All You Wanted To Know About Third Party Logistics India
by Divya S. Content WriterThird 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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Created on May 13th 2019 01:34. Viewed 398 times.