Mumbai, Jan 14 The Indian companies increasingly hooked on the passage subcontracting in mind for the entire bandwidth of their logistical requirements, the local logistics services market perhaps birth a series of new players in the fourth party logistics (4PL), providers of services.

During a clutch third-party logistics (3PL) are service companies to fixing are spread over a wide range of sectors of automotive, hardware, pharmaceuticals, telecommunications and communication on FMCG, consumer goods and durable fertilizer, the new generation of houses Corporate Outsourcing search nontraditional logistical requirements. These analysts feel can lead to what the service 4PL concept, service is the only interface between the client and several logistic service providers, such as centralized management of all aspects of the Supply Chain.

Having tasted the benefits of outsourcing their requirements such as Outbound logistics / transport Inbound, compensation personalized, Import / Export Management and Outbound / Inbound-Warehousing, companies houses are currently thinking in regard to outsourcing of non-traditional logistics requirements such as reverse logistics, inventory management, order-books processing, distribution, labelling and packaging.

Some market participants of the logistics service business, but the feeling that the transfer would take some time. “4PL provider of design, but it will take some time, in India, as domestic service 3PL market potential is not yet completely open. Even for 4PL concept click, we need a strong network of service 3PL - Deployment all aspects of Supply Chain Management, “said Vineet Agrawal, Executive Director of Transport Corporation of India (TCI).

He told the Business Line service 4PL not least, the orientation of the sector and provides businesses with all of its Supply Chain Management and unloading, then a multiple 3PL service providers, such as trend in developed markets.

Current trends indicate that the cement sector has reaped the greatest benefits of outsourcing logistics, 3PL requirements of service providers, particularly in logistics account for between 10 to 15 percent of their operating costs. Even for the automotive and mechanical sector, logistics, account for 5 to 10 per cent of their operating costs, while the FMCG ranges from 3 to 7 per cent, as the usefulness of volumes, analysts point out .

, Says Dr. B.S. Sahay, president of the Center for Supply Chain Management Development Institute of Management (MDI), Gurgaon: “Although the 3PL service providers, have a bandwidth of Supply Chain Services, the service is unable, to the satisfaction of the whole enterprise logistics requirements of corporate houses. The result is that companies have to mount a combination of in-house and sub-components of effective service to manage their supply chain required. The problem is that the new structure developed in which a key customer and a few other members come here 4PL to a service provider. ”

Today, however, service should 3PL their activities to develop and sharpen their effectiveness in a new increase in business confidence, say analysts. Indeed, according to a recent survey conducted by the MDI and TCI, we saw that among the 130 companies spread over 15 sectors were surveyed, only 55 percent are subscription services 3PL, compared to 75 percent in worldwide. The survey also revealed that over 50 per cent of companies have subcontracting activities such as transport, storage and personalized compensation / shipping, outsourcing, while the rest of the Supply Chain activities n It is not usual, because of “concerns regarding the poor infrastructure and 3PL concerned by service in the situation.”

The School of Management Studies, Cochin University of Science and Technology (Cusat), is organizing a national seminar on the management of logistics, 28 and March 29. The best managers and professionals CIAL, railway lines, Cochin Port Trust, DP World and retailing Reliance discuss issues of logistics in their respective areas. Vice-Chancellor of Cusat Gangan Pratap opened the seminar.

The performance of an effective logistics system depends on the cooperation and integration of many elements operating and service providers. There is a need for specialists in different areas of logistics to share their knowledge. It is one of the areas in which scientists have much to learn from practice.

Logistics is a function of management, networking can move materials from one department to another or from one company to another in a supply chain. It consists of a network storage, handling and transportation systems.

A decade back, we could have not expected to see oranges from California, Australia and fruit in our supermarket shelves. International trade is the proportion of logistics is approximately 28 per cent of the costs of the final product. In large countries like India, the national logistics costs for agricultural products is 20 to 25 per cent of final cost.

Logistics has long been smaller and less organized set-ups. Hence, its effectiveness was bad. There is a need to improve the logistics system with regard to the performance on speed, reaction time, flexibility, cost and reliability. Much attention lately on improving the logistics system performance by improving infrastructure, Carrier and cooperation between different institutions, different logistics service providers.

The School of Management Studies, Cusat, has been in teaching and research in the field of logistics management in a decade. Courses on logistics to gain popularity in Management Schools in Kerala.

Development in the field of logistics in Kerala has been enormous. Projects such as Cochin International Airport Terminal transshipment and Vallarpadom LNG project have the level of logistics activities in Kerala.