TABLE OF CONTENTS

SR PAGE
PARTICULARS
NO. NO.
1 Executive Summary

2 Introduction

3 Industry Overview

4 Company Profile

5 Literature Review

6 Objectives & Need for the Study

Research Methodology, Analysis of Data, Findings and
7
Interpretations
8 Limitations

9 Conclusions

10 Bibliography, References & Websites

11 Annexure
 Company profile

We handle complete end-to-end logistics operations for our clients from transporting the
Goods from Source to our Warehouse, Inwarding the Goods, Quality Check, Storage,
Dispatch, Reporting and End Customer Delivery Transportation.

We currently have warehouses across Pan-India in Mumbai, Pune, Bangalore, Delhi, Kolkata,
Chennai, Hyderabad and other Tier-2 cities. We provide complete warehousing solution from
inventory management, inward of goods, order dispatches, distribution and end door delivery

Our core is our strong reliance on Technology and Process with which we provide our client
real-time update in terms of their inventory across locations, maintain perpetual cycle counts
for inventory, KPI reports for inward and outward goods movement with track at each step of
the operations

All our facilities are multi-user shared facilities so that it’s cost effective for our client's
inventory holding and handling logistics. With our Pan-India presence we are also able to
commit to our clients to deliver their goods in any Tier-1 and Tier-2 cities within 24 hours.
 Vision

• To be a prominent brand in the supply chain industry through constant development

of innovative technology.

• To be the global leader in supply chain industry.

Mission

• To provide people with technically advanced services, outstanding services and

complete support.

• To enhance the quality of our internal customers.

• To practice excellence in all our endeavour’s.

Goals

• To be a one-stop solution provider for high-quality products for any companies.

• To innovate continuously through user-friendly value added features and exceed

expectations in every effort we put.

• To nurture customer relationships, and attain the highest level of customer

satisfaction.
Our trusted clients
 Industry overview

Third party logistics, popularly known as 3PL, is an outsourced logistics service framework
wherein third party providers offer one or multiple procurement and fulfilment services to
their clients. The service usually pertains to any one or all of these facets: freight
management, contract warehousing, distribution management, fulfilment services, product
sourcing, and freight consolidation... 3PL services has witnessed steady evolution driven by
the rising need for cost savings among businesses numerous end-use industries. 
The drive for 3PL services stems from the need for cost-effective and effective choices for
managing the growing complexity of warehouse operations and supply chain in the
globalized world. This has led to the rapid evolution of the global 3PL market. 

The report on the global 3PL market takes a closer look at the key growth dynamics and
sheds light on emerging avenues in various end-use industries. The study offers insights that
can help stakeholders to identify the segments likely to attract copious investments over the
assessment period of 2016 - 2024. 

Rising demand by consumers for faster delivery in e-commerce is a notable trend bolstering
the demand for 3PL. Decline in shipping rates in various parts of the world is one of the
prominent factors driving the global 3PL market. Growing role of 3PL services in
streamlining supply chain has also filliped the demand for 3PL services over the past several
years. 

Rapid strides made by e-commerce especially in developing countries has been offering
constant impetus to the growth of the 3PL market. A growing number of small merchants in
the sector may not have the necessary expertise in logistics and distribution. Hence 3PL
services have gathered steam among them in recent years. Ceaseless advances in technologies
pertaining to tracking technology have imparted a steady growth momentum for the global
3PL market. Substantial technological advancement made in radio frequency identification
and global positioning system is a case in point. The advent of 3PL services that are tailored
to the needs of various businesses has expanded the potential of the market. The adoption of
these services scales integrated operations, transportation and freight services, and
warehousing for client businesses. 
The growth in the regional market is fuelled by rising disposable incomes and
democratization of the internet. Furthermore, sizeable investments being made by prominent
e-commerce players create new avenues in the Asia Pacific 3PL market.  Meanwhile, Europe
and North America are expected to account for attractive shares in the global 3PL market. 
The growth of the e-commerce industry and the rising need for integrated shipping services
will be one major third-party logistics market drivers. With the increase in middle-class
population and the growing number of Internet and mobile users, there is an increase in the
domestic consumption of the products. This subsequently resulted in the growth of the e-
commerce industry. This drives the need for parcel services and e-commerce companies are
preferring 3PL service providers for a cost-effective and streamlined supply chain
management. With the growing demand, several retailers prefer 3PL companies that provide
integrated shipping services. Since the e-commerce industry is witnessing considerable
growth, the demand for third-party logistics will also increase. The third-party logistics
market research will register a CAGR of close to 6% by 2024.

Growth of Indian Logistics Industry

Of the various modes of transportation, roads and railway are the most preferred mode
accounting for ~60% and ~30% of the total cargo volumes handled, respectively. The share
of other transportation modes comprising Inland shipping, pipelines and airways remains
minimal accounting for the balance 10%. The higher transportation costs in India can be
associated with poor road infrastructure leading to lowering of the maximum distance that
can be covered by any commercial vehicle, old vehicles fleet and higher cess and toll on the
highways while the higher warehousing costs are on account of shortage of warehousing
capacity in India, non- standardization of warehouses in terms of IT application

As per the Ministry of Road Transport and Highways, India’s logistics cost as a % of GDP
stood at 13-14% compared to 10- 11% for BRIC countries and 8-9% for developed countries.
The US spends 9.5% and Germany 8% of their GDP on logistics costs. A significant
proportion of the higher cost can be attributed to the absence of an efficient intermodal and
multimodal transport systems. Going forward, the logistics cost as a % of GDP for India is
expected to decline by initiatives such as Implementation of GST, investments towards road
infrastructure, development of inland waterways and coastal shipping, thrust towards
dedicated freight corridors etc.
 Growth of Indian Logistics Industry

The Indian logistics industry was estimated to be around $160 bn in FY17. The key segments
include road, rail, coastal, warehousing, cold chain and container freight stations and inland
container depots (CFS/ ICD). The domestic logistics market is expected to grow at a CAGR
of approximately 10%. Indian logistics market is expected to be driven by the growth in the
manufacturing, retail, FMCG and e-commerce sectors. Development of logistics-related
infrastructure such as dedicated freight corridors, logistics parks, free trade warehousing
zones, and container freight stations are expected to improve efficiency. The industry is
dominated by transportation, which accounts for over 85% of total value, and its share is
expected to remain high over the next few years. The sector provides employment to more
than 22 million people. Improving logistics sector has significant bearing on exports and
media sources estimate that a 10% decrease in indirect logistics cost could potentially
increase 5-8% of exports.
 Logistics industry: Organised v/s Unorganised (%)

Currently the Indian logistics industry is highly fragmented and unorganized. Owing to the
presence of numerous unorganized players in the industry, it remains fragmented with the
organized players accounting for approximately 10% of the total market share. With the
consumer base of the sector encompassing a wide range of industries including retail,
automobile, telecom, pharmaceutical, heavy industries etc., logistics industry has been
increasingly attracting investments in the last decade. The sector is facing challenges such as
under-developed material handling infrastructure, fragmented warehousing, multiple
regulatory/ policy making bodies, lack of seamless movement of goods across modes,
minimal integrated IT infrastructure. In order to develop this sector focus on new technology,
improved investment, skilling, removing bottlenecks, improving intermodal transportation,
automation, single window system for giving clearances, and simplifying processes would be
required.
 Warehousing Industry overview

Global scenario

Warehousing primarily refers to the storage of goods to be transported, whether inbound or

outbound. The Warehousing and Storage industry includes establishments operating
warehousing and storage facilities for general merchandize, refrigerated goods and other
warehouse products. Warehouses are one of the major segments of the rapidly growing
logistics industry. Currently the segment has evolved from providing not only custody for
goods but also offering value added services such as sorting, packing, blending and
processing. With evolution of an organized retail sector modern warehouses for the storage of
perishable goods have become indispensable
In 2017, the global warehousing and storage market was estimated to be around $475 billion.
The global warehousing and storage accounted for approximately 8% of the overall logistics
market in 2017. The warehousing and storage market was the fifth largest market in the
global logistics market in 2017. North America is the largest geographic region accounting
for nearly 28% of the global market.
Globally, warehousing has moved ahead from single storey to multi-story warehouses in
densely populated cities and expensive land spaces. A multi-story warehouse consists of
more than one floor and is designed to increase the available floor space. It results in better
land utilization rate and enhances operational efficiency. Multi-story warehouses have been
successful in densely populated cities predominantly in Asian countries such as China, Japan,
Hong Kong and Singapore, due to high land and construction costs, small site areas and
limited industrial land
 Domestic scenario

Warehousing Industry: Organised vs Unorganised

The warehousing market in India is highly fragmented with most warehouses having an area
of less than 10,000 sq.ft. Approximately 90% of the warehousing space in the country is
controlled by unorganized players with smaller sized warehouses which have limited
mechanization. Fragmented warehousing footprint results in higher average inventory
holding, in addition to resulting in higher storage and handling losses, driven by lower level
of mechanization
 Growth of Indian Warehousing Industry

Warehouses have become one of the major segments of the rapidly growing Indian logistics
industry. Today they do not only provide custody for goods but also offer value added
services such as sorting, packing, blending and processing. With evolution of an organized
retail sector modern warehouses for the storage of perishable goods have become essential.
The government’s initiatives to promote the growth of warehouses in the country through
measures such as enactment of the Warehousing Act, 2007, investments in the establishment
of logistic parks and Free trade warehouse zones (FTWZs) together with the introduction of
Goods & Service Tax (GST) regime augurs well for the industry’s growth. Sensing the
tremendous growth potential of the warehouse sector, the private players (including both
domestic & international) have ventured with a view to bridge the gap between cost and
efficiency of operations.
 Segmentation of warehouses

Nearly 60% of the modern warehousing capacity in India is concentrated in the top six cities
namely Ahmedabad, Bangalore, Chennai, Mumbai, NCR and Pune, with Hyderabad and
Kolkata being the other major markets. This is driven by concentration of industrial activity
and presence of sizeable urban population around these clusters. Going forward, due to
factors like quality of infrastructure and availability of labour, these advantages are likely to
remain with these cities. In all the segments of warehousing industry barring the agricultural
segment, the majority of the capacity is controlled by the private sector. In the agricultural
segment, approximately 3/4th is controlled by different Government entities. The primary
objective of a majority of these warehouses is to only store food grains and ensure food
security.
 Types of Warehouses

Traditionally, warehouses were broadly classified into public-private, bonded, government

and co-operative warehouses. Lately, cold chains, container freight stations (CFS) and inland
container depots (ICD) are gaining importance.
Private Warehouses: These warehouses are owned by private entities or individuals and
are used exclusively for the goods owned, imported by or on behalf of the licensee. The
warehouses are usually constructed at strategic locations to cater various manufacturing,
business and service units. They are flexible enough to be customized in terms of storage and
placement, according to the nature of the products.

Public Warehouses: These Warehouses are licensed by the government to private

entities, individual or cooperative societies to store goods of the general public. They are
rented out against a fee and usually set up at transportation points of railways, highways and
waterways, providing the facilities of receipt, dispatch, loading and unloading of goods. The
government also regulates the functions and operations of these warehouses used mostly by
manufacturers, wholesalers, exporters, importers, government agencies, etc.

Bonded Warehouses: These warehouses are licenced by the Government to accept

imported goods for storage until the payment of customs duty. They are located near the
ports. They are either operated by the Government or work under the control of customs
authorities. The warehouse is required to give an undertaking or 'Bond' that it will not allow
the goods to be removed without the consent of the custom authorities. The goods are held in
bond and cannot be withdrawn without paying the customs duty. Such warehouses are very
helpful to importers and exporters. If an importer is unable to pay customs duty immediately
after the arrival of goods he can store the goods in a bonded warehouse. He can withdraw the
goods in instalments by paying the customs duty proportionately. Goods lying in a bonded
warehouse can be packaged, graded and branded for the purpose of sale.

Container freight stations (CFS)/inland container depots (ICDs) : CFSs/ICDs

are custom-bonded facility with public authority status for the handling and storage for
containers. These depots equipped with warehousing space, adequate handling equipment and
IT infrastructure.

Cold Storage: A cold storage is a temperature controlled storage space catering mainly to
agriculture and food industries. Cold stores are used for the storage and distribution of
perishable goods such as fruits and vegetables, dairy products; frozen foods such as meat and
ice cream, and temperature-sensitive pharmaceutical products. Given that India is primarily
an agriculture country, cold storage has huge potential in India.

Government Storage: The primary objectives of any government storage are 1) to

ensure food security, and 2) enable trade movement both within and out of the country.
Consequently, the Central Warehousing Corporation operates 431 warehouses (storage
capacity of 100.28 lakh MT) including 44 custom bonded warehouses, 29 CFSs/ICDs, 3 Air
Cargo Complexes (ACCs) (5,961 MT) and 3 cold storage warehouses (2,419 MT). Further,
various State Warehousing Corporations (SWC) manage a total capacity of 283.34 MT across
1,831 warehouses. The Food Corporation of India (FCI) works for holding agricultural
produce to meet the requirements of various government schemes. FCI has its own storage
capacity but also hires capacities from CWC, SWCs and the private sector. Growth in FCI
controlled storage capacity has tabulated below.
 Literature review

V. Venkatraman 2015 (IJPTM): The Indian logistics market has transformed from
traditional transport companies to a full-fledged logistics service provider, which offers
various supply chain services such as transportation, warehousing and other value added
services. Earlier there existed only transport or unorganised warehousing service providers
like (Godown). Then the trend changed more towards providing customized services and
started being outsourced to specialized companies in the industry. This emerged the concept
of third-party logistics (3PL), where companies provided third-party logistics services to
companies for part time, or sometimes all of their supply chain management functions. Third-
party logistics providers typically specialized in operations, warehousing and transportation
services that can be measured and customized based on market conditions and the demands
and delivery service requirements for their products and materials. The Indian economy,
strongly supported by increasing FDI, improved market reforms and regulations and growing
consumption levels in the country has been the major driver of the logistics market.
Outsourcing of manufacturing activity has been on the rise for industries such as automobile,
industrial equipment’s, pharmaceutical products, textile industry, steel industry and etc. In
addition, the entry of global organized players in the retail sector has been another driver for
the development of organised players in the country.

Warehouse design and operations have undergone major changes over the past decades. In
particular, with the onset of e-commerce, the complexity of warehouse operations has
increased multi-fold with the storage of large SKU assortment in small quantities, volatile
demand patterns and primarily single-line customer orders. They have grown in size due to
consolidation, new and fast identification and communication technologies have found their
way into the warehouse and process automation technologies have progressed improving
speed and operational efficiencies. In line with these developments, this special issue pays
attention to new technologies and methods and how they impact warehouse design and
management.

Knight Frank 2019( ) Logistics and warehousing constitute a critical link in the chain that
connects the manufacturer to the eventual consumer. It is the efficiency of a business’ logistics and
distribution machinery that dictates their reach, time to market and cost efficiencies which prove to
be a big factor enabling businesses to stay relevant in today’s ultracompetitive environment. This is
especially true in the internet age where businesses are forced to constantly cut costs to acquire or
retain consumers. Managing cash flows is the biggest challenge businesses face while cutting costs,
and inventory is the most significant component that locks cash up. Businesses need to ensure that
adequate inventory is maintained to prevent a stock-out even during spikes in demand. While
accurate demand estimation forms the foundation of this endeavour, it is the efficiency of the
logistics chain that determines the cost and time savings that can be achieved. This need to
constantly reduce the inventory cycle is revolutionising the role of the warehouse from a plain
storage depot to a virtual pit-stop that facilitates inventory management, secondary packaging,
crossdocking and extraction of products in the least possible time.

Dapiran et al. (1996) have observed that the future usage of third party logistics services is a
function of the current level of satisfaction of the firm with the logistics services provider. The
authors have also explored the changes in the level and the nature of outsourcing of logistics
services by the user firms. All the above studies indicate high levels of satisfaction with third party
logistics services providers, which will translate in increased outsourcing in the future. Typically,
firms start with the outsourcing of few logistics services, moving over to activities which have
maximum impact on logistics performance and then increase scope of usage of logistics services with
perceived and quantifiable impact on overall business performance

NEED AND PURPOSE OF STUDY

The purpose of this study is to understand the potential market of the emerging 3pl
warehouse in india and future prospects of it
This study brings up the actual facts and figures about how the indian 3pl warehousing
industry is demanding for an organized companies to look after any companies supply chain.

Research objectives

Research Methodology, Analysis of Data, Findings and Interpretations

Research Methodology

Limitations

 Lack of resources for data collection.

 As the duration of the internship was only 2 months, due to which limited information
was collected.
 Some of the aspects may not be covered in this project.
 Since I was the coordinator between the clients and our MD, the time frame for me to
collect and register the data was too short.
 Individual meeting helped me to fetch the accurate facts and figures but again it was
time consuming.
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http://www.iaeme.com/MasterAdmin/UploadFolder/IJPTM_06_02_002/IJPTM_06_02_002.pdf

https://www.pomsmeetings.org/ConfProceedings/002/POMS_CD/Browse%20This
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https://content.knightfrank.com/research/677/documents/en/india-warehousing-report-india-
warehousing-market-report-2019-6468.pdf