Logistics Industry Interesting Facts

Logistics Industry Logistics Industry, has proven to be a vital cog-wheel in the expansion of numerous businesses in the recent years. The logistic companies have fast-tracked the business transactions of goods and merchandise right from regional to international scale along with being accountable for the same on behalf of the shippers (companies). Here we present some interesting facts about this rapidly expanding industry.

#1 History and Evolution The concept of logistics management was evolved during the Second World War ( ). The American military forces during the World War II ensured that all the food and supplies reach at different places in a definite amount of time to the troops and cantonment using different logistics concepts and principles still used but in advanced version. The concept of 3PL (third party logistics) was developed and proposed in 1985, by Ken Ackerman and Dean Wise.

#2 Single entity-Multiple roles For many, logistics' role is only about movement of goods from one place to another but in reality there are several other roles that a logistic company performs. It acts as an - Aggregator – It compares the prices and alternatives to suggests the most effective and economic mode of transportation to their clients. Resolver – It also reduces the burden on the shippers to comply with and follow all international laws and policies as logistic companies are specialised in dealing with disputes related to customs and their experiences counts in such situations. Tracker – It remains accountable for the seamless transfer of goods by ensuring through follow-ups at different stages about the status of the delivery.

#3 Present Scenario The global logistics industry has been growing at a healthy pace of 4-5% for last few years with a contribution of about 10% of the global GDP which signifies the important contribution of this industry. The total market share of the global logistics industries has crossed $4 trillion mark, according to industry experts. In emerging economies like India and China, the industry growth is robust due to buoyant demand for transportation of resource and capital goods, necessary for development.

#4 Logistics in India Logistics industry in India has bloomed with an impressive rate of around 15% which can be correlated with the increase in the freight loading and increased adoption of 3PL methods by traders. The Indian market size for logistics is estimated around $220 billion, such that the expenditure on logistics out of share of the total GDP is 13%, much higher than the developed nations. The revival in growth, infrastructure push and Make In India initiative will further build momentum for the Indian Logistics industry.

#5 Top Logistics Companies Developed in 2002, in a short span it has become India’s leading cargo service provider and early adopter of GPS enabled vehicle tracking systems. This German subsidiary company is world’s most trusted logistics brand which has a comprehensive network across the world. Started in 1907, this American messenger company is recognized for its smooth tracking and return process. Their focus along with achieving profits is also about practising sustainable and eco- friendly measures like transport through electric trucks

#6 Future Prospects The bright spots for the global logistic industries include- Revival of economic activities in the emerging economies which can act as potential market opportunities. Creation of special economic zones (SEZs), dedicated freight corridors in various countries which will improve the efficiency in the supply channels. However, some areas of concern in the industry include Due to excess competition, price awareness and higher accountability measures in the industry, logistics is turning out to be a high risk low margin business. The volatile and fragile international goods exchange laws also affect and limit the market and operation opportunities for them.

References: "Logistics Industry in India." Logistics Industry and Top Logistics Companies in India. Business Maps Of India. Web. 21 Oct "Logistics Set for Rapid Growth." Financial Express Website. Financial Express Web News Platform, 15 Mar Web. 21 Oct Mitra, Subrata. "Logistics Industry: Global and Indian Perspectives." EBTC. Web. 21 Oct Robinson, Adam. "History of Supply Chain and Logistics Management." Transportation Management Company Cerasis. Cerasis.com, 31 July Web. 21 Oct "Top 10 Logistics Companies in World 2015 | MBA Skool-Study.Learn.Share." MBA Skool- Study.Learn.Share. Posted in Top Brand Lists. Web. 21 Oct

Visit Our Website Contact Us on TOLL FREE No: us: vxpress.in