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Apart from the growth in economy, increased outsourcing and VAT implementation has also driven the Indian logistic industry. Many multinational companies are outsourcing their logistic services as more and more companies are venturing into the country to source cheap raw materials.

These raw materials are then transported to the company’s manufacturing hub for assembly and complete formation. Further to that, the implementation of VAT has reduced the pressure on manufacturers. Earlier manufacturers were forced to open their warehouses across all states in order to avoid double taxation but the phase out of CST has eventually helped them do their business in a friendlier environment.

The need and urgency of the improvement in the logistic industry is greatly felt and pushed by the government. At present there are certain obstacles like poorly developed infrastructure, complex regulatory compliance, and limited utilization of technology on the way upwards. Under-developed infrastructure like roads, communication, and ports is a huge blocking obstacle in the path of success but the government is going deep into the matter to resolve these hampering issues and heighten the reach of the industry.

Logistics management is that part of the supply chain which plans, implements and controls the efficient, effective forward and reverse flow and storage of goods, services and related information between the point of origin and the point of consumption in order to meet customer and legal requirements. A professional working in the field of logistics management is called a logistician.

Logistics management is known by many names, the most common are as follows :

* Materials Management
* Channel Management
* Distribution (or Physical Distribution)
* Business or Logistics Management or
* Supply Chain Management

The expanding reach has compelled logistic industry to spur cross-border trade. Regardless-of this outbreak of activity, it is commonplace also for expert managers of local logistics to get acquainted with the complexity of international trade logistics. Global transportation and relevant services includes much complex documentation than for domestic shipments. It almost includes longer delivery times. Evaluation of the arrival times of international shipments is just a magic than solid fact.

Thus, even the largest multi-national companies avoided logistic services on a worldwide basis. They opt to establish their operations in each country and let them to manage logistics individually.
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