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All You Wanted To Know About Third Party Logistics India

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By Author: Kumar Ram
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Third party Logistics

Third party Logistics or 3PL is nothing but outsourcing of logistics operations by an organization to another company. This may involve outsourcing all the operations that form part of the supply chain or some of the operations. Outsourcing is popular nowadays in all industry sectors, the reason being it is cheaper and allows a business to focus on its core work. It is estimated that more than 85% of the top Fortune 500 companies have outsourced their logistics operations to a third party.

When to outsource?

Third Party Logistics India involves selecting a 3PL company to handle your logistics work. The question is when should you outsource your logistics or what are the criteria to decide whether to outsource or not?

Here are a few pointers to help you decide about when to outsource logistics:

• If your business is going to increase or you are expecting a high volume of orders, then you can think of outsourcing. A sudden increase of business as a response to a marketing strategy or because of peak season would put tremendous pressure on your logistics team. You may have to expand your logistics work. This is when you can think of outsourcing.
• If the number of orders you are servicing are putting a load on your team and they are finding it difficult to manage, then you must plan to outsource.
• If the storage space in your warehouse is getting filled up, then you would have to add a new warehouse. This is when you should outsource instead of spending money to increase storage facility.
• When you do not have the latest technology and are finding it difficult to manage your operations, then outsourcing to one of the top 3pl Logistics Companies in Mumbai will help you bring in the benefits of technology.
• If you are facing problems in delivering orders on time and are facing complaints from customers, then you need to take quick action. Outsourcing to a good company will help you improve the overall efficiency of logistics operations and keep your customers happy.

What should you outsource?

You can use the services of a third party logistics company to outsource any of the following processes:
• Warehousing: The warehouses would be managed by the 3PL company, who would have the facilities and technology to effectively manage the warehousing processes. It also involves management of inventory.
• Distribution: This involves managing the movement of the product from the company to the customer or to the place where the customer would buy the product.
• Transportation: This is the actual shipping of goods from one point to another. It involves dispatch of goods and tracking its movement.

Benefits of 3pl service

• It helps to save money as costs of operations are reduced.
• It leads to improved operational efficiency.
• A 3pl company would be a professional organization that can ensure that the entire logistics operations are handled effectively. The experience and expertise of the 3pl company will be helpful for the organization that outsources its logistics operations.
• The technology adopted by the 3pl company can be utilized by the client to improve its operations.
• The overall benefits of 3pl would be to improve the service provided to customers. This leads to greater customer satisfaction.

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