Research and Markets: An Essential Indian Logistics Industry Benchmarking Study and Analysis of Outs

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DUBLIN -- Research and Markets
has announced the addition of Frost & Sullivan's new report
"Indian Logistics Industry Benchmarking Study and Analysis of
Outsourcing Trends" to their offering.

The study provides benchmarking of Indian logistics service
providers across eight key industry sectors on key performance criteria.
It also provides a comprehensive analysis of the logistics spend,
logistics efficiency and logistics outsourcing trends across each of
these industries.

This Frost & Sullivan research service titled Indian Logistics
Industry Benchmarking Study and Analysis of Outsourcing Trends, based on
the company's fifth annual Voice of the Customer study on leading
logistics service end-users in India, provides a detailed analysis of
the logistics outsourcing practices across all key industries in the
country. The study focuses on benchmarking the performance of Indian
logistics service providers (LSPs) on key criteria, which is based on
the ratings provided by leading end-users from 8 key industry sectors in
the country. Further, details are provided on the key logistics
challenges and concerns of end-users, apart from major growth
opportunities for third party logistics (3PL) providers in India as
rated by logistics end-users. In this research, Frost &
Sullivan's expert analysts thoroughly examine the performance of
LSPs and logistics outsourcing practices in the following industries:
automotive, consumer durables, fast moving consumer goods (FMCG), IT and
telecom, pharma, retail, and textiles.

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Indian LSPs Lag Significantly Below End-user Expectations on Key
Performance Criteria - - Indian LSPs lag significantly below end-user expectations on key
performance criteria such as attitude of staff, process improvement
capabilities and material safety. The study also established that
transportation was the most outsourced function to logistics service
providers, followed by freight forwarding. Almost all companies from
across all industries largely outsourced the transportation function,
while about 60 percent of companies from across all industries
outsourced freight forwarding functions to LSPs. Interestingly,
warehousing was outsourced by only about half of the companies.

"About 90 percent of users across industries mentioned cost
saving followed by preference to focus on core competency as the primary
reasons for engagement of LSPs," notes the analyst of this research

The findings from the performance benchmarking of Indian LSPs,
which is based on the ratings provided by leading end-users from 8 key
industry sectors in the country revealed that LSPs performed well above
user expectations on few key parameters such as fleet size, vehicle
quality, number of warehouses, and warehouse size. With regard to
aspects such as value addition, consignment tracking facility, and cost
saving initiatives, LSP performance came close to end-user expectations.
However, the Indian LSPs have lagged significantly behind end-user
expectations on key performance criteria such as process improvement
capabilities, material safety, and attitude of staff.

Another interesting fact found by the study is the lower preference
of end-users for long-term contracts with LSPs. Observations reveal that
long-term contracts between LSPs and end-user companies were found to be
low across all industries in the country. A majority of the companies
either had no contracts with LSPs or had just one year contracts,
indicating a tendency toward frequent change of LSPs.

"Foremost among the challenges in logistics for a majority ofcompanies across industry verticals are safety of goods during transitand warehousing, inefficiency of LSPs in adhering to timelines and thelow skill levels of logistics personnel," says the analyst."Inability of LSPs to keep pace with evolving volumes of end usersand the lack of multimodal transpiration capabilities are otherimpediments. Further, the risk of information leak is a cause for angst among end-users."Moreover, a significant share of companies across industries could
not gain notable (5 percent or more) improvement in their logistics
efficiency despite using third party logistics (3PL) providers. About
two-thirds of automotive industry was in this category, while about 55
percent of companies from auto components and pharma industries are also
reported to be in this category.

End-user opinions revealed that major opportunities for 3PL service
providers in India exist in developing technology solutions and
infrastructure (logistic parks), as well as providing multimodal

"LSPs should work toward improving their performance on
criteria where they currently lag below end-user expectations, apart
from adopting advance methods and technologies in supply chain and use
them to offer better services to end-users, which is likely to reduce
the challenges and concerns of end-users," observes the analyst.

Market Sectors

Expert Frost & Sullivan analysts thoroughly examine the
following market sectors in this research:

By End-use Vertical:

* Automotive

* Consumer durables


* IT

* Telecom

* Pharma

* Retail

* Textiles

* Technologies

The following technologies are covered in this research:

* Warehouse management system (WMS)


* Transportation management system (TMS)

Key Topics Covered:

1. Introduction, Objectives and Methodology

2. Executive Summary

3. Logistics Benchmarking and Analysis of Outsourcing Trends

4. Introduction, Objectives and Methodology

5. Executive Summary

6. Logistics Benchmarking and Analysis of Outsourcing Trends

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