Supply chain market overview

Indias supply chain has evolved to became a key and integral part of Indian business processes. This has been done by several initiatives from the government and increase in spending. Supply chains consists of many other things such as freight, warehousing, inventory carrying and sourcing. Most of the market is dominated by unorganised players while organised players only hold around 20 percent market share. Logistics, warehousing and inventory holdings take up most of the market share in terms of supply chain spending. Indias logistics cost are very high compared to other developed countries like Japan and USA showing that there is room for improvement in making logistics and supply chains more efficient. Despite all the ongoing advancements there is still a lot of room to improve on like in F&B sometimes limited refrigerator space causes rotten food. Ware houses are expected to grow at a very fast pace with a 12 percent CAGR. Third part logistics sector holds 33 percent in the organised warehouses. Lots of private firms are starting to incorporate warehouse automation. Pallets are flat tools that stable cargo during transportation. By using pallets you can increase supply chain efficiency, reduction of costs, and worker safety. India is quite behind in using pallets and that is a major growth opportunity. Some growth drivers for the global pallet market is rising industrial output, time sensitivity of logistics, and the growth of e commerce. With the rise in supply chains pallet consumption is rising in India. Growth driver for the pallet market in India are Surge in demand for grade A warehouses and vertical stacking, automation of supply chains, and growth of end user sectors. The major end users of pallets are F&B, FMCG, automotive and commerce. Pallet pooling is going traction and it’s where companies don’t own the pallets they use but they rather borrow them when needed. Benefits of these are asset light and cost efficiency, optimised supply chain efficiency, and higher flexibility. The proportion of pooled pallets form pallets is expected to increase to 44 percent. In mature market pallets are normal because of labour costs being high. This presents a good growth opportunity for India. In India this segment is expected to grow at a CAGR of 13.6 percent. The Indian pallet pooling industry has high barriers to entry leading to the industry being dominated by some comapnies. Leap India holds 90 percent of the market share in this industry. Containers are used to protect goods while they are in shipping. The three main types of containers are Foldable Large containers which are ganging traction for being light weight. Crates which is used for heavy and large loads. Utility boxes are used in F&B to make sure that the food is in the right condition. They are the largest on demand asset pooling company in Indias supply chain management sector. The three things that they offer are pallets, containers, and machines. They have had over 900 customers. The strengths and opportunity in the business are rapid growth expected, market leaders, and a very wide and extensive network of suppliers. They have over 900 customers. Overview. Leap India is a company in the supply chain process with a focus on helping supply chains in inventory carrying and transportation of cargo. They have a 90 percent leadership in the pallet industry. Pallets ar underused in India because of labour cost being low but as labour costs rise pallets are going to be use more and more.