A study on how to decrease logistics cost in India Introduction :Indian logistics market is likely to cross the $ 200 billion

figure by 2020, fueled by the consistent growth of the economy and key industries such as automotive, engineering, pharmaceuticals, and food processing. The Indian logistics market recorded revenues of about $ 82.10 billion in 2010, witnessing a growth of about 9.2 percent over the previous year. While speaking about the technological impact, as of 2010, only about two-thirds of the end users reported to using some form of technology solution to support their logistics functions. These solutions included basic inventory management packages and barcode systems. However, usage of exclusive logistics technologies such as warehouse management systems, transportation management systems and radio frequency identification is significantly low across industries. Indias logistics technology market is set to grow at 19.8 percent between 2010 and 2015, to cross $ 600 million by 2015. This growth is driven by demand from the thriving logistics, retail and manufacturing sectors, as well as government promotion. However, these technologies are highly expensive, making them unaffordable for majority of logistics service providers and end users, thus limiting the full potential growth of the Indian logistics technology market. Cost saving, improvement in delivery timelines and preference to let professionals handle the logistics functions are the top reasons for outsourcing logistics functions by the end-user companies across industries. However, LSPs were found to perform significantly below customer expectations on key selection parameters such as ability to deliver on time, security and damage control of goods, process improvement capabilities and nationwide reach. Further, more than half of the end-users reported that they are not satisfied with the performance of 3PL service providers, since they did not achieve any notable improvement in the companys logistics performance. As a result, almost two-thirds of end users employ multiple LSPs and about 80 percent end users have only one-year contracts with their LSPs, indicating high propensity to switch service providers. The logistics market in India is highly fragmented with several thousands of unorganized participants holding the dominant share of the market. These include unregistered transporters, storage providers and freight-forwarding agents. The leading 3PL service providers in India continue to be those with a strong nationwide surface transportation services such as TCI, Om Logistics and GATI. Leading international logistics players such as DHL, FedEx and TNT have a strong brand presence in the country, but their

market presence is high only in the Express Logistics Services segment. Government-owned units dominate the market in their respective segments - such as Indian Railways and Container Corporation of India (CONCOR) in rail transport; Shipping Corporation of India (SCI) in ocean cargo, Central Warehousing Corporation (CWC) in warehousing. Recent Trends in Logistics Marine: Marine transport sector contributes over 0.2% to the countrys GDP at constant prices. Transport sectors contribution to the GDP has been firming up over the last couple of years, mostly because of the growing economic activities in the country. Shipping industry plays a significant role in the Indian economy. India has 12 major and 187minor/intermediate ports along its coastline of around 7,517km. The fleet strength at the end of December 2006 was 774 vessels with 8.42m Gross Registered Tonnage (GRT).Ports serve as the gateways to the international trade in India. Major ports in India together have handled 463.84m tones of cargo. According to the Planning Commission, Indias shipping fleet strength will be increased up to 15m GRT (as per the 3rd target) by the end of 2013, with an estimated investment of US$17.7 billion.

Rail: The plan by the Indian Railways to develop Logistics Parks is a good one. It has the potential to streamline and optimize the supply chain and reduce the supply chain costs. The service concept, service delivery and infrastructure have to be designed very well for the Railways Logistics Parks to add value to the supply chain. The Indian Railways would have to introduce innovative train services, so that customers shift to rail from road and use trains for either the incoming or outgoing from the hub. Currently about80% of the products in India move by road.

Area of study: Topic:- A study on decrease of logistics cost in india. In this we have taken feedback from the Importer, exporter, 3 PL ,Manufacturing Company Transporter, Port , Shipping Lines, Freight Forwarder, Clearing & Forwarding Agent. Questioner:1. What is reason behind high logistics cost. 2.what is impact of high logistics cost in India.

Significance:The main objective of doing the research is to know all the factors which affect the logistics cost, by which way the logistics cost can be decreased. The Private players role in decrease of logistics cost. Government support in the reduction of logistics' cost.