Logistics and Supply Chain Management

Introduction

The logistics market in India is estimated to be Rs. 260,000 crores and constitutes 13% of the GDP (as compared to an average of 10% in other developing countries). The global logistics industry is valued at US$ 3.5 trillion. Global Market Analysis firm Data monitor’s "India Logistics Outlook 2007" report estimates the Indian logistics industry at over US$ 125 billion. The sector currently employs over 40 million people globally.

Introduction (Contd)

Burgeoning trade, increased geographical distribution of incomes and markets, better than expected performance of the manufacturing sector and an explosive growth in the third party logistics segment has contributed to the phenomenal growth of the Indian Logistics and Supply Chain sector. In the Indian scenario, there is an impressive growth of container traffic of over 15% per annum over the last five years.

The relative high costs associated with logistics, combined with the opportunity for market growth, create significant opportunities for logistics service providers operating in India and for logistics and Supply Chain professionals

Companies in Logistics and Supply Chain Management

Many large Indian corporate such as Tata and Reliance Industries have started providing in-house logistics services and, sensing market growth, have started providing services to other corporate as well. PSUs have come up with Joint Service Organizations to felicitate in-house logistics activities (IOCL, BPCL, HPCL, ONGC, GAIL, CONCOR, etc.). Large express cargo and courier companies such as Transport Corporation of India (TCI) and Blue Dart have also started logistics operations. 

Opportunities and Future Scope

However, poor training and lack of qualified and experienced resources continue to be a primary challenge facing the development of the logistics and transportation industry in India today, and presumably for some time to come. 

As a result, people training and development in this sector continues to play an important role in these organizations' ability to create and maintain a competitive advantage.

Opportunities and Future Scope (Contd)

Technological changes in the logistics industry have led to a sharp increase in trained workforce in all areas of the sector. The industry would need 4.2 lakh skilled people in the ‘Senior Resource Category’ in warehouse management by 2015. Currently, the India logistics industry has only 14,000 Warehouse Managers but will require approximately 35,000. The key sectors where logistics and supply chain related opportunities are abundant are Automotive, Technology, Retail, Consumer, Healthcare, Industrial and Chemical. 

Areas The following types of organizations provide suitable

employment opportunities: Indian & Foreign Logistics firms Manufacturing companies across verticals Public/Private Ports Third Party Logistics firms Retail companies Transportation companies Pharmaceutical organizations Freight Forwarders Government Agencies like the armed forces, etc. Shipping and Liner companies Importers and Sourcing organizations IT companies Management Consulting firms

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