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Third Party Logistics - India - Sample - PDF

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					Executive Summary

              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


                                 LE
              Market comprises of two major segments:
               – Asset-based 3PLs



                                P
               – Non-asset based 3PLs
              a% of companies are outsourcing services like supply chain management and warehousing


                               M
  Drivers &
              Drivers:
                 –
                 –
                 –
                             SA
                     Economic Growth
                     High Cost of Logistics in India
                     Phased Implementation of VAT
                                                                       Challenges:
                                                                           – Infrastructure Congestion
                                                                           – Lack of Trust and Awareness

 Challenges      –   Government Infrastructure Initiatives
                 –   Growth in Auto Sector
                 –   Growth in Retail Sector

              Market comprises of public sector, private sector and foreign companies
              Majority of 3PL Players are currently providing disintegrated services
Competition
              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
•Introduction
•Market Overview
•Drivers & Challenges
•Competition
•PE Investments
•Key Developments
3PL firm acts as a ‘third party’ facilitators between
manufacturers and the buyers

                  Transaction                                         Transaction

                     Third                                              Third
                                                                                                 Retailer/
  Supplier       Party Logistics             Manufacturer           Party Logistics
                                                                                                 Buyers
                   Provider                                           Provider

                Logistics Services                                 Logistics Services




                • Logistics is a three-way relationship between a buyer, the supplier of goods and a logistics
                  service provider
   Logistics
                        First Party                      Second Party                       Third Party
                    Shipper or Supplier                       Buyer                        Firm acting as a
                                                                                             Middleman

  Third Party   • Third-party Logistics is the use of an outside company to perform all or part of the firm’s
   Logistics      materials management and product distribution function
Third party logistics is fast gaining popularity in the Indian
logistics market
Overview                                                        Overall Market Size and Growth
• Third party logistics (3PL) market in India is at a
                                                                 INR bn
  nascent stage
                                                                200                                 Z



                                              LE
• Companies in textile, automotive, pharmaceutical,
                                                                150                   b%
  manufacturing, retail and FMCG sectors are


                                             P
  increasingly opting to outsource their logistics
  requirements to specialized service providers


                                            M
                                                                100

                                                                 50        X
                                                                                       Y




                                           A
• According to a recent survey of 3PL service providers


                                          S
     Engineering, automotive & retail sectors were top            0
     revenue earners                                                      2005        2008        2012e

                                                                Share of 3PL firms in Logistics Industry
             3PL Market comprises of two segments
                                                                      %
         Asset Based                      Non-Asset Based        20                                  W
                                                                 15
 Own some of the assets used                                                            V
                                                                 10
 in supply chain management                                                U
 which often include trucks,         Does not own such assets     5
 distribution centres and
                                                                  0
 warehouses                                                               2005        2008         2012e
Drivers & Challenges




  Drivers
  Economic growth

  High cost of Logistics in India         Challenges

                                          Infrastructure Congestion
  Phased implementation of VAT

  Government Infrastructure Initiatives   Lack of Trust and Awareness


  Growth in Auto Sector

  Growth in Retail Sector
There are few 3PL players with nationwide presence with
majority of players providing disintegrated services
Competition Overview                                     Local Firms Outsourcing Logistics Services
•Currently, there are only a few 3PL players                  %
 with a national network                                 60                     Q




                                         LE
•Majority of 3PL Players are currently providing         50
 disintegrated services                                  40




                                       MP
    3PL service providers are expanding their basket
    of services as companies are now looking beyond
                                                         30
                                                         20         P
                                                                                          Global average
                                                                                           stands at c%




                                      A
    transportation of their products and raw materials   10



                                     S
    Many 3PL players are investing to become end-to-      0
    end integrated players                                        1998        2008

•Indian corporates like Company 4 and                    Market Structure
 Company 5 have entered the 3PL business
    Initially these corporates had divisions to handle                    3PL Market
    internal logistics
•Large express cargo and courier companies
 like Company 1, Company 2 and Company 3
 have also started offering 3PL services                 Public Sector   Private Sector     Foreign
                                                          Companies       Companies        Companies

				
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posted:3/8/2010
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Description: Third Party Logistics - India - Sample