Future Looks Bright For Logistics Firms: Study

New Delhi, Nov 7: | Updated: Nov 8 2003, 05:30am hrs
The logistics companies in India have a high growth potential with 45 per cent of the market being remains untapped. According to a survey conducted by the Management Development Institute (MDI) and Transport Corporation of India (TCI), at present 55 per cent of Indian companies subscribe to the services of a logistics provider.

The global norm is that 75 per cent of companies make use of logistics providers.

The survey was conducted to study the third party logistics practices in industry. A third party logistics provider is a company which supplies/coordinates logistics function across multiple supply chain.

The survey results are based on responses from 130 companies with turnover ranging from Rs 30 lakh to Rs 16,000 crore per annum. The companies represented automotive, engineering, chemicals, FMCG, metals, textile/apparels and service sectors.

Companies tend to focus on cost cutting and core competencies while selecting a logistics provider. Most companies look forward to improved customer services and timeliness of deliveries. Performance metrics such as on-time delivery, no stock outs and back orders are used for the same, said the survey.

Companies look forward to information technology services such as shipment tracking and tracing, warehouse management services and supply chain planning system during implementation of logistic services.