Third Party Logistics Services: An Empirical Study with Reference to Pune Industrial Area

Abstract

Outsourcing of several business operations and functions is very common now-a-days in several companies in India. Outsourcing of logistics function is gaining importance because of its benefits and advantage all over the world. Outsourcing of logistics function helps manufacturing companies to concentrate on their core competencies by reducing or eliminating non productive activities which adds unwanted cost to the product. Because of such growing importance of outsourcing of logistics function, it has transitional shift from conventional to strategic function. To minimize the non-productive functions like logistics, company can either manage its logistics at his own or have a tie up with the company providing logistics services or it will outsource the logistics function to logistics service providers. Among all above mentioned options, outsourcing of logistics services to logistics service providers is considered as preferred option by many of manufacturing companies now-a-days due to its multiple benefits. The research is intended to cover Pune Industrial area which is having well equipped industrial zones like Pimpri Chinchwad, Bhosari, Talegaon Chakan, Ranjangaon, etc. & is one of the fastest developing industrial zones in Asia having presence of many big national & multinational companies. There are many isolated examples of individual organizations and their respective logistics capabilities. Hence, it was considered important to carry out a comprehensive survey on Third Party Logistics (3PL) practices in Pune industrial area. The research was intended to know three main aspects of third party logistics providers, i.e. current usage extent of third party logistics services, outsourcing reasons and impact of usage of third party logistics services on business results. The study will help to understand the present scenario of third party logistics provider (3PLP) in Pune industrial region & future growth.

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