CHALLENGES AND SCOPE IN LOGISTICS SERVICES – A COMPREHENSIVE STUDY IN INDIAN CONTEXT

Abstract

The logistics sector in India contributes to 14% in GDP and recently has added a lot of consideration from both business industries as well as policy makers. Fluctuating government policies on tax system and guidelines of service providers are going to play an important role in logistics industry. Coordination among many government agencies needs agreement from various ministries and is a barrier for multi modal transportation in India. Growing demands from e-commerce industry and Government initiatives like MAKE IN INDIA, will absolutely bring considerable development for logistics service providers in India. The LSPs need to restructure their strategies with the purpose of gaining all approaching opportunities. LSP’s in India are facing many challenges with the intention to deliver shipments on assured time and in proper condition. In this study, it has been attempted to highlight the challenges faced by LSP’s and what measures can be taken to mitigate the challenges. Based on the opinions of experts and literature reviews from few journals, the challenges and solutions has been identified. This study explains how globalization plays an important role in driving the Indian logistics industry and detailed information about each challenge.