Since The supply chain is a crucial part of the eCommerce business, having an idea of the tools and mediums utilized while delivering a product is significant. When you make a wrong choice, you not only lose millions of dollars but also have a negative impact on customer service. Thus, it becomes usually arduous to decide whether you require 4pl or 3pl logistics companies in india to optimize their supply chain.
That is why we are going to lay down the law on the often confusing topic in this blog. So, without further ado, let’s get deep into it.
What are 4PL Logistics Providers?
A 4PL transportation company in india represents a higher level of supply chain management. It provides its customer a control tower view of their supply chains, supervising warehousing, shipping companies, freight forwarders, and agents.
It acts as a single interface between all the aspects of the supply chain and the organization. Sometimes, 4pl is established as a joint venture or long-term contract between a primary client and multiple partners. It means that these types of trucking companies are managed from specific locations or lines of business.
In a nutshell, it is the form of business process outsourcing that is similar to contracting out human resources or financial functions.
What Are 3PL Logistics Providers?
The third party or 3pl logistics companies in india is involved in the company’s logistics operations since the 1970s. They do not take ownership of the product being shipped. Instead, they act as intermediaries or managers between the two parties.
They provide a combination of integrated supply chain services that include transportation, warehousing, cross-docking, inventory management, packaging, and freight forwarding. They also grow and change their services depending on the strategic requirements of the clients concerning moving, storing, and fulfilling goods and commodities.
Therefore, when handling the organization’s process becomes arduous, you can hire one of the best third-party transportation companies in india.
Difference Between 4pl and 3pl Logistics Companies in India
Although both 3pl and 4pl logistics companies functions, in the same way, their methods are relatively different. While 3pl looks after the shipping and distribution of the organization, the 4pl manages the end-to-end processes.
The difference between the two is as follows:
- 4pl logistics companies are suitable for medium-to-large businesses. On the other hand, 3pl are suitable for small-to-medium businesses.
- 4pl functions at the optimization and integration level. 3pl’s sole focus is fulfilling daily operations.
- 4pl can effectively coordinate the activities of 3pl logistics providers.
- 4pl can own assets like trucks and warehouses while 3pl generally does not own such types of assets.
- 4pl maintains a single point of contact for every business’ supply chain, 3pl take care of only specific processes of the supply process manually.
Conclusion
Therefore, if your business is dealing with an increasingly complex supply chain and trying hard to fulfill customer expectations for faster response times, you can choose either 3pl or 4pl logistics companies for your ultimate solution. They use Sturdy Marketing Ideas For Your Transportation Companies in India.
This way, they tend to maximize consumer value and even gain a competitive advantage. Moreover, ensure to have a successful logistics partnership that seamlessly integrates the movement of the product and information.