2. Introduction
The logistics market in India is estimated to be Rs.
260,000 crores and constitutes 13% of the GDP (as
compared to an average of 10% in other developing
countries). The global logistics industry is valued at
US$ 3.5 trillion. Global Market Analysis firm Data
monitor’s "India Logistics Outlook 2007" report
estimates the Indian logistics industry at over US$
125 billion. The sector currently employs over 40
million people globally.
3. Introduction (Contd)
Burgeoning trade, increased geographical
distribution of incomes and markets, better than
expected performance of the manufacturing sector
and an explosive growth in the third party logistics
segment has contributed to the phenomenal growth
of the Indian Logistics and Supply Chain sector. In
the Indian scenario, there is an impressive growth of
container traffic of over 15% per annum over the last
five years.
4. The relative high costs associated with logistics,
combined with the opportunity for market growth,
create significant opportunities for logistics service
providers operating in India and for logistics and
Supply Chain professionals
5. Companies in Logistics and Supply Chain
Management
Many large Indian corporate such as Tata and
Reliance Industries have started providing in-house
logistics services and, sensing market growth, have
started providing services to other corporate as well.
PSUs have come up with Joint Service Organizations
to felicitate in-house logistics activities (IOCL, BPCL,
HPCL, ONGC, GAIL, CONCOR, etc.). Large express
cargo and courier companies such as Transport
Corporation of India (TCI) and Blue Dart have also
started logistics operations.
6. Opportunities and Future Scope
However, poor training and lack of qualified and
experienced resources continue to be a primary
challenge facing the development of the logistics and
transportation industry in India today, and
presumably for some time to come.
As a result, people training and development in this
sector continues to play an important role in these
organizations' ability to create and maintain a
competitive advantage.
7. Opportunities and Future Scope (Contd)
Technological changes in the logistics industry have
led to a sharp increase in trained workforce in all
areas of the sector. The industry would need 4.2 lakh
skilled people in the ‘Senior Resource Category’ in
warehouse management by 2015. Currently, the
India logistics industry has only 14,000 Warehouse
Managers but will require approximately 35,000.
The key sectors where logistics and supply chain
related opportunities are abundant are Automotive,
Technology, Retail, Consumer, Healthcare,
Industrial and Chemical.
8. Areas
The following types of organizations provide suitable
employment opportunities:
Indian & Foreign Logistics firms
Manufacturing companies across verticals
Public/Private Ports
Third Party Logistics firms
Retail companies
Transportation companies
Pharmaceutical organizations
Freight Forwarders
Government Agencies like the armed forces, etc.
Shipping and Liner companies
Importers and Sourcing organizations
IT companies
Management Consulting firms