3 PL

Third Party Logistics Providers are now seeing themselves in a stable growth stage in India with an estimated market capitalization of US 3.6 billion $. But the true essence of this concept lies in the fact wheither at all your business activities requires the competencies of it.

4PL has been started implemented in some parts of the world wherein the transference of information is the major gateway/ transfer port of the concept. Today in India, there are three types of logistics solution providers --

• Asset Based
• Management Based
• Integrated Providers

The first one is characterized by owing private trucks, warehouses,and personnel to operate the same while the second one provide their expertise in technological and managerial aspect.

There is a lot written about the 'cloud computing' aspect and definitely its going to be the next very aspect of logistics which would actually cater the movement of information from one enterprise to others.

Green Logistics

Players of each and every industry are now trying to associate with the so called "green" word along with it. Definately change is the constant determinant but it has its own hinderances.Companies like Toyota have implemented this aspect and they plunged into in the hybrid car segment. A lot of companies have taken initiatives in this form of positioning in order to break free the cluttered atmosphere but then how many are keeping up with their promises.

Nevertheless,I have been always in favour of supply chain as a domain and terms like reverse logistics operations, milk man logistics system have dominated my minds but then when I figured out the term "GREEN LOGISTICS" the first thing that comes in my mind is right above the post,trucks carrying bar steel rods in the middle of densely populated places in India.

Green Logistics is all about minimising the wastage in the whole operation. It can be achieved but if you ask me about the same in case of India, I seriously wonder from where to start about it. The concept is been practised by some global players but the road for India seems to be a big question mark..

SYSTEMATIC DISARRAY of Supply Chain in INDIA

The reason for unprosperity for INDIA Inc..

Quite often I came across words like ---

"India is the drive machine for the supply chain in the coming decade or so"
But do we have any supportung facts to support it. Quite obvious that people would refer the thoroughput volume which is being handled in our subcontinent. if we refer to the figures supported by IPA (Indian Port Association ), the total traffic handled by major ports in this year is 184085 (vessels) with a growth of mere 2 % against last year.

But the next moment, I figure out the number of vessels that are waiting for getting a berth in the dockyard is 143 which covers the 12 major ports of our country.

The reason to it is INFRASTRUCTURE... and the only way of its raddiage is projects on PPP and B-O-T.The situation is so bad that forwarders actaully shell out huge chunk of money in demurrage charges.

Tradiational Vietnamese supply chain in India

Necessity is the mother of all invention, and it holds good everytime one thinks about it.I am referring the traditional method of supply chain of the fresh vegetables to the capital city of Assam, which is still relevant whole over the world.It's actually the northern banks of the Brahmaputra.Almost the entire green stuffs that is catered in different markets of the city is being channelized in the form of Vietnamese style (carrying on the shoulders) by the associated people early in the morning.This is not a new thing to those who stay near the riverine/coastal areas of our country.The day;there is some imbalance in this transportation model,the whole city woulded be marked by rising prices of the vegetables which would later effect everyone's life in a way or rather.The most badly hit would be the people who fall in "bottom of the pyramid" in our society,which would lead to starvation and so on.....

The point which I want to stress upon is that; it's not the industrial goods, nor so called fmcg goods that require the logistics functionality.

The Nascency of SCM

Today a lot is said about branding, millions of dollars is being spent in promoting the same but then my question is that all which makes the product actually sell ? Definately it has a laddering effect in the consumer's minds like you and me but then it is actually short-lived.

But at the same time, only branding doesn't make sense to me until and unless the product is made available to the end users like me. Here comes the nativity of supply chain management and to cater the same demands an apt logistics solution.

Talking about India, there is huge potential in this particular field; the reason why I say so is the fact that foreign logistics providers are pumping huge investments in India. You name them they are here - FedEx, Ups, TNT, DHL etc. Its really mind boggling that none of the Indian companies have their operation as huge as them, and we go on saying that India is land of opportunities ....

Buying stakes in an existing logistics service provider won't actually serve the process. I am talking in respect to RIL buying stakes in Deccan 360.

Supply-chain management and Logistics Solution

There has been always a apposite reason/s for the existence of something called Supply chain management in management arena.

Why do big corporate houses(manufacturing units) spends a lot to get the apt solutions for the same?
Is it worth even?
What are the parameters that enable them to judge the pertinent solution to it and how do they do it?

The blog actually intends to discuss these issues ...

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