Indian Logistics spends 13% in GDP (versus 7-8% in developed countries), implying overall size of US$ 180-220 bn. Transportation cost of GDP is 8%. Current transport industry is completely unorganised so there is no fixed rate causing transporters to suffer due to its high operating cost.

• The reasons this sector in India is still unorganised in our country are:

1. Presence of Large number of Small Truck Owners with Less than 5 trucks.
2. Presence of Transport Agents / Brokers which results in automatic Price escalation.
3. Absence of uniform pricing. Pricing is regulated on the basis of Truck availability, Demand & supply in the market.
4. Absence of proper monitoring of Trucks and Route optimization.
5. Lack of training to drivers and other related parties leads to improper management

 

• When it comes to Logistics, logistics executives must make further decisions beyond the mode of transportation to include:

1. Packaging
2. Containerization
3. Documentation
4. Insurance
5. Storage
6. Importing and Exporting Regulations
7. Freight Damage Claims
8. Working & collaborating with other executives within the supply chain
9. Managing vendors and partners
10. Responsible for mitigating risk and mitigating expenditures