The third party logistics (3PL) services market in India has been witnessing a rapid growth due to the fast growth of e-commerce, manufacturing activities and changing supply chain trends. The logistics sector including the market is expected to grow at a CAGR of over 8 percent in the next five years. The factors driving this growth are the rise of online retail, an increase in consumer demand for fast, simple and reliable deliveries, and an increasing number of companies choosing to outsource logistics to concentrate on core activities. The efficiency and reach of 3PL services have improved with the Indian government’s push towards infrastructure development through PM Gati Shakti, and expansion of road, rail and port connectivity. The Goods and Services Tax (GST) has also brought interstate logistics into the fast lane by reducing transit times and costs, making 3PL services more attractive to companies.
Advanced analytics via AI, machine learning, IoT and automation are allowing us to manage better inventory, optimize routes and can track in real time. Demand forecasting is being facilitated by data analytics, helping companies improve their decision making capabilities. Retail, FMCG, automotive and pharmaceutical sectors are seeing a strong uptake in 3PL services because of the need for specialized handling and fast time-to-market. Ecommerce giants like Amazon and Flipkart are outsourcing their logistics requirements to 3PL providers as they seek to manage their extensive logistics requirements, especially in Tier II and Tier III cities where the demand is growing rapidly.
In this special issue, we introduce you to the top companies in this segment. Industry Outlook has identified the select few companies that have done particularly well with a high level of dedication. We have found that they have gone the extra mile in proving their commitment to excellence in an integrated manner.
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