Page 11

The increasing role of logistics in the indian economy Logistics is nowadays regarded as the backbone of the economy; whose sole purpose is to provide an efficient and cost-effective flow of goods upon which the other commercial sectors depend. Sometimes it is the very function that determines the success of the organization especially in the case of e-commerce retailing. India’s logistics, currently a 160 bn dollar fragmented industry employing more than 22 million people is set to reach the 215 bn dollar mark in 2020. And The Economic Survey 2017-18 tabled in Parliament might also be right this time considering the GST implementations that have eased movement across states and simplified the tax structure. In the recent study done by the World Bank, India has jumped 19 positions to 35 in the Logistics Performance Index (LPI). The greater investment opportunity in the warehousing sector will offer a better investment return and lead to the growth of the business. The warehouse industry in

India is growing at a rate of 10 - 12% CAGR every year. The logistics market is experiencing high demand with the constant growth of the ecommerce retailers and manufacturing industries, especially the FMCG sector. In fact, some of the leading logistics companies are now giving tough competition to established companies like FedEx and Bluedart were spawned by manufacturers and retailers like Mahindra & Mahindra, Tata Motors, Jindal Group, and Future Group themselves as a separate entity to fulfil their need for creating a reliable and efficient logistics and supply chain system. This enables them an edge over their competition in terms of a larger revenue base, cost reduction, and more focused customer experience. In India, transport is the most crucial function of the logistics industry, accounting for 50-60% of the market size. Road transport like trucks and vans with 60% share, dominates the transportation sector. Sales of trucks in the heaviest Class 8 9

Profile for SCOMC-IIMR

KAIZEN - March 19 Edition  

We are pleased to publish the Volume: 3 Issue no:03 of ‘Kaizen’ – monthly magazine of Supply Chain and Operations Management Club IIM R. The...

KAIZEN - March 19 Edition  

We are pleased to publish the Volume: 3 Issue no:03 of ‘Kaizen’ – monthly magazine of Supply Chain and Operations Management Club IIM R. The...

Advertisement