Logistics outsourcing to reach $90 Million by 2012
Monday, 28 September 2009, 18:57 IST
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New Delhi: The third party logistics (3PL) business in India is likely to reach $90 million by 2012 from $58 million now, as the model is fast catching up among the country's businessmen due to its cost advantage, an industry lobby report says. "Currently 3PL outsourcing among Indian companies is estimated at $58 million as 55 percent of them are outsourcing services like supply chain management and warehousing," the Associated Chambers of Commerce and Industry of India (Assocham) said in a paper. A 3PL firm provides outsourced or third party logistics services to companies for part, or sometimes all of their supply chain management function. According to the chamber, India's logistics market size will reach $125 billion by 2010 from $105 billion now, growing at an average rate of between 16-17 percent in the next two years. "Logistics will register exciting growth in the next two years as manufacturing, retail and real estate, which currently are under severe stress, will return to their buoyancy," the paper said. More companies are turning towards 3PL as it helps them bring down conventional logistics costs and handle more complicated tasks, Assocham said. "Companies are eager to expand into new market which is creating more logistics challenges. This is driving more companies to partner with providers who are already operating in global market," the report said.
Source: IANS
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