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Premium member Presentation Transcript ANALYSIS OF LOGISTICS INDUSTRY : ANALYSIS OF LOGISTICS INDUSTRY By:- Group No. 7 Prijo Mathew Sivaramakrishnan Suvrata Nandy Gaurav Verma Dhinesh KumarObjectives: Objectives To study in detail about the Global Logistics Industry To study in detail about the Indian Logistics Industry To find out the areas where Logistics Industry in India is lacking To compare the Global Companies (UPS, FedEx and DHL) with the Indian Logistics Companies ( Gati , DTDC and First Flight)INTRODUCTION: INTRODUCTION What is Logistics? Management of flow of goods and services Integration of information, transportation, inventory etc Reduces operational cost, 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 scenarioEvolution of Logistics Industry: Evolution of Logistics IndustryGlobal Scenario of Logistics Industry: Global Scenario of Logistics Industry Size of the Global Logistics Industry Annual logistics cost of the world is USD 3.5 trillion The annual logistics cost in any country varies in between 9% to 20% of their GDP Logistics market in US is 10% of its annual logistics cost Global Logistics industry is estimated to be worth USD 300 billion Largest service providers are located in Europe Biggest market - USCurrent Status and Dynamics of the Industry: Current Status and Dynamics of the Industry Issues – Pricing pressures, high cost of operations, low returns on investment, hiring and retaining talent and pressure from the client Role of service providers have become very important to complete supply chain integration Demand for third party logistics providers is increasing Growing at a very fast rate in South-East Asian countriesTechnology used in Global Logistics Industry: Technology used in Global Logistics Industry Warehouse Management System Material Flow Control System Portal Application Automated Storage and Retrieval Systems Mini Trolley System Lean lift Systems Sorter Systems Light to Pick RFID Global Positioning SystemsMERGERS AND ACQUISITIONS: MERGERS AND ACQUISITIONS Tibbett & Britten Group acquired by Excel logistics Deutsche Post World Net took over Excel Logistics Bax Global was taken over by Deutsche Bahn A.P. Moller acquired P&O Nedlloyd Apollo Management took over TNT Logistics Pros of Mergers and Acquisitions Growth and Coverage Cons of Mergers and Acquisitions Integration of two different culturesTop 10 Logistics Companies In The World : Top 10 Logistics Companies In The World UPS FedEx DHL A.P. Moeller Nippon Express Ryder TNT Post Group Expeditors Panalpina ExelIndian Scenario of Logistics Industry: Indian Scenario of Logistics Industry Size of Indian Logistics Industry Annual logistics cost is estimated to be 14% of GDP Out of the total cost 99% is accounted by the unorganized sector Is growing at a very fast pace of 12% per annum The market is estimated to be around USD 100 billion Has generated employment for 43 million people in the industry Third Party Logistics Solutions is expected to grow at 16% in 2011Indian Logistics Industry: Indian Logistics IndustryPie Chart showing the total logistics market of India: Pie Chart showing the total logistics market of IndiaCurrent Status and Problems in the Industry: Current Status and Problems in the Industry Is in nascent stage Is considered to be a weak link of Indian Economy Is a high cost, low margin business Economies of scale is absent High tax Lack of trust and awareness among the Indian shippers Poor physical and communication infrastructure Stiff competition from international firms Lack of skilled labor Lack of technology being usedPositive Trends Seen In Indian Logistics Industry: Positive Trends Seen In Indian Logistics Industry The industry has got the desired momentum Logistics has become a strategic source of competitive advantage Huge investments are made by foreign investors High investments are made by government to improve the infrastructure Companies are re- engineeering their supply chain to make it more responsive India is becoming the auto hub of the worldTechnology Used By Indian Logistics Industry: Technology Used By Indian Logistics Industry Online Tracking E-pod E-mail Updates Toll Free Number with 24 x 7 service SMS Updates Enterprise Management System Business Accounting Software Customer Relationship Management SoftwareTop Logistics Companies In India : Top Logistics Companies In India TNT Express AFL DHL Blue Dart Gati Safexpress Ashok Leyland Agarwal Packers & Movers DTDC First FlightCorporate Social Responsibility : Corporate Social Responsibility Green Mission Reduction in Greenhouse gas emission Carbon Tax Fun Bus Driver Training Centre AIDS AwarenessMarket Analysis: Market Analysis Pricing Strategy Driver of the performance of the Logistics Industry Is decided on the basis of the competitive strategy Overall Trade off: Increase firm profits Everyday low pricing versus high low pricing Fixed prices versus menu pricing Nature of the Market Industry is homogenous It is a oligopoly Industry HH Index is 1004 (UPS, FedEx, DHL, A.P. Moeller) Concentration Ratio of the first four companies in India is around 65% (TNT Express, AFL, DHL and Blue Dart)Advertising Strategies: Advertising Strategies Press Media Print Ads Interviews Internet Promotion Efficient Distribution Network Provides Supply Chain SolutionsComparison of Logistics Industry of the Developed Countries and the Developing Countries: Comparison of Logistics Industry of the Developed Countries and the Developing CountriesGraph showing the LPI of India and its Neighborhood Countries: Graph showing the LPI of India and its Neighborhood CountriesSlide 22: Diagram showing the LPI of the different countries and is ranked accordingly. India is ranked at the 47 th positionCompany overview of DHL: Company overview of DHL DHL is the global market leader in international express, overland transport and air freight, It is also the world's No.1 in ocean freight and contract logistics, DHL's international network links almost 220 countries and territories worldwide, Around 285,000 employees are dedicated to providing fast and reliable services that exceed customer’s expectations in 120,000 destinations in all continentsOverview of Gati: Overview of Gati Gati Limited is a pioneer and leader in the Express Distribution and Supply Chain Solutions in India It has grown into an organization with more than 3500 employees and a turnover of Rs 630 crore 19 Million Packages Handled Annually 1 Million Sft Warehouse Space Capabilities to Deliver at 622 out of 626 districts of India Best of the IT in Logistics IndustryPESTL Analysis: PESTL Analysis P – Political and L - Legal Legal permit to cross the national and state borders Excise duties and tariffs are charged Regulations for transporting dangerous goods by Road – ADR Air- ICAO Sea – MCA Motor Vehicle ActE - Economic : E - Economic The annual logistics cost in any country varies in between 9% to 20% of their GDP (US being 9% and India being 14%) In India, logistics industry has created employment for more than 43 million people Exchange Rate and Demand Risk S – Social E-Business Switch to alternative fuels to reduce emission of green house gases T – Technology Logistics Industry has become technology driven industryPorter’s Five Force Model : Porter’s Five Force Model Threat of Entry – High Intensity of rivalry – High Substitutes – Medium Bargaining Power of Buyers – High Bargaining Power of Suppliers - HighFuture Prospects of Indian Logistics Industry: Future Prospects of Indian Logistics Industry Many large Indian corporate are been attracted by the potential of this sector Large express cargo and courier companies such as Transport Corporation of India (TCI) have started logistics operations Growing interest among entrepreneurs to venture into this business Indian shippers are gradually becoming more aware of the benefits of logistics outsourcing Faster growth rate of Indian GDP The Indian government has focused on infrastructure development In India, 100% FDI is allowed in logisticsSlide 29: THANK YOU “ Let’s Do A Business To Make A Difference” You do not have the permission to view this presentation. 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