ANALYSIS OF LOGISTICS INDUSTRY

PREPARED BY JITHIN J KUMAR

Objectives
O To study in detail about the Indian Logistics

Industry
O To find out the areas where Logistics Industry in

India is strengthened and where it is lacking

INTRODUCTION
O What is Logistics?
Management of flow of goods and services Integration of information, transportation, inventory etc Improve delivery performance and enhance customer

satisfaction
The importance of logistics is growing and now the

logistics industry has become highly recognized in the global scenario

Global Scenario of Logistics Industry

O Size of the Global Logistics Industry

The annual logistics cost in any country varies in

between 9% to 20% of their GDP Global Logistics market grew by 29.3% Largest service providers are located in Europe Biggest market US

Current Status and Dynamics of the Industry

O Role of service providers have become very important to

complete supply chain integration

O Demand for third party logistics providers is increasing

O Growing at a very fast rate

Indian Scenario of Logistics Industry

Size of Indian Logistics Industry
O Annual logistics cost is estimated to be 14% of GDP O Is growing at a very fast pace of 12% per annum O Has generated employment

O Third Party Logistics Solutions is expected to grow at

16% in 2020

Indian Logistics Industry

Pie Chart showing the total logistics market of India

Technology Used By Indian Logistics Industry

O Online Tracking

O E-mail Updates
O Toll Free Number with 24 x 7 service O SMS Updates O Customer Relationship Management Software

PORTERS FIVE FORCE INDUSTRIAL ANALYSIS & SWOT ANALYSIS

Porters Five Force Model

Threat of Entry High Intensity of rivalry High Substitutes High

Bargaining Power of Buyers High

Bargaining Power of Suppliers - medium

SWOT ANALYSIS
STRENGTHS O Indian Logistics Industry Growing Rapidly O Huge investments O Companies are re-engineering their supply chain to make it more responsive
O India is becoming the auto hub of the world

WEAKNESS
O O O

Technology related problems Transportation related problems Poor availability of storage facilities

OPPORTUNITIES
O O O

100% FDI is allowed in logistics Union Budget 2012-2013: Cheer for Logistics Sector Increase in Infrastructure and Trade

THREATS
O O

Logistics is a high cost but low margin business Lack of skilled and knowledgeable man power in logistics sector High Logistics Costs