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Logistics is usually misinterpreted as only transportation of goods, which is far from truth as transportation is just a subject of logistics. Logistics is a knowledge-based industry that requires procurement, transport, inventory control and distribution of goods. The cost of logistics of a company is estimated to be around 2 % of its total sales. With effective and efficient logistics 20 % of this cost can be saved. Logistics and Supply Chain Management (SCM) have always been an integral part of any business for timely and cost-effective decision making. Logistics can safely be said to be the management of the flow of goods, information and other resources from the point of origin to the point of final consumption by the customer. Just imagine there is a supplier situated at Kolkata, which manufactures shampoos for The Hyatt hotel, Delhi. The raw materials need to be picked up from nearby supplier by tempo or if some raw material need to be imported from a manufacturer situated outside the country, say China, then it would involve another set of logistics- Collection from the overseas factory to nearby port, customs clearing, Import, again customs clearing in India and Transportation to factory at Kolkata. The raw materials after the manufacturing process needs to be packaged and stored, then it will be transported either by road or train or air or a combination of these to reach Delhi and then before reaching the hotel, needs to be cleared by OCTROI authorities at entry point of Delhi. Now the goods are ready to be delivered to the hotel which would ultimately reach the customers of the hotel who are staying there. Thus, Logistics involves the integration of information, transportation, inventory, warehousing, material handling, and packaging, clearing, and occasionally security. Logistics is a channel of the supply chain which adds the value to the goods by making them available at the right place and at the right time to the right consumer. Logistics is increasingly becoming a strategic source of competitive advantage with the increase in global production sharing, shortening of product life cycles and intensification of global competition. In this highly competitive business environment, the quality of logistics has assumed greater significance influencing firms’ decisions such as which country to locate in, which suppliers to buy from or which consumer markets to enter. This has lead to many companies outsourcing supply-chain services, commonly called 3PL (Third party logistics). Some of the top logistic companies in India like CTC freight carriers private limited, Atlas Logistics, DHL, NTL Logistics Plus have a very efficient logistic system and provide all kinds of services like Sea Freight, Air Freight , Trucking Services, Cargo Handling, Break bulk cargo not only for domestic purpose but even for international shipments. This helps companies to focus on their core activities like production etc. In the present era of tough competition market wars are shifting from media to the retailer's shelf and even directly to the customers. Coke, Pepsi, Hyundai, HLL, Godrej, TATA, Bajaj, etc, derive immense strength from their well-established distribution networks. In fact India is becoming the auto hub of the world and big logistic companies and even Govt. of India and Indian railways are especially targeting the auto industry to get more involved in the effective use of resources by entering into Public-Private partnerships so that there is overall savings to all the parties involved. Logistics is the only department of a company that is in direct contact with the customers. So, the customer perceives the delivery channels as the representatives of the company and it becomes the prime responsibility of the channel members to deliver the services that keep the customers satisfied.
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3PL Services, Supply Chain Management, Air Freight Logistics, Warehousing Services, Logistics Companies in India, Logistics Service Providers,
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