Mumbai, Maharashtra, India
The era of Third Party Logistics (3PL) has just begun in the ASEAN region, where customers can benefit from the wide range of services provided at a single place. The ASEAN logistics market is expanding immensely due to the growth of consumer markets, liberalization of trade and low-cost offerings of the region.
"The lifting of trade barriers in the region will help 3PL service providers offer more comprehensive and integrated services as well as encourage Multi-national Companies (MNCs) to increase investment in the region," notes Frost & Sullivan Research Analyst Aarthi Nandakumar.
Demand for 3PL in ASEAN also looks set to increase as companies cut costs and focus on core competencies.
New analysis from Frost & Sullivan's Automotive & Transportation Group (http://www.transportation.frost.com) finds that the ASEAN Third Party Logistics Market is expected to generate revenues of US $14.84 billion in 2006 and estimates set to reach US $27.85 billion in 2012.
If you are interested in a virtual brochure, which provides manufacturers, end users, and other industry participants an overview of the latest analysis of the Strategic Analysis of ASEAN Third Party Logistics Market, then send an e-mail to Samantha Unnikrishnan and Surbhi Dedhia - Corporate Communications at sunnikrishnan@frost.com/ sdedhia@frost.com with the following information: your full name, company name, title, telephone number, e-mail address, city, state and country. We will send you the information via email upon receipt of the above information.
Among the top industry challenges facing the ASEAN third-party logistics market include inadequate infrastructure, lack of skilled manpower and technology, surging oil prices and a highly diversified market.
The region is not only highly diversified in terms of geography, culture and economy, but custom regulations also vary among the countries, which creates complications in the function of custom brokerage for service providers.
"The efficiency of services provided by 3PL providers is dependent on the infrastructure such as roads, communications, ports and airports," comments Nandakumar. "A well-established, integrated transport system would help promote ASEAN as a single market and allow free movement of goods, services, capital, and labor, which could boost the logistics industry."
However, the levels of development of infrastructure differ considerably in the ASEAN countries as some countries have inadequate port and shipping facilities and land infrastructure, while poor rural roads in others lead to an increase in transport times and high-related costs.
The inadequacy hinders the development of domestic markets and leads to substantial inter-regional price differences, making it difficult for service providers to offer competitive prices.
Communication is another infrastructure component that needs improvement in the less-developed nations in Southeast Asia for the 3PL industry to flourish. Coverage and efficiency of telecommunication systems in some of the Southeast Asian nations is currently confined to major centers. This needs to spread across the region for the 3PL industry to deploy full tracking and communication systems that can enhance the services provided and ensure increased efficiency of the supply chain.
The logistics industry in ASEAN also suffers from a lack of skilled labor and expertise, especially in 3PL services, which is a drawback in the face of increasing customer demand for tailor-made solutions that distinguish them from the competition.
"Thus, to differentiate themselves from local participants, 3PL service providers need to extensively train their employees to deliver the solutions in-line with customer demands, which is a major distinguishing factor between local companies and MNCs," says Nandakumar.
Strategic Analysis of ASEAN Third Party Logistics Market, part of the 4C02-18 Subscription, explores the potential of 3PL services in the total ASEAN market as well as in individual and key countries such as Malaysia, Indonesia, and Thailand. It provides detailed coverage of key market drivers and restraints as well as industry challenges and also offers in-depth competitive analysis and revenue forecasts. Interviews are available to the press.
Frost & Sullivan, a global growth consulting company, has been partnering with clients to support the development of innovative strategies for more than 40 years. The company's industry expertise integrates growth consulting, growth partnership services, and corporate management training to identify and develop opportunities. Frost & Sullivan serves an extensive clientele that includes Global 1000 companies, emerging companies, and the investment community by providing comprehensive industry coverage that reflects a unique global perspective and combines ongoing analysis of markets, technologies, econometrics, and demographics. For more information, visit http://www.frost.com
Samantha Unnikrishnan, Frost & Sullivan, +91 (44) 4204 4667 sunnikrishnan@frost.com
Surbhi Dedhia, Frost & Sullivan, +91 (22) 50013431 sdedhia@frost.com
Source: Frost & Sullivan (Business Wire India)
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