India spends about 13.0 percent of its total Gross Domestic Product (GDP) on logistics.
The major logistics functions for the Indian industries include Transportation, Warehousing, Freight Forwarding, and other Value Added Operations including Management of Information Systems (MIS). Of these functions, transportation and freight forwarding have been traditionally outsourced to external service providers with relevant expertise and infrastructure. The warehousing and MIS functions have been mostly managed in-house by industries.
But the huge diversity in geographic conditions, consumer habits, and infrastructure conditions across the country make it a major challenge for Indian industries to efficiently manage their supply chain to reach all parts of the country. Additionally, India’s retail network is very vast. The highest priority of all industries in India is to achieve a consistent presence of their products across maximum possible section of this vast retail network. This could be achieved through a well knit end-to-end logistics process managed efficiently by experienced logistics people.