Optimization of distribution network of a 3PL company

Abstract

Third party logistics (3PL) provider is a company that provides outsourced logistics and supply chain management services for its clients. 3PL market in India is a rapidly growing market with CAGR of 26% expected during the period 2012-20141. Drive India Enterprise Solutions Limited (DIESL), the logistics arm of TATA group, is a 3PL company which has established itself strongly in Indian 3PL market in the past decade. DIESL India has shown rapid growth rate of nearly 100% for the past three years. Such rapid growth rates must be complemented with efficient and technologically advanced infrastructure and processes. DIESL, in the recent years have invested heavily in technology too. As part of our project study, we have studied the existing warehousing and distribution network in DIESL Bangalore, tried to analyze the challenges in system and have given recommendations to make the distribution network more efficient to complement the rapid growth of DIESL and the Indian 3PL market.