The document provides an overview of the logistics and transportation industry in India. It discusses key topics such as: - The industry is expected to grow at a CAGR of 12-13% driven by growth in manufacturing, retail, FMCG and e-commerce. - Major players in the industry include DHL, TNT, AFL, GATI and DTDC. - The government plays an important promotion role through investments in infrastructure and implementing reforms like GST. - Transportation contributes significantly to the Indian economy by enabling trade and providing millions of jobs. - Emerging technologies like autonomous vehicles, drones and 3D printing will continue shaping innovations in the industry.

1. LOGISTICS & TRANSPORTATION
INDUSTRY IN INDIA
UNDERSTANDING AND ANALYZING
INDUSTRIAL ENVIRONMENT
OF

2. S. No. Content Slide No.
1. Executive Summary 03-05
2. Industry Analysis 06-14
3. Analysis Plan-Description of the Industry 15-22
4. Industrial Performance 23-26
TABLE OF CONTENT

3. I. EXECUTIVE SUMMARY
 Logistics is an essential part of supply chain management. It
deals with the movement of goods and services from the point
of origin to the point of consumption. Transportation is a part
of the logistics function, which plays an important role in
making goods available at the consignment points.
 Logistics is defined as a business planning framework for the
management of material, service, information and capital
flows. It includes the increasingly complex information,
communication and control systems required in today's
business environment.

4.  Transportation refers to the movement of product from one
location to another as it makes its way from the beginning of
supply chain to the customer.
 Transportation is an important supply chain driver because
products are rarely produced and consumed in the same
location.
 It is the process of shipping or moving an item from point A to
Point B.
 Transportation is also defined as the movement of people,
animals and goods from one location to another.
Cont……

5. MODES OF
TRANSPORTATION
ROAD
RAIL
SEA
AIR
Modes of Transportation

6. II. INDUSTRYANALYSIS
(A) Market Analysis- Growth Prospects & Trends
 Increasing Focus on Regulatory Oversight and Easing Trucker/
Shipper Responsibilities.
 Increasing Collaboration & Inter-management of Transportation
Management Trends.
 Outsourcing of Freight Data and Payment Management.
 Addressing the Truck Driver Shortage.
 Using the IoT to Fix Problems in Today’s Logistics Industry
 Focus on Implementation of the FAST Act.

7. (B) Analysis of Current and Potential Competitors
 DHL
 TNT
 AFL
 GATI
 DTDC
 BLUE DART
 FIRST FLIGHT
The current and potential competitors of indian logistics
and transport industry are:

8. (C) Internal Environmental Analysis- SWOT Analysis
1. Strong Management
2. Pricing Power
3. Innovative Culture
4. Superior Technology Allow
5. Cost Advantage
1. Weak Supply Chain
2. Online Presence
3. Lack of Scale
4. Lack of Funds
 Strength
 Weakness

9.  Opportunities
 Threats
1. Innovation
2. Online Market
3. Emerging Market
4. New Technology
5. New Market & New Product
1. Substitute Products
2. Mature market are competitors
3. Bad Economy
4. Talent Shortage

10. (D) External Environmental Analysis- PESTEL
 The world is divided into numerous political units which are
formed for mutual protection, economic advantages and
development of common culture. Transportation plays an
important role in the functioning of such political units.
 The government of an area must be able to send or get
information about its people. It may include laws to be
followed, security and other needful information needed to
generate awareness. An efficient administration of a country
largely depends on how effectively government could
communicate these information to all the country.
1. Political Environment

11. 2. Economic Environment
 Economics involves production, distribution & consumption of
goods and services.
 People depend upon the natural resources to satisfy the needs
of life but due to non uniform surface of earth and due to
difference in local resources, there is a lot of difference in
standard of living in different societies. So there is an immense
requirement of transport of resources from one particular
society to other.
 These resources can range from material things to knowledge
and skills like movement of doctors and technicians to the
places where there is need of them.

12. 3. Social Environment
 Transportation has always played an important role in
influencing the formation of urban societies.
 Although other facilities like availability of food and water,
played a major role, the contribution of transportation can be
seen clearly from the formation, size and pattern, and the
development of societies, especially urban centers.
 The social role of transport has caused people to live in
permanent settlements and has given chances of sustainable
developments.

13. 4. Technological Environment
 In 2015, the logistics and transportation industry has witnessed
some interesting transformation and trends.
 The ever increasing demands, new consumption patterns,
digital age of commerce and global trade treaties has impacted
warehousing and transportation formats.
 The First Mile facilities are expending with e-commerce boom
and the Last Mile facilities are becoming highly localized to
support quick deliveries to consumers.
 For 2016, our logistics product experts and trend analyst are
looking forward to second generation of Internet of Things, Big
Data and cloud based product.

14.  Transport or Transportation Law describes the body of law
dealing with all forms of transportation. These laws derive
from state, federal, and even local sources, and can apply very
broadly at a transport system level or more narrowly to specific
activities or things.
 As globalization continues its juggernaut, government
regulations both national and international are becoming more
prevalent. Companies seeking to remain compliant will require
the guidance of workers with legal training. Not only that, but
while it used to be sufficient to specialize in one area or
another trucking or maritime law.
5. Legal Environment

15. III. ANALYSIS PLAN - DESCRIPTION OF
THE INDUSTRY
(A) Description of Sectoral Growth
 Indian Logistics Market is expected to grow at a CAGR of
12.17% by 2020 driven by the growth in the manufacturing,
retail, FMCG and e-commerce sector.
 Indian Transport Market is expected to grow at a CAGR of
13.35% by 2020 driven by the growth in the manufacturing,
retail, FMCG and e-commerce sector.

16. Cont……
 India spends around 14.4% of its GDP on logistics and
Transportation as compared to less than 8% spent by the other
developing countries.
 3PL Logistics market in india is expected to be worth US $
301.89 Billion by 2020.
 The Indian Logistic industry spends around 14% of the GDP on
different types of cost incurred in logistic operation. The
amount of cost incurred is very high in comparison to the
logistic cost incurred by different nations.

17. Cont……
 This growth rate is based on the expectation that the new
government will soon implement the GST regime and the
logistics companies can optimize their operations to reduce cost
and increase their margins.
 The Indian transportation services industry group had total
revenue of $114.8 billion in 2015, representing a compound
annual growth rate (CAGR) of 6.3% between 2011 to 2015.
 The road freight segment was the industry groups most
lucrative in 2015, with total revenues of $94.8 billion equivalent
to 82.5% of the industry groups overall value.

18. (B) Government Role in Promotion of Selected Industry
 Government initiatives to promote the manufacturing sector and
exports are likely to increase the demand for logistics functions.
Trade with Asia, Europe and North America are likely to remain
major drives for freight forwarding and transportation
companies in the region.
 The booming e-commerce market in india is bringing in new
opportunities for LSPs. The evolving business models in this
space focuses on containing logistics and delivery costs.
In many term the government promote the logistics and
transportation industry :

19.  Major investment by both public and private sector in the last
five years on infrastructure, technology upgrades and expansion
of sea and airport facilities, and dedicated logistics corridor in
the rail network are expected to strengthen the indian logistics
infrastructure.
 The expected implementation of nationwide uniform GST is
likely to transform the distribution structure of majority of
industries as it eliminates the needs for dedicated warehouses
for each individual administrative region.
Cont……

20. (C) Impact & contribution of selected sector in Indian
Economy
 The transport sector is an important component of the economy
and a common tool used for development.
 The growth of logistics sector is directly proportional to overall
economic growth of india.
 Transportation also contributes to the economy by providing
millions of job. It allows men and women to earn their living by
manufacturing vehicles and by driving, maintaining and
regulating them to allow for the safe and efficient movement of
goods and people.

21. (D) Understanding Government Environment
Government can play a proactive role in logistics market
development and transportation market development, but
government policies should concentrate on assisting logistics
enterprise to improve their business competitiveness and vitality,
and promote the development of a robust logistic market.
The government can serve three major logistics development
function :
1) Guide the logistics sector towards safe, energy efficient and
environmentally friendly operations and reduce negative
externalities.

22. 2) Establish, improve and maintain progressive laws, regulations
and institutional framework to ensure effective operation of the
logistics sector and to create a fair and equitable competitive
environment.
3) Develop appropriate policies to address areas where market
mechanisms may not work effectively, such as by improving
national transport and logistics infrastructure, expending the use
of information technology, and developing technical standards.
Cont……

23. IV. INDUSTRIAL PERFORMANCE
 The indian logistics market is expected to grow at a CAGR of
12.17% during the next five years.
 The indian transport market is expected to grow at a CAGR of
13.35% during the next five years.
 Logistics market in india is expected to be worth US $307
billion by 2020.
 India spends around 14.4% of its GDP on logistics and
transportation as compared to less than 8% spent by the other
developing countries.
(A) Future Forecast

24.  The Road freight movement is expected to increase at a CAGR
of 15%.
 The Rail freight movement is expected to increase at a CAGR
of 27%.
 The Sea freight movement is expected to increase at a CAGR
of 9%.
 The Air freight movement is expected to increase at a CAGR
of 1% over the next 5 years.
 Transportation costs are bound to come down in future with
improvement in infrastructure & growth in cargo movement.
Cont……

25. (B) New Innovations and Technological Development
 The global logistics industry will continue to be impacted by
new technologies and business models in 2016. Do not expect a
revolution in the short term although autonomous vehicles, 3D
printing, sensor technology etc. will continue to influence the
way in which the industry evolves.
 Many logistics companies are still trying to assess what impact
disruptive innovations will have upon their business. Disruptors
such as Uber, will undoubtedly make moves to shake up the
inefficient road freight sector, but more likely to have an
immediate impact is the adoption of Uber like technologies by
the incumbent operators.

26.  The use of Autonomous vehicles will increase.
 The use of Robots in warehouses will increase.
 The use of Drones will increase.
 The use of self driving vehicles.
 The use of Sensor technology.
 The use of 3D printing.
 Crowd sourcing.
 Augmented reality.
Such innovations that are making a play to change
‘traditional’transportation today are:
Cont……

27. REFERENCES
Bhaskar, W. (2016, January 22). Top 6 Technology Trend in Logistics and
Transportation Industry 2016. Retrieved from dreamorbit.com:
http://dreamorbit.com/top-6-technology-trend-in-logistics-and-
transportation-industry-for-2016
Bhattacharya, R. (2015, May 17). Logistics Market in India 2015-2020.
Retrieved October 27, 2016, from www.researchandmarkets.com:
http://www.researchandmarkets.com/report/3232004/logistics-market-in-
india-2015-2020
Kadiyali, L. (2014, June 25). Role of Transportation in Socity. Retrieved
October 28, 2016, from www.civil.iitb.ac.in:
http://www.civil.iitb.ac.in/tvm/1111_nptel/102_TptnRole/plain.html

28. Logistics and Transportation Industry overview. (2014, April 30).
Retrieved October 27, 2016, from www.selectusa.gov:
http://selectusa.gov/logistics-and-transportation-industry-united-states
Logistics SWOT Analysis USP & Competitors. (2015, December 29).
Retrieved November 1, 2016, from www.mbaskool.com:
http://www.mbaskool.com/brandguide/transport-and-logistics/3337-afl-
logistics.html
Notteboom, D. J.-P. (2013, March 14). The Geography of Transport
System. Retrieved November 2, 2016, from people.hofstra.edu:
http://people.hofstra.edu/geotrans/eng/ch7en/ch7c1en.html
Wood, L. (2016, July 15). Strategic Insight Indian Logistics Industry
2016. Retrieved October 26, 2016, from www.businesswise.com:
http://www.businesswise.com/news/home/20160615005668/en/strategi
c-insight-indian-logistics-industry-2016
Cont……

29. THANK YOU