Supply Chain Risk Management- How 3 Party Logistics services can help in economic crisis scenario for their clients?

1. Third Party Logistics Value Addition in Economic Crisis Abhijeet S. Ghadge 26 th April, 2009

2. Overview Meltdown and its Impacts 3PL - Value Preposition Customers’ Issues & Expectations

3. Global Meltdown Immediate Sub prime defaults Network Stock market crash & credit crunch Cascade Slowdown in economic activities across globe Avalanche of the financial crises

4. Gl obal Meltdown Effects on Supply Chain Crashing Demand in market – “ Inverse Bullwhip Effect” Stagnation of Inventory – Increased warehouse cost Reduced movement of goods – Operational inefficiency & Increased Logistics cost Restrictive trade practices – Increased hassles in Import/Export

5. Changing Trends in Logistics Source : 3PL 2005: Results and Findings of the 10th Annual Study

6. Woes Vs Opportunities Clients’ Recession Woes Pilled up Inventory - Underutilized logistics fleet - Issues relate to Custom Duties - Coordination of bills and- payments - Hunger for continuous – improvements - Waste Disposal - 3PL Opportunities - Improved WMS - ‘Economy of scale’ - Value added Services in Customs - Customs clearance and Brokerage - IT support & Consultancy - Reverse Logistics Support

16. Abhijeet S. Ghadge M.Tech. (Industrial Engineering & Management) Indian Institute of Technology Kharagpur [email_address] +91 93333 75414