The cargo transport industry, both domestic as well as international, has undergone a rapid change in the past few years. The massive boom in the consumer durable and non- durable industry that has increased the pressure on the cargo movers is at the same time creating multiple avenues for them. What is clearly visible is a rapid paradigm shift. With ever- increasing demands for better, faster and safer cargo movement, the local as well as global players are being pressed to upgrade services and provide innovative alternatives for efficient supply chain management.

The cargo transportation Industry today is not just about transporting goods, but about providing complete supply chain and logistics solutions.

In an increasingly pressured market, companies are now looking to logistics providers to add value to their products. A consumer electronics company, for example, sources its electrical components from all over the world. Rather than managing its supply chain, distribution network, warehousing and storage facilities, as well as being responsible for the "value-added" services that happen en route, the company is much more likely to farm out the whole operation to one or several companies instead, which will be responsible for providing or managing part or all of the supply chain. It helps in reducing their lead times which reduces their inventories and working capital.

The expansion from traditional freight forwarding services into third-party logistics is still a relatively young concept but more and more companies are seeing the benefits. As markets become more global , and companies come under more pressure from shareholders, the drive is to concentrate on core competencies, and to outsource the distribution system. The logistics provider will often work closely with the OEM and the retailer to establish delivery details such as pallet configurations , whether any specific labelling and packaging is required, and to agree delivery times and EDI links.

The software providers, analysts think, will play a large part in developing the market. Foreseeing an increase in competition from the IT sector, superior software to manage information are expected.