Third Party Logistics Services- Path Ahead

by Pooja Chauhan Freelance Professional

Indian logistics scenario is undergoing major transformation. The 3PL service providers are now experiencing challenging task to adapt to ever demanding logistics scenario .A new approach to reduce the operating cost is to cut on the fixed assets and leading to concept of non-asset based logistics providers. These assets can be the trucks or vehicles needed for freight movement, warehouses and distribution center and material handling equipment. These non-asset based 3PLs are using their networks to aggregate essential assets by signing contracts with service and equipment providers to strengthen the supply chain.

Demand prediction and scaling of the operation is always critical business aspect which if not planned meticulously may result in huge loss of opportunity or capital. To solve this problem ,non asset based 3 PL can offer space and services on flexible storage basis which can be termed as an On- demand warehousing which will save both cost and opportunity to scale operation in a short time with minimum investment.

Customer demands varies based on the nature of requirement and demand therefore a tailor made solution is the answer of the hour. The service provider handling multi user facility and leverage their unused potential and increase their bottom-line. This approach can further increase the acceptability because of inherent nature of cost effectiveness and quality of service. There is also need in flexibility in terms of the minimum space commitment for any project as they might be small in start but same can turn into high paying customer over long run.

There is huge scope in term of equipment rental and leasing companies in today’s logistics scenario as they further add cost optimization factor for any project. There can also be a thought on essential equipment sharing in terms of companies operation in the same locality as this would reduce operating cost.

We at Godamwale are working with many 3PL solution providers towards achieving maximum capacity utilization and add value to the logistics ecosystem