Advantages And Disadvantages Of Logistics Industry

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As per the 2012 report by Deloitte and Indian Chamber of Commerce (ICC), the challenges faced by logistics industry in India are: a) Transportation related challenges  Railways: Important rail networks are oversaturated; Rail freight tariffs are high; Transit times are long and uncertain; Rail terminal quality is poor; Diminished flexibility in carrying different types of products; Railway carriage is not economical for the industries which cannot provide full train loads.  Road: Inadequate road network coverage; Poor road quality; Expressway network will take time to develop; High level of fragmentation of the trucking industry; multiple check points  Waterways: High turnaround times; Inadequate depth at ports; Costal shipping has not taken…show more content…
The main benefits of outsourcing logistics allow the companies to concentrate on the core competence, increase the operational efficiency, greater flexibility, improved customer service, reduce the transportation cost, enhancement and restructuring of the supply chains, and establish the marketplace legitimacy (Gunasekaran, 2002; Sahay and Mohan, 2003). These benefits can also help reduce the need for logistics related capital investments in facilities, equipment, manpower, and information technology (Wang et al., 2006). Hence, 3PL has received considerable attention from logistics…show more content…
Min and Joo (2006) used data envelopment analysis (DEA) for measuring and benchmarking the operational efficiency of 3PL providers. In the same year, So et al. (2006) applied the AHP procedure, to evaluate the service quality of four 3PLs in Korea, considering dimensions, such as: tangibles, reliability, responsiveness, assurance and empathy. In another study, a fuzzy TOPSIS approach was developed for the selection and ranking of the best 3PL provider, with major focus on financial soundness as an essential requisite for logistics partners (Bottani and Rizzi, 2006). Kumar et al. (2006) formulated a MOP model for 3PL allocation problem in India. The objectives were to minimize cost of service, late deliveries, and markets not being served by 3PL. The model also determined the set off 3PL. Jharkharia and Shankar (2007) developed and applied an analytic network process (ANP) based model for the selection of an appropriate 3PL provider. The criteria for the selection were divided into 3 categorical level, determinants (e.g. cost etc.), dimensions (determinant supporters) and enablers, which support their respective dimensions

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