Firms unwilling to open their systems to logistics service providers

Our Bureau New Delhi | Updated on August 19, 2011

End-to-end outsourcing of logistics function is not taking off in India, as companies are unwilling to share their systems with the logistics service providers (LSPs).

But, certain project-based sectors, including automobile, are now moving toward outsourcing their logistics functions.

“Project-based industries in steel and mining are looking to outsource entire functions. Also, when the logistics function is kept in-house, there is a certain slackness that creeps in,” Mr Ingit Saxena, Principal, Management Consulting, Accenture, said on the sidelines of AIMA supply chain and logistics conference.

“(In India) ..rarely are LSPs part of long-term strategy of companies,” Mr Nilesh Sinha, Founder, Procram Logistics, said.

“Companies are unwilling to commit for long term and enter into long term contracts,” added Mr Sinha.

“In light of a dynamic marketplace, supply chain deliverables, including supply demands and currency fluctuations, call for companies to embrace intelligent supply chain model,” said Mr Vineet Agarwal, Joint Managing Director, Transportation Corporation of India (TCI).

Mr Kamal Singh, Director, AIMA, said that supply chain management is becoming a key differentiator to gain competitive advantage globally.

Published on August 19, 2011

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