The supply chain and logistics industry, which broadly covers freight transportation, warehousing, packaging, customs clearing and forwarding, inventory management, labeling, and order processing, has benefited from the growth of the Indian economy in general and the manufacturing and services sector in particular.

The major industries contributing to the logistics market include pharmaceuticals and chemicals, automotive, computer peripherals, FMCG, engineering products, machinery, retail, and healthcare. These industries are also opting to outsource their logistics requirements to specialized service providers, called Third Party Logistics (3PL) service providers. Of late, the concept of Fourth Party Logistics (4PL) service providers, acting as a single interface between the client and multiple logistics service providers, has also started gaining popularity.

According to estimates, the Indian logistic market was worth Rs. 5.3 trillion in 2006-07 and was expected to grow at an average annual growth rate of 6.4%. With the government giving a thrust to infrastructure by way of national highway projects, expressways, urban renewal plans, and investment in railways and port facilities, the implementation of VAT and rationalization of the taxation structure, the logistics industry is poised to grow at even faster rates. Logistics companies are expected to develop large regional warehouses. All major players such as the Container Corporation of India, the Transport Corporation of India, Blue Dart Express, Gati, the Shipping Corporation of India, and GE Shipping have aggressive plans to seize the emerging opportunities.

The Indian logistics market is highly fragmented. Although worldwide, better supply chain management has reduced logistics costs by nearly 1%, in the last ten years, the Indian industry has failed to match the world's best markets on efficiency. However, Indian industry is increasingly adopting more sophisticated logistics and supply chain management practices to gain a competitive edge. Technology deployment such as Radio Frequency Identification is also redefining the industry and improving efficiencies.

Managers in the logistics industry would need to have a thorough understanding of the market in order to compete and sustain high growth. They need to understand their customers better, plan better to meet delivery deadlines in spite of exigencies, and be more efficient in utilizing their assets. The players would also have to upgrade their knowledge and understanding of international distribution.

The Master in Logistics Management Program introduces students to the opportunities and challenges in this dynamic and growing industry.