3PL Market in India 2015-2019
About Third-party Logistics (3PL)
3PL refers to the outsourcing of logistics and distribution activities by companies to logistics solution providers, known as 3PL providers. A 3PL provider is a company to which shippers (customers that transport goods using 3PL services) outsource a part or all of the supply chain management (SCM) functions of their logistics services. 3PL providers play significant role in handling customer logistics requirements, and perform transportation, location tracking, and sometimes product consolidation activities. These providers typically specialize in transportation, warehousing, and integrated operation services, which they customize according to the customer requirement. Often, 3PL providers go beyond logistics, and provide value-added services, such as inventory management, cross-docking, door-to-door delivery, and packaging of products. These companies also provide strategic and operational value to many shippers worldwide. Currently, 3PL is in the process of introducing new and innovative ways to manage SCM.
Technavio analysts forecast the 3PL market in India to grow at a CAGR of 8.43% during 2014-2019.
Covered in this Report
This report covers the present scenario and the growth prospects of the 3PL market in India for the period 2015-2019. To calculate the market size, we consider revenue generated by 3PL service providers. We also present the vendor landscape and a corresponding detailed analysis of the top six vendors in the Indian 3PL market.
The Technavio report, 3PL Market in India 2015-2019, is based on an in-depth market analysis, with inputs from industry experts. It summaries the major drivers influencing the market and the challenges facing by the vendors and the market as a whole. It evaluates the key trends emerging in the market as well.
The 3PL market in India is segmented in terms of logistics services outsourced:
Technavio Announces the Publication of its Research Report – 3PL Market in India 2015-2019
Technavio recognizes the following companies as the key players in the 3PL Market in India: Global Aegis, Allcargo, Gati, DIESL and TCI
Other Prominent Vendors in the market are: ABC India, AFL, AQUA Logistics, Atlas Logistics, C.H. Robinson. CEVA Logistics, DELEX, DHL, Dynamic Logistics, Geologistics, GSI, Hyundai Glovis, Jeena and Company, Keery Logistics, Kheune, Mahindra Logistics, Malca-Amit, Maruti 3PL, Nippon Express, Patel Logistics, Redington, Reliance, Safexpress, SAL Logistics, Sinotrans, Take Solutions, TKM, Total Logistics, Transystem, and TVS
Commenting on the report, an analyst from Technavio’s team said: “The 3PL market is witnessing huge demand for professional logistics services that provide high-end logistics and SCSs with value-added services such as assortment and grading of products, packaging, MIS services in the logistics supply chain, and legal formalities necessary in the process. Companies outsource these logistics services to a 3PL service provider because they are more specialized in providing these services. In addition, through outsourcing these services, users of 3PL are able to serve their customers more efficiently.”
According to the report, the government of India has decided to abolish the existing tax regime, which includes CST and VAT, and proposes to introduce a uniform GST structure by April 01, 2016. Under the existing tax structure, companies have to pay multiple taxes both at central and state levels, leading to high operational costs. To avoid this, companies have been building warehouses or distribution centers in every state to save on CST. This leads to the establishment of inadequate, outdated, and small warehouses, which increases inventory handling costs.
Further, the report states that competition from unorganized markets is has hindered growth of the market.
Global Aegis, Allcargo, Gati, DIESL, TCI, ABC India, AFL, AQUA Logistics, Atlas Logistics, C.H. Robinson. CEVA Logistics, DELEX, DHL, Dynamic Logistics, Geologistics, GSI, Hyundai Glovis, Jeena and Company, Keery Logistics, Kheune, Mahindra Logistics, Malca-Amit, Maruti 3PL, Nippon Express, Patel Logistics, Redington, Reliance, Safexpress, SAL Logistics, Sinotrans, Take Solutions, TKM, Total Logistics, Transystem, TVS
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