3PLs (Third Party Logistics Providers) as a Supply Chain Strategy in Integrating the Distribution Network for Reaching the Unreachable Rural Consumer

International Journal of Economics and Management Studies

© 2016 by SSRG - IJEMS Journal

Volume 3 Issue 9

Year of Publication : 2016

Authors : VishwanathKumbar, Dr. G. Srinivasa, Mrs. AnuradhaBhushan

10.14445/23939125/IJEMS-V3I5P115

How to Cite?

VishwanathKumbar, Dr. G. Srinivasa, Mrs. AnuradhaBhushan, "3PLs (Third Party Logistics Providers) as a Supply Chain Strategy in Integrating the Distribution Network for Reaching the Unreachable Rural Consumer," SSRG International Journal of Economics and Management Studies, vol. 3,  no. 9, pp. 13-18, 2016. Crossref, https://doi.org/10.14445/23939125/IJEMS-V3I5P115

Abstract:

Rural market is the heart of India. Hard selling to the heart of India is a formidable challenge because reaching 6 lakh villages and feeding a retail network of over 35 lakh village shops is a distribution night mare. Research shows that despite an increase in the number of consumer class households and levels of disposable income, 68% of the rural market still lies untapped primarily due to inaccessibility. The saturation of urban markets and growing potential of rural markets have forced marketers to adopt out-ofthe box thinking to come up with innovative solution, to ensure that the products reach remote locations.3PLs (Third Party Logistics Providers) can be considered as an innovative, cost effective, sustainable model for rural distribution. The paper finally highlights the role of 3PLs in supply chain aggregation, supply chain surplus, advantages and risks associated with 3PL in SCM in the rural areas and how to overcome these risks in order to increase the supply chain surplus and value to the rural customers.

Keywords:

3PLs, supply chain surplus, rural distribution.

References:

NO Reference