Alvarez & Marsal (A&M), a leading global professional services firm, along with Bombay Chamber of Commerce & Industry (BCCI) has recently launched a report titled ‘The SIT – Scale, Integration and Technology – Era of Shipping and Logistics’ in India.’
In the paper, A&M and BCCI has come up with key ideas which will dominate Shipping and Logistics in the next 3-5 years. These are applicable across the spectrum of logistics from shipping to last mile delivery. The report underlines organized logistics market size reaching to $50 billion by 2025 and broadly focuses on following five themes:
- Integration of parts: Need for integration of supply chains will drive the emergence of MMLPs and development of VAS capability by LSPs
- Technology and its impact: Potential cost and efficiency benefits will see logistics as being one the leading sectors for adoption of new-age technology and automation
- Survival of larger or smarter: Larger, strategically located infrastructure is likely to replace traditional facilities. Large, organized LSPs will have an edge over small, conventional service providers.
- B2C value proposition: Companies not evolving with changing customer expectations run the risk of becoming obsolete
- Smarter infrastructure: Proactive, smart innovations in logistics infrastructure can provide a notable competitive advantage