1

1PL TO 10PL
PRESENTED BY:
(GROUP 2)
AKSHAT JAIN (R600221034)
ARTI POKHRIYAL (R600221007)
M.JOSHUA ALFRED (R600221014)
YASHOVARDHAN SINGH (R740221022)
 TABLE OF CONTENT
2
S.No. TOPICS
1 Evolution & Introduction Of PLs
2 Research methodology
3 Global & Indian Scenario
4 About LPI
5 1-PL to 7pl & beyond
6 3PLVersus 4PL
7 Mahindra Logistics-3PL Service and 4L Logistics Solutions
8 ARK India and Amazon Web Services
9 Analysis (H.O.Q & Ranking )
10 Challenges faced by logistics industry
11 REFERENCES
 INTRODUCTION
3

 Supply chain and logistics have become critical pillars in the

growth of several industries.

 At first, the manufacturer was the one shipping the products,

attributing to zero involvement of third parties.

 As businesses swelled to territories outside of their native places

and national peripheries, the need for logistics services arose.

 There are several sorts of logistics providers providing varied

services to cater to the varying requirements of supply chains.

 Be it 1PL, 3PL or 10PL model, it underlines the number of parties

involved in process concerning transportation and management of
the goods.
 http://b2bgateway.blogspot.com/2013/09/we-probably-all
-have-heard-of-3pls-and.html
OBJECTIVES 4

 Study the 3PL, 4PL, 5PL and 6PL services of giant logistics companies.

 To compare among the various party logistics services and find out their contribution to the
entire supply chain.

 To analyze the KPI’s of Logistic Industry.

 GLOBAL SCENARIO 5

    

 CAGR - Compound Annual Growth Rate.

 https://www.alliedmarketresearch.com/logistics-market -
 https://www.statista.com/topics/5691/logistics-industry-world
wide/#dossierKeyfigures
 CONTINUED 6

 https://www.alliedmarketresearch.com/logistics-market ► https://www.prnewswire.com/news-releases
 INDIAN SCENARIO 7

 India’s supply chain and logistics costs currently account

for 14 per cent of the country’s GDP at a massive
$400 billion

 According to LPI- Logistics Performance Index, (2018),

released by World Bank. India ranked 44th.

 India's logistics market is expected to grow at

a CAGR of 10.5% until 2025

 https://medium.com/@anshulchouhan
/indian-logistics-industry-overview-impact-of-gst-3f38c617e39
 ABOUT LPI 8
 LPI is a tool created by World Bank that scores countries on the scale of 1 to 5, on how efficiently they move
goods across and within borders.

 (1-lowest score and 5- highest score).

 Released after every 2 years

 Following are the parameters to measure LPI:

(i)Customs
(ii)Infrastructure
(iii)Shipments
(iv)Quality Of logistics service
(v)Tracking & Tracing
(vi)Timeliness
INDIA’S LPI OVER THE YEARS 9
3.5

3.4

3.3

3.2
LPI SCORE

3.1

2.9
https://lpi.worldbank.org/
2.8
2007 2010 2012 2014 2016 2018

YEARS
 RESEARCH METHODOLOGY
Questions asked from the logistics providers 10

 Q1) For what type of products do you get the maximum orders? (OM Logistics)

 Ans) Mostly the cosmetics products are the ones that are mostly delivered in their service to e-commerce giants

 Q2) Is there any minimum monthly order volume to work? (OM logistics)

 Ans) 150 tons (For Dehradun)

 Q3) How many trucks are owned by you all over India? (OM Logistics)

 Ans) 8000

 Q4) What kind of security does the fulfilment warehouse have in place? (Mahindra Logistics)

 Ans) CCTV, 24*7 surveillance, Guards

 CONTINUED

11
 Q5) If there is any damage caused to the products while in transit what procedure is followed to overcome the loss? (Maersk,
Mahindra logistics)

 Ans) All the Goods are insured and Insurance Company take care of the Losses.

 Q6) What minimum quantity of goods can be transported by you?

 Ans) 1kg

 “”WE ALSO CONTACTED THE MAERSK LOGISTICS VIA E-MAIL”

 1-PL SERVICES 12

 1PL refers to a manufacturer or a company having their cargo,

freight for the transportation of goods from one place to another.

 This model applies to the companies and traders who are self-
capable of administering and taking care of the transportation.

 The manufacturer stores goods in his warehouse and owns vehicles

that will deliver goods to customers.

 EXAMPLE OF 1PL- a local farm that transports eggs directly to a

grocery store for sale is a 1PL.

 https://www.shiplilly.com/blog/types-of-logistics-pro
viders-explained-in-plain-english/
 2-PL SERVICES 13
 Refers to the intermediary between the buyer the seller i.e.
the asset-based carriers that bridge the gap between the
end buyer and the seller.

 These asset-based carriers possess ships, airlines on lease

which are extensively used for transporting heavy and
wholesale goods overseas.

 EXAMPLE: In 2PL, Manufacturer hires a separate carrier

to move products from one location to another.

 This stage could involve a courier company, rail, shipping

service or trucking over a specific segment in the supply
chain. Like :Maersk, DHL etc.
 https://www.shiplilly.com/blog/types-of-logistics-providers-explain
ed-in-plain-english/
 3-PL SERVICES 14
 3PL logistics is the most popular model in commercial
shipping.

 Like the 2PL model, it also involves the transportation

and administration of all the services that are carried out,
however, it comes equipped with other services as well.

 They range from inventory management or warehousing,

labeling, product packaging, customs brokerage, IT
services such as tracking products, ascertaining delivery
status, and many more.

 EXAMPLE: UPS, FedEx logistics, Mahindra Logistics.

 https://www.shiplilly.com/blog/types-of-logistics-provider
s-explained-in-plain-english/
MAHINDRA- 3PL SERVICE PROVIDER
15

 Started in the year 2000, its parent company is Mahindra & Mahindra

 Known For: WMS (Warehouse Management System), TMS (Transport Management System)

 Company pursues 'asset-light' business model

 Mahindra has acquired ShipX it is a SAAS (Software as a Service) based TMS platform that serves the supply chain
automation needs for 3PLs shippers and transporters

 Offer Supply Chain solutions to diverse industry such as Automotive, Engineering, Consumer Goods,
Pharmaceuticals, Telecom, Commodities, and E-commerce

 Provides solution in – Supply Chain Management (SCM) and Enterprise Mobility

 4-PL SERVICES 16

 Array of services that are covered in 3PL are also present in this model.

 Except the operational handling of the transportation, along with the

inventory management is also outsourced to the logistics solutions
provider.

 In 3PL logistics, the seller takes care of the operational handling.

Whereas, in 4PL Logistics, the solutions provider administers the entire
supply chain.

https://aklogisticsandsupplychain.com/202
0/03/02/1pl-2pl-3pl-4pl-5pl-6pl-the-advanc
ement-of-party-logistics/
 17
 Operates over 600 ships and 2.2 million containers and takes 23,000 bookings
every day. 

 Maersk has a 14.5% world market share.

 Maersk has designed to integrate a wide range of information from various
sources across supply chain, including platforms and players from digital and
physical worlds. 

 See through Supply chain - Enjoy a panoramic view of your end-to-end

logistics. 
 Deliver better to customer - Maximize predictability to optimize working https://en.wikipedia.org/wiki/M
aersk
capital.
 3 pl versus 4pl 18
• 3PL suppliers are preferable for small-to-medium organisations, whereas 4PL providers are best for
medium-to-large businesses.

• 4PL suppliers work on optimization and integration, whereas 3PL providers are more concerned with
day-to-day operations.

• While 4PL companies give a single point of contact for each business' supply chain, 3PL providers
sometimes need enterprises to manage certain components of the supply process internally

• · 4PL suppliers offer the highest degree of logistical services at a low cost, whilst 3PL providers
specialise in one-time transactions.

• The actions of 3PL providers can be successfully coordinated by 4PL firms.

 5-PL SERVICES 19
 The concept of 5PL was proposed in a Morgan Stanley report which
focused on providing e-logistics solutions for the entire supply chain

 5PL, also called logistics aggregator oversees and organizes the activities
of 3PLs and 4PLs through data arrangements related to supply.

 The major tasks of 5PL companies include mapping and reengineering the
supply chain functions (integration and control of transport, handling,
warehousing, etc. i.e., TMS, OMS, WMS)

 Providing integrated information systems to ensure real time visibility and

control of the entire supply chain.

 https://aklogisticsandsupplychain.com/202
 5PL SERVICE 20
 PROVIDER
ARK Logistics is one of the pioneers in Central Warehousing, C&F Agency with top class carrying & forwarding
services from the warehousing facilities.

 Vendor Management - Vendor Management is the process that empowers an organization to take proper measures for
controlling cost and reducing potential risks

 Integration Of Store Systems With Warehouse Systems.

 Supply Chain Analytics - Supply Chain Analytics aims at improving operational productivity by enabling data-driven
decisions at the operational levels.

 Temperature Controlled Transportation - Transportation of goods that are sensitive to climate and require extreme hot
or cold temperatures.

 Generation Of MIS - A management information system (MIS) is an information system used in an organization for
decision-making, information coordination, control, analysis, and visualization.
 6-PL SERVICES 21
 6PL is a fully integrated and partly automated supply chain
solution monitored by artificial intelligence

 While the concept is still mostly theoretical, it is evident

that the application of AI across the supply chain would
give huge technological advancement.

 For example: an incorporated AI could monitor the whole

supply chain using trends.

 ordering patterns and forecasting models and proactively

send instructions upstream.

 https://aklogisticsandsupplychain.com/2020/03/02/1p
l-2pl-3pl-4pl-5pl-6pl-the-advancement-of-party-logist
ics/
 Amazon 22

· Amazon, a leader in utilizing customer-centric innovation, has redesigned its business

around its AI and machine learning applications, taking it to the next level.
· Some of these required revisiting existing plans, such as the company's robotics division
and its massive Amazon Web Services (AWS) operation.
· The company uses the term "flywheel" to describe how several aspects of its vast
operation operate as a single perpetual motion machine.
· It is called a "flying wheel," because it generates so much power that it drags the entire
organization structure into AI.
· At Amazon, AI is more like a ghost that cuts through all divisions, rather than being
housed in a specific location.
· The corporation introduced its newest Prime Air service in Las Vegas, there are
completely electric drones that deliver directly to clients' doors in less than 30 minutes.
Self-Analysis of the importance of different parameters used 23
in 1pl - 6PL
 7-PL & BEYOND 24
 7PL is the combination of 3PL and 4PL into one (3PL + 4PL = 7PL)Instead of dealing with several people for
various services like inbound, outbound and warehousing, The concept is 'one contract, one bill'.
 If a company looks for both 3pl and 4pl separately, can approach to 7PL directly to cut this cost thereby providing
them both 3pl and 4pl under one service. Some of the 7pl service providers example : AK Logistics and Supply
Chain and International 3PL Intelligent Solutions

 A high-level committee would be expected in an 8PL setting. The advisory group would then break down industry
practices to propose intercessions that connect the holes.

 The 9PL level is tied in with distinguishing publicly supported arrangements that meet last-mile conveyance
necessities. Models incorporate Uber, Swiggy, Dunzo.

 10PL co-ordinations cited the model as to where the supply network turns out to be completely self-aware and
runs itself through AI.

 Example: Supply chain managed by ERP becomes self-aware and takes control from human being.
 Sustainable or Green Logistics 25
 The term "green logistics" is defined as supply chain management practices and strategies that
reduce the environmental and energy footprint of freight distribution, which focuses on material
handling, waste management, packaging and transport.
 Some companies like DHL have already taken external costs of logistics associated especially with
the environmental issues such as climate change, pollution and noise into account.
 DHL has collaborated with Nestle and will introduce sustainable aviation fuel (SAF) to some 200
weekly DHL airfreight flights from the UK's East Midlands Airport and reduce our CO2 emissions
by 70,000 tons per year.
 Neste will supply DHL Express with an innovative new fuel produced from Used Cooking Oil
(UCO) while avoiding palm oil.
 With climate change now the dominant environmental issue of the age, the impact of logistics on
global atmospheric conditions has become a major focus of many researchers
Green Logistics 26
27
CHALLENGES FACED BY 28

INDUSTRY
 Government Regulations

 Fuel Costs

 Technology

 Tracking of Inventory

 Environmental Regulations
 REFERENCES 29

 https://www.statista.com/statistics/1069868/total-global-logistics-market-size-region/

 https://mahindralogistics.com/about-us/

 https://www.maersk.com/supply-chain-logistics/4pl/neonav

 https://www.alliedmarketresearch.com/logistics-market -
 https://www.researchgate.net/publication/264438495_Determinants_of_fifth_party_logistics_5PL_Servic
e_providers_for_supply_chain_management -

 https://lpi.worldbank.org/
 30

THANK YOU!!
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