Third Party Logistics Services: An Empirical Study with Reference to Pune Industrial Area
Published: 2012
Author(s) Name: Nishant Ramesh Wasatkar, Rahul Arjun Jadhav
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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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