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According to various research, the Indian third-party logistics or 3PL industry would expand rapidly in the coming years. According to a survey by the UK-based market research firm, the 3PL industry in India is expected to increase by US$10.74 Billion between 2021 and 2025, at a compound annual growth rate (CAGR) of about 8%, with an incremental growth of US$81.73 million by 2024. However, the global 3PL market was valued at US$1027.71 Billion in 2019 and is expected to reach US$1789.94 Billion by 2027, growing at a CAGR of 7.1% between 2020 and 2027. In 2019, the Asia-Pacific (APAC) region dominated the worldwide 3PL market. Within this area, India's 3PL market remains promising, owing to recent tax changes, behavioural shifts in consumer behaviours such as a preference for online shopping, and other industry and government activities to expand capacity and infrastructure.
The 3PL industry in India is projected to be driven by expansion in the following industries: FMCG or fast-moving consumer goods, manufacturing, retail, and e-commerce. All of these industries require specialised logistical assistance and complicated solutions for the improved supply chain management. This is where AWL India comes into the picture and provides valid solutions for all third party logistics related challenges. Moreover, outsourcing logistics assistance from experts like AWL India is not only done to reduce traditional costs but also to develop operational efficiency in all industry-specific operations.
The logistics industry in India has been rapidly evolving and also growing at an exponential rate. Moreover, the rapid development in the Indian logistics industry is in response to technical and infrastructure improvements, as well as many legislative changes implemented by the government, such as the adoption of e-way bills, fast-tag, e-invoicing, GPS-based toll collection, and so on. According to reports, logistics currently accounts for 14% of India's GDP cost. However, with increased technology penetration and rapidly expanding infrastructure, India is at a deciding point, with enormous prospects for sector development to reach global growth levels.
AWL India is one of the leading third-party logistics providers in India, focused on creating a smooth path for the growth of businesses. Third-party logistics is the function in which a manufacturer subcontracts logistics, distribution, and customs administration functions that are critical to the supply chain. Being the industry expert, AWL India provides specialised services such as inventory management, transportation management and brokerage, warehousing, consolidation, distribution and fulfilment, and international logistics management (air and ocean freight forwarding, customs brokerage, and so on).
There have been a lot of infrastructure upgrades to support third party logistics in the country. Dedicated freight corridors, free trade storage zones, logistics parks, and container freight terminals will help in boosting the efficiency of the Indian 3PL sector. The National Highways Development Project seeks to enhance India's existing expressway network of 2000 kilometres by adding 18,637 kilometres of greenfield expressways by 2023. The Bharatmala project aims to build 83,677 kilometres of motorway by 2024. Efforts by the Government of India such as the National Infrastructure Pipeline, Sagarmala, and the recently announced National Monetization Pipeline are projected to strengthen the 3PL business and significantly improve India's last-mile delivery capabilities.
Moreover, AWL India being one of India’s leading 3PL logistics companies, ensure to make optimum use of all these infrastructure advancements to overcome all the challenges. Along with the infrastructure advancements, there are also enhancements in the digital sector that tends to support the 3PL operations.
Along with the infrastructure upgrades, the rapid digital revolution is changing the face of Indian logistics. AWL India makes use of technologies like AI, IoT, machine learning, and data analytics, to help businesses in improving their operational efficiency. On the other hand, by implementing technologies like cloud computing, GPS trackers, and IoT sensors into their operations, AWL India ensures that small business enterprises can run smooth supply chain operations and upgrade their systems.
Before the COVID-19 pandemic, cash on deliveries was considered a big challenge by the logistics industries. This was anticipated to be over US$8 Billion. However, after the pandemic, payment digitizations have seen exponential growth throughout the country.
The third-party logistics industry in India is all set to rise as it is also supported by technical and infrastructural advancements. AWL India, being one of the greatest 3PL service providers in India, believes that the industry would be adapting aggregator models in the upcoming years. Furthermore, with India aiming for zero net emissions across all industrial sectors, green logistics will most likely become an important segment as more companies adopt corporate strategies that allow them to reduce their carbon footprint, integrate sustainable solutions, and ensure competitive operations.
The 3PL market is arguably the growing part of the logistics market in India. Today, a lot of new entrants are entering the market. However, businesses look for a combination of experience and knowledge to outsource their 3PL operations. AWL India is one of the leading technology based warehousing and 3PL solution providers in the country. With a diverse background of working with businesses in different industries, AWL India is well known in the industry for providing customised solutions for business operations. These operations are scalable at the same time and are based on market conditions after extensive research. Moreover, AWL India can help your business in transforming its business operations by making use of the latest technological advancements present in the industry
