The biggest challenge faced by the industry today is poor integration of transport networks, information technology and warehousing & distribution facilities. Regulations existing at different tiers are imposed by national, regional and local authorities. However, the regulations differ from city to city, hindering the creation of national networks. Trained/ skilled manpower is essential for the third party logistics sector and the manufacturing and retailing sectors. There is acute shortage of skilled manpower which is badly affecting the logistics sector, IT, warehouse /supply chain as well as at the higher strategic level decisions and delivery of services. The logistics sector is in a disorganized state in India. The general perception of logistics being a manpower-driven industry and lack of adequate training institutions have created crisis of skilled management and client service personnel. Poor facilities and conservative management lack compete view & sensitivity of service requirement/ delivery, are main reasons behind high levels of loss, damage of stock, mainly in the FMCG/ perishable goods/ cargo. The problem arises mainly because of the absence of specialize infrastructure/ equipment, like cargo specific storage facility, adequate and suitable handling equipment , proper refrigeration . It is essential to prioritize research and development so that the weaknesses in the industry can be taken care of and improved.