Table of Contents Introduction .......................................................................................................................... 1 1.1. Industry Background .............................................................................................. 1 1.2. About Agility Logistics ............................................................................................ 4 1.3. About National Logistics Cell .................................................................................. 7 0 Chapter 1 Introduction 1.1. Industry Background Transfer of goods / services at right time in right condition from place of origin to its final destination is called Logistics. The concept of Logistics comes at the time of ancient war between Roman and Greek Empires, when the duties of “Logistaks” were assigned to military officers in addition to distribute the resources of ammunition / man power so that they can utilized right power in right direction at right time and efficiently. They know that through the efficient distribution channel they can win the War. Modern Logistics Management of this era is based on that ancient concept of Logistics. Pakistan is emerging as a regional hub and is likely to play vital role in linking huge economies of China and India. However, there are no worthwhile organized Logistics and Transportation Companies in the Country except some, which can take on the emerging opportunities. Furthermore, Pakistan itself is developed market of 160 Million people, where organizations, require efficient and cheaper freight movement that also plays important role in alleviating economic problems of the people. 1 Third Party Logistics (3PL) In 1990, this concept of Third Party Logistics (3PL) emerged/introduced in the United Kingdom (U.K) and after that got popular in The United States of America (U.S.A). Third Party Logistics Contractors provide the facilities of logistics to their clients and considered as specialized professionals (logisticians) using modern techniques/procedures of supply chain management hence diversifying cost and operational risks of the principal organization. 3PL / TPL mean the Third party logistics is the type of Logistics where principal firm / organization, outsource its logistics / distribution activities by hiring the services of third party logistics contractor called 3PLC. Third Party logistics contract provide the facilities to their customers like transportation, warehousing and distribution from their designated areas to final destinations. After awarding the Contract of 3PL, its responsibility of Contractor that he will perform efficiently / strategically the activities of distribution, logistics management, storage and warehousing on behalf of the company. Demand of third party logistics (3PL) is increasing day by day as more organizations are interested to outsource their log-ops to reduce their cost, work load and lead time hence maximizing profits, improving management and reducing risks. By acquiring the services of a Third Party Logistics Companies; Organization can track operational progress that will be helpful in evaluating the patterns that require integration with supplementary supply chain support to test the potential in new or existing markets where your company doesn’t currently have a presence without taking the full plunge and opening a new distribution center. Whereas, in seasonal business nature using a 3pl provider allows you to scale your warehousing space, labor, and transportation to provide full support during the peak months of 2 your business while cutting back during slower months as it increases overall lead time/ performance and realize efficiencies with the management of your inventory by using a 3PL provider that has superior technology and processes than your in-house operations. Moreover to take advantage of lower transportation rates provided by logistics firms that have significant buying power due to the volume of freight they deal with and their ability to leverage load consolidation and backhaul opportunities and quickly build a multi-location distribution network with lower risk, without the significant capital investment associated with building out a network on your own. Outsourcing logistics has been and will continue to be a source of competitive advantage for most companies. Some of the many benefits of using a 3PL provider include: Greater flexibility(variable cost) Improved operational efficiency Enhanced customer service capabilities Reduction of capital expenditures (equipment, distribution centers.) 3 1.2. About Agility Logistics Agility was established 1979 at Kuwait and now Agility Logistics considered in largest logistics companies in the Middle East. Agility start their business to provide the facilities of warehousing in Kuwait. It has around 40 logistics brands in the world having its offices in 100 countries. Now they are providing the complete facilities of supply chain management to the organizations all around the world. Agility Pakistan start their operational activities in Pakistan since 2001, it has 8 offices all around the Pakistan and five (5) warehouses having 1 million square feet space. Agility logistics providing the integrated supply chain facilities to their customers in various industries like FMCG, Pharmaceuticals, Telecom, Chemicals, Engineering, Oil & Gas and Government Services. Agility Logistics Pakistan having 400 transport fleet with GPS tracking system. They have major offices in Pakistan at following locations:1. Karachi 2. Multan 3. Faisalabad 4. Sahiwal 5. Lahore 6. Sialkot 7. Islamabad 8. Peshawar Agility Pakistan is providing following services in Pakistan:Customer Clearance Services Agility Pakistan offers country-wide customs clearance services at all ports and hub airports. Their expert teams ensure timely clearance for import and export cargo and advise customers on various queries related to custom duties and taxes. 4 Inland Logistics Agility Pakistan offers dedicated supply chain management to their clients according to their requirement. Their logistics centers are located at Karachi, Lahore, Faisalabad and Islamabad catering to the FMCG, Pharmaceuticals, Telecom, and Oil and Gas sectors. In addition, they are also operating cold storage facilities in Karachi, Lahore and Islamabad. Warehousing Agility Logistics providing the facilities of Warehousing to their customers in Pakistan at following locations:1. Port Qasim, Karachi 2. Multan 4. Faisalabad 5. Islamabad 5 3. Lahore Air Freight Agility Pakistan is offering the services of Air Freight with integrated supply chain management. They have partnership with leading air companies. They are providing these facilities in Karachi, Lahore, Islamabad, Sialkot and Peshawar. Sea Freight Agility Logistics have a wide range of experience in the field of Sea Freight. They are providing the facilities at Port Bin Qasim and Karachi Port. Both Ports are more important according to imports / exports. 6 1.3. About National Logistics Cell National Logistic Cell also known as “NLC” was established in 1978 as a crisis management organization of Federal Government. NLC works with close coordination of Pakistan Army. Service / Retired Army Officers / Soldiers came in NLC and provided their services to the organization. The prime function of NLC is to provide a back up support to the armed forces in peace and war and resolve logistic issues in transportation of important commodities. Therefore, Armed Forces personnel have to be actively involved in administration, management and control of NLC. NLC ensures smooth transportation of essential commodities all over the country on a self supporting basis, without placing any burden on government resources. Presently, in Public, as well as, in the Private Sectors, NLC is the largest Freight handling Organization in the Country. Brand name NLC is well recognized and well respected within and outside Pakistan in relation to Transport industry. As far as, Army is concerned, NLC Logistics Support is firmly imbedded in the actual Logistic Plans. NLC play an important part to support Pakistan Army / National Disaster Management Authority (NDMA) in transportation of emergency relief. NLC also serves as the “Crisis Management Arm” of the Government to handle and diffuse logistics emergencies. Since 36 years NLC has successfully done safe transportation and speedy delivery of essential commodities throughout the country. NLC introduced the concept of containerization, which has changed the transportation culture in transportation industry of Pakistan forever. NLC Transport operations are conducted in a manner to 7 ensure effective command and control through a state of the art 'Fleet Management System', real time monitoring of consignments through the most modern ' Tracking System'. NLC has started an ambitious program of establishing Trans Freight Stations facilities on all the South and North communication corridors of the country. Now NLC is one of the biggest Public Sector Transportation organizations in the world. NLC is also frequently employed by the government to handle emergencies in the national logistic cycle. Commodity shortages, natural calamities or transporters' strikes often put strain on the country's logistic system. NLC is then called into restore normalcy through professional handling of the crisis situations. National Logistics Cell is providing following services in Pakistan:Inland Logistics NLC offers dedicated supply chain management to their clients according to their requirement. Their logistics centers are located at Karachi, Hyderabad, Khairpur, Bahawalpur, Faisalabad, Sahiwal, Lahore, Gujranwala, Sowan Camp, Rawalpindi, Amangarh and Chaman catering to the Fertilizer, FMCG, Pharmaceuticals, Water Services, and Oil and Gas sectors. NLC Dry Ports and Terminals NLC is leading the drive to establish Dry Ports in Pakistan. It exclusively operates the Karachi and Lahore Dry Ports. In addition, NLC also established modern Container Freight Stations at Lahore and Amangarh. NLC also handles international freight transiting Pakistani ports and offers warehousing facilities to United Nations World Food Program, UNHCR, UNICEF and other donor agencies. Warehousing 8 NLC owns both covered and open warehouses throughout the country. It offers covered accommodation of over 50,000 sq m and open warehousing facility of 0.5 million sq m for containerized cargo at Chaman and Amangarh. 9