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logistic management


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LOGISTICS & SCM: Changing INDIA Submitted to: Dr Tapan Kumar Nayak. PGP cell Chairperson Submitted By: Kumar Priyesh (BM 011091)

Introduction & Historical background:

Introduction & Historical background Logistics : Logistics is the management of the flow of goods between the point of origin and the point of destination in order to meet the requirements of customers or corporations. Logistics involves the integration of information , transportation,  inventory , warehousing , material handling, and packaging, and often security. Supply chain management : It is the management of a network of interconnected businesses involved in the ultimate provision of product and service packages required by end customers. Supply chain management spans all movement and storage of raw materials, work-in-process inventory, and finished goods from point of origin to point of consumption The branch of business logistics evolved in the 1950s

3PL – Third Party Logistic:

3PL – Third Party Logistic 3pl or contract logistics is thus the supply chain practice of outsourcing, increasing role and understanding of optimal business. It practices by the Indian firms. DHL was the first company to begin 3 rd Party Airlift Cargo operations in India in the late 70’s .

Four Major 3PL Segments::

Four Major 3PL Segments :


TYPES OF 3PL PROVIDERS Third-Party Logistics Providers (3PLs) are organizations that provide logistics support for companies. Transportation Based Warehouse Based Forwarder Based Financial Based Information Based


3PL SERVICES Inbound and Outbound logistic : Movement of raw materials into the organization and finished goods to the destination . Reverse Logistic: The process of moving the goods from the final user in the reverse direction, either as part of a rejection, or for recycling for capturing the value or for proper disposal. Cross Docking: Direct transfer of goods from one mode of transport to another with minimal or no warehousing . Bar coding: These are data representation in optical machine readable format which can store the details of a particular material and can be read using optical scanners . Electronic data Interchange: EDI is the structured transmission of data between organizations by electronic means.

Logistic Market In India:

Logistic Market In India Indian Supply Chain and Logistics is more than Rs. 1000 crore in size and is the heart of Indian Economy. Our Industry is growing at a rate of 8-10% yearly and has been a critical contributor in the growth and development of the Indian Economy. The development of organized Retail and Agro-processing Industries, along with a strong manufacturing growth. Several factors have positively impacted the growth of logistics industry like the country ’ s changing tax system, growth across major industry segments such as pharmaceutical, fast moving consumer goods (FMCG), automobile, and the emergence of organized retail.


> Third Party Logistics (3PL) provider handles all or most of freight of the organizations including the management of information by the third party . > Freeing the company from day to day interaction with carriers and having to oversee hundreds or thousands of shipments. > The tracking and control of movement of goods drive freight optimization and asset utilization. The options are: increased trailer utilization, combining full truckload shipments, consolidation and aggregation of smaller buyers to put simply . > 3PL refers to outsourcing of a logistics function. It could be the use of transportation carrier , a warehouse, or a third party freight manager to perform all or part of a company ’ s production distribution functions . Role of 3PL in Indian Supply Chain

Services Outsourced: :

Services Outsourced: Activities such as pick and pack, warehousing and distribution (business)- the most basic functions of logistics. Advanced value-added services such as :tracking and tracing, cross decking, specific packaging or providing a unique security system. Inventory Management Order Picking Fleet management and consolidation

Categories of 3PL providers:

Categories of 3PL providers Service Developer . Customer Adapters. Customer Development

Advantages Of 3PL:

Advantages Of 3PL

Drawbacks of 3PL:

Drawbacks of 3PL

Challenges :

Challenges Infrastructure Congestion : Infrastructure limitations in India, which limit the scope of logistics services package, are another concern for 3PL services provider. The congested roadways and ports resulting in significant delay in movement of goods, affect the performance of 3PL services providers Lack of trust and awareness: The complicated tax structure, deep rooted corruption and high bureaucratic control are some other hassles faced by 3PL service providers in providing the best of logistics solutions for their clients.

Conclusion :

Conclusion To successfully implement 3PL services, organizations need to do the following : Outsourcing strategy. SWOT analysis Proper homework Create a robust selection process Performance measurement and review Create an Implementation Strategy Nurture the Relationship

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