India’s logistics market is expected to reach $215 billion by 2020
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The global logistics market is ready to get an immense growth as it is projected to reach $6300 billion by 2024 and the third-party logistics market is projected to reach USD 1.2 trillion by 2025. The scenario in India is also changing as the Indian logistics market has also registered a whopping compounded annual growth rate of 10.5 percent of the growth rate of 2017. It is expected to reach $215 billion by 2020. The sector which has earned the ‘infrastructure’ status in 2017 is rapidly growing. It employed 22 million people in 2017, and expected to employ 40 million people by 2020. Logistics market size was estimated at $160 billion when it earned the ‘infrastructure’ status.
The logistics expense rate in the United States is 9.5%, and Germany is 8%. In India, we have higher logistics costs than the BRIC countries and developing countries. In the BRIC countries, it moves around 10 to 11 percent, while the developing nations have 8 to 9 percent logistics costs. The logistics expenses in India are accounted for 14% of the GDP in FY 2017-18. It is expected to cut 4% and reach 10% by the end of 2022.
Owing to the presence of many unorganized players in the logistics industry, 90% of the sector is unorganized and fragmented now. Only 10% is organized that is needed to be more sophisticated in the coming years. Having a huge consumer base in the automobile, retail, telecom, pharmaceuticals, engineering industry, and heavy industries; the logistics industry is facing a long-range of challenges. It has fragmented warehousing, poor material handling infrastructure, multiple regulatory & policy-making bodies, lack of seamless movement of goods across modes, minimal integrated IT infrastructure.
Technology integration, SAP S4 HANA Logistics Training, and more investment are the keys to overcome the major drawbacks. The SAP S4 HANA logistics training will teach SAP PP, SAP Architecture, SAP Plant Maintenance, SAP Navigation GUI, Procurement Cycle, SAP SD and its submodules, Introduction to SAP Logistics, ATP with Product Allocation, Migration to SAP S/4 HANA, Scheduling and Pricing Procedure, SAP MM and its submodules, and MRP Planning on SAP S/4 HANA. If you are running a logistics business, send your employees to a genuine training institute to allow them in attending the SAP training program. It will prepare them the techniques of deploying SAP S/4HANA for managing production planning, supply chain, and inventory management through case studies.
