Looking for external help and expertise to run your supply chain more efficiently can never be the wrong decision. Hence, it could be for the expansion of your customer base or just to venture into markets. This is exactly where a third-party logistics (3PL, also known as a TPL) provider comes in. Outsourcing your logistics to a 3PL creates a positive consumer experience. Additionally, it ensures a smoother flow in the supply chain. Hence, 3PLs have become a key component in the supply chain of money brands. Listed below is everything you need to know about 3PL order fulfillment and the various 3PL providers available in India.
Definition of 3PL
A third-party logistics provider offers to outsource logistics. It encompasses anything that involves the management of procurement and fulfillment activities. Also in businesses, a 3PL quite often has a broad meaning that applies to any service contract that involves storing or shipping items.
It can be a systematic parcel of services capable of handling supply chain management or maybe a single provider. Moreover, in a B2B world where logistics is condemning to e-commerce success. It is a helping hand that helps moving products through the supply chain.
How Do Third-Party Logistics Work?
Here is a simple example of how 3PL arrangements operate: A book publisher hires writers, editors, and graphic designers to produce different publications, but it may not want to handle the consumer ordering process or transportation. Instead, the publishers use a fulfillment center to process orders that have been placed online.
Similarly, as an eCommerce owner, you may sell your products via your eCommerce website. But you get the order fulfillment done via a third-party logistics service. Listed below is a list of the advantages that 3PL order fulfillment gives an eCommerce business.
The Benefits of 3PL
The most important benefit of using a 3PL is to handle different functions such as packaging, warehousing, fulfillment, and distribution:
Drive Cost-Saving
As they specialize in logistics, a 3pl company will have a more extensive network than your company’s supply chain. They are more likely to have extensive relations with firms in the logistics sector. They may have a better influence while negotiating and will also be able to offer a higher discount amount to their clients.
Partnering with a 3pl firm simply means that you can save up on making huge infrastructure investments as they also provide transportation, warehouse space, tracking technology, and staff
Focus on The Main Competencies
Outsourcing logistics means the distribution of the workload. This results in more time for you to focus on the core competencies of your business instead of getting involved in the management of other non-core functions
Improved Customer Satisfaction
When there is an expert taking care of logistics for your business. The flow of the system is more efficient which means that there will be an increase in the improvement of services, timely deliveries, and also greater brand reliability.
How to Select the Right 3PL Partner?
Selecting the right 3pl is a crucial decision. Therefore, it is advisable to seek help from a consultant or a consultancy knowledgeable in that specific domain. This could make the selection process easier. You should define and document your 3pl requirements and your expectations. Additionally, state the priorities of your business as well. You need to keep in mind that the selection of a logistical partner also impacts multiple stakeholders. Keeping everyone concerned in the loop right from the start can result in a wider acceptance and higher compliance.
The one-size-fits-all template may or may not an ideal solution for your business. check if your provider is ready to offer customizations.
It’s always better to ask for client references and do a thorough check on them. The best indication of a reliable provider in an existing client’s feedback. Also, check the company’s financial health. Your business shouldn’t be at risk because your 3PL partner cannot deliver on the promised solutions.
List of 3PL Companies in India
When you turn to a 3Pl provider, there are certain shipping needs to fulfill your business. Here is a list of 7 3PL providers in India to consider for your eCommerce shipping needs.
Indian Railways
Indian railways catering and tourism (IRCTC) is the highest-ranking logistics company in India and also ranks among the world’s largest logistics companies. It is the world’s fourth-largest network. During the financial year 2015-2016, Indian Railways carried 1.2 billion tons of freight across India on its railway network that covers almost 8,500.
House of Patels
The House of Patels is India’s largest homegrown logistics company. Initially, it began as a single truck operation in 1959 as Patel Roadways.
As of now, House of Patels Ranks among Asia’s topmost logistics partner.
They have four different divisions:
- Patel Roadways
- Patel Airfreight International
- PILL Ltd
- Patel Logistics
Container Corporation of India Ltd.
This is an Indian Government enterprise. CONCOR was incorporated in March 1988. It began its operations from November 1989. This took place after they took over seven International Container Depots (ICDS) from the Indian Railways. CCI provides inland transport by rail for container management of air cargo complexes and ports in the country. It is actively involved in the development of col-chain logistics in India for frozen items. CONCOR plays a key role in India’s economic and industrial progress of the “Navratna” companies in India.
Logistics Post
Logistics post is a formidable player in India’s logistics industry. It is a division of India Post i.e. the nation’s postal department. Logistics Post involves the day-to-day logistics for the e-commerce industry. It also looks after the logistics of micro, small, medium, and large companies.
Logistics Post draws strengths from CCI, Indian Railways, various Indian air and sea cargo lines that have ties with the Indian government.
Gati Ltd.
Founded in 1989, Gati Ltd is today renowned as an express distribution and supply chain solutions service provider. It also boasts a large domestic presence for delivery of small domestic, commercial, and industrial freight. Additionally, they also provide air freight, rail carriage, sea cargo of freight and warehousing facilities, among other logistical services.
DTDC
DTDC started as a small company in 1990. It made its entry as a door-to-door Courier (DTDC). It offers logistics solutions including the outbound and incoming cargo and freight.
DTDC has established its presence in the UK, US, Singapore, Canada, China, Australia, UAE with associates in Oman, Kuwait, Saudi Arabia, Nepal, Pakistan
Safexpress
Safexpress launched in 1197 and has consolidated its position as one of the top leading players in India’s logistic market. Their service includes “express distribution, 3Pl, and consulting as well. The company’s website notifies us that the firm also provides value-added logistics service for several businesses ranging from deliveries to the carriage of heavy engineering as well. They provide their services inside and outside India.:
VRL Group
This group ranks among the top-most logistics providers. The company was initially known as Vijayand Road Lines (VRL) with a single truck bought by the founder Dr.Vijay Sankeshwar in Gadag, Karnataka. Other than providing 3PL, Its operations now include courier service, priority cargo, and air charters
Transportation Corporation of India
In 1958, the Transport Corporation of India Ltd was established as a “One Man, One Truck, One Office” company. This company had a turnover in 2018. It ranks at a high position among India’s leading integrated multimodal logistics. This company has a team of near 7,000 employees, 11 million sq.feet of warehousing space, and over 1400 offices.
Eastern Cargo Carriers
Eastern Cargo Carriers Pvt. Ltd is a major homegrown in Indian logistics. It ranks among the top-most International Air Association (IAIA) freight company of India, it offers point to point handling solutions of various segments of the Indian industry. The firm also has a specialization in handling pets and mortal human remains.
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