
Retailer/
Buyers
Logistics Services
Transaction Transaction
Logistics Services
5. 5THIRD PARTY LOGISTICS – INDIA.PPT
SAMPLE
Third party logistics is fast gaining popularity in the Indian
logistics market
• Third party logistics (3PL) market in India is at a
nascent stage
• Companies in textile, automotive, pharmaceutical,
manufacturing, retail and FMCG sectors are
increasingly opting to outsource their logistics
requirements to specialized service providers
• According to a recent survey of 3PL service providers
Engineering, automotive & retail sectors were top
revenue earners
Overview Overall Market Size and Growth
Source:
0
50
100
150
200
X
2005
Y
2008
Z
2012e
b%
INR bn
Share of 3PL firms in Logistics Industry
0
5
10
15
20
U
2005
V
2008
W
2012e
%
Asset Based Non-Asset Based
Own some of the assets used
in supply chain management
which often include trucks,
distribution centres and
warehouses
Does not own such assets
3PL Market comprises of two segments
6. 6THIRD PARTY LOGISTICS – INDIA.PPT
Drivers & Challenges
Government Infrastructure Initiatives
Growth in Auto Sector
Growth in Retail Sector
Economic growth
Phased implementation of VAT
High cost of Logistics in India
Drivers
Infrastructure Congestion
Lack of Trust and Awareness
Challenges
7. 7THIRD PARTY LOGISTICS – INDIA.PPT
SAMPLE
There are few 3PL players with nationwide presence with
majority of players providing disintegrated services
•Currently, there are only a few 3PL players
with a national network
•Majority of 3PL Players are currently providing
disintegrated services
3PL service providers are expanding their basket
of services as companies are now looking beyond
transportation of their products and raw materials
Many 3PL players are investing to become end-to-
end integrated players
•Indian corporates like Company 4 and
Company 5 have entered the 3PL business
Initially these corporates had divisions to handle
internal logistics
•Large express cargo and courier companies
like Company 1, Company 2 and Company 3
have also started offering 3PL services
Competition Overview Local Firms Outsourcing Logistics Services
Source:
Market Structure
3PL Market
Public Sector
Companies
Private Sector
Companies
Foreign
Companies
0
10
20
30
40
50
60
P
1998
Q
2008
%
Global average
stands at c%
8. 8THIRD PARTY LOGISTICS – INDIA.PPT
SAMPLE
Major Players – Private Sector Companies (1/5)
Source:
• The company is based in Mumbai
• It provides supply chain solutions, value added services, warehousing and packaging
solutions
• It is planning to double its current warehouse space to T mn sq. ft.
Company 2
• It offers domestic and international cargo handling services, complete logistics
solutions which includes sourcing raw-materials to exporting finished products, and
documentation support
• It owns more than x cubic meters of storage space
• It has its own Custom House Agent License to facilitate the customs clearance of
imported or exported cargo
Financials:
• It reported net sales of INR A mn and a net profit of INR B mn in FY 20-- - - -
Company 1
• It provides container freight services , warehousing solutions and project logistics
• It entered into a strategic alliance with Hind terminals for setting up, commissioning,
operating , managing and commercially running container freight stations at location 1,
location 2 and location 3
• Planning to invest INR C bn in order to set up d logistic parks at location 1, location 2,
location 3, location 4 and location 5
Company 3
Players Business Description
9. 9THIRD PARTY LOGISTICS – INDIA.PPT
Thank you for the attention
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