India is seeing an increased demand for the third party logistics services due to a new focus on supply chain management and bids for deeper market penetration, according to a new report from RNCOS.
RNCOS’ 3rd Party Logistics Market in India
says India has seen a continuous improvement to its logistics infrastructure which has had the effect of making 3PL services perceived as a better way to control internal and external processes.
Consumer elecontrics and durable goods boosted the 3PL market to $69 million in 2010, and RNCOS projected a compound annual growth rate (CAGR) of 26 percent during 2012 to 2014. The need for more warehousing and transportation services play a big role in that CGAR rate.
RNCOS said key elements for the market include the retail, cement, chemicals and pharmaceuticals, textiles, fast moving consumer goods (FMCG), and metals industries.
The report also said companies are outsourcing some non-traditional practices, such as reverse logistics, distribution, inventory management, order processing, and labeling and packaging. It points to a bottleneck of 3PLs lacking ful supply chain solutions for India’s geographical diversity and the large investment it will take to develop a logistics network in the country that can address these regional differences.
Information about the report can be found here