The document discusses third party logistics (3PL) in India. It states that the 3PL industry's revenue in India is expected to increase from Rs. 57-60 billion in 2009-10 to Rs. 190-195 billion by 2014-15, representing a compounded annual growth rate of 27%. The key drivers for this growth are India's strong GDP growth, increased FDI inflows, and improvements in infrastructure and regulations. The document also outlines the functions of 3PL players, growth obstacles, the potential for cost reduction, and concludes that improved supply chain efficiency will further strengthen the case for 3PL adoption in India.

1. THIRD PARTY LOGISTICS:
PRESENTED BY:
AMAR ASHISH
(UPES)

2. 3rd PARTY LOGISTICS
Introduction:
 Best definition is probably a combination:
• Businesses that provide one or many of the
following logistics services:
 Transportation Management
 Public/Contract Warehousing
 Distribution Management
 Freight Consolidation

3. 3PL: A STRONG CASE FOR REVENUES TO
TREBLE BY 2014-15
 Strong Macro-economic growth.
 The 3PL industry’s revenue in India is expected to
increase to Rs. 190-195 billion by by 2014-15
from Rs. 57-60 billion in 2009-10.
 India’s GDP expected to grow by 8-8.5 percent
over 2009-10 to 2014-15 driven by a strong
growth in industry and services.
 Source:

6. REGION WISE 3PL MARKET:
NORTH:
Gurgaon, Faridabad, Kanpur, Palwal
and Ghaziabad, some of the emerging
locations are Bilaspur, Sonipat, and
Panipat
WEST: EAST:
Mumbai, Pune, Nasik, Kolkata
Nagpur, Ahmadabad, Durgapur
Kandla Port, Muzzaffarpur
Bhavnagar, Hajipur
Porbandar, Jaipur and &Darjeeling.
Indore.
SOUTH:
Chennai, Coimbatore, Madurai,
Hyderabad, Vishakhapatnam,
Vijayawada, Bangalore, Mysore and
Kochi

7. 3PL GROWTH DRIVERS IN INDIA:
Strong GDP growth Increased FDI inflows
Consolidation of raw materials Better infrastructure
from the vendors
Facilitators
Goods and service tax (GST) for growth of Logistics parks/ FTWZs
3PL
Organized structure of the
logistics industry. Increasing presence of
MNCs in India.
Entry of MNC 3PL players in
India. Increasing need to focus on
core competency.

8.  Functions of 3PL players:
 To manage the overall logistics operations
 Spanning inventory management.
 Supply chain optimization and value-added services such as
managing vendors and distributors.
 By outsourcing logistics, companies can not only concentrate on
their core business operations but also achieve cost-efficiency and
improve delivery.

9.  Obstacles for 3PL in India:
 Inefficient Logistics operations.
 Multiple tax structures.
 Inadequate logistic infrastructure.
 And unorganized nature of the transport industry.
 Potential for cost reduction:
 In a 3PL service model, a specialized 3Pl player acts like as
an interface between a client company and its vendors and
manages the supply chain operations.
 Given its advantages of scale, the 3PL model enable client
companies to reduce logistics cost.

10. Current state of 3PL industry:
Initially a transaction-based service, has gradually evolved
into more strategic function that is integral to company’s
operations.
 Encouraged by the visible benefits of 3PL services, Indian
companies also began outsourcing their logistics operations
to dedicated 3PL players promoting domestic logistics
players to offer 3PL services.
 Although 3PL services in India remain confined to the more
basic transportation and warehouse management, players
are expected to include value added services such as
repackaging and reverse logistics.

11. Industry wise 3PL potential: 2009-10 to 2014-15
HIGH
IT Hardware Consumer durables
FMCG
Textiles
Two wheelers
Logistics cost
Cars
Pharmacy Organized retail
Low LOW 3PL Potential HIGH
Source: http://www.crisil.com/research/research.jsp

12. CONCLUSION:
 The third party logistics in India is expected to grow at a
compounded annual growth rate of 27 percent to Rs.
190-195 billion over 2009-10 to 2014-15.
 The key drivers that will strengthen the case for 3PL
adoption are – the potential for corporates to improve the
efficiency of their increasingly complex supply chain, the
Government’s thrust on developing logistics infrastructure,
and a favorable regulatory environment.
Source: http://www.crisil.com/research/research.jsp