For the complete report, get in touch with us at : info@netscribes.com Indian economic growth is creating demand for third party logistics (3PL) services in the country. High cost of logistics, growing dependence on 3PL services from automobiles and auto components sector is expected to drive the demand for 3PL sector in India. Cost reduction coupled with high productivity by electronics manufacturers boosts the 3PL market. 3PL providers need to customize their services and charge competitive rates to benefit from the retail boom in India. The report begins with an introduction section, classifying the logistics sector into its three broad segments and highlighting the focus of the study. The evolution of the 3PL services is then projected. The 3PL workflow is also briefly highlighted. The change of functions based on logistics services is illustrated in the 3PL pyramid. Different types of 3PL providers are classified based on their functions. Advantages of outsourcing logistics services to third parties are also pointed out in this section. Market overview section provides a brief snapshot of both global and domestic 3PL market. To begin with, it gives a brief overview of global third party logistics market followed by its market size & growth. Considering the gross logistics revenue of top 50 global 3PL players the share of different continents is also found out. Major players in global 3PL market are identified and share of top 10 global 3PL players is also given. Subsequently, a brief overview of Indian 3PL market followed by its market size & growth is projected. The segmentation of 3PL market is given. The current and expected share of 3PL in total logistics is also shown. The increase in share of local companies outsourcing logistics services is depicted with top five reasons for outsourcing. The share of 3PL service providers in India is found out here. Further the respective sectors are analyzed wherein the customer’s propensity to outsource activities is more. Demand for 3PL services from various sectors and from different regions along with their share are also identified in this section. 3PL market presence in India is also mapped here.

1. FOR IMMEDIATE RELEASE
High logistics cost and booming auto, electronics & retail sector driving 3PL market in India
Netscribes, Inc. launches report on Third Party Logistics Market in India 2012 covering market with
strong growth potential; the report is part of the Netscribes’ Transportation & Logistics Series.
Mumbai, India – December 10, 2012 – Indian economic growth is creating demand for third party
logistics (3PL) services in the country, according to the latest report from Netscribes Inc., a global market
intelligence firm. The report identifies high cost of logistics, the growing dependence on 3PL services
from automobiles and auto components sector as the major demand drivers for the 3PL sector in India. The
report also highlights the strategies that players in the 3PL market need to adopt in order to benefit from
the retail boom in the country.
The report begins with an introduction of the industry, classifying the logistics sector into its major
segments and highlighting the focus of the study. The report then highlights the evolution of the 3PL along
with a workflow indicating. Illustrations in the subsequent slides showcase the change of functions, the
classification of 3PL providers on the basis of functions and the advantages of outsourcing logistics to 3PL
players.
The market overview section provides a brief snapshot of both global and domestic 3PL markets. To begin
with, it gives a brief overview of global third party logistics market followed by its market size and
growth. Considering the gross logistics revenue of top 50 global 3PL players the share of different
continents is also found out. Major players in global 3PL market are identified and share of top 10 global
3PL players is also provided. Subsequently, a brief overview of Indian 3PL market followed by its market
size and growth potential is provided. The segmentation of the 3PL market is provided with the current and
expected share of 3PL in total logistics highlighted. The report goes on to show the increase in share of
local companies outsourcing logistics services with top five reasons for outsourcing. The share of 3PL
service providers in India is also provided with respective sectors analyzed in terms of customer’s
propensity to outsource. Demand for 3PL services from various sectors and from different regions along
with their share are also identified in this section along with a mapping of the 3PL market presence in
India.
The 3PL – Shipper Relationship section mainly analyzes survey results from 3PL and shipper respondents.
The outsourced logistics services are identified and the spending on those services is depicted in the report.
Continent wise total logistics expenditures and then the total logistics expenditures directed towards
outsourcing are analyzed. Transportation and warehousing spending managed by third parties in these
continents are studied to find the global outsourcing spending pattern. Further, the changes in the use of
3PL services globally are examined and a comprehensible analysis 3PL – shipper relationship shows the
shipper’s benefits from use of 3PL services. The necessary IT features for shippers and 3PL and remaining
IT gap is identified. The report also analyses opportunities for shippers and 3PL in the emerging markets
like China, India, Brazil and Mexico.
The Drivers and Challenges section of the Netscribes report provides a comprehensive set of factors which
boosts and hinders the growth in the market. An analysis of the section brings forth the key drivers fueling
growth in the market including economic growth, high cost of logistics in India, growth in consumer
electronics and durables industry, growth in auto and auto components sector, growth in retail sector,
phased implementation of VAT, and government infrastructure initiatives. While the challenges identified

2. comprises infrastructure congestion, high inventory levels, lack of skilled manpower, and lack of trust and
awareness.
The Technology Adoption section of the report emphasizes the recent trends in terms of technology in the
3PL sector. Identification Technology including Barcode and RFID; Material Handling Technology
including Automated Guided Vehicle System (AGVS) and Information directed System; Communication
Technology including Global Positioning System (GPS) Tracking and Enterprise Applications including
ERP, eBizNET – SC suite, Vin eRetail have been highlighted and explained in this section, with major
emphasis on their impact on the industry. The major IT vendors for 3PL providers have also been listed.
The competition section profiles the major players in 3PL market in India in details which enables readers
to get a clear picture of the current competitive scenario. The section lists information such as corporate
information, business highlights and key members. The section also features financial analysis of key
vendors which in turn provides an insight into the financial health of players.
Recent Transactions section of the report includes the deals and investments in 3PL companies in India
over the period 2010–12.
The strategic recommendations section discusses issues in the 3PL market in India and provides strategies
that help overcome these challenges. The demands of India’s 3PL sector and the role of 3PL in corporate
growth are also provided. Opportunities for domestic and foreign 3PL providers are also explained in this
section.
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