ANALYSIS OF LOGISTICS INDUSTRY
Presented By:Pravin Rathod (35) Ashutosh Patil (36) Ashwini Tembhurne()
INTRODUCTION
What is Logistics?
Management of flow of goods and services
Integration of information, transportation, inventory etc
Reduces operational cost, improve delivery performance and enhance customer satisfaction The importance of logistics is growing and now the logistics industry has become highly recognized in the global scenario
Evolution of Logistics Industry
Global Scenario of Logistics Industry
Size of the Global Logistics Industry
Annual logistics cost of the world is USD 3.5 trillion The annual logistics cost in any country varies in between 9% to 20% of their GDP Logistics market in US is 10% of its annual logistics cost Global Logistics industry is estimated to be worth USD 300 billion Largest service providers are located in Europe Biggest market - US
Current Status and Dynamics of the Industry
Issues Pricing pressures, high cost of operations, low returns on investment, hiring and retaining talent and pressure from the client Role of service providers have become very important to complete supply chain integration Demand for third party logistics providers is increasing Growing at a very fast rate in South-East Asian countries
Technology used in Global Logistics Industry
Warehouse Management System Material Flow Control System Portal Application Automated Storage and Retrieval Systems Mini Trolley System Lean lift Systems Sorter Systems Light to Pick RFID Global Positioning Systems
MERGERS AND ACQUISITIONS
Tibbett & Britten Group acquired by Excel logistics Deutsche Post World Net took over Excel Logistics Bax Global was taken over by Deutsche Bahn A.P. Moller acquired P&O Nedlloyd Apollo Management took over TNT Logistics
Pros of Mergers and Acquisitions Growth and Coverage Cons of Mergers and Acquisitions Integration of two different cultures
Top 10 Logistics Companies In The World
UPS FedEx DHL A.P. Moeller Nippon Express Ryder TNT Post Group Expeditors Panalpina Exel
Indian Scenario of Logistics Industry
Size of Indian Logistics Industry Annual logistics cost is estimated to be 14% of GDP Out of the total cost 99% is accounted by the unorganized sector Is growing at a very fast pace of 12% per annum The market is estimated to be around USD 100 billion Has generated employment for 43 million people in the industry Third Party Logistics Solutions is expected to grow at 16% in 2011
Indian Logistics Industry
Pie Chart showing the total logistics market of India
Current Status and Problems in the Industry
Is in nascent stage Is considered to be a weak link of Indian Economy Is a high cost, low margin business Economies of scale is absent High tax Lack of trust and awareness among the Indian shippers Poor physical and communication infrastructure Stiff competition from international firms Lack of skilled labor Lack of technology being used
Positive Trends Seen In Indian Logistics Industry
The industry has got the desired momentum Logistics has become a strategic source of competitive advantage Huge investments are made by foreign investors High investments are made by government to improve the infrastructure Companies are re-engineeering their supply chain to make it more responsive India is becoming the auto hub of the world
Technology Used By Indian Logistics Industry
Online Tracking E-pod E-mail Updates Toll Free Number with 24 x 7 service SMS Updates Enterprise Management System Business Accounting Software Customer Relationship Management Software
Online Tracking
The Dynamex proprietary online ordering and online delivery tracking system was developed to meet our customers' same-day transportation and logistics tracking needs. Enter and track orders View signatures Generate Reports Distribution customers can view route details
E-Pod
As part of an integrated Transport Management Solution, ePOD provides realtime delivery updates back to the operational system to monitor and track delivery runs and deal with any exceptions immediately, which can substantially improve the visibility across the supply chain allowing for improved customer service and more proactive transport management.
24*7 services
24*7 is an abbreviation which stands for "24 hours a day, 7 days a week", usually referring to a production line or service facility or any other business available at all times without interruption
Enterprise Management System
Enterprise Management Systems provides our commercial and government customers with cost effective services in three areas: Electronic Health Record (EHR) systems, Enterprise Knowledge Management, and Distribution Logistics. Distribution company can manage its entire front-office and back-office operations with a single, flexible, powerful business application - integrating customer relationship management, customer service, financials, manufacturing, work orders, kitting and assemblies, inventory management, ecommerce, and more worldwide
Business Account Software
Financial Accounting Software is complete business management solution which is basically designed to meet the challenging demands of various small and medium size organizations. Simple and cost effective accountancy system enhances your total business performance by evaluating and analyzing Customer, Vendor, sales and purchase report and other management activities in an easy and simplified way
Customer Relationship Management Software
From the customer relationship management prospective, companies strive to meet the following targets Specify metrics to define the correlation between a managers activities and sales volumes. Select an incentive scheme to increase sales and reduce churn. Adapt to fast changing demand in order to guarantee the best service to key customers. Optimize processes to remove dead stock.
Successful experience of distribution business software implementation and unique knowledge of the realities of distributors and their processes enable BPMonline to provide distribution management software for the following goals:
Top Logistics Companies In India
TNT Express AFL DHL Blue Dart Gati Safexpress Ashok Leyland Agarwal Packers & Movers DTDC First Flight
Corporate Social Responsibility
Green Mission Reduction in Greenhouse gas emission Carbon Tax Fun Bus Driver Training Centre AIDS Awareness
Market Analysis
Pricing Strategy
Driver of the performance of the Logistics Industry Is decided on the basis of the competitive strategy Overall Trade off: Increase firm profits Everyday low pricing versus high low pricing Fixed prices versus menu pricing
Nature of the Market
Industry is homogenous It is a oligopoly Industry HH Index is 1004 (UPS, FedEx, DHL, A.P. Moeller) Concentration Ratio of the first four companies in India is around 65% (TNT Express, AFL, DHL and Blue Dart)
Advertising Strategies
Press Media Print Ads Interviews Internet
Promotion
Efficient Distribution Network Provides Supply Chain Solutions
Graph showing the LPI of India and its Neighborhood Countries
Company overview of DHL
DHL is the global market leader in international express, overland transport and air freight, It is also the world's No.1 in ocean freight and contract logistics, DHL's international network links almost 220 countries and territories worldwide, Around 285,000 employees are dedicated to providing fast and reliable services that exceed customers expectations in 120,000 destinations in all continents
Overview of Gati
Gati Limited is a pioneer and leader in the Express Distribution and Supply Chain Solutions in India It has grown into an organization with more than 3500 employees and a turnover of Rs 630 crore 19 Million Packages Handled Annually 1 Million Sft Warehouse Space Capabilities to Deliver at 622 out of 626 districts of India Best of the IT in Logistics Industry
Porters Five Force Model
Threat of Entry High Intensity of rivalry High Substitutes Medium
Bargaining Power of Buyers High
Bargaining Power of Suppliers - High
Future Prospects of Indian Logistics Industry
Many large Indian corporate are been attracted by the potential of this sector Large express cargo and courier companies such as Transport Corporation of India (TCI) have started logistics operations Growing interest among entrepreneurs to venture into this business Indian shippers are gradually becoming more aware of the benefits of logistics outsourcing Faster growth rate of Indian GDP The Indian government has focused on infrastructure development In India, 100% FDI is allowed in logistics
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