Logistics Supply Chain Scenario-
Where we stand today?

The Indian logistics industry is poised to become a $125 billion industry by 2010, an increase of around 14 per cent from the current level. The outsourcing of 3rd Party Logistics business (3PL) in India is set to become $ 90 million size by 2012.

The concept which was introduced in US and Europe is fast catching up the pace to increase the efficiency of domestic corporate through efficient logistic functions.

The Indian logistics industry is expected to touch $125 billion by 2010 from $109 billion, an increase of around 14 per cent in the next two years.

The 3PL industry is expected to become a $90 million industry from the current $58 million, an increase of  around 55 per cent.

“This indicates that logistic industry is in the brink of exciting growth in the next two years as manufacturing, retail and real estate, which currently are under severe stress.

“One of the contributing factors for logistics business is Value Added Tax (VAT) which is expected to drive Indian industry towards using more 3PL services. Future consolidation will attract many companies under the umbrella of 3PL. Value added services are currently the most driving factor which hopes to increases in future.

With the expansion of globalization, Indian firms are demanding new logistics capabilities and more complex solutions from their 3PL partner. Greater acceptance of demand driven logistics practices introduces complexities into the supply chain and generate the need for contract logistics providers to deliver more expertise services.