Tata Strategic studied the logistics needs of various industries and the economics of transportation. Key cost drivers were identified. Solutions like maintenance contracts and vehicle tracking were identified in order to improve transporters’ asset utilization. The pros and cons of hiring logistics services were also studied. Accordingly, third party logistics, multi modal transport and Internet-enabled business models were recommended to reduce logistics costs. Besides, an Internet-enabled business model was developed to address the needs of the shipper and the transporter.
While the client is implementing some recommendations, it has initiated further studies on the economics of individual solutions.
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