RESEARCH PROJECT REPORT

ON

E-COMMERCE GROWTH IN INTERNATIONAL MARKET

Submitted in partial fulfillment of the requirements for the award of BBA degree

Submitted by
ARYAN SINGH PUNDIR
BBA IB (2019 – 22)
System ID.:  2019647480

Under The Guidance Of

GAURAV ARORA

SCHOOL OF BUSINESS STUDIES

SHARDA UNIVERSITY, GREATER NOIDA-201306

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Certificate from College

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 DECLARATION

The research project report on “E-COMMERCE GROWTH IN INTERNATIONAL

MARKET " has been undertaken as a partial fulfillment of the requirement for the award of

the degree of BBA of Sharda University . I hereby declare that this Project is my original

work and the analysis and findings are for academic purposes only. This project has not been

submitted by the any student earlier to any other institution/ university.

ARYAN SINGH PUNDIR

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 ACKNOWLEDGEMENT

It is with a sense of gratitude, I acknowledge the effort of whole hosts of well-wishers who

have in some way or other contributed in their own special ways to the success and

completion of this project.

 I wish to offer my deep veneration to Mr. GAURAV ARORA , Faculty Guide, Sharda

University , Gr. Noida, for guided me with all aspects on the entitled “E-COMMERCE
GROWTH IN INTERNATIONAL MARKET "

Place: Signature of the candidate

Date Name: ARYAN SINGH PUNDIR

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 Preface

In order to be useful, theoretical knowledge must be applied to a real-world situation. Real-

world application of classroom knowledge is critical to achieving the best possible results.

As a result, students in the BBA programme are required to submit a project report as part of
their course requirements.

When it comes to international marketing, this project has given me the experience I need to
be successful. It provided me with hands-on experience in the real world of e-services and
helped me prepare for a career in marketing.

"To Study The Services Provided By Banks Through E-Banking" is a project that
demonstrates the various steps and activities that were taken to accomplish this goal.

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 Table of content

Chapter-1 Introduction of E-Commerce v 6-12

Chapter-2 Research Methodology 13-14

Chapter-3 The Growth of E-Commerce: The digital

Economy 15-24

Chapter-4 E-Commerce in International market 25-57

Chapter-5 Strategic Consideration and Expert

Comments 58-62

Bibliography

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 CHAPTER-1
Introduction to the E-Commerce
Businesses need to keep up with the latest methods and trends if they want to succeed in
today's increasingly competitive global marketplace. The advancement of technology,
particularly the Internet, has opened up a new path of opportunity for the world. Traditional
business models have been shifted into a better model that is more efficient as a result.
productive, profitable, and competitive. This is where the term "e-Commerce," which is short
for "Electronic Commerce," comes into play. In today's world, the term "e-commerce" refers
to a broad range of activities carried out over the internet, including the purchase and sale of
goods and services, the transfer of funds, the purchase of goods and services online, direct
marketing, electronic billing, and many more. EWhile -commerce does not change the
underlying nature of businesses, such as their ability to generate profit through the
completion of transactions, it does change the way businesses approach the task of generating
profit. You can access information and conduct real-time transactions at any time of the day
or night, and you don't have to spend a penny of your own money or effort to do so. A
successful e-commerce transaction benefits all parties involved, from the buyer to the seller.
To begin with, it lowers the overall cost of running a business, while simultaneously
increasing advertising market exposure and cutting out the middleman..

1.1 B-to-B or B2B (B2C)

Companies were able to get off the ground because they targeted an Internet-savvy, online-
ready audience when they launched their businesses. To remain competitive in this market,
small and medium-sized businesses (SMEs) need only improve how they market their
products to potential customers.

(B2B) A business-to-business exchange, either within an existing supply chain or with new
trading partners. Even though it has received less attention than B2C activities, the

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manufacturing sector is now gaining more attention because it is far more important for small
businesses in general than B2C activities.

Communication between the administration and the business (B2A)

A third category of E-Commerce is still in its infancy for the business community's
interactions with public sector organisations. B2A applications can be used for everything
from planning applications to VAT returns to income tax returns to patent registration.

Using the Internet to conduct business

Internet or other electronic networks are used to facilitate e-commerce, which is the practise
of conducting business transactions online. Customers (B2C) or other businesses (B2B)
exchange information, goods, services, or money via computers in order to do business
(Business to Business). To be an active participant in the world of e-commerce, you must
engage in some form of marketing, sales, or both to your customers and/or suppliers.

Creating a website and managing the supply chain are two examples of e-commerce
activities.

This includes everything from customer orders (both buying and selling) to invoicing, fund
transfers, inventory management, and providing customer service. In the field of marketing
data research Online transactions are becoming more secure and private because of e-
commerce. Confidential information is no longer at risk thanks to modern Internet security
systems. governments and international organisations like the WTO, organisations like the
United Nations Commission on International Trade Law, and the International Organization
for Standardization (ISO) are all working toward this goal (ISO).

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Access to international markets is fast and easy.

Customers or other businesses were connected to a specific business via a private network
before e-commerce began. The Internet has opened the door to a global market for
businesses.

E-commerce has a slew of advantages.

One of the most important aspects of the Internet to emerge in the last few years is online
commerce. Because its name implies, electronic commerce is the act of transacting business
over the Internet using computers linked together by a network. Using electronic means to
purchase goods or services and transfer money is an example of E-Commerce.

• E-commerce removes the barriers of time and distance, allowing people to conduct business
from anywhere in the world. Anyone, at any hour of the day or night, can use the Internet to
buy or sell anything they want with just a few clicks of the mouse.

• Because there is no human interaction, online electronic purchase orders have a lower direct
cost of sale than traditional methods (retail, paper-based). Both parties benefit from
electronic selling, which eliminates the risk of errors and is faster and more convenient for
the customer. • Narrowly focused products do well on the internet. Few people are interested
in these kinds of products. However, in a vast marketplace like the Internet, even niche
products can be profitable.

E-Commerce also has the advantage of being the most cost-effective method of conducting
business.

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Because of the constant pressures of the market, companies have fewer opportunities to
invest in strengthening their competitive position. The amount of money available to invest
has been reduced as a result of the mature market and increased competition. Changing the
way a business is run can make a difference if the selling price and manufacturing costs
cannot be altered. Because of E-Commerce, the costs have been slashed significantly.

E-commerce has many tangible advantages for buyers as well.

1. Decrease in the amount of time spent by buyers sorting through options.

2. Improved customer decision-making

Resolving invoice and order discrepancies takes less time.

Increased accessibility to a wider range of products.

In order to reduce delivery times, labour costs, and other expenses, it is advantageous for a
business to become "E-Commerce enabled."

Document preparation, error detection, and correction, and reconciliation are all part of the
process.

Preparation of mail

Calling someone on the phone

Data entry 8. Additional hours

8. Expenses related to supervision

There are operational advantages to using the internet to conduct business, such as reducing
the amount of time and personnel needed to complete tasks and reducing the strain on other

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resources. Because of all these benefits, e-business solution providers' powerful turnkey E-
Commerce solutions can be used to harness the power of E-Commerce and convert a
business to business.

Markets and customers, suppliers and contacts, as well as the sharing of information and
reduced costs and time-saving E-business - Security requirements

In E-Commerce, there is a need for user security.

The e-business environment necessitates that the security solution be constantly accessible.
Considering that the solution handles each user's access to the e-business environment,
performance must be taken into consideration. Transaction integrity and user privacy are also
critical to the success of an application.

Both of these requirements must be met in order to establish trust in an electronic

relationship.

A higher level of availability is typically required for business software than for the human
relationships it is intended to replace. As a general rule, online stores and customer-facing
websites are accessible at all times. E-businesses must have the same level of security as
traditional businesses, without a doubt.

Performance:

Systems that take a long time to respond to user requests have a low tolerance from the
public. If users aren't happy, the system's ability to respond quickly to their needs will be
quickly undermined.

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To put their faith in the system, users must have faith in its integrity. The security
infrastructure must ensure that the proper levels of authorization and authentication are in
place in order to maintain user confidence.

Both external and internal parties who are not authorised to have access to a user's privacy
must be protected.

E-Commerce Application Developer Security Requirements

Developers scrutinise the technology used to create a corporate e-business environment, and
for good reason. These programmers place a high value on getting systems up and running
quickly and being flexible in the face of shifting requirements. A secure e-business platform
must meet specific requirements for speed of deployment, flexibility, and scalability, as well
as the ability to be managed.

They are under tremendous pressure to get their applications online as quickly as possible,
which is typical in the e-business system industry. Shopping cart software, for example, is
expected to reduce costs and keep the business competitive. The result is a demand for tools
that are easy to set up and maintain for software development teams.

The pressure to keep improving the product continues even after the initial version has been
released. E-business is constantly evolving, so are the requirements for doing so. As a result,
increasing amounts of pressure are being placed on organisations to increase their capacity.
The rapid pace of change necessitates adaptable solutions.

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• Scalability: Some organisations have found that predicting the demand for e-business
applications is extremely difficult. Instantaneous surges in demand or a sudden increase in
the total number of users may be a problem for applications. To avoid a potentially disastrous
failure to meet user expectations, look for solutions that can be easily scaled.

E-business solutions should be simple to use and should not impose additional administrative
burdens on businesses of any size. A security solution must be easy to administer and
maintain as an organization's e-business grows.

Users should be able to access an e-business application and its security infrastructure "any
time, from anywhere" that supports "pervasive computing." Non-traditional clients, such as
wireless thin clients and handheld devices, are expected to proliferate in the next few years.
Research firm IDC predicts that the number of mobile Internet users worldwide will top 500
million by 2015, growing at a CAGR of over 100%.

E-business security strategies must take into account both current and future generations of
wireless devices if they are to be effective. Mobile and desktop devices can share a security
infrastructure, which is an option to consider. As a result, users have the same level of access
to systems whether they're on a desktop computer or a mobile device. This method saves
time and money because it doesn't necessitate the creation of a separate security
infrastructure for thousands of devices. These devices are taken care of by the scalable and
dependable infrastructure already in place, and any changes to security policies are
automatically applied to the entire fleet. So businesses need products that can support
wireless access in their e-business systems. Users should be authenticated and authorised
using standard-based Wireless Access Protocol gateways when accessing wireless networks
from the enterprise's security infrastructure. Businesses must also ensure that their security
infrastructure is extremely scalable.. The infrastructure of a wireless access point must be
able to accommodate a large number of new devices.

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 CHAPTER-2

Research Methodology
E-importance commerce's and growth in the international market was studied in a survey.
Supply Chain Practices and E-commerce in India were the focus of the questionnaire's
design. The following areas were the focus of the survey instrument:

1. E-importance commerce's to businesses

Reasons for implementing e-commerce

Customer satisfaction and logistics efficiency are both improved by using E-commerce.

The participant's results profile.

FMCG, Pharma, Retail, Automotive, and Paint were some of the industries represented in the
survey. Only a small percentage came from pharmaceutical, food, and beverage companies.

Respondents include employees from both the public and private sectors. More than two-
thirds of the sample consisted of public limited companies and less than one-quarter of the
sample consisted of private limited companies.
Achieving specific business goals and the overall satisfaction of users of E-commerce
implementation and their future plans for using E-commerce
When asked which scenario best represented their organization's current state, respondents
were instructed to place a heavy emphasis on outsourcing. To ensure that our findings were
accurate, we conducted in-person interviews with representatives from a variety of
businesses in the area.
FMCG, Pharma, Retail, Automotive and Paints were among the 50 Indian companies studied
in this study's target audience. The questionnaire was typically completed in a one-on-one
interview with a senior executive of the organisation. The survey received 25 responses
within days of being distributed. The remaining organisations that had not responded to the
initial calls were then contacted again. For the rest of the correspondence, a cover letter and
reply envelope were mailed to the appropriate executives at these organisations. There were
25 responses to the survey within a few days of it being distributed. The remaining
organisations that had not responded to the initial contact were then contacted again.

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Objective of study

Customer satisfaction with E-banking services should be assessed.

As a way to examine the rapid expansion of the international market.

• To encourage the use of e-commerce by providing a safe and secure environment

for transactions.

• To learn about the global impact of e-commerce

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 CHAPTER-3
The growth of E-commerce: The digital economy
According to Euromonitor International, e-commerce is expected to overtake sales at retail
outlets like supermarkets, independent grocers, apparel and footwear retailers, and others by
2021. Retail sales will account for 14 percent of total e-commerce sales in 2016.
Even if more people adopt it in the future, adoption will be uneven. In Asia-Pacific, e-
commerce already has a 13% market share, but in Western Europe, it will take another five
years to overtake it. It is imperative for retailers to customise their digital strategies based on
location, country, and product category.
According to Forbes (Aug 14, 2018)

According to Internet Retailer, global e-commerce sales grew by 18.0 percent last year,
compared to 15.3 percent growth in online sales in the United States. According to our early
projections, consumers around the world spent $2.86 trillion in 2018 on the internet, up from
$2.43 trillion the year before.
In contrast to Internet Retailer's estimates of a 21.3% year-over-year increase in global web
sales in 2016, this would be a slowdown in 2017.
By Jessica Young on Jan. 21, 2019 (digital commerce 360)

According to the most recent UNCTAD estimates, the global ecommerce market is worth an
estimated $22.1 trillion.

B2C ecommerce sales in China are the highest in the world, followed by the United States
and Japan; the latter two countries also have a sizable online shopping population.
On July 19, 2016, the Hindustan Times ET Bureau published an updated version of this
storey.

Internet news
forbes.com

digital commerce 360

E-commerce news

Hindustan Times
Retail

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 E-commerce advantages

There are a number of advantages to e-commerce, including:

Ability to conduct business around the clock:

All day, every day, e-commerce systems can run. Customers and suppliers can
conduct business with you electronically even if your physical storefront is
closed.

• Become a part of the global economy: Because of the Internet's global reach,
you can do business with any company or individual, no matter where they may
be located. E-commerce allows small, locally owned businesses, like record
shops, to sell their wares all over the world. In contrast to traditional methods of
communication, users are not charged based on the distance they communicate
across when using this global opportunity.

Communication across continents and oceans is now possible in milliseconds

thanks to electronic means of communication. You don't have to wait weeks for
a catalogue to arrive in the mail because the Internet doesn't have that kind of
communication delay! The world of online shopping.

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Web-based businesses operate in a global market, which means that their
customers are all over the world. Many businesses may not realise it, but they
are already competing with web-enabled businesses from around the world.

We have the ability to shop around for products and services that may be
cheaper or more effective than we would otherwise settle for because of the
Internet's convenience. A lower price can be obtained by finding the original
manufacturers of some goods online and then purchasing directly from them
instead of going through wholesalers.

Irrespective of operating system or hardware, most computers can communicate

over the Internet,' he asserts. Customers are no longer restricted by the
limitations of their existing hardware.

In a more efficient application development and distribution environment, apps

can be developed and distributed without regard to the customer or business
partner's technology platform. It's no longer necessary to manually install
application updates on computers. Internet-related technologies enable the
automatic deployment of software updates.

When customers interact with businesses at any time of day or night, they
provide much of the transactional data that would otherwise have to be entered
manually by the business's staff. "Customer outsourcing" is a term for this, in
which some work and costs are effectively passed on to the customer's
shoulders.

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Using aspects of e-commerce technology, your business may be able to source
and use products and services from businesses in other countries. This may
seem self-evident, but many people fail to consider the ramifications of online
shopping. Hosting and running some e-commerce activities outside of
Australia, for example, can be simpler and less expensive. In addition, because
credit cards are commonly used in online transactions, many Australian
businesses must set up systems to accept online payments. There have been
some major Australian banks that have been Laggards on this front who charge
a lot of money and make it difficult for small and/or non-traditional businesses
to set up these arrangements.. Consequently, in some cases, it may be more
convenient and cost-effective to set up arrangements that do not rely on the
Australian banking system's involvement. Legal and tax issues may arise as a
result of this, but they can be overcome. Yes, these conditions have an effect on
the national and industry competitiveness of Australia.

• A new method of promoting your product or service

Consumers can now be reached via the Internet, which is an important new
sales channel. According to Peterson et al. (1999), the Internet has the following
characteristics as a marketing channel:
Interactivity and the availability of information on demand. The ability to
provide perceptual experiences that are far superior to a printed catalogue, but
not as rich as personal inspection. The ability to serve as a repository for
massive amounts of data. The availability of powerful and inexpensive means
of searching, organising, and disseminating this data.

Advantages and Disadvantages of E-Commerce

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E-commerce has a number of drawbacks and limitations, some of which are
listed below.
• Delivery time for physical goods:
It is possible to buy a CD or a book at a local music store or bookstore. E-
commerce is frequently used to purchase items from businesses all over the
world that aren't readily available locally, necessitating the delivery of physical
goods, which takes time and money. There are workarounds, such as
downloading music or books as electronic files and accessing them remotely via
the Internet, but these aren't actual physical goods.
Uncertainty in the physical product, supplier, and delivery:
As soon as you take an item out of the store, it becomes yours. The more
familiar you are with it, the easier it will be for you to find it. In some ways, e-
commerce purchases are based on trust. This is because, first and foremost, a
purchase is made on the basis of an expectation of what the product is and how
it will be handled when received. If you have any doubts about the legitimacy
of a company you're considering doing business with, you should stay away
from them like the plague. It's difficult to file a complaint or take legal action
against them. In addition, even if the item has been sent, it's easy to doubt
whether it will arrive at all.
Goods that expire quickly:
If you're visiting Rome, don't bother with gelato ice cream. Because of this,
products purchased and sold over the Internet must be durable and non-
perishable so that they can make it from the supplier to the buyer's business or
consumer without spoiling. This shifts the preference for perishable and/or non-
durable goods back to traditional supply chain arrangements, or to relatively
more local E-Commerce based purchases, sales, and distribution of these
products. As a result, there is a lot of competition for lower prices when it

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comes to long-lasting products. Consumers and other businesses may seek to
purchase directly from manufacturers rather than through intermediaries in
some cases. Only a handful of senses are employed in this work:
Internet users can see images, hear sounds, and read text with the simple
sharing of both visual and acoustic information. Although we can see and hear
images of flowers, but not smell them, or feel the weight and balance of an
actual hammer, we can't use all of our senses in this manner.... To examine
something, we must choose what and how we're going to look at it. Online,
things aren't like this. The features that we would look for in a car in person if
we were inspecting it online are impossible to see when looking at it online. It
is impossible for us to test the car using our other senses, such as by listening to
the engine rev or smelling the leather seats. On a number of levels, it's
impossible to adequately convey the breadth of human experience over the
Internet. Because of the lack of sensory information, people are more likely to
purchase generic goods over the Internet than unique or complex ones.
Merchandise return:
It can be difficult to return items purchased online. This process exacerbates
some of the initial payment and delivery uncertainties. Is the merchandise going
to be brought back to its original location? Who is responsible for the return
postage if the package is returned? Is it certain that I'll get my money back? Is it
possible that I will be left with nothing in the event of my death? What's the
expected turnaround time? This is a stark contrast to the experience of returning
a product to a store.
A number of concerns have been raised in this case, including privacy, security,
payment information (such as credit card numbers), identity theft, and
contractual obligations. Questions have also been raised about which laws and
jurisdictions apply in each of these scenarios.

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E-commerce is a useful tool for everyday transactions like the sale of well-
known and well-established services, as well as for the unexpected. It is not
suited for dealing with the unexpected or new. Hippopotamuses and book
orders wrapped in polka dot paper and bows are just two examples of unusual
requests that may come up in the course of business. Human intervention is
required to investigate and resolve such requests.
Even though some human contact can be facilitated via web, e-commerce
cannot provide the richness of interaction that personal service provides. When
it comes to e-commerce, a counter attendant rather than a salesperson is the
norm for most businesses. When it comes to product and service feedback, e-
commerce approaches can result in a more granular or even loss of information.
As long as you only get information about online sales, you don't have enough
information to make changes to your E-Commerce strategy and product and
service offerings. Using E-Commerce to its full potential necessitates a strategy
for obtaining and utilising customer feedback. It's critical for businesses to keep
up with the rapid pace of Internet-based change by understanding, anticipating,
and meeting the changing needs and preferences of their online customers.
E-commerce is primarily conducted via credit card payment facilities, so small
and large transactions are less likely to be completed online. The cost of
transporting physical goods has an impact on the size of transactions. For
example, if you buy a box of pens online from a US-based business, the
benefits or conveniences of doing so tend to be overshadowed by the cost of
having them delivered to you in Australia. Because the goods can be packaged
and shipped together, it is more expensive to buy individual items from a
variety of overseas businesses than to purchase all of the goods from one
overseas business.

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There are a few complaints made by Australian e-consumers that are reflected
in this chart (Figure 1.1).

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 CHAPTER- 4
E-commerce in International market:

This is the right place for you if you've already decided to enter the world of e-commerce,
but you'd like to learn more about your options and the necessary skills.
For Electronic Commerce professionals, the Internet and e-commerce technologies have
opened the floodgates. It's incredible how many businesses are doing business online now,
and how much demand there is for qualified professionals as a result. There is a growing
need for experts in a variety of fields, not just those with expertise in cutting-edge
technology.

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E-Commerce Site design and development; content development; web
programming and application development; database administration are
all in high demand.

E-commerce is exploding on the global stage.

hyperexpansion Now, that's how e-commerce is being described by people.

All kinds of businesses are jumping on the e-commerce bandwagon in a bid
to grow their businesses and become Amazon's next big competitor. There
isn't any reason why it couldn't be done. Smaller companies have the
freedom to operate online in order to compete with a brick and mortar
giant. To see who can seize the opportunity first, it's a race Several reports
claim that the industry is on the verge of a major boom. An ActivMedia
Research study focuses on e-commerce sites with revenue exceeding $100
million and annual growth rates of more than 1,000 percent. Because of the
increasing number of people using the internet, these numbers are only
going to rise further. Online purchases increased from 18 million in
December 1997 to 128 million in 2002, translating to more than $400 billion
in transactions, according to the International Data Corporation (IDC). In
1998, Internet businesses in the United States brought in a staggering $ 300
billion.

It's called E-Commerce, and it's all done online.

As the number of people using the Internet continues to rise, so do your

online career prospects. It's no secret that the internet has taken the world
by storm. As a result, the Internet has become a more popular means of
communication in more countries than any other form of media. Over the
next three to five years, the majority of this growth is expected to take
place in Asia and Latin America, rather than the United States and Europe.

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Historically, Latin America has shown that it is willing to
invest in E-commerce growth.

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 Impact of E-commerce in International market:

Changes to the Business Mechanics: E-Commerce International Growth:

Marketing Impact:

Small businesses as well as multinational corporations are being affected

by the Internet and E-Commerce revolution. It's a double-edged sword to
adapt to the new environment, as other suppliers may use E-Commerce to
gain an advantage over you and reduce your market share.

It's not an option to ignore a problem!

Consider the "market" before deciding how to incorporate E-Commerce

into your business. You can't control everything that happens outside of
your company's control: changes in the political climate, in the economic
climate, in the laws of the land and so on. E-commerce is a form of
electronic commerce. If you want to remain competitive in the future,
you'll need to adjust your marketing plans to reflect the new realities
brought on by the rise of online shopping. If you want to improve your
company's chances of survival and success, you should look at the
marketing environment over the long term and see how it will affect your
business in one to three years.

Affect on sales of expanding E-commerce internationally

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How Do You Get Started with Internet Marketing?

E-Commerce is now a viable option for most businesses, but how should
they go about implementing it in the most efficient and effective manner?

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 CHAPTER- 5
Strategic Consideration and Expert Comments

FMCG

Major manufacturers are increasingly relying on E-commerce for both

warehousing and transportation in the consumer logistics market.

While a sizable portion of the Indian manufacturing industry prefers to

run their own warehouses, they outsource the transportation functions.

Logistics and distribution are expected to play a key role in the FMCG
sector's expansion into rural Indian markets. This industry has a bright
future in logistics, which includes transportation and warehousing.

However, feeding the current 6 million retailers on a real-time basis

remains a challenge.

There are hopes for a brighter future for the paint industry in India
because of recent infrastructure developments and rising sales in the
automobile and white-goods sectors.

A logistical threat may be posed by Asian Paints' tinting machines, which

eliminate the need for warehousing and inventory management altogether.

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For an industry that has more SKUs and is more deeply rooted in India,
3PL companies working with e-commerce can still find success.

Inventory management will be the primary concern, as you must supply

millions of retailers with tens of thousands of SKUs.

PHARMACEUTICALS

Patent laws of 2005 forced Indian pharmaceutical companies to shift their

focus from reverse engineering to R & D, manufacturing, and product
development, resulting in lower-cost medicines for the world's poor.

Due to temperature and safety concerns, logistics and E-commerce will

play a significant role in transportation and warehousing in this particular
industry.

In order to take advantage of the opportunities in the pharmaceutical

industry, 3 PL companies need to learn about the unique storage and
handling requirements for chemicals and pharmaceuticals. A competitive
advantage over the other three PL competitors will come from having a
well-trained workforce.

Because of government regulations, 3 PL companies will face challenges in

this sector despite a growing market and plenty of opportunities, despite
the fact that the government has imposed numerous certifications and
registrations on these companies.

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AUTOMOBILE

India's manufacturing sector as a whole is the fastest growing in the

country. An increasing number of The 'Made in India' brand is being
spread around the world by Indian OEMs and ancillary companies.
Automakers such as SKODA, which has a plant in Aurangabad, India,
have started sourcing from India or making India their manufacturing hub
for Asia..

This industry operates on a just-in-time (JIT) basis, with the main

production facilities surrounded by numerous support units that feed in
real time. Since inventories are calculated on an hourly basis, the
importance of logistics service providers cannot be overstated.

Consequently, 3PL companies can play a feeder role to OEM

manufacturers from the surrounding ancillary units, and even a custom
bonded warehouse is needed in this sector because many manufacturers
waste their productive land on storage of completely built units.

There are dedicated trucks for transporting automobiles. TVS

transporters, for example, specialises in this specific type of transportation
and could be an excellent ally.

In addition to the fact that India exports a significant amount of vehicles,

from the TATA Indica to the Mahindra tractor trucks, an E-commerce
facility with freight forwarding and customs clearance divisions will be
beneficial for India.

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CUSTOMER-SERVICEABLES

India is home to a dwindling number of companies in this industry.

Roughly 90 percent of the country's goods come from Thailand, China, and
Singapore. Fully Constructed Buildings.

International freight forwarders and customs clearance agents are

preferred by the company. Distribution and storage are critical factors,
and this is When the opportunity arises, these multinationals are prepared
to switch to a more efficient and cost-effective 3 PL provider in India,
where 3 PL companies are finding more opportunities. However, the
current setups of existing E-Commerce facilities in India have reached an
early stage for these MNCs..

Three-party logistics providers (or 3PLs) are becoming increasingly

prevalent in transportation and warehousing as a result of the rise of E-
commerce.

From a supply chain perspective, there are two types of location

advantages in India. For starters, Supply chain management hubs and
spokes are linked by commercial agreements or C&Fas (basically,
independent space providers).

To reach the vast landmass of India, practically every industry relies on

carrying and forwarding agents (C&FA5). They are a necessary
component of every business.

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Among 3PLs, these are the earliest and most efficient in terms of
warehousing, transportation management, and information management
in the industry.

Like a logistics provider, a clearing or carrying and forwarding agent has a

large role in warehousing, but they do so on a smaller scale. For the most
part, the FMCG, paint, and durable goods industries rely on C&Fas
because of their expertise in breaking bulk and ensuring supply to the final
stockiest. When it comes to stockholders, the C&FAs acts as a middleman.
In his warehouse, he keeps the goods that have been shipped from the
factory. Companies in high SKU industries like FMCG, food, paint and
consumer durables prefer not to keep inventory because of the high volume
of goods produced at their end. Unlike a logistics provider, C&FAs do not
offer the ability to track and trace or manage a fleet. Most senior logistics
officers with whom we spoke agreed that their C&F agent provided them
with all the services that a logistics provider could provide and that the
difference was merely a change in jargon..

India has had a long history of C&FAs filling the gap between global
markets and local manufacturing. 3PL warehousing is not a necessity for
Indian industry. Because of this, C&FAs typically operate in their local
area and aren't constrained by corporate plans or the economies of scale
that come with a 3PL in conjunction with E-Commerce.

Commentary from an Expert: 3 Pl and E-Commerce.

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By investing a significant amount of money in their business, 3 PL should
build trust in their customers by relying on the services of other service
providers instead of collaborating with companies like Blue Dart, etc.,
which are ranked second and third in their respective sectors, respectively,
in terms of quality and efficiency. It is critical that a 3PL service provider
has a thorough understanding of the company's operations before creating
an environment that is open to customer input and allows for two-way
communication.

It is especially important for pharmaceutical companies to prepare their 3

PL providers to deal with the complexities of licencing, drug regulation
acts and authorised signatories.

Place utility is one of the four P's of business utilities provided by 3 PL

players, so they should prioritise providing the Place Utility to customers.
Instead of focusing on each individual link in the chain, they should focus
on the overall profitability of the business.

Even with adaptable IT systems, 3PL must function as a shadow of their

customer in a literal sense. (E-commerce)

Mr. K Ramkrishnan, the company's general manager (SCM)

Johnson & Johnson Companies require only two things from a 3PL service
provider: first, delivery and reliability, and second, overall cost-cutting
through e-commerce development in their businesses.

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Head of CEAT Logistics, Mr. IndranilMujumdar.

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