There comes a time when you feel exhausted from delivering products and services in new markets to new customers. It is that time when you need to start determining whether you want to outsource logistics for your business.
A lot of businesses opt for 3pl logistics companies in India to meet their customer demand. It is a business process outsourcing that is focused on the strategic operations of the client’s supply chain. It provides you with the flexibility to scale up immediately with less capital investment risk.
To help you make appropriate decisions, here is what you need to know about these good transport services in detail.
What Are 3PL Logistics Companies In India?
3pl logistics companies provide goods transport services and support all types of business shipping operations. It manages all aspects of moving goods from manufacturers and distributors to the final customers. It is commonly used in outsourced logistics and supply chain management. It provides services, including transportation, warehousing, material procurement, inventory management, customs brokerage, payment, freight audit, etc.
This is why these trucking companies are usually integrated within a company’s warehouse management and transportation operations for a comprehensive delivery workflow.
Functions Of 3PL Providers
Following are the functions provided by 3pl logistics companies in India:
Shipping And Receiving
3PL providers focus on managing the shipping process from the start to the finish. This type of company often has integrated technologies, Transportation Management System (TMS) that streamlines efficiency and automates routine.
Warehousing
A warehouse 3pl provider focuses on the company’s transportation and warehousing procedures. They are specialized in the storing and distribution of goods and services. Several warehouses also provide you with a personalized process of handling storage, distribution, and product transportation.
Transportation
These types of 3pl providers are responsible for transporting goods and services between locations. They deal with other 3pl firms to complete the duties of their partners.
Distribution
3PL providers also provide a wide range of distribution services. It includes outbound order fulfillment, picking and packing, custom labeling, and manufacturing. Small businesses usually find the distribution of larger products relatively arduous. Therefore, they can outsource distribution and concentrate on other core competence business tasks.
Pros And Cons Of 3PL Providers
Pros
The pros of 3PL providers are as follows:
- 3pl providers are the trucking companies that help you scale your business’s space, labor, and transportation according to the services required.
- They tend to develop a long-term strategic alliance with the client. It means they are invested in a company on a deeper level.
- 3pl works on eliminating the cost incurred in building and maintaining warehouses, determining how to transport goods or services, and optimizing and keeping up with new technologies. This way, employees tend to focus on strategic planning, manufacturing, and other processes that enable business growth.
- 3pl includes people, processes, and technology that work beyond a single company to develop independently.
- With the help of 3pl, emerging in new markets and areas become effortless.
Cons
The cons of 3pl providers are as follows:
- When choosing a 3pl provider, you tend to give up a specific amount of control of delivery.
- Integrating with IT is one of the biggest challenges
- Although it seems to be a cost-cutting measure, in reality, it is a value-producing decision.
When It Makes Sense To Use A 3PL
So, if most of your time is consumed with running your business and marketing, 3pl is the best order fulfillment option. It is because it offers a broad range of solutions to support supply chain efficiency. This way, you don’t have to worry about logistics operations and save time while expanding your supply chain.
They also provide you with the necessary infrastructure, technology, expertise, and support required to stay in the competition and meet customer expectations.