DBA -1721 - SERVICES MARKETING

ASSIGNMENT I 1. Discuss the growth of Hospitality Industry and its impacts in the Indian Tourism Industry.
Tourism and Hospitality Industry Hospitality, as an industry segment in itself, is a US$ 3.5 trillion service sector within the global economy. In India, the tourism and hospitality industries are witnessing a period of exponential growth; the world's leading travel and tourism journal, "Conde Nast Traveller", ranked India as the numero uno travel destination in the world for 2007, as against fourth position in 2006. The year 2007 also marked the fifth consecutive year during which India has witnessed double-digit growth in foreign tourist arrivals. Along with the rise in foreign tourist arrivals, foreign exchange earnings have shown a robust growth of 25.6% during January-October 2007 to touch US$ 6.32 billion as against US$ 5.03 billion during January-October 2006. Tourism has now become a significant industry in India, contributing around 5.9 per cent of the Gross Domestic Product (GDP) and providing employment to about 41.8 million people. As per the World Travel & Tourism Council, the tourism industry in India is likely to generate US$ 121.4 billion of economic activity by 2015 and Hospitality sector has the potential to earn US$ 24 billion in foreign exchange by 2015. Additionally, India is also likely to become a major hub for medical tourism, with revenues from the industry estimated to grow from US$ 333 million in 2007 to US$ 2.2 billion by 2012, says a study by the Confederation of Indian Industry (CII) and McKinsey. The booming tourism industry has had a cascading effect on the hospitality sector with an increase in the occupancy ratios and average room rates. While occupancy ratio is around 80-85 per cent up nearly 10 percent from three years back, the average increase in room rates over the last one year has hovered around 22-25%. It is pertinent to mention in this context, that according to recent estimates, there are a total of 110,000 rooms in India, as against a total requirement of approximately 250,000 demonstrating the untapped potential that continues to exist in this industry. With a view to stimulating domestic and international investments in this sector, the government has implemented the following initiatives: i. 100% FDI under the automatic route is now permitted in all construction development projects including construction of hotels and resorts, recreational facilities and city and regional level infrastructure. ii. 100% FDI is now permitted in all airport development projects subject to the condition that FDI for upgradation of existing airports requires FIPB approval beyond 74%. iii. A five year tax holiday has been extended to Companies that set up

hotels, resorts and convention centers at specified destinations, subject to compliance with the prescribed conditions. iv. Plans for substantial upgradation of 28 regional airports in smaller towns and the privatization and expansion of Delhi and Mumbai airports The aforementioned initiatives have resulted in increasing FDI inflows being witnessed by this industry. For the period April 2000 to November 2007, a total of US$ 636 million in foreign direct investments was channelised towards development of hotels and tourism. The hospitality industry has also been receiving increasing interest from the Private Equity Sector investments have tripled from US$ 60 million in 2004-05 to over US$ 180 million in 2006-07. It is estimated that the hospitality sector is likely to see a further US$ 11.41 billion in inbound investments over the next two years. Several global hospitality majors such as Hilton, Accor, Marriott International, Berggruen Hotels, Cabana Hotels, Premier Travel Inn (PTI) and InterContinental Hotels group have already announced major investment plans in India in recent years.

Tourism and hospitality

Last Updated: April 2011 Tourism Hospitality in India is based on the Sanskrit adage Atithi Devo Bhava or guest is god. The concept was adapted by the Ministry of Tourism, Government of India which aims at creating awareness about rich variety of tourism in India. India is currently ranked 12th in the Asia Pacific region and 68th overall in the list of the world's attractive destinations, according to the Travel and Tourism Competitiveness Report 2011 by the World Economic Forum (WEF). India is well known for its natural resources (ranked 8th) and cultural resources (24th) with many World Heritage sites, both natural and cultural; rich fauna, many fairs and exhibitions and strong creative industries. India also has quite good air transport (ranked 39th), particularly given the countrys stage of development, and reasonable ground transport infrastructure (ranked 43rd), reports The Travel and Tourism Competitiveness Report 2011 by World Economic Forum 2011. Investment in travel and tourism in India is expected to reach US$ 34.7 billion in 2010 and US$ 109.3 billion by 2020. Contribution to the economy The hotel and tourism industrys contribution to the Indian economy by way of foreign direct investments (FDI) inflows were pegged at US$ 2.35 billion from April 2000 to February 2011, according to the Department of Industrial Policy and Promotion (DIPP). Indias hotel pipeline is the second largest in the Asia-Pacific region according to Jan Smits, Regional Managing Director, InterContinental Hotels Group (IHG) Asia Australasia. He projected the Indian hospitality industry to grow at a rate of 8.8 per cent during 2007-16, making the country as the second-fastest growing tourism market in the world. The domestic hospitality sector is expected to see investments of over US$ 11 billion by 2012, with 40 international brands making their presence in the country in the next few years. According to the Tourism Satellite Accounting (TSA) research, released by World Travel and Tourism Council (WTTC) and its research partner Oxford Economics in March 2011:

The direct contribution of travel and tourism to GDP is expected to grow by 8.1per cent per annum (pa) to US$ 76.65 billion (2 per cent of GDP) for 2011-2021 period, while the total contribution is expected to be US$ 82.61 billion in 2011 (4.5 per cent of GDP). It is forecasted to rise by 8.8 per cent pa for 201121, accounting for 4.9 per cent of GDP. Travel and tourism is expected to generate 24.93 million jobs directly in 2011 (5 per cent of total employment). This includes employment by hotels, travel agents, airlines and other passenger transportation services. By 2021 industry will account for 30.44 million jobs directly, an increase of 5.51 million (22.1 per cent) over the next ten years. The industry is expected to attract capital investment of US$ 27.67 billion rising by 8.7 per cent pa to US$ 63.47 billion. Visitor exports are expected to total US$ 15.23 billion in 2011, rising to US$ 30.18 billion in 2021.

The Indian hospitality industry has emerged as one of the key industries driving growth of the services sector in India. It has evolved into an industry that is sensitive to the needs and desires of people. The fortunes of the hospitality industry have always been linked to the prospects of the tourism industry and tourism is the foremost demand driver of the industry. The Indian hospitality industry has recorded healthy growth fuelled by robust inflow of foreign tourists as well as increased tourist movement within the country and it has become one of the leading players in the global industry. Foreign tourist arrivals (FTAs) into the country increased steadily from 2002 to 2008. FTAs dipped in 2009, due to the global economic slowdown; however, the impact on the Indian industry was much lower than that on the global counterparts. FTAs are expected to increase in 2010. On the other hand, domestic tourist movement within the country was the highest in 2009. Industry characteristics Major characteristics of the Indian hospitality industry are: High seasonality The Indian hotel industry normally experiences high demand during OctoberApril, followed which the monsoon months entail low demand. Usually the December and March quarters bring in 60% of the years turnover for Indias hoteliers. However, this trend is seeing a change over the recent few years. Hotels have introduced various offerings to improve performance (occupancy) during the lean months. These include targeting the conferencing segment and offering lucrative packages during the lean period. Labour intensive Quality of manpower is important in the hospitality industry. The industry provides employment to skilled, semi-skilled, and unskilled labour directly and indirectly. In India, the average employee-toroom ratio at 1.6 (2008-09), is much higher than that for hotels across the world. The ratio stands at 1.7 for five-star hotels and at 1.9 and 1.6 for the four-star and three-star categories respectively. Hotel owners in India tend to over-spec their hotels, leading to higher manpower requirement. With the entry of branded international hotels in the Indian industry across different categories, Indian hotel companies need to become more manpower efficient and reconsider their staffing requirements. Fragmented The Indian hotel industry is highly fragmented with a large number of small and unorganised players accounting for a lions share. The major players in the organised segment include The Taj, Oberoi, ITC Hotels, and East India Hotels. The fragmented nature of the Indian hospitality industry is reflected in the Herfindahl Index of Concentration, which was at 0.062 in FY07.

Classification of hotels The Ministry of Tourism has formulated a voluntary scheme for classification of operational hotels into different categories, to provide contemporary standards of facilities and services at hotels. Based on the approval from the Ministry of Tourism, hotels in India can divided into two categories: 1) DoT (Department of Tourism) classified hotels 2) DoT (Department of Tourism) unclassified hotels Classified hotels Hotels are classified based on the number of facilities and services provided by them. Hotels classified under the Ministry of Tourism enjoy different kinds of benefits such as tax incentives, interest subsidies, and import benefits. Due to lengthy and complex processes for such classification, a significant portion of the hotels in India still remain unclassified. The Ministry of Tourism classifies hotels as follows:

Star category hotels Heritage hotels Licensed units

Star category hotels Within this category, hotels are classified as five-star deluxe, five-star, four-star, three-star, two-star and one-star. Heritage hotels These hotels operate from forts, palaces, castles, jungles, river lodges and heritage buildings. The categories within heritage classification include heritage grand, heritage classic and heritage basic. Licensed units Hotels/establishments, which have acquired approval/license from the Ministry of Tourism to provide boarding and lodging facilities and are not classified as heritage or star hotels, fall in this category. These include government-approved service apartments, timesharing resorts, and bed and breakfast establishments. Unclassified hotels Branded players This segment mainly represents the branded budget hotels in the country, which bridge the gap between expensive luxury hotels and inexpensive lodges across the country. Budget hotels are reasonably priced and offer limited luxury and decent services. Increased demand and healthy occupancy have fuelled growth of budget hotels. These hotels use various cost control measures to maintain lower average room rates without compromising on service quality. Ginger Hotels, ITC Fortune, Hometel, and Ibis are some of the popular budget hotels. Other smaller players These are small hotels, motels and lodges that are spread across the country. This segment is highly unorganised and low prices are their unique selling point.

Growth drivers The fortunes of the hospitality industry are closely linked to the tourism industry and hence tourism is one of the most important growth drivers. In addition, all factors that aid growth in the tourism industry also apply to the hospitality industry. The Indian hospitality industry has recorded healthy growth in recent years owing to a number of factors: Increased tourist movement Increased FTAs and tourist movement within the country has aided growth in the hospitality industry. Healthy corporate profits and higher disposable incomes with easier access to finance have driven the rise in leisure and business tourism, thus having a positive impact on the hospitality industry. Economic growth India is one of the fastest growing economies in the world. It recorded healthy growth in the past few years, at more than 9% each during FY06-FY08. Despite the global economic slowdown, the Indian economy clocked growth of 6.7% and 7.4% in FY09 and FY10 respectively. Attractiveness of India has encouraged foreign players to set up their operational facilities in the country. Domestic industries have also made heavy investments to expand their facilities through greenfield and brownfield projects. Changing consumer dynamics and ease of finance The country has experienced a change in consumption patterns. The middle class population with higher disposable incomes has caused the shift in spending pattern, with discretionary purchases

forming a substantial part of total consumer spending. Increased affordability and affinity for leisure travel are driving tourism in India and in turn aiding growth of the hospitality industry. Emergence of credit culture and easier availability of personal loans have also driven growth in the travel and tourism and hospitality industries in the country. Measures undertaken by the government Various policy measures undertaken by the Ministry of Tourism and tax incentives have also aided growth of the hospitality industry; some of them include:

Allowance of 100% FDI in the hotel industry (including construction of hotels, resorts, and recreational facilities) through the automatic route Introduction of Medical Visa for tourists coming into the country for medical treatment Issuance of visa-on-arrival for tourists from select countries, which include Japan, New Zealand, and Finland Promotion of rural tourism by the Ministry of Tourism in collaboration with the United Nations Development Programme Elimination of customs duty for import of raw materials, equipment, liquor etc Capital subsidy programme for budget hotels Exemption of Fringe Benefit Tax on crches, employee sports, and guest house facilities Five-year income tax holidays for 2-4 star hotels established in specified districts having UNESCO-declared 'World Heritage Sites'.

Trends in the industry The hospitality industry recorded healthy growth in early-2000, leading to a rise in occupancy rate during 2005/06 and 2006/07. Consequently, average rates for hotel rooms also increased in 2006/07. The rise in average rates was also a result of the demand-supply gap for hotel rooms, especially in major metros. Hotels were charging higher rates, at times much higher than that those charged by their counterparts in other parts of the world. Lured by higher returns experienced by the hotel industry, a number of players, domestic as well as international, entered the space. India became one of the most attractive destinations for such investments. While on the one hand, investments continued to flow into the hotel industry, hit by sharp rise in rates, corporates started looking for alternate cost-effective lodging options. This led to emergence of corporate guest houses, especially in major metros, and leased apartments as replacements for hotels. While average room rates rose in 2007/08, occupancy rates dropped. Occupancy rates plunged sharply next year, as demand declined following the global economic slowdown and the terror attacks in Mumbai. As a result, hotel rates declined during 2009-10. The hospitality industry reported improvement in 2009-10, with domestic tourist movement in the country being at a high. While average rates remained lower, occupancy rates rose, supported by surge in domestic tourist movement. The industry is expected to report healthy growth in 2010/11, with expected increase in domestic tourist movement and rise in international tourist arrivals. Development of other markets A major trend in recent times is the development of the hotel industry in cities other than major metros. As real estate prices have been soaring, setting up and maintaining businesses and hotels in major metros is becoming more expensive, leading to search for other cities entailing lesser costs. Consequently, hotel markets have emerged in cities such as Hyderabad, Pune, and Jaipur. This has led to increase in hotel development activity and expansion of hotel brands within the country. The industry has also seen development of micro markets, especially in primary cities. As cities grow larger and more office spaces come up across the city, travelers prefer to stay at hotels closer to the place of work/visit to save on time. This has led to the same hotel company setting up hotels across different location within a city. Marketing strategies

Marketing strategies in the hospitality industry have changed drastically over the past decade. A decade back, the brand name of the hotel was a major driver. However, with the arrival of well educated and experienced travelers, hotel companies have had to change/realign their marketing strategies. Today, hotel companies marketing strategies are differentiation, consistency, customer satisfaction, delivery of brand promises, and customer retention. Development and use of technology have also changed the way hotel companies operate, creating the need for online marketing. Travelers increasingly conduct basic research on the Internet. Blogs, networking sites, and travel sites are therefore being used for making choices and the information provided tends to influence opinions and choices. Several travel portals have emerged in recent times and travelers are increasingly using these portals to make hotel reservations. Opportunities The prospects for the hotel industry in India are bright. With revival in the global economy, international tourist inflow into the country is expected to rise. Additionally, hosting of international sports events and trade fairs and exhibitions in the country are expected to aid both inflow of international tourists and domestic tourist movement. The upcoming industrial parks, manufacturing facilities and ports across the country provide a good opportunity for budget and mid-market hotels. Although around 89,500 additional rooms are expected to come up in India in the next five years, the supply of branded/quality rooms in India is much lower compared to other countries across the globe. Hence, there exists huge potential for investors and operators across all the segments of hotel industry in India. The increase in room inventories is expected to make the hotel industry more competitive and hotels would be under pressure to maintain quality and service levels at competitive prices. Competitive pricing amongst the branded hotels along with the addition of more budget and mid-market hotels would make the hotel industry cost competitive with other destinations. This would aid the growth of segments such as MICE, amongst others. While there is immense potential, concerns for growth of the industry remain. These include high real estate prices in the country, security threats, shortage of manpower, high tax structure, and nonuniformity in taxes.

2. Identify the service quality dimensions for a Entertainment Industry; recommend strategies to fulfill the service quality.
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ASSIGNMENT- II 10marks 1. Discuss the growth in logistics Industry in India.

India Logistics& TransportationIndustry: $125 Billion Goldmine India's logistics market is all set to experience a period of explosive organic growth, judging by independent market analyst Datamonitor's latest research. The Datamonitor report, "India Logistics Outlook 2007-2008" predicts high double-digit growth rates for both outsourced and contract logistics in India. With India's gross domestic profit (GDP) growing at over 9% per year and the manufacturing sector enjoying double digit growth rates, the Indian logistics industry is at an inflection point, and is expected to reach a market size of over $125 billion in year 2010. Strong growth enablers exist in India today in the form of over $300 billion worth of infrastructure investments, phased introduction of value-added-tax (VAT), and development of organized retail and agri-processing industries. In addition, strong foreign direct investment inflows (FDI) in automotive, capital goods, electronics, retail, and telecom will lead to increased market opportunities for providers of logistics services in India. However, as a result of the under-developed trade and logistics infrastructure, the logistics cost of the Indian economy is over 13% of GDP, compared to less than 10% of GDP in almost the entire Western Europe and North America. As leading manufacturers realign their global portfolios of manufacturing locations, India will have to work on such systemic inefficiencies, in order to attract and retain long-term real investments. 3PL/outsourced logistics is the outsourcing of a company's logistics operations to a specialized firm, which provides multiple tactical logistics services for use by customers as opposed to the respective company having a business unit in-house to oversee its supply chain and transportation of goods. With increased geographical distribution of incomes in India, the consumer markets are extending beyond the five metros of Mumbai, Delhi, Bangalore, Chennai and Hyderabad. However, rather than being pre-emptive, the companies are only following with new distribution outlets. As such, the increased competition across industry verticals is forcing firms to focus on product distribution, and logistics outsourcing is gaining further momentum with this. At just above one-quarter of the entire $90 billion Indian logistics market, is slated to grow at a compound annual growth rate (CAGR) of over 16% from 2007-10

Logistics in India don't differ too markedly from logistics anywhere else in the world. It's the the art and science of managing and controlling the flow of goods, products, services, energy, information and people from the origin point to the destination point. It includes the proper combination of several activities such as material handling, warehousing, and information, for the purpose of ensuring supply of the right product, at the right time, at the right place, for a right cost in the right condition. In the past, India has been the student rather than the expert when it comes to the field of logistics. But with its current expertise, valuable human resources and positive plans, it surely is walking on the path of being a service provider of class. There are several factors that benefit the Indian economy for reaching success in the field of logistics, namely: 1. India is the fourth largest economy in the world. 2. It is believed that about one-quarter of the youth population of the world resides in India. 3. India has human resources that are high in knowledge and abilities. 4. It is the second-largest English speaking workforce. 5. It has the 2nd largest pool of qualified technical workforce. India spends 13 percent of its Gross Domestic Product (GDP) on logistics as opposed to the usual practice of 10 percent by other developing nations. The Indian economy is striving for improvements in the field of logistics and supply chain management to gain the competitive edge in today's worldwide economy. The Indian government has favored the logistics market of India by making some helpful plans and policies to assist in its growth. There are several events organized for the promotion of logistics in India which are focused in their approach and relevant to the business solutions besides providing a solid platform for allowing people

from a wide industry spectrum to meet and provide business within themselves from all over the country. This has been an emphatic source of providing business solutions and their development. Several global third party logistics providers (3PLs) have already started developing their operations and service networks in India with a purpose to explore the rampant Indian economy. This has resulted in the creation of the need for a vast range of supply chain management (SCM) and logistics solutions which cover several factors such as supply chain, logistics, material handling, storage, Information technology (IT), warehousing and inventory management. This has benefited the efficiency and productivity of the complete value chain in several dimensions of profits, speed and customer service. The Confederation of Indian Industry (CII) is the premier business organization with a known commitment towards the development of logistics in India. It has established the CII Institute Of Logistics which is a specialized state-of-the-art institute of excellence with its focus on SCM and logistics. It is brought up to satisfy the latest industry needs for specialized SCM and logistics. India is being treated as the destination of the future in the field of logistical service providers all over the globe. Indian logistical market players have started to gear up and position themselves in the global scenario. The true potential of these service providers is yet to be realized. India is keen to offer transportation and logistical service to grow itself as an emerging marketplace. The key sectors include fashion, gems, jewelry, pharmaceuticals, precision tools and engineering goods, all of which need special shipping provisions

Growth in Logistics - An Overview Introduction Logistics call for an understanding of the total supply chain, the elements of which include inventories, packing, forwarding, freight, storage and handling. Logistics is responsible for all the movement that takes place within the organization whether it is inbound logistics of incoming, raw materials or movement within the company or the physical distribution of finished goods, logistics encompasses all of these. Typical logistics framework mainly consists of Physical Supply, Internal Operations and Physical Distribution of Goods and Services. To put it more simply, the material supply logistics starts from the base level of generation of the demand, through the process of purchase and supply of material from the vendor right through to final acceptance and payments to the supplier and issue to the indenter and has to be considered as a one whole activity with each stage having an impact on price/cost of material supply. Logistics is, in itself, a system; it is a network of related activities with the purpose of managing the orderly flow of material and personnel within the logistics channel. DEFINITION : The simplest way to.describe logistics is to say that it is all about ways and means of meeting the demand for materials i.e. satisfying the customer with what he wants, when he wants, where he wants etc. Definition includes outbound, inbound, internal and external movements and returns of material for environmental purposes. The logistics concentrate on dynamic processes, related to the flow of materials and the relationship between the materials and their use at different facilities. The most wide spread definition from council of Logistics Management says that Logistics is the part of the supply chain process and plans, implements and controls the efficient,

effective flow and storage of goods, services and related information from the point of origin to the point of consumption in order to meet customers requirements. SCOPE: Logistics is not confined to manufacturing operation alone. It is relevant to all enterprises, including Govt. institutions such as Hospitals and schools and service organization such as retailers, banks and financial service organizations. The study of logistics is especially important for bulk raw materials, where substantial outflow of freight is involved. Management of Logistics is an art which is extremely difficult to perfect in India, JIT ends up being SHIT - some how in time. The study of logistics is important to establish a lean supply chain which would give an advantage of quick product change over, capability, excellent short and long term forecast visibility and JIT capability. MODES OF TRANSPORTATION IN LOGISTICS : In order to transport material from one place to another Logistics Managers are using Rail, Road, Air, Water & Pipe Line as the modes of Transportation. A logistics expert needs to understand these modes based on priorities, product type. lead time etc. to decide the appropriate mode of Transportation. Rail: Used for delivery of a wide range of goods including coal, iron ore, cement, food grains, fertilizers, steel, petroleum products and other heavy goods. Road : Used by suppliers to deliver goods in a cost effective manner and best suited for short distances. Many transport companies have expertise for fast delivery, packaging etc. for making scheduled delivery. Air: Used mostly for delivery of high value and tow volume goods from distant suppliers, usually not connected by any other mode of Transportation. It is also suitable for emergent item to be imported for some specific requirement. Water : Used by firms for delivery of goods from distant suppliers, mostly conducted in containers of varied size. This mode is ideal for transportation of heavy and bulky goods and suitable for products with long lead times. Pipe Line : Used by oil sector companies for mass movement of Petroleum products including gases. Due to quite low operating cost it is one of the preferred mode of transportation. THIRD PARTY LOGISTICS : Third Party Logistics (3PL) provider handles all or most of freight of the organizations including the management of information by the third party, freeing the company from day to day interaction with carriers, and having to oversee hundreds or thousands of shipment. New and cheaper information flow resulting from internet enabled solutions, will lead not only achieving immediate cost reductions in operations but also to enormous productivity gains over the next few years.

The tracking and control of movement of goods drive freight optimization and asset utilization. The options are : increased trailer utilisation, combining full truckload shipments, consolidation, aggregation of smaller buyers. Purchase asset based transportation is becoming increasingly a commodity. To put simply, 3PL refers to the outsourcing of a logistics function. It could be the use of a transportation carrier, a warehouse, or a third party freight manager to perform all or part of a companys production distribution functions. The principle reasons of for this function are as under: Globalization of sourcing, manufacturing and distribution leading to an increase in the complexity of material movement. Competition that has forced companies towards more responsiveness and a reduction in inventories. An increased need for small but frequent shipments with 100 percent reliability, requiring core competence in logistics management. Resource constraints that require companies to concentrate only on their core manufacturing or new product development activities. FOURTH PARTY LOGISTICS : Fourth Party Logistics (4PL) provider is a supply chain integrator that assembles and manages the resources, capabilities and technology of its own organization with those of complementary service provider to deliver a comprehensive supply chain solution. 4PL is emerging as a path to achieve more than the one time operating cost reductions and asset transfers of a traditional outsourcing arrangement. Through alliances between best-ofbreed third party service providers, technology providers and management consultants. 4PL organizations can create unique and comprehensive supply chain solutions that cannot be achieved by any single provider. According to John Gaftorna, White oufsourcing third party logistics is now a accepted business practice, Fourth Party Logistics is emerging as a breakthrough solution to modern supply chain challenges... to provide maximum overall benefits. 4PL can be described as the complete outsourcing of the logistics function including procurement of service providers. 4 PL companies are suppliers which have the expertise to manage resources, value delivery processes and technology for their clients in order to allow their clients to totally outsource their logistics management activity. The 4PLs do not compete with 3PLs as they have superior expertise in their respective fields by virtue of their investment and specialization. 4PL providers do not own assets for transportation or warehousing, but rather leverage the solutions created by 3PL.providers, in order to identify and provide best in class services to their clients. There are many variations of the 4PL model that are practiced. Three different models are summarized as under;

A) Lead logistics provider: The 4PL provider acts as an in house freight management company, it might or might not have a role in the selection of 3 PL partners. It takes care of transport invoicing and the monitoring of the performance of the 3 PLs. B) Solution Integrator: In this variant of the model, the 4PL acts as the integrator of various 3PLS and as a single window for freight negotiations, 3PI selection and freight management on behalf of its client. C) Industry Innovator: Under this model the 4PL uses its expertise and resources to create a solution not for any single client, but for offering 4PL services to a number of clients in an industry. The services provided by a 4PL provider are: Freight Negotiations with 3PLs Freight Contract Management Transport Billing Continuous Improvement Programs Management of Service Providers IT Solutions Risk Management and Insurance Cash-flow Management. RESERVE LOGISTICS: Increasingly, as a strategy, to compete on services, companies offer repair and replacement services for their products under the warranty periods. The defective products are often shipped across international borders to common repair centers to be refurbished and returned to the originating station. Logistics service providers who offer these services have to tackle issues pertaining to duty payment on refurbished products, customs documentation and the establishment of collection points for repair for the customers. CONCLUSION: Logistics is one of the area of the supply chain i.e. growing at a tremendous case as the Internet and E-Commerce is drastically changing the range, delivery time and the speed of information as well as ordering and payment process. Due to the big boon of information technology, greatly influencing and enhancing the effectiveness of logistics, the time is not far when 5 PLs and 6 PLs may emerge which will probably we doing part of the manufacturing and marketing for the organizations.

2.Gap analysis is the concern for both customers and service providers of public utility services.-How to make success of their services?
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