3rd Party Logistics Practices at India

Powerful Essays
3PL Practices in India
Dr. B.S. Sahay
Professor of Operations Management Chairman, Centre for Supply Chain Management

SCM

Centre for Supply Chain Management
Management Development Institute
Gurgaon, India

Agenda for the Session
• • • • • •
SCM

Some Facts Business Challenges Why 3PL in India? 3PL Practices in India Conclusions and Recommendations What should be done?

Financial Improvements
Percent Improvement 13.5% 12.3% 9.2% 10.5% 10.0% 10.0% 15.0%

Financial Indicator Improvement in Sales Revenue Working Capital Improvement Capital Asset Reduction Production Cost Reduction Labor Cost Reduction ROA Improvement Logistics Cost Reduction
SCM

Some Facts:
• Annual Plan Outlay • Fiscal Deficit • Inventory tied up • Logistics Cost • GDP
SCM

: Rs. 1.13 Lakh Crores : Rs. 1.35 Lakh Crores (5.3% of GDP) : Rs. 1.17 Lakh Crores : 13.6% of our GDP : Rs. 25.57 Lakh Crores

Logistics Cost
Country Asian region China Japan Korea Singapore Taiwan European region France Germany Italy Netherlands Spain UK Sweden North American region Canada Mexico US GDP (billions) Logistics as % of GDP 14.5 10.5 12.4 20.0 13.5 11.7 11.8 12.6 12.2 12.1 12.2 12.7 11.8 14.4 8.70 345 3363 283 40 148 1200 1566 1151 286 527 1015 237 593 208 5673

SCM

International Comparison of Customer Orientation
Parameters

Product Quality 41.08 52.39 63.00 60.71 68.13 59.67 92.68 92.50 55.94 72.89

Product Design 34.05 56.62 58.50 48.57 58.06 69.84 81.46 71.39 66.96 63.11

O n - T i m e A fter-Sales M a n a g i n g D istribution Delivery Service 30.27 36.34 57.00 59.29 62.19 62.62 93.17 88.06 44.64 69.78 41.08 39.15 54.00 47.14 62.50 57.70 89.76 78.61 45.56 68.44 52.43 51.83 66.50 57.14 66.45 74.43 72.20 75.83 66.09 74.76

India Brazil Thailand South Korea Canada USA Japan Germany France Netherla nds No SCMt e : Source:

Companies are r ated 0=poor to 100=excellent World Competitiveness Report, 2000

Business Challenges
• Customer Expectation • Shortening of Product Life Cycles • World Competition •

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