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Hi ,
I am a student doing my MBA.
At present I am doing a compensation survey across 3 industries i.e. logistice, insurance and banking industries.
As per the results of the survey, I reasiled that logistics industry pays very less compared to the other 2 industries.
Can anyone tell me the reason as to why this difference. Why does logistics industry pay so less.

From India,
Logistics do pay on par with banking and insurance... I think you are mixing up logistics with transportation sector/companies. As Logistics solution provider provides end to end solutions including the documentation, warehousing, transportation, invoicing etc.. thus becoming into itself a supply chain management company

If you go through the entire history of all the three sectors you would come to know that while Banking and Insurance were basically managed by government / PSUs the transportation sector was managed by private sector..

Further with banking and Insurance sector you need to have that extra knowledge, so mostly graduates / post graduates [and now for insurance you require special qualification]. Qualified people with required qualification are in shortage. So the law of economics plays the role here of demand, supply and price.

As for the logistics sector, it grew virtually from one single company i.e. Transport Corporation of India Limited, which is a closely held company of Agrawal Family [now the company has been divided into GATI Ltd., TCI Ltd, Bhoruka and other such firms] They initially appointed people basically from their village, who were hardly 4th class of 5th class pass. This people were able to join for much lesser salary then others. [though the intention was to help their fellow villagers] . As some of the 4th class / 5th class people performed well and were promoted to higher levels. Later on they TCI started recruiting graduates and post graduates. This employees needed to be paid higher, but at the same time, TCI had a fixed pay grades and so the salary was not increased.

As almost all the major indian transportation companies have grown out of TCI,[either relatives of Mr. Agrawal or ex employees of TCI] they followed the similar structure of pay.

Since late 1990s the salaries in this sectors have gone up substantially with new players [such as Safe Express, TNT Worldwide] coming in to attract the available talent.

If you are really interested in further information, inform me... I have worked for logistics people for nearly 5 years...

From India, Ahmadabad
that's good input ajmal,
even i think tvs logistic one of the booming company in this field pay good salary and that company is going for great expansion..
even i have head of company called bux global india which also pays good level that much bad.. if you take general personal insurance then rates which they get may be less...

From India, Vadodara
We had conducted a COMPENSATION SURVEY. we just realised that logistics induatry cannot be compared to an insurance industry.
Of course, the logistics industry have begun paying much better salaries, but when compared to the insurance industry. the variations are vast.

From India,
hi ajmal,
ya i am doing my second year of MBA.. my intention was on the 1 and not on 2 and 3.. then in my post i didnot say that he is wrong in any of my sentence.. then about the 3 point.. i asked joan this question for this you have asnwered then if i can say even you are trying to put post to increase your grade also.. expeirenced that doesnot mean people can judge others more easily... ya it may be i am slow and forgot my first year and asking it... you are intelligent to remember it..
i asked him so that i can learn how he has really gone with the surevyy... okkk.. i think you can got it..
i thought if i ask him this can give some more clear picture on if he has asked any calculator anyother ratio method taking samples..
ok i think i put my intention towards you in proper way...
ok see u
have a nice time

From India, Vadodara
Hi sreenivasan.... I have given reply to this post directly to your personal account... By the way... I have answered to the reason number 1 in my previous post...
From India, Ahmadabad
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