Overview on logistics Industry ( 1PL / 2PL / 3PL / 4 PL / 5PL / SUPPLY CHAIN )

 Logistics is widely known as the process of coordinating and moving resources, such as equipment, food, liquids, inventory, materials, and people, from one location to the storage of the desired destination. It is the management of the flow of goods from one point of origin to the point of consumption, to meet the requirement of customers. #Logistics #management focuses on the efficiency and effective management of daily activities concerning the production of the company’s finished goods and services. This type of management forms a part of the supply chain management; and plans, implements, & controls the efficient, effective forward, reverse flow, and storage of goods. Logistics mainly comprises various services such as Third-Party Logistics (#3PL), Fourth-Party Logistics (#4PL), inbound logistics, outbound logistics, reverse logistics, green logistics, construction logistics, digital logistics, military logistics, and others logistics services.

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E-commerce refers to the buying and selling of goods by using internet. Third-party logistics service providers encompass shipping of products to consumers. In addition, the e-commerce industry utilizes logistics service to manage and oversee the #supply #chain of e-commerce companies, which allow these companies to focus on marketing and other business operations. Thus, due to numerous benefits provided by logistics to the e-commerce industry, adoption of logistics service is rising at a significant rate, which is driving the growth of the logistics market. For instance, according to the latest report by the UN’s trade and development body (UNCTAD) released on April 2020, e-commerce sales hit $25.6 trillion globally in 2018, which was equivalent to 30% of the global gross domestic product (GDP). The value of global B2B e-commerce in 2018 was $21 trillion, representing 83% of all e-commerce, whereas #B2C e-commerce was valued at $4.4 trillion. The growth is attributed to fast growth in consumers and cross-border purchases. According to a report, more than 1.4 billion people shopped online in 2018 while the U.S., China, and Japan dominate e-commerce sales to consumers.

By using logistics service, a manufacturing or retailing company has to rely on the reliability, competency, and honesty of logistics service providers. In this scenario, manufacturers or retailers must rely on logistics service provider, which results in lack of direct control. In addition, the manufacturer is not able to monitor the operations at warehouse, which is a serious threat to the quality of products. Moreover, outsourcing to a third-party logistics (3PL) could potentially lead to breach of confidentiality, resulting in the exposure of customer personal data or sharing of commercially-sensitive information. Thus, lack of control of manufacturers on logistics service is anticipated to hinder the growth of the logistics market.

Last mile logistics refers to the final step of the delivery process from a distribution center or facility to the end-user. With continuously increasing proliferation of e-commerce companies, the provision of efficient last mile deliveries is witnessing a major upswing in the logistics industry. In addition, getting a package within the same day of delivery is almost common in the present day, resulting in the growth of the last mile delivery services. Moreover, rising #pharmaceuticals and food & beverages e-commerce industries are also witnessing greater emphasis on last mile delivery options across logistics industries. Furthermore, continuous effort of #logistics #companies to offer efficient last mile deliveries is another opportunity that is expected to fuel the logistics market growth in near future. In addition, automation has also been gaining traction in the logistics industry. The inception of logistics 4.0 is one of the key logistics trends offering lucrative opportunities in the logistics industry.

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