Distance MBA (logistics and supply chain management)
Logistics and Supply ChainManagement
Introduction The logistics market in India is estimated to be Rs.260,000 crores and constitutes 13% of the GDP (ascompared to an average of 10% in other developingcountries). The global logistics industry is valued atUS$ 3.5 trillion. Global Market Analysis firm Datamonitor’s "India Logistics Outlook 2007" reportestimates the Indian logistics industry at over US$125 billion. The sector currently employs over 40million people globally.
Introduction (Contd) Burgeoning trade, increased geographicaldistribution of incomes and markets, better thanexpected performance of the manufacturing sectorand an explosive growth in the third party logisticssegment has contributed to the phenomenal growthof the Indian Logistics and Supply Chain sector. Inthe Indian scenario, there is an impressive growth ofcontainer traffic of over 15% per annum over the lastfive years.
The relative high costs associated with logistics,combined with the opportunity for market growth,create significant opportunities for logistics serviceproviders operating in India and for logistics andSupply Chain professionals
Companies in Logistics and Supply ChainManagement Many large Indian corporate such as Tata andReliance Industries have started providing in-houselogistics services and, sensing market growth, havestarted providing services to other corporate as well.PSUs have come up with Joint Service Organizationsto felicitate in-house logistics activities (IOCL, BPCL,HPCL, ONGC, GAIL, CONCOR, etc.). Large expresscargo and courier companies such as TransportCorporation of India (TCI) and Blue Dart have alsostarted logistics operations.
Opportunities and Future Scope However, poor training and lack of qualified andexperienced resources continue to be a primarychallenge facing the development of the logistics andtransportation industry in India today, andpresumably for some time to come. As a result, people training and development in thissector continues to play an important role in theseorganizations ability to create and maintain acompetitive advantage.
Opportunities and Future Scope (Contd) Technological changes in the logistics industry haveled to a sharp increase in trained workforce in allareas of the sector. The industry would need 4.2 lakhskilled people in the ‘Senior Resource Category’ inwarehouse management by 2015. Currently, theIndia logistics industry has only 14,000 WarehouseManagers but will require approximately 35,000.The key sectors where logistics and supply chainrelated opportunities are abundant are Automotive,Technology, Retail, Consumer, Healthcare,Industrial and Chemical.
AreasThe following types of organizations provide suitableemployment opportunities: Indian & Foreign Logistics firms Manufacturing companies across verticals Public/Private Ports Third Party Logistics firms Retail companies Transportation companies Pharmaceutical organizations Freight Forwarders Government Agencies like the armed forces, etc. Shipping and Liner companies Importers and Sourcing organizations IT companies Management Consulting firms